All Forum Posts by: Grant Kemp

Welcome aboard! We look forward to getting to know you.

Have you done any deals yet or are you looking to grow your knowledge here to get your first deal?

BP is a great place to start, you'll find some great info on here! And the DFW area has some great investors on here who you can learn a ton from.

Disclosure: I office in the same building as Tim, though outside of that our businesses are completely independent.

I've got to say, the REI expo is a great place to meet a ton of people who are actually out there "doing". As a matter of fact, I met one of my most consistent buyers at the last Dallas/Ft. Worth REI Expo.

This event truly does bring out investors in every stage of a career, whether it be investors looking to try and figure out what strategy to start with, to investors who have been in the game for decades. Any time you've got an opportunity to get around others to learn and network, it's an opportunity worth taking. Especially when the opportunity has as many people as show at the REI expo events. Tim's very clear with his speakers, too, as far as the "sales pitch" goes, so it fosters much more of a learning experience than many of the other "expo" events I've been to.

As long as your take some initiative while you're out there, you'll be hard-pressed to not come away with an advantage of some sort.

Looking forward to it, guys. See you there!

We can do basic title runs for $25-50 through our lawfirm (Horne & Associates), I also have Allegiance title here in office for full title policies

Vincent, keep in mind that here in Texas the lease option is on very shaky ground. You can only really do an option period for up to 6 months. Between 6 months and 3 years is legal but you've gotta do a lot of stuff to get there, and an option above 3 years is illegal.

This is the ideal situation for an owner financed wrap. You've already approached the sub2 strategy with him? If he's willing to sell sub2 you can take it down that way then market the property as an owner financed property. You'll want to make sure to get all the proper disclosures signed obviously, but this is definitely doable.

I don't wanna push any lines of "forum advertising" so mods, please let me know if I can't say this and I"ll remove- but since you're in Texas I am more than happy to help you structure the deal and get you the proper paperworks on this, we do approximately 10 of these a month and all contracts are lawyer drafted by a real estate and title attorney.

You'd want to take the property sub2 for the amount owed, bring up the backpayments, and then market the property to bring a buyer in. If the comps really are 110k for retail, you could most likely sell at 120k on a wrap, collect a 10-15k down payment then finance the rest at 8-10%. The most important number out of his payment is the PI number, so knowing that would help us determine what cashflow would look like, but you'll likely be making a great cashflow off of owner financing and you wouldn't have to worry about repairs and tenants.

No worries.

And no, to answer your other question, a RE attorney and Title company are separate. You will close an owner financed deal through a RE attorney. The title company needs to close with title insurance, and on sub2 deals, you won't be getting title insurance (at least I don't when doing these. Also, FHA and VA won't even allow the title insurance on a wrap)

Again, though, that side of things would matter if you're buying sub2 or free and clear with OF.

The most important bit of information here is whether or not they have underlying debt. Either way, you'll want to show them what your payment to them would be with the offer you're handing them. In other words, learn to use a financial calculator. iPhone and android have a free one I like called 10bii calc.

Next, offer them a little bit over what the "prime rate" is. I use the WSJ prime when doing this (found here: http://www.bankrate.com/rates/interest-rates/wall-street-prime-rate.aspx) and so I'd offer 4.5-5% to the seller saying "well the prime rate is 3.5, so I'll give you a point more than that as good faith which would make my payment to you $x"

again, though, the most important thing is whether or not they own free and clear. If they owe bank debt, that's by no means a deal killer, you just need to make sure you're purchasing the property correctly in order to disclose everything and make sure that responsibilities are handled the right way.

Welcome aboard! Glad you're getting to a place of being able to invest.

I know you're looking for auction stories, but I can attest to doing pre-foreclosure and even sub2 preforeclosure. Just yesterday I closed on a property that had a huge net profit by bringing a property out of foreclosure then taking it down via sub2 and selling retail.

preforeclosure can be a great market if you know how to buy sub2. It ties up less of your cash and allows your pipeline to be much larger.

Welcome aboard! You'll find BP to be a GREAT resource of local investors. Dallas has some excellent investors represented on here. @Jon Klaus and @Jerry Puckett are both very active in this forum and in the local market. You'll see some great advice on here from them both.

The biggest area of stagnation I see is people getting stuck in the "learning rut". Definitely do all you can to learn, but make sure to get out there and pull the trigger! Start relationships with those of us that are active investors in the area and get going in your investing world!

I, too, was an IT professional, and was doing pretty well at that, but after about a year of investing was able to quit that job and go full time into REI. It's definitely attainable, and I'll be glad to help out in any way I can.

We look forward to seeing you grow here. Talk to you soon!

Welcome aboard! I'm very happy you're starting to take investing seriously. We've got a great market here and PLENTY of strategies to boot. You'll find some great people and resources right here on this forum as well.

And cheers to having already witnessed the last weekend (excluding bye) of cowboy-less football!