All Forum Posts by: John Vo

Hey BP! I'm looking to make an offer on a SFH that has a section 8 tenant in place. Their lease is in place until Feb of next year. I've never work section 8 tenant before, so I don't know what sort of due diligence I should be looking for. Your help is appreciated!

Matthew Rollo I would've offer in that discount range too, but the issue is that I ran a check of the property through the local MLS and it looks like the wholesaler got this property off the MLS and is subsequently trying to wholesale it. The property is listed as under contract on the MLS currently. The MLS asking price was $125K. The wholesaler asking price is $117K. I don't know what the wholesaler margin is, and not do I care how much they profit, but I would think that they couldn't have gotten the property for that low where they would entertain a $90K offer from me since the MLS property listing say there was a multiple offer situation. I think I'll just move on to a different property.

Greg H. That's something I did not know. I'll check in with the asset manager just to make sure. Thanks for the heads up.

@Matthew Rollo Thanks Matthew for your help. It doesn't sound like a good deal after all.

@Crystal Smith I did a 6 months and 12 months comps for 1.5 mile radius, 1.0 radius, 1/2 mile radius as well as within the subdivision. The most conservative comps was the 12 months 1.5 mile radius, so I went with that numbers, since like you said the key part of BRRR is to be able to refinance. Thank you for letting me know what appraisers are looking for, I appreciate the heads up!

@Tyler Wehrung I thought about it last night and ran the numbers again to make sure I wasn't passing up a good deal, and yes I agree with you. I could find a better deal. Thank you for your thoughts!

@Krystal Seabron Welcome to BP! There's a lot of real estate Meetup groups as well as REIA in Houston, Rich Club and The Wealth Club being two off the top of my head. I would say try to make it to one of the real estate meetings a week and you'll start to pick up on how to wholesale as well as know who's all the big players in Houston in are so you can pick your mentor then.

Quick note, bandit signs are illegal in Houston so I don't recommend you use it. Also you should have two business cards, one to give out to your prospect identifying things like "I Buy Houses and quick closing" and one to give out to your peer identifying yourself as a Wholesaler. 

I would hold off on the website because that's a costly expense since you're just starting out. I would drive for dollars, send out postcards/yellow letters and work my contacts first to see if anyone has a real estate problem that you can help them solve. 

@Willie Banks I don't think I follow you. What do you mean a buyer for financing form? 

You only have 2 or 3 business days to mail in the completed contract to HUD once your bid is accepted. So you would have to FEDEX the contract overnight to one of the asset manager that's overseeing the property. So you would literally have to have a buyer within 1 day after your bid is accepted in order to add that buyer's name to the sales contract and then mail the contract to the asset manager. The sales contract belong to the asset manager and there's no financing form that I know of except for the FHA financing addendum. But the FHA financing addendum doesn't let you add a buyer to it....

Willie Banks You can't add another buyer to the contract once the contract has been accepted by HUD. HUD just won't allow that. You would have to go to closing with HUD and then turn around and sell it to your buyer and close with them at another closing.

@Ryan Giblin Welcome to BP and congrats on starting a new journey! Real estate investing is tough enough as it is just starting out, and if you're moving from place to place in such a short time it's even harder to build up meaningful contacts. Not sure what direction you're looking to start out in such as wholesaling, rehab, tax liens, etc.. but all of these will require you to get educated on the subject, building up your contacts, and finding funds to close the deals. I would say for now do the leg work by getting educated on the real estate strategies and how to get financing. Get to know the cities that you're going to spend time in, so you know what areas you want to invest in and build up your contact list. When your leadership program end and you finalize a permanent location, you can hit the ground running. 

Willie Banks Generally HUD sales contract are very specific and you can't assign it. You would have to do a double closing if you want to wholesale it. I've tried to wholesale a HUD property before and it was a disaster. I had the property under contract with HUD and went to inspection where everything took a turn for the worst. Inspection and subsequent contractor bids was a lot more than I anticipated and threw the whole deal off. The inspection was also a pain in the butt because it involve more paperwork that has to be approved before you can even have the inspector come in to inspect. The payoff factor was definitely not there. If I were to do it all over again I would start with a more conservative bids and make sure to walk trough with a contractor before I bid. Good luck to you.