All Forum Posts by: Townsend Derick

You need to get with a good CPA. It will be hard for people on here to give you good advice since every tax situation is different. A good CPA will look at your situation and your business goals and give you good sound advice.

Get licensed.... That way you won't have to worry about getting cool with any Realtors. And you can list and submit offers on your own.

This is the exact reason I have my clients sign a Buyer Rep Agreement. Two months is a longtime to be working with a client and then they jump ship. But Kevin I'm not mad at you brother, you have to take care of you in the end. It's the agents problem he didn’t have you on paper. Like Javier said you won't have to pay you Realtor the Seller does. If he can’t afford to pay 3% I find it hard to think he will be giving you a great deal because he barley has his head above water. You would be buying at Market value and I know you don't want to do that.

Troy said it. As a Realtor myself, I don’t want to put in that work for you and your cousins girlfriend is a Realtor and you go with them. I don’t do 6 months with investors, I do it deal to deal. Once we close on that deal we do new paperwork for the next so everyone has that warm and fuzzy.

Daniel,

I sell R.E. In the DFW area. You should not be relying on him for most of the info. He will tell you anything to get you under contract. From my experience when Sellers try to offer “owner Financing” they can’t sell it str8 up for whatever reason, repairs, foundation, dated etc... The market in the DFW is hot so he should have no problems putting it on the market and it moving fairly quickly. Also you can’t always rely on Zillow they are hit and miss, allot of outdated info giving skewed values. Also section 8 will not pay for damages. In the event the tenants damage your home you would have to take civil action against them not Section 8. Taking the fact they are on Section 8 they prob won’t have the funds to take care of any damages. Feel free to PM me with any questions if you have any more. I work with allot of investors in the DFW area.

Title Insurance is very very important. It covers any past liens that the title search may have missed. It’s like any other insurance, you may never need it but when you don’t have it and something happens you’re toast. Don't cheap out on such important things could wreck you whole deal.

As an agent who invest I would have to say get licensed. I really don’t take investors who are new or not licensed that serious. Sorry but a lot will waste your time and have no clue what they are doing. Also Realtors® hate running comps and breaking down numbers its very time consuming. . One deal a year will be more than enough to take care of your Realtor/License fees. Honestly you have to be making me money to get me to invest that kind of time. A lot of investors want you to run comps the first time you speak with them. Cut out depending on other people and control as much as you can. The more people you need assistance from the more money you will be shelling out.

In most states Section 8 won't pay for damages. You have to go after the tenant for repairs. And like Bill S. stated they will prob. not have the funds. Evict them and eat the cost. Sucks I know, but you can call the local housing office and ask them directly for an answer.

Joel,
Here in TX we use what’s called a Temporary lease for no more than 30 days. You can give the seller 5 days for a cash consideration say $250-$300 and any days over that amount you can pick a number. I use an outrageous number if they go past our agreed upon day like $250 a day extra. This issue is a common thing on the residential side closing is almost always delayed no matter how clean the buyers file is. If you have a state specific contract regarding this matter then you will be good to go. You can always have a lawyer draw something up quick too also regarding this matter.

Rule of thumb for estimating closing cost is 6% of the loan amount.
So at 180k you are looking at around 11k in cc. Bank prob estimated a little high just for "worst case" the 6% fee is just about the best way to approximating your closing cost.