All Forum Posts by: Jonathan Davis

4 Bed/3 Back in Cypress, Texas.  Needs light updating. MLS Info for Peach Meadow Drive

https://property.listreports.com/SJmtbvcA/13106-pe...

[email protected] for more information

Home comps range from $115-135. This home is ready for a rental or needs about 10k for flip potential.

This is an older home that needs a little updating and TLC, but its in a fantastic location on an over-sized lot. The spacious layout makes the home seem much larger than it really is. This property has good bones and a little TLC would go a long way to making this property into a great home. An added bonus is that the 'half bath' also includes a shower.

The property is ready to be rented now, minimal updating needed if desired.

Flip:

ARV - $135-150k

Rehab - $15-17k

This is an older home that needs a little updating and TLC, but its in a fantastic location on an over-sized lot. The spacious layout makes the home seem much larger than it really is. This property has good bones and a little TLC would go a long way to making this property into a great home. An added bonus is that the 'half bath' also includes a shower.

The property is ready to be rented now, minimal updating needed if desired. 

Flip:

ARV - $135-150k

Rehab - $15-17k

I'm a licensed RE Agents in the state of Texas and I was curious as to what the pros and cons might be for listing a wholesale type of property on the MLS the traditional way vs. "wholesaling" to an investor?

For example, say I find a motivated seller that wants to sell distressed relatives house that was left to them in an estate. The house needs considerable rehab, but has the potential to be flipped for a substantial profit. If properly disclosed to the seller, what would be my advantage to wholesaling the property vs listing it the traditional way on the MLS. Secondly, would there be any advantage to the seller to wholesale the property? I'm assuming the main advantage to the seller would be a quicker closing if I were to find a cash buyer, but I could also do that via the MLS.

Thanks all!

Great questions @Eric Jackson.  I'll be speaking to the family this evening to better understand their expectations both for the property and in regards to Owner Financing if that's something they'll entertain.  I know they will put it on the market if someone in the family doesn't buy it, so I'm assuming that they don't have any specific intentions for the buyer.  Also, based on the comps, I'm not seeing great returns on flips, so buy and hold might be my best strategy on this property even though the future of flipping for the exact reason you mentioned interest me more as a beginner.  Thanks again for the help and I hope to have more details later today.

I appreciate all of the help, all.  The only complication that I foresee is that I'd be buying from the estate made up of my wife's aunts and uncles who are older; not one individual.  If they agreed to owner finance, then I'd assume that they would prefer a 10%down payment minimum and 15 year term or less so that they'd all live to see the note paid off. As you can tell, there's more information that I need to collect on my end; however, based on your feedback it appears that Owner financing wouldn't necessarily provide me with any additional advantages while starting my RE career if the terms aren't any better than going the conventional route.  Thanks again for all of your help. 

BP, I have a great opportunity to purchase a home being sold by my in laws.  They are pricing the home well below market value if it's sold within the family.  I'm a new RE investor and feel like this would be a great first property to add to my buy and hold portfolio.  

My question is, would it be advantageous for me to convince them to Seller Finance the home to me?  That way I'll still have lots of opportunity to purchase future investment properties in the near future via conventional financing? I've heard frequently on the podcast about investors having difficulty obtaining conventional financing after purchasing their first several investment properties, therefore, I figured avoiding a bank for my first property might provide me with additional conventional financing availability in the future. 

Thanks for helping to get this newbie going!