All Forum Posts by: Karl McGarvey

 Contractors are going to want to see the properties. As you build relationships with them and give them business they may be willing to go to some home showings with you, but more commonly you would bring them in during your option period to get all of your quotes for the scope of work needed.

David, I recommend Jerome Johnson with Edge Home Finance for most of my clients lending needs. He does a lot of conventional/VA style primary home loans which does not help you... but is extremely knowledgeable and if he cannot help you, he probably has a good recommendation to get you on the right path.

Hey Alejandro! I represent a lot of aspiring House hackers in Houston, its in my opinion the absolute best way for someone in your position to get into REI for cheap and really start building long term wealth. Cashflow is tough right now with interest rates and prices not dropping, but not impossible. When you are running your numbers, keep in mind how much you are SAVING and allowing yourself to not have to spend on rent etc by having people paying you. Even if positive cashflow is not a thing for a year or two, you are still saving $1500 in rent, thats $1500 you can be putting towards the next investment.

Appreciation over the next year or two will probably slow down, I think Zillows current numbers are between -.5% and +1% in the next 12 months (zillow data can be way off), but over the long term 10 years, you have the potential to do very well. Houston and the State of Texas continue to do very well at attracting business and strong job markets that should keep your houses rented.

Let me know if there is anything I can do to help! If you want to chat Houston specifics or have questions on the home buying process just shoot me a message

- Karl

If it were me, I bould buy a live in flip using a conventional home loan which is way cheaper than investor financing. After a year move out of the home and into another live in flip and start renting out the house that you spent the year fixing. House hacking!

Tax Assessments are not good indicators of market value. Each market is different. To get a good market value you can mostly easily work with a local real estate agent to run a CMA and give you an approximate value

 Thanks! Like Holly said, big jumps, esp in the last year... but we attempt to mitigate by staying out of flood zones.

Turnkey properties don't have to be offered by a turnkey company. If there is an area that you are interested in, get in contact with a local realtor and they can help you find turnkey properties in that market.

Choose where you would want to live if you were a renter. Where are the jobs, good schools, and amenities that people want. 

Also keep in mind that major cities have submarkets within them, ex: The West side of Houston may demand higher rents than the North side, or occupancy rates may be higher on the South side etc.

I would schedule some calls with lenders, get an idea of what you are approved for, and how much you want/need to spend to get the type of property that fits your investing criteria. Then interview a few agents from different markets and get an idea of what each area can do for you. Also recommend interview property managers in those areas to help build a well rounded answer. And always verify information... especially when the people you are interviewing make money off of you doing business with them... magically that creates a bias!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $235,000
Cash invested: $23,500

Contributors:
Holly Kaufman

Real estate is ALL about relationships, and this transaction is proof of that. A close friend is offloading his portfolio of eight properties. Our original intent was to package four of them into one owner finance deal that would help him have passive income for the next 10 years, however when we could not come to terms on the details of the deal, we pivoted and found a private lender who we also had a relationship with, for one of the properties and negotiated a price under market value.

What made you interested in investing in this type of deal?

We are positioning ourselves for long term appreciation in an area that is continuing to grow with no shortage of jobs and industry.

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

Found it through established relationships and networking. Negotiated it ourselves since we are licensed real estate agents.

How did you finance this deal?

Private Lending.

How did you add value to the deal?

Negotiated a price under market value and will raise rents to market value when the current lease expires.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $235,000
Cash invested: $23,500

Contributors:
Holly Kaufman

Real estate is ALL about relationships, and this transaction is proof of that. As my boss moves towards retirement, he is offloading his portfolio of eight properties. Our original intent was to package four of them into one owner finance deal that would help him have passive income for the next 10 years, however when we could not come to terms on the details of the deal, we pivoted and found a private lender who we also had a relationship with, for one of the properties and negotiated a price under market value. Because we were able to cut out the real estate agent commissions since we are real estate agents ourselves, we negotiated taking that amount off of the sales price. Home comes turnkey, with a tenant paying under market rent, so we will raise rent at lease renewal.

What made you interested in investing in this type of deal?

We are positioning ourselves for long term appreciation in an area that is continuing to grow with no shortage of jobs and industry.

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

Found it through established relationships and networking. Negotiated it ourselves since we are licensed real estate agents.

How did you finance this deal?

Private Lending.

How did you add value to the deal?

Negotiated a price under market value and will raise rents to market value when the current lease expires.