All Forum Posts by: Oscar Macal

Alright guys, I've been trying to find the best way to get into Real Estate investing and have somewhat been "discouraged" from doing any type of Lease option investing in TX, so I've started trying to learn as much as possible about Constable and Trustee sales in Houston, but I have a few questions.

First, it seems they both have their pro's and con's, since generally speaking, Tax(constable) sales have the POTENTIAL to be much cheaper to acquire, but have up to a 2 year redemption period, whereas Mortgage (Trustee) sales will probably be more expensive since the mortgage company wants the most money possible for their loan, but these generally do not have a redemption period. So in essence, which, in each of your's opinion, is better? I am on limited funds ($10k) so it seems for me, Tax sales are best?

Second, since it seems to me that tax sales are best for me, is there anyway LEGAL way "around" the redemption period? I ask, because it seems in essence "pointless", to purchase it, acquire the property, but not have the right to do anything with it for 2 years, because the original owners may buy it back? I feel there has to be something that can be done, that I am not aware of... Because sure I'd get the fees and interest and what not if they pay it back, but it seems to be rather small potatoes, especially for someone like me who is trying to build cash reserves quickly to continue reinvesting.
My thought would be if I could acquire a property for only the taxes owed, for example a $100k FMV home and pay $9k in taxes to get the deed and somehow (ethically of course), waive the owners right of redemption or have them forfeit their right, I could quickly flip the property for say $60k and make a nice quick profit. Is my scenario realistic?

Any and all information is appreciated! I attended the April Foreclosure sale yesterday (April 5) to see how it all worked, and hopefully, if I can soak up enough knowledge and experience from you guys, I can attend the one in May with the intent to buy a property or 2?

Thank you!!

Wondering if any of you had some good recommendations for Real Estate Attorneys and Accountants in the Houston area? Preferably in the NW, but any recommendations are appreciated.

I've met a couple so far, but they don't really seem to care to help; even the one's I've paid! Maybe they see me as a waste of time because I'm young or what, but that's neither here nor there.

Just want some good recommendations that I can contact and hopefully work with in the near future.

Thanks!

Hey guys,

I'm looking to start out in Sandwich Lease Options as my way into Investing, but I have a question about when it's time to do the double closing.

When my Tenant/Buyer is ready to excercise their option, I will in turn let the Seller know that "I" am also ready to excercise my option. Now, closing costs will come into play? I assume (and really hope) that me being the middle man (B) I wouldnt have to pay closing costs between myself and the seller (A) and between me and Buyer (C) again? It seems like that would eat rather significantly into my profits. So do Title companies do double closings in a specific way or something that prevents me from having to pay double the closing costs, if any?

Any help and insight would be awesome!

I've never bought my own home, so I really am learning everything about the buying process, so I appreciate all you guys help! :D

Thanks!

Oscar Macal

Thanks everyone for your advice and help! Much appreciated!

Oscar Macal

Hi guys,

I'm new to Real Estate investing and looking for my first Sandwich Lease Option deal. I know that for any applicant that applies, if rejected, I must send/give them a written statement letting them know why, so my first question is, what qualifies them as an actual "applicant"? For example, if someone just calls me up and I ask them a few questions about their income, what they're looking for, etc? Does that qualify them? or is it only if they fill out my "applicant form"?

And secondly, in a case for example, where I have 2 applicants, that both are equally qualified financially, both met all of my written rental standards, etc; how do I choose out of the 2 and what would I tell the one I "rejected"? I don't think it'd be professional to say "I had a better gut feeling for the other applicant", so how would I go about this?

Thanks for your answers and help in advance!

Oscar Macal

Being a former Personal Banker for Wells Fargo, I agree and disagree with MikeOH... I agree wholeheartedly that the "Giant Banks" really don't budge on their stipulations and all around, are in it for the money, but then again, who isn't? Generally, small banks still do have the "old school" banking mentality in which a relationship with them, will get you much further than with the "Giant Banks"... That being said however, it's hard pressed to say that you can't build a relationship with tellers, bankers, and managers of these big banks. The only thing is that sometimes, most times, what some customers want can't be done.

Now that I've said that however, I think you are better of to find a new bank whose stipulations aren't as harsh. I know Jennifer mentioned Wachovia(or Wells Fargo now), and I know that both WF and Wachovia independently have great Business accounts(unfortunately it's been to long for me to remember WF's features in order for me to share with you) and now together under the WF name, will continue to be great banks. Chase is also another recommendation. So if BofA is really not willing to work with you, give them the boot!

Just my 2 cents! :D

Hey guys,

I wanted to know which techniques and/or strategies(Lease options, rehabbing, landlording, tax liens) you guys prefer when investing in Real Estate? I'm sure many, if not ALL of you, are diverse in the ways your invest, but I thought it'd be fun to know which is your favorite and why and possibly give myself and others different niches we may never have thought of!

Oscar