All Forum Posts by: Joe Davis

Thanks Jerry, yes that was what I was after. I got in touch with Texas Pride yesterday (they just opened in Houston) and was already planning on using Prime Loan for the servicing. 

Hey BP Community. Reaching out for any recommendations on an RMLO officer in Houston that would be able to handle my Owner Finance transactions!!

Thanks in advance.

Curious to hear from other landlords on whom pays the utilities (gas/electric/water etc) in your properties. Do you write this into your lease, or do you cover this for them.

Hey Jeff,

Welcome to Houston. I am also a transplant from the UK and now a full time wholesaler, investor and Real Estate agent. I know the market well now so if you ever want to sit down and discuss do let me know.

Joe

Yes it can work, but technically it's not BRRRR. You are missing out one of the R's :)

Bank owned and short-sales can be tricky to navigate. Mainly due to the fact that they can take a long time to close! However, if you can get a conventional loan on a distressed (or semi distressed) asset than their is no reason why the strategy won't work.

Remember to just calculate your cash flow forecasts on money that has actually been borrowed...nothing projected etc. Good luck and keep us all up to date on your first deal!

If you are using a conventional loan to purchase the property than re-finance wont be in the equation. you run the numbers off of whatever you're currently borrowing. So in your above scenario you are using $150k (minus 20%)? That's the number you will be running your calculations off.

The most typical way for the BRRRR strategy to work is you are using Hard Money at a much higher interest to facilitate the initial loan. When the work has been completed, you will than qualify for a traditional loan which will be at a much more favourable rate. You are eliminating the first high-interest loan with the new.

In your case it sounds like you are getting the long-term loan first...what are the figures on this? what % over how many years etc....you are only ever running your numbers on the money you are borring.....not what it could/would be worth etc. Run your numbers off $150k in your scenario - not $200k 

Matthew,

If you are using a conventional loan to purchase your property than that is what you will be using to calculate your cash-flow forecasts...its that simple. If your lender is willing to lend against a distressed asset (albeit in this case just needs $10k which is very low) than why don't you put your terms of the loan on here so others can better calculate.

Why would you be paying for $200k when you've only borrowed $150? Run your numbers off how much you are borrowing, over what rates and amortization etc.

Houston is very diverse, an ever-growing city with an incredible amount of potential to still find quality deals that provide a heavy cash on cash return at the same time supported by the strong jobs market.

Anthony,

We use Patten law firm (Texas American Title) in the Galleria area just off Westheimer.

I have also used Independence title.

Regards,

Joe

First-time flood, we have two houses next to each other if you are interested in both.Available for viewing asap.