All Forum Posts by: Kelly Smith

I understand eager to start making moves/money!  I have a short sale that just went under contract this week - we started convos in March... so patience is key but who wants to sit on money, missing out on opportunities!?

Lots of good questions and some of the answers will depend on where you want to invest because not all HMLs are the same in all markets. There are perks to good credit and most investors close in their entity (Inc or LLC) with a personal guarantee. There are non-recourse options for HM financing but you won't get as much leverage (aka more cash down from you).

Where is it? Hard to give advice.  Might be worth dirt value?

Set yourself apart from the other investors sending mail pieces - send a post card or something very different.  My neighborhood is hot right now and I get a couple pieces a week in my front door and in my mailbox.  I keep them as references - some have wording that doesn't make sense?  Not everyone is an investor so write in simple terms, not jargon.  Some are just bad english.  Some are yellow, some are pink, some are white.  Some are serious sounding like if I don't sell I'll lose my house or my family will when I die.  Some are generic.  I've never received a post card and think that is the ticket - forced to look at the content, not hope the open it.

Try something pointed, like : foreclosure? divorce? cash for bills? 

I would second that you should get multiple quotes from GCs and ask for references because if you're remotely managing a rehab the odds of something wrong happening increases.  It may be very worth your while to come to town and meet people before jumping in.  Or even partnering with a local investor who can help you get a realistic idea of the market, etc. DFW is the top market in Texas now so a lot of people are looking at deals but not all of them are deals!

Good questions above, will elaborate with:

1. Do you provide returns which can increase based on frequency of lending/amounts loaned?

2. Can I put monies into a fund OR choose the loans to participate individually (and how much)?

3. The primary focus is protecting principal and if trouble seems imminent (ie: foreclosure) what options do I have to preserve the investment? 

4. How transparent are you?  Do you have lender meetings to provide full disclosure of the past quarter and future projections versus goals, etc.

5. Wire deposits or checks?  IRAs ok? Who is the intermediary?

I have a great recommendation - I have sent them a number of referrals with happy property owners (many have been with them for years).  

Unless you plan to use the MLS, etc - getting your license and joining the local Board of Realtors for access can get expensive. I don't use my license for residential real estate (CRE only) but my Broker does and has access to MLS through a local Board of Realtors. As a result that Board sends me a letter every year demanding $600+ as a penalty because I won't pay double for access to systems I never use!

It is only illegal if you are wholesaling the property with representations and actually conducting a real estate transaction.  Wholesalers are selling a contract "as is" and do not conduct business as though you are a real estate agent/representing any party.  Many of the big wholesale shops in Texas require their Buyers Reps have licenses as a CYA because TREC has been sending letters out trying to scare people out of wholesaling.   

Wholesaling isn't a new concept and most realtors have no idea how to work with investors or price a "handyman's special".  The entire concept is foreign and not what is taught in RE classes.   Realtors (and TREC) likely also believe they are missing out on a commission, which is why they get mad.  A good realtor would get on the good side of investors because that could become a listing commission time and again with minimal effort.  

Tell your friend if they have any listings appointments with dumps of houses to let you know first....

Hi Elizabeth, 

EaDo is up and coming for new construction (that's what I'm financing a lot of in the area) but doubtful you'll find what you're looking for in that price point.  All of the recent stories coming out of Houston indicate that millenials and renters are moving to the 'burbs, which should be easier to find properties in your price point.  Tomball, Katy, Cy-Fair, Sugar Land and Spring are all getting better roads, more development, etc and may still have opportunities in your price point.  Can't imagine Woodlands has $100k homes?

I have clients who only flip $150k ARV so there are a lot of opportunities so I guess it depends on what kind of return/rent you'll be looking for? I have a lot of articles about the area and growth that affects real estate on my FB page but staying near a school (any grade) is likely smart.