All Forum Posts by: James H.

You might consider getting to know some wholesalers if you want to do flips. Or try wholesaling techniques to get the property yourself. Since you have access to financing without using a mortgage, you might find real value in these approaches. I have only done one deal and that was through a wholesaler, so I can't tell you from experience, but from reading a lot here and elsewhere, it appears the largest margins are usually (not always) made outside the MLS. I do have one investor friend (who I is also a mentor) who only does HUD deals and does good enough that it is her full time job. But she is doing buy and hold. I don't know how good her deals would be if they were flips. The point is, there are lots of good deals and chances are that if this one falls through, you will find another deal and look back and be great full that it didn't happen for one reason or another.

Here is an exhaustive thread with analysis and opinions last month. Over 100 replies here.

http://www.biggerpockets.com/forums/311/topics/66725-how-many-of-you-hold-your-rental-properties-in-your-name

Terry,

I have not invested in mobiles but have thought about it. I have followed a lot of your threads which have sparked my interest.

If you are selling the home on a note, do you evict a buyer (tenant?) or do you forclose? How is the note structured so that you can evict? This is critical where I live (Texas) because if your contract is like a lease/purchae or rent-to-own, well, these contracts are functionally illegal in my state.

Yet you must have some sort of contract to present the judge in event of eviction. Thanks for any input.

I didn't know. That is great. Sounds like it could reduce a lot of searching over old crap to find new stuff too. Thanks for the info!

AND, who is going to have any idea how many wholesales you have done since your only contract is between you and the assignee? There is no way for anybody to track and enforce limits even if there were limits. Wholesaling is tantamount to curbstoning (if you want to make a car analogy) except its legal.

Curt, are you sure you need to own the home if you don't have a license? If you do, you are not really wholesaling, you are flipping (even if you're not making repairs/improvements). Wholesaling is just getting the seller to agree to sign a contract to sell the house to you or an assignee. This keeps closing costs to a one time transaction even though the property can actually be assigned several times before someone actually is an end buyer/investor. So you don't "represent" anyone - not even the assignee. Once an assignee takes over, the assignee is responsible for due diligence since he/she is actually signing the contract to buy the property.

If you don't need a license (which you don't in my state), why pay all the state and broker fees to have one. If I'm selling my house, I don't really give a crap if someone trying to buy my house has a license. I want them to have money.

Angel,

The quickest ways with the least amount of up front cash and COMPARATIVELY "no risk" would be bird dogging for wholesalers or wholesaling. Either one will take some time and a lot of work (running around time and gas and other crapola). I don't like running around that much. But you do what you gotta do.

The quickest way to make money in real estate if you do have money (and construction knoweledge) and can accept large risks would probably be to flip houses.

Being excited is good. You can't really even work the smallest real estate deal successfully without a passion for what you are doing - IMO.

There really is nothing quite like actually DOING it.

Can you do it? I used a signature loan and a Visa to finance the rehab of a cash purchase recently. Can I write off the interest?

BTW, If I did a HELOC, wouldn't there be points that would increase the effective interest rate significantly on a small loan? I haven't researched HELOCs yet, so forgive me if this is a naive question!

Thanks Jon and Mark! I agree with Nathan's analysis at the present, but I plan on having this paid and clear within 12 to 18 months using my paycheck. The analysis will look a little different then... I have considered using a HELOC to get into another property once I get comfortable with operaing my business now that I have tenants. Crawl before walk. But we are just ecsatic and it feels great to have some crisp Benjamins in our pocket!

Jon, this neighbornood is in the 76111 zip code. Its kind of a wierd neighborhood in that there are really old and also newer construction mixed residential neighborhoods and the neiborhoods are like little scattered pockets around otherwise industrial/commercial settings. There is an old grain tower less than 2 blocks from my property and we see horses being ridden down the (paved) street on the weekend? Haha! At first glance it looks kind of like a war zone, but upon closer inspection, it really isn't and we feel safe there at night. Although my wife and I might tolerate a little more than the upper crust of society would! I see a lot of potential for the area with my inexperienced eyes. It's certainly better than just to the west of Lake Arlington (76104 and 76105). Probalbly not the area for appreciation, but more for finding quality low income tenants to build cashflow without dealing with Section 8. Speaking spanish is a plus to broaden your quality tenant pool in this area.