All Forum Posts by: Jevani P. Barron

@amirkhan Thank you for your prompt response! Since this is a deal with a family relative, we decided to forgo the inspection period as I’m already familiar with the properties. Similarly, earnest money wasn’t included as part of the contract.

The potential buyer’s suggestion to switch to his contract, which includes a fee to me, seems to be because he plans to sell the property to one of his investors. That’s the impression I got based on our conversation.

Hi BP community,

I’m relatively new to wholesaling and currently have two properties under contract with the owner. Both properties are located on the east side of Houston and present solid investment opportunities. I’ve already found some potential buyers interested in the deals.

However, one buyer has recommended that I terminate my contracts with the owner and instead work directly with them. They’ve offered to pay me a fee if I go this route. While the offer sounds tempting, I want to ensure I capitalize on these contracts fairly and effectively.

Here are my main questions:

Should I entertain the idea of terminating my current contracts, or is it better to stick to my original wholesale plan?

What strategies or precautions can I take to protect myself and ensure I maximize the value of these deals?

Are there any red flags I should watch out for when dealing with buyers who propose alternative arrangements like this?

I want to make the best decision while honoring my agreements and maintaining professional integrity in this deal. Any advice or lessons learned from more experienced wholesalers would be greatly appreciated.

Thanks in advance for your help!

Hi BP community,

I’m seeking an investor to partner on two properties currently owned by my uncle, located on the east side of Houston. Both homes are tenant-occupied, but the tenants are paying below-market rent.

Here’s the plan:

Property 1: Fix-and-flip opportunity.

Property 2: Renovate and convert into a Section 8 rental.

Key Details:

Asking Price: Property 1: 125,000 & Property 2: 115,000 - $210,000 (combined price)

ARV (After-Repair Value): Property 1: $193,000 & Property 2: $177,000

Estimated Remodel Costs: Property 1: $15,000 & Property 2: $18,000

Current Rent: Property 1: $500.00 & Property 2: $650.00

Location: East Houston (general area).

I’ve completed a few fix-and-flip projects and am experienced with the process, but I’m looking for an investor open to partnering on both properties with me.

If this opportunity aligns with your investment goals or if you’d like more details, please feel free to contact me. I’m happy to discuss specifics and the next steps privately.

Looking forward to connecting!

@Alecia Loveless Thanks for the feedback! 

Do you have any insights on HELOCs that you could share? I am considering one because it allows me to leverage my equity without refinancing. A cash-out refinance would mean taking on an entirely new mortgage, which may not be necessary at this time. The HELOC option seems the most practical, especially given my current rent level. It would enable me to access the equity in my home whenever needed, allowing me to take out a smaller amount, such as enough for a down payment on another home. @Taylor Dasch - Any thoughts here?

Thanks for the feedback, Taylor!

At market value, the property would generate solid cash flow. I’ve been doing well since raising the rent this past May—looking back, I’m glad I made that move, as it’s helped me stay afloat financially.

I currently have a few potential buyers who’ve submitted offers around 85-90% of the property’s recent appraisal value. Selling at that price would allow me to walk away with a six-figure payday. My plan would then be to diversify by partnering with my mother-in-law on fix-and-flip projects for a year or two, which would increase liquidity. Once that phase is complete, I’d transition back into long-term holds.

As for the cash-out refi, without at least doubling the rent, I’d be in a net-negative position each month, which doesn’t seem like a worthwhile trade-off.

On the tenant side, I agree with your point about the business aspect—it’s something I’m working on coming to terms with. I’m also considering advising my tenant to look into Section 8 assistance, as it could help support their financial situation while allowing me to adjust the rent closer to market levels.

Hi, BP community,

I'm looking for some guidance on how to handle my current investment property. Here's the situation:

I own a tenant-occupied property, which is paid off and cleared. The tenant has lived there for almost 25 years, even before I acquired the property. When I took over, I raised the rent by 15%. However, due to rising insurance and tax costs, I'm starting to feel the financial pinch as the tenant currently pays rent 60% below the market average.

My long-term goal is to acquire more properties, and I've considered doing a cash-out refinance to access equity for reinvestment. However, I'm hesitant because the rent wouldn't cover the new mortgage, putting me net negative monthly. Selling the property has also crossed my mind, but I'm mindful of the tenant's situation.

I plan to raise the rent again by 15% in May when the lease renews, but I'm unsure if that's the best course of action.

So here's my dilemma:

• 1. Given the current rent situation and potential equity, should I sell the property?
• 2. Is a cash-out refinance a good strategy right now despite the risk of a negative cash flow?
• 3. Are there other approaches to balance my goals of reinvesting while being considerate of the long-term tenant?

I'd greatly appreciate any advice or strategies from those who've faced similar situations. Thanks in advance!