All Forum Posts by: Maverick V.

gross profit can be easily plaid with, net is an actual amount. It is not as easy easy to predict as sales price but there's no disputing what the net is after the deal is done. as-long as both parties can review the final closing statement, the contractor invoices and the financials there's not much room for argument. This would all be clearly defined before a working agreement was made. If the deal ended up being a net loss it would be on me as I didn't do my due diligence. The agent has no cash in the deal other than whatever they would be paying for marketing so they loose nothing but their time. I would hope they value their time enough that they wouldent be bringing bad deals to the table in the first place. The whole purpose of this idea is to pay on performace.

I was wondering if anyone has been doing this and if so how has it worked? The plan is to have an agent or multiple agents, who would both handle the purchase (finding the deal, negotiating it, and all standard buyers agent tasks) and selling it.

The purpose is to streamline acquisitions and sales and also I like the idea of having an agent with the same interests in the deal as I do. Also by eliminating the 6% in commission it opens up a few extra properties that may have just been a bit to thin to consider otherwise (the 70% rule would become the 76% rule).

I was thinking 20-25% of net profit to be paid for this, does that seem fair? The better deal they find the more they make. 20k net is the lowest I consider for a flip so at that they would make 5k, which is slightly more than what they would make on just listing a property at about 150k (avg price in area), but there is room for much better returns if they bring in good deals.

Any thoughts or ideas are much appreciated, Thank you and have a great day!

Are you saying they require two years of income history for your personal W2 income? If so, I'd talk to another bank as 2 years at a current job seems a little high for just verifying income. If you mean you need a 2 year history on your rental income before they will consider it as income, then yes this is allot more common with the big banks. The only way around that (for bank financing) is finding a bank who is a direct lender, usually a smaller community bank. A direct lender (portfolio lender) keeps the note on their books and doesn't have to comply with the standard Fannie guidelines as they will not be reselling the note.

While driving a neighborhood in an area im interested In I came across this lot that quite literally looks like a junk yard. The neighbood ranges from 40 acre "ranches" to 1-2 acre lots with a mix of manufactured houses and 4000sqft custom houses. I know 1 family that lives in this neighborhood and they recently paid 18k for a 1acre fully treed lot with no utilities adjacent to theirs. (Just to give an idea of land value) The lot in question is posted with "for sale soon" signs that give no contact information. The lot appears to be about 5 acres and has 2 older manufactured homes that appear to be in livable condition, but would require a fair ammount of work, one uninhabitable manufactured house that is sitting on a moving trailer with one end on the ground and other end about 6 feet off the ground. There is another home that appears to be a stick built home but it is also on a moving trailer and would be a total tear down. There are 2 old campers and 10-15 vehicles on the lot. I asked some neighbors about the lot and they said the guy brought the extra buildings (the ones on moving trailers) in for storage. Some said the guy died some said he just skipped town.

I havent found the guys contact information yet and im honestly not entirely sure what I would even do with the lot, but I deffinatly seems like an opportunity as few would want to deal with the clean up. So my questions are how do you deal with vehicles that are left on a property? I know if its a probate situation there would be an estate sale, but if he failed to pay taxes and just left town I would assume they remain? What would you do with all the stuff stored in the buildings? From what I can see from the street the one building seems to be full of furniture (stacked to the ceiling). And most importantly, what would you do with the lot? I cant do a new build which would probably be best, I was considering just clean it up and resell if the numbers work, perhaps rehab one of the manufactured homes. I welcome all ideas and input and expect plenty of "stay aways"

I understand that without any of the numbers all adivce will be speculative but I just want to hear your opinions. Thank you and have a great day!

@Andy Collins I have been working with a wholesaler in the area and he gave me the contact info for the 2 lenders he is familiar with, after asking him about the no verifiable income he told me not to bother with the one and try the other, the other is out until Monday so I'm waiting for him to call back. I have called a few others I found and am waiting for them to call back aswell.

Hello, So I just relocated to the San Antonio area to start Rehabbing (fix and flip). I've been looking for a hard money lender and all the ones I'm finding have employment information on their application and they run a credit check. I moved here to start flipping full time so I currently have no verifiable income. I sold my primary residence in February, could I claim that as self employed income? I bought the house as a long term flip (lived there for 2 years) and made 49k tax free. The sale of primary residence was my first "deal" so I don't have a track record. Credit rating is fair so don't expect that to be to much of a issue, being as hard money is so posed to be based on the deal and not my credit score. Any insight would be much appreciated, Thank you and have a great day!

Have you considered buying a multi-family? You could buy a 2-4 unit and get both a primary residence and an investment property. I don't know what your budget is but chances are you could live pretty much rent free in a duplex, or could live for free with some decent cashflow in a 3-4 unit.

I'm not an expert in the local market at all but I do know that SA is about as safe as it gets as far as housing values go. I chose to move here because it was one of the best areas that fit what I was looking for, as far as housing numbers and economic data. The only deals being on the courthouse steps is just untrue, I'm assuming your agent said this because the only places he has ever looked is the MLS and the courthouse steps... Deals come though networking and searching for off market properties. If you don't have time to do the leg work of searching yourself try to connect with some wholesalers in the area. Determining the value of a property does require a bit of knowledge and a fair deal of research but is not that difficult. A good agent should be able to provide you with a fairly accruate opinion of value

I WILL MAKE AN OFFER IN THE NEXT 5 DAYS!

When you say deals that can turn a profit are cash only I'm assuming your talking about foreclosure auctions? If not and your looking at properties that need to much work for traditional financing you could look into a 203k loan if your goal is buy and hold. If you were looking to fix and flip you could look into a hard money lender. I'm personally trying to find a hard money lender that will work with me as I don't have verifiable income, just cash reserves. but with verifiable income it shouldn't be a problem to find a hard money lender to work with you if you found a good deal.