All Forum Posts by: Jacobe Kendrick

Hello @Bolanle Ogunmakin, I'm a Realtor/investor in Midland.  the standard is one month's rent, however I usually do 1/2 of 1 month's rent for my own personal rentals and I encourage my clients to do the same.  In my opinion the deposit you charge should depend on your rental.  What is it going to cost to get the property back to market once your tenant moves out.  If you think it will be minimal then I would charge less.  You also have to think about the deposit being a barrier for renters that you may not want renting your property.  I would think of a deposit more of a tool and try to make it more functional.  I hope this helps.  If you ever need any more help or if you are looking to pick up more properties, feel free to reach out.  There are some good deals out here in Midland now.

@Nate Barbee, I'm a realtor/investor in the area and I was also born and raised in Midland. Most of your analysis and info from your post is correct, except for inventory levels. I have not run the numbers for this week, but the absorption rate in Midland for SFR has not been above 3 months, so that would put Midland still in a sellers market and that is part of my analysis on why home prices have not come down yet. A normal market is considered 5 to 6 months of inventory and anything above 6 months is considered a buyers market and based off of basic economics, prices would have to come down we were in that environment.

Are you interested in investing in the area?  If you are, we should exchange info and have lunch sometime.  We can work on finding you some deals at a discount.  

Yes it is. My brokerage offers property management. Call Weichert Realtors of the Permian Basin and ask for Shana. 

Hello everyone.  I'm a buy and hold investor in Midland, TX that is in search of a debt partner.  I have been investing over the last 3 years and have extensive training and education.  Details for the deal that I have on the table are below and I would love to discuss further with anyone that is interested in moving forward.

Purchase Price: $40,000

Rehab Price: $50,000

ARV: $135,000

Rehab time: 5-6 weeks

Looking for $90,000 at 8% interest with a maximum of 8 month turnaround.

My exit strategy is to use the funds to purchase and rehab the property. Then I will secure a tenant and cash out the lender.

I have a very good relationship with a local banker that is aware of my strategy and has already funded 4 of my current homes in my portfolio.

Please PM me or call for more details. 432-698-0050

Douglas,

You need to know the numbers on your deal. Gathering these details will also help you with future deals. What is the subject property worth right now in its present condition? What is the property worth after it has been renovated (ARV)? You also need to know approximately what the repair cost are going to be in order to get the property to the ARV. I would not market the property until you have these numbers unless you are positive that you have the property under contract at such a discount that the numbers don't matter.

Great job on moving forward on a deal.  That is the first step.