All Forum Posts by: Andre Key

Great job,

it looks great the only question I have is why put that extra amount in for closing cost.  With the way the market in Texas is I would have the buyer pay that all day. lol  congratulations again.

Joshua,

you make some good point, I think that people can use these shows as a baseline but you don't want to over analysis it.  Do your due diligence and then jump in every education is going to cost you something.  I think the biggest risk is with finding the right assemble of contractors.

I have had my share of kicking guys off of jobs threatening to keep tools and wasting money by trying to take short cuts.  Make sure you have reserves and try to stay loyal to quality contractors.  I think developing a team is going to be the biggest challenge because it will effect your cost of rehab.  The market will dictate the numbers for the cost of the property those are variables you really cant control.  

I actually would take a portion of that 300k and start a marketing campaign to find distress properties myself because a lot of foreclosures and auctions in my town don't equate to great deals, because other investors or the banks drive up the price.

I try to educate sellers by giving them an idea of the comps in their area. I would have the seller to expound more on their statement.  I let them know that there are a lot of misconceptions about how this process works and that I provide solutions that can meet their needs.  I make sure I dive deep into there motivation while I try to listen to their true concerns.

The main thing I would suggest is to remember that most people will give you a cookie cutter concern, based on something they've heard or read, however if you ask a few extra open ended questions you should get the real concerns.  When you feel that you have gotten the real concern than you know your close to closing a deal. Remember if people aren't motivated now that doesn't mean that it can't change, the follow up is key.

My question to this is are the banks appraisers that friendly on what they feel the home is worth.  Will they use strict appraisal guide lines or not.  In this case you would really have to find a great deal, just my opinion however we know how opinions can be.  Is there a banker on this forum that can shed some light on this?  Thank you.

Heather,

I am looking to develop a business plan to gain a few partners.  I think that a business plan makes thing far more professional.  I'd like to show them the marketing budget which is the major part of obtaining deals then the strategy will go in accordance to whatever the deal dictates whether its a buy and hold or flip or listing for our agent....  I would really like to see your plan but if its really personal I understand.

Brian,

It seems risky I would keep looking unless you really need to get someone in fast.  The insurance that NA Taylor mentioned seemed interesting I would like to find out more on that one.

Brain,

I know she is an attorney but she is not a real estate attorney but a divorce attorney so I wouldn't be highly concern with her trying to use some kind of loophole to her advantage when it comes to leasing.  I would still have a real estate attorney on call just in case.  I also find that most tenants have credit blemishes or else they would be buyers.

I try to pay attention to the credit report and look at her current revolving debt in relations to their income that you have them verify with either bank statements or copy of pay stubs. If she has 2 car notes of over 500.00 and a high furniture bill etc... and the income is not strong enough to support it than it should raise a red flag.  I don't have a mathematical debt to income ratio formula that I follow so I just apply so level of common since and personal finance.

I wouldn't get so hung up in her past debt but I would pay close attention to what the past 3 years looked like.

I agree look in the outskirts of your market, they will soon follow suit of the larger metro area.  Also I'm curious to how you are finding the potential properties that you are interested in.  Hopefully you are applying some techniques that may land you some generous returns on rents.

If the prices in the market are high I'm pretty sure rents are skyrocketing as well.  I can image there being a lot of competition in your market but I tend to think there are deals in any kind of market.

Brian,

Thanks for the inspiration I have been away from BP for quite some time.  However its feels good to be active and sharing ideas with like-minded individuals.  I have committed to stay involved and the 1000 post is a great goal to shoot for.

The investment in time and in growing relationships has appeared to be lucrative for many devout BP members. I look forward to growing with others and learning and celebrating everyones achievements.

Jason,

Great job, I am interested in what techniques you guys will use to find the next deal.  Look forward to the feedback.