All Forum Posts by: Hattie Dizmond

Originally posted by @Sharad M.:

@Wendell De Guzman 

I would disagree with that statement. Let's say if a property is listed for $100,000 and you get it under contract for $90,000 and you try to wholesale for $95,000. You are saying that's a good deal for the investor?

I suppose that depends on what the ARV is. If I get it under contract for $90,000, offer it to an investor buyer at $95,000, when the property's ARV is $160k with $15k in repairs, then yeah. That's a good deal.

There are a lot of blanket statements being made in this thread and a lot of opinions being thrown out as fact, along with some ridiculous name calling.

The bottom line is, it shouldn't and doesn't matter how I find the deal. If I find a MLS deal in an area that is not active with investors, but it provides one of my buyers with an opportunity to make $40k, they don't care that I make a profit or that I found it on the MLS. I am providing a service to them, because it's a deal they didn't have previously.

As a Wholesaler, my goal is to provide high quality opportunities to my investor buyers, while providing an avenue of escape for the Seller.  2 problems solved.  I'm honest about who I am and what I do and provide transparency on both sides of the deal.  Maybe that means there are a few deals that I don't get, but I sleep well at night.

If you can find highly motivated sellers with equity, you may be able to get into the property with equity built into the deal. That would potentially give you the opportunity for your LTV to cover all of the purchase price. It's contingent on finding the right deals, but it's possible. The other option is to start with wholesaling to drive some income.

I don't know what areas of DFW you've been looking at and comparing property taxes in, but it varies wildly from one city to the next. It's basically determined by the commercial/industrial tax base of the city. For instance, there is relatively no commercial/industrial base in Southlake. As a result, taxes are outrageous. Right next door I'm grapevine they are quite reasonable. It also depends on what you consider "high". I would guess that, although the taxes in LA may be lower, the rental rates are probably a lot less as well, so you're likely not gaining a lot. Just my opinion.

@Account Closed is correct. Trusts will trigger the Due on Sale clause, unless the original borrower maintains a beneficial interest AND does not give up their right to occupancy. I'm new to REI, but I have 20+ years in banking. I just wrote a blog about this. You can find it here...

https://www.biggerpockets.com/blogs/5295/blog_posts/38761-subject-to-misinformation

Freedom Title of Texas Freedomtitleoftexas.com 3624 Long Prairie Rd #101 Flower Mound, TX 75022 214-899-5950 Brad Reitinger They are really fast and thorough. Were able to get a closing together for me in 3 days.

Welcome to BP. Do you have a target area you would like to invest in &/or a neighborhood type? What about a target in terms of the specs on the properties you will be looking to invest in? (i.e. 3/2/2 in the 1,500 - 1,800 sqft, $125,00 - $175,000 range). Are you looking for turnkey or are you looking for deals and are willing to rehab? There are a lot of wholesalers on BP, including myself, who would love to add you to our buyer's list, but it helps to know what you're looking for, so we don't waste your time with opportunities that don't fit your target market. Regardless, welcome aboard!! Hattie

Real Estate agent....Darryl Morris 214-783-9147

He was with Remax, but is now with a much smaller brokerage.  He's very investor friendly.  Tell him I referred you.

Hattie

You don't indicate what or who your "group" is composed of or even what kind of group it is, so the question exists in a vacuum. It's kind of a blank canvas. As a newbie to REI, here's my 2 cents...

You will do your group a disservice and frustrate your self if you try to tackle everything. Do an overview of the most common REI strategies. Afterwards, poll your group and find out what most of the people are interested in. Start with the one that has the most interest and cover that at a level that shows people the complete life-cycle of the transaction. Don't get bogged down in exotic variations. Stick to meat & potatoes. Teach them how to evaluate deals with that strategy in mind, how to find properties, how to exit using that strategy, etc. - full life-cycle.

With each new strategy you focus on, build on what they already know.  Teach them how to take a deal they found for a primary exit of the previous strategy(s) and determine whether it would work for the next strategy.  If it can be combine with the previous strategy, teach them that.

Holly,

I'm not sure if schools are a concern for you.  If they are, I'm not sure the areas of HEB that support your price range are going to be where you want to be.  However, you can definitely hit SW Arlington in that range.  You're likely looking at 3/2/2 in the 1,500 - 1,800 sqft range.  I used to live out by the lake there.  A couple of close friends still do.  It's a great area.  If elementary school quality is a consideration, focus on Ditto, with Little Road being a solid alternative.  In general, east of Green Oaks, north of Poly Webb and south of Arkansas will keep you in safe, well maintained areas within your target price range.  If you shop around, you can even go as far west as Perkins without necessarily pricing yourself out.  You'll just have to bargain hunt and the house will likely need updates.

Good luck!

Hattie

Stan,

You're HELOC will be 3 separate HELOCs, one for each property. Therefore, there is no reason, as long as your debt to income ratio will support the leverage for each transaction, why you shouldn't be able to get a HELOC against all 3.

As for the interest rate... I can't begin to speak to the interest rate. There are too many factors at play and it's completely dependent on the lender. My personal recommendation, based upon my banking background not my REI experience, would be to work with a local portfolio lender. You're more likely to get the best possible rate, plus you may be less likely to get a higher rate for HELOCs 2 and 3 in this "big bang" approach. It's also a great way to start building what could turn into a very valuable relationship with a local lender. Just sayin'! :)

Get the HELOCs, do the deals successfully and service those HELOCs properly, there's a good chance you might not have to ever use a HELOC again. Local portfolio lenders, because they have their own underwriters - usually right down the hallway from the lender you now have a track record and relationship with - have a lot more latitude than the big banks/originators. They will lend based upon track records & relationships, because they have that flexibility.

Hattie