All Forum Posts by: Jesus Garcia

I did what many here are advising since I am in the Houston market.  I went an hour east of me to Beaumont and have done 3 deals there. Less competition, lower entry points, and it's just an hour's drive away vs having to jump on a plane.  Lot cheaper than flying too.  Don't overlook areas that may not be too far from you.  If you're willing to fly to another state then I imagine you'd be willing to drive an hour or so away.  I mean you'll wait that long in the terminal waiting on your flight.  Just something to think about.

Houston has plenty of buyers so if you have a deal it should be no problem to sell it. There are a ton of Houston Facebook groups and REIA's and clubs that meet regularly. Well everything has gone virtual but yeah. Get out there and network. I'm trying to do a little wholesaleing but haven't really been consistent at it and I've "run" into quite a few investors just by marketing to absentee owners. They didn't want to sell but were interested in any deals I could sent their way.

Thanks!  I included the couple of months I received rent so it comes out to a little over 10K.

 Yes! I have 2 other rentals not too far, but they are on a great block and next to a University.  You just have to buy extra cheap on these.  There are a lot of good people looking to buy decent homes in these areas because they just can't afford more.

Investment Info:

Single-family residence buy & hold investment in Beaumont.

Purchase price: $21,000
Cash invested: $21,000
Sale price: $30,000

2/1 that needed quite a bit of updating, but it had an elderly tenant in it that had health issues & also had a son staying there that didn't work or helped her at all with payments. The rent was $750/mo with housing picking up $624. We bought it on Sep 8th or so & received our 1st housing payment on October 2nd. Unfortunately, tenant passed away on the last day of Sep. I had some trouble getting her son to leave but he was out by mid November & I ended up paying him $250 to help him leave.

How did you find this deal and how did you negotiate it?

I sent them a postca. The seller was an older gentleman, in his 80's, and this was his last rental. He needed to sell it because he was afraid that if something happened to the tenant he would have to deal with her son and the tenant's daughter who lived across the street. This is in a really rough area of town. The sellers had talked with other investors buy they had offered her no more than $18K and she wouldn't take less than $21K. Even at that price if was a deal for me so I took it.

How did you finance this deal?

CASH

What was the outcome?

After the tenant passed away and I got her son out the house remained vacant for about 5 months and I ended up "wholesaling" it to a local investor who paid me $15,000 at closing and will make $1000 payments for 15 months.

Lessons learned? Challenges?

Even though I only owned it for a few months, this house was a horror story, lol. I had a tenant pass away, an upset family and son who I had to pay to leave, a homeless woman move in (my handyman found her as he crawled in through a window cause he didn't have the key), and oh yeah I got punched in the face by an apparent random druggie walking down the street. In the end, I'll still end up with about $10K in profit, so I guess I'd get punched in the face for another deal like this one.

Investment Info:

Single-family residence buy & hold investment in Beaumont.

Purchase price: $21,000
Cash invested: $21,000
Sale price: $30,000

2/1 that needed quite a bit of updating, but it had an elderly tenant in it that had health issues & also had a son staying there that didn't work or helped her at all with payments.
The rent was $750/mo with housing picking up $624. We bought it on Sep 8th or so & received our 1st housing payment on October 2nd. Unfortunately, tenant passed away on the last day of Sep. I had some trouble getting her son to leave but he was out by mid November & I ended up paying him $250 to help him leave.

How did you find this deal and how did you negotiate it?

I sent them a postca. The seller was an older gentleman, in his 80's, and this was his last rental. He needed to sell it because he was afraid that if something happened to the tenant he would have to deal with her son and the tenant's daughter who lived across the street. This is in a really rough area of town. The sellers had talked with other investors buy they had offered her no more than $18K and she wouldn't take less than $21K. Even at that price if was a deal for me so I took it.

How did you finance this deal?

CASH

What was the outcome?

After the tenant passed away and I got her son out the house remained vacant for about 5 months and I ended up "wholesaling" it to a local investor who paid me $15,000 at closing and will make $1000 payments for 15 months.

Lessons learned? Challenges?

Even though I only owned it for a few months, this house was a horror story, lol. I had a tenant pass away, an upset family and son who I had to pay to leave, a homeless woman move in (my handyman found her as he crawled in through a window cause he didn't have the key), and oh yeah I got punched in the face by an apparent random druggie walking down the street. In the end, I'll still end up with about $10K in profit, so I guess I'd get punched in the face for another deal like this one.

Investment Info:

Single-family residence buy & hold investment in Beaumont.

Purchase price: $21,000
Cash invested: $21,000
Sale price: $30,000

Bought a 2/1 that needed quite a bit of updating, but it had an elderly tenant in it that had health issues. She also had a son staying there that didn't work or helped her at all and shouldn't have been staying there. The original lease agreement had been expired for a long time if there ever was one. The seller was an older gentleman himself, in his 80's, and this was his last rental. He needed to sell it because he was afraid that if something happened to the tenant he would have to deal with her son and the tenant's daughter who lived across the street. This is in a really rough area of town.

The rent was $750/ month with housing picking up $624. We bought it on September 8th or so and we received our first housing payment on October 2nd. Unfortunately the tenant passed away on the last day of September. I had some trouble getting her son to leave but he was out by mid November and I ended up paying him $250 to help him leave.

The house remained vacant for a couple of months and I ended up "wholesaling" it to a local investor who fixes them up himself and then sells them owner finance. He paid me $15,000 at closing and will make $1000 payments for 15 months.

Even though I only owned it for a few months, this house was a horror story, lol. I had a tenant pass away, an upset family and son who I had to pay to leave, a homeless woman move in (my handyman found her as he crawled in through a window cause he didn't have the key), and oh yeah I got punched in the face by an apparent random druggie walking down the street. In the end, I'll still end up with about $10K in profit, so I guess I'd get punched in the face for another deal like this one.

 @Ryan Felton 

Any updates? Would love to hear you got a deal. Just got it and have only added 10 properties but our goal is 100/week. We're gonna give it a go for a few months. For the potential ROI I don't think the pricing is high at all.

@David, I've enjoyed the couple of lives I've caught in the last couple of days.  Thanks for that.  Chuy

@Austin Hale thanks.  I took a look at the direct mail and I'll probably give it a try really soon.  I'll DM you for the code.  One thing I would like to see is an option for less frequent touches such as every other month or quarterly.   

@Austin Hale

I just signed up for realeflow through Prosperity Group in Houston and I look forward to getting started on it. Got it set up last night and had to come in to work this morning, so i haven't been able to tinker with it much. It seems like it will be fairly easy to navigate and use. I even messed with it in my phone a bit. Is there an app for Android. I searched and didn't see one.