All Forum Posts by: Maverick V.

If it's his 3 day work shop i'd say there's definitely some value, depending on your knowledge base it may be tremendously beneficial. If your more experienced you should still get a few good nuggets of info. I will say some of his strategies I would not recommend for new investors, he tends to teach buy and hold for appreciation, not cash flow, which is very controversial here, and needs to be done with care. As far as his program offerings, if your interested, wait until the very last day and it seems to be the best value. I haven't purchased his course so I can't say anything as far as quality/service/content, but if everything they give you works (websites, auto responder, CRM, Ect.) I'd say its worth it just from a time savings point. Keep in mind, you can have all the best tools in the world, if you don't understand your business or how to use them they'll just complicate things.

@Larry Flanagan how is Answer america working for you? I'm currently looking for an answering service and I like the no monthly fees, just pay per call, but they seem to only take very limited information. I would want more than name, number, message... I'd want them to collect property info as well as motivation info. Do you know if they can do this?

Hey Dusty, just curious what REIA was this at and what was the name of his company. (you can pm me company name, not sure if its appropriate to post here). I would be very cautious with this guy, while the deal does seem to be alright (assuming the numbers are correct) 60 deals a month seems a bit outlandish from someone I haven't heard of in town. Especially if hes claiming those are all his deals and not company/affiliate deals. I obviously haven't dealt with him so I'm not saying hes a fake, but id defiantly do some due diligence on him.

I don't think the lease option would work out to well. While there is a possibility of working something out, lease options in Texas are a bit more complicated than most other states. Lease options here are primarily only done (legally) by investors. Generally an investor doing lease options here will offer them at, or slightly above market value, with rents slightly above market. The option fees are usually above 3.5% of the purchase price, meaning it would be more out of pocket than going the FHA route. The only way I could see you making money on a (live in) lease option would be to find an off market property and negotiate favorable terms with the owner, then assign the option to someone else when you're ready to move out. If you decided to go this route I would definitely recommend finding someone who is experienced in this field (investor or attorney) and having a long conversation. As always do some searching here on BP and you'll find some great info.

I would make a muti-family my first choice. The extra unit(s) can be rented out while you are living there to offset your housing expenses. With a single family you won't see a financial benefit until you move out and get it rented. 

As far as the long term flip, there are some options but It would be a bit more complicated. A standard FHA loan is pretty strict on property condition, I don't know the exact guidelines (haven't used one) but it is similar to a VA loan (which I have used). The property condition guidelines would make it very difficult to find a property that you could add a significant amount of value to, as the property must be in habitable condition when you purchase it. FHA does have a rehab loan program (FHA 203k) you can read about it here. The biggest problem with this would be the long closing time (typically 60-90 days). I'm not terribly familiar with the New Braunfels market but I would bet you would be hard pressed to find a truly good deal that would accept and offer with a 60-90 day close.

For simplicity sake when i mention a "lender" it will be an individual lending cash and receiving a interest rate in return.

When I mention a "partner" it will be a individual receiving a percentage of the deal. (you will split profits with)

It is not necessarily very hard to borrow from a private "lender", but it is a heavily regulated arena. There are federal SEC regulations as well as sate regulations, each state is slightly different. You definitely want to research this before pursuing it. I would say a large portion of investors are not SEC compliant, not because they are shaddy or don't care, but simply because they don't know. check out this thread (don't skip the 2nd page)

It is a bit simpler to borrow from a "partner", while definitely not ideal in all situations. There are numerous posts about partnering on deals, use the search function in the upper right hand corner and search for "partnerships" or "JV"

A private "lender" would not just send the cash to your bank account. They would send it to the tittle company or closing attorney at the time of closing.

If a deal goes bad with a "lender" and money is lost you take the loss. If the deal is so bad that the property is not worth what you borrowed and the "lender" forecloses on you, then they potentially take a loss as well. If you loose money on a deal you did with a "partner" it would depend on your partnership agreement.

Protections in place for yourself would be, know what your doing, use an attorney, use disclosure statements (required for "lenders"). Protections for "lender" is being on title as lien holder, title insurance, hazard insurance, consulting an attorney. Protections for "partner" should be clear in partnership agreement, partnership agreement should be made by an experienced attorney, and others will vary based on deal structure.

Splits of profit between different "partners" can vary greatly for a number of reasons. 50/50 is common for a "partner" funding purchase+rehab while you do all the work. It really depends on experience. In your case of "partner" A funding purchase and "partner" B funding rehab you could do something like you get your 50% for running the rehab and they split the other 50% equivalent to how much was contributed. (if rehab costs = purchase price they would both get 25%)

When you are evaluating your deal you should be accounting for your listing agents commissions, if the deal is to thin to pay an agent you probably should not be doing the deal.

In your last comment where you have investor A fund purchase, B fund and do rehab, and you in the middle (pretty much just finding the deal), it would be much more practical to wholesale the deal to investor B in the first place.

Hey Alex, if you want online the best value I found was realestateexpress.com they have 3 different packages I belive with the base classes starting somewhere around $410, I went with the middle package ($520ish) which includes exam prep, some additional e-books and a "guaranteed pass" on the state exam. So far I have no complaints. I hear the champions program is really great, but I don't think I'd spend the extra cash unless you can actually attend the live classes. They have a "campus" here in SA. Also look into allied business schools, I'm not sure how their pricing is, I've heard many here say it was a good deal, I used them for my appraisal courses a few years ago and it was $1400, which seems high.

Hello, I'm looking for a agent to help me acquire properties to rehab. I'm primarily looking in northern SA so you must be familiar with that area.

Also looking for any wholesalers in town that I haven't connected with yet.

Any referrals would also be appreciated. Thank you and have a wonderful day!

and yes there are always ways to do shaddy transactions, there would have to be a trusting relationship between all parties involved.

@J Scott Your right on #1, i wasn't accounting for the seller paying on purchase.

#2 I would now be saving 3% in transnational costs (listing agent fee) which isn't as much as the 6% i had accounted for and not really significant enough to change the deal. I understand I would still be paying my agent in the back end with the model I described above. I look for a 20k net minimum on the deal it self as a safety net, I don't need 20k in my pocket to do the deal.

#3 Saving money on paying the agent wasn't the goal at all. The goal was to save time, by having the agent bring in the deals, worry about all the negotiations and then just send them to me for final approval. In all honesty I want the agents to make much much more than what they would typically get paid by bringing in the best deals. I feel this structure would give them reason to come to me with their very best deals because they can make much more than they would bringing that deal to anyone else.

This is much more of a JV type structure and I understand that I'm just wondering if it would be attractive from the agents perspective and are there any flaws with a structure like this?