All Forum Posts by: Hattie Dizmond

I don't think you're going to like my answers.  But...

Look at the average price/sq ft for other properties listed on the same street.  You're way, way over.  

And, that's a C neighborhood.  Your finishes, are all over the shop, but they might support the price, the neighborhood doesn't.  I don't like that area, in general, because South Dallas just doesn't move quickly.  In my opinion, that isn't a good area for flips.  It works for buy & holds, if you want to deal with some of the issues that come with the class of neighborhood, because there are tons of renters over there.  Selling on Lease Options are also popular in those areas. 

I'll tell you right now, I wouldn't spend any additional money on staging.  The folks buying in that area are going to be swayed by fancy staging.  I would seriously look at either getting creative with my exit strategy or drop my price.  Personally, if you are considering selling at zero profit, I'd look at doing a lease option.  You might be able to get $5000 cash and have monthly income on the property.  I don't know what the rental rates in that area are like, but it works over in Pleasant Grove.

@Jim Cummings that's possible, but not all sold amounts get reported through to what is visible to those of us without realtor access. So, it doesn't really matter than someone has to input it. And, the fact that the sold price isn't attached to the deed isn't affected by what may or may not be contained in the MLS.

My apologies.  You're absolutely right.  I misread what you posted.

Yes!!! You can absolutely do that. Read Brandon Turner's story. You don't have to use flipping (selling) as your exit strategy. After 1 year, you should be able to refi the property. Be sure you're not overestimating what the ARV will be. But, it's a great strategy. If you're doing conventional financing, which I hope you are, try to use a smaller, local lender. That way, when you start getting past 4 units, you'll have a relationship that should allow you to morph directly into a portfolio model. Good luck!

The house doesn't always increase in value by the exact amount of the repairs. It doesn't do it in the example you cited. $100,000 asking price, plus $25,000 renovation = $125,000. You said the ARV would be $150,000 - $175,000.

There is TONS of information here on BP to help you learn to calculate the ARV of property.

I suspect you need to know more than just how to calculate ARV. Start with the Ultimate Beginners Guide. It will explain ARV and much more.

https://www.biggerpockets.com/real-estate-investin...

Also watch/listen to the interview with Will Barnard. It's all about ARV. It's from 2011, but the process didn't change.

https://www.biggerpockets.com/renewsblog/2011/09/1...

Find a partner.  Get creative on the financing.  (i.e. Seller Financed or something like that)

Right now you have no track record, which means you can't even work with a hard money lender, unless you find a smoking hot deal with enough built in equity to satisfy the need for a down payment.  Even then it will be iffy.

Everyone wants to jump right in an purchase. Have you read Brandon Turners stories about how he got started? If not, read what Brandon did with creative financing, BRRRR and other strategies. Get educated. Save money. Clean up your credit. Sorry there isn't better news.

I believe that's a jurisdictional issue. Here in Texas, the sell price of properties doesn't get reported or filed with the title transfer. Because they aren't reported (officially...sometimes realtors will submit the sell price to the MLS, but it's unofficial and optional), it makes it a bit more subjective, when calculating comps, but it means your property isn't going to be revalued just because of the sale.

Since there is a legal contract in place, you can't force the change on him, during the term of the lease, unless there is specific language in the existing lease to give you that flexibility, which is unlikely.  Here's the reality.  Yes, having to go to the bank to make a deposit is a pain.  However, you have guaranteed funds. 

If he is ever late, you might have a bit of latitude.  Otherwise, you're getting guaranteed funds, on time, every month.  Just be patient and go with it.  Write the requirement into your next lease, when he renews.

@Kenneth Stogdill

First, some wholesalers DO actually purchase the property.  Second, it shouldn't matter to you whether the wholesaler buys the property themselves or simply assigns the contract to someone else.  Many times the benefit of working with a wholesaler is that you get out of the middle of the process and there is a quick close.  Posting it on Craigslist will result in you fielding tons of calls.  It depends on what your primary motivation is.

The bottom line is that whether or not you can sell your home to a legitimate and ethical wholesaler is completely dependent upon the asking price and the ARV of the property. If the numbers work, you can probably have cash in hand in less than 3-weeks.

I would be happy to walk you through the process and answer any questions, no strings attached.  My contact info is in my profile.  Feel free to reach out.

As long as there are separate entrances and sufficient privacy, make sure you're within code.  It should work fine, particularly if you have access to folks who need less space and lower rents...think students, medical interns, etc.