All Forum Posts by: James Messa

@Mark Limke

I would be purchasing using hard money, 7% w/4 pts. for up to 6 months, refinance within 30 days with conventional 30 year @ 5.0%. My note would be 724.00 PI + 450.00 T&I = 1174.00.

I was thinking to charge 8% interest = 990.00 PI + 450 T&I = 1440.00

They are willing to pay $1400.00 per month.

My spread would be $1440 - $1174 = $266 per month. Then an agreed upon purchase price in 4 or 5 years at a rate higher than inflation rate. For the back end profit.

So, is it ever a good idea to purchase a property and then owner finance to a buyer who is willing with these types of terms.

A wholesaler brought me this deal. 

Purchase price is at 80% of ARV of 180,000, it needs very minimal make-ready/repairs for renting so I figured $4000. Cash flow is minimal. But this wholesaler also as a buyer who wants to purchase this property through owner financing. The prospective buyer has 20K cash for down payment and can afford a $1400/mo. note.

When is it a good idea to purchase a property, just to turn around and owner finance it to a buyer?

If  I use hard money to purchase the property with the buyers 20K, and do the minimal repairs required, refinance in less than a month, cash out about 5K. 

So I have to wait for my return on the back end on an agreed upon purchase price in 4 or 5 years, when they will able to finance the property on their own.

Thanks for any advice

Kyle

I want to explore the market there in BCS. I am an A&M Graduate. Let's connect if your interested.

My daughter lives there in BCS as well.

@Ben Leybovich

Duly noted. I now know why one would pay retail as an investor.

I am analytically OCD, and not philosophical ;)

@Mike R.

Why would you ever want to pay retail as an investor? 

That's like running fingernails across a chaulk-board to me.

I like to buy below market value, preferably 70% below ARV and I do this by finding motivated sellers or property that requires rehab work.

@Caroline Hedin

I only have two rentals and I use a PM company. I don't have time with my day job, my wholesaling, network meetings, the list goes on. You may consider outsourcing this task and utilize your time looking for that next deal. Good Luck!

@Kevin Estey

How do you do virtual wholesaling in Austin, from NZ? I have thought about doing this too from Houston, but in a little closer markets, like Austin, San Antonio. Good Luck! Keep us informed of your progress.

@Don Konipol & @Drew Shirley

So what is the deal with the guy from Missouri?

He makes it sound like your going jail if you invest in notes.

I was just introduced to note investing yesterday. So I want to make sure I'm not doing anything illegal before I jump it.

Thanks for your input.

I started out with Lifestyles too, they have a great evaluation process that you need to use. So contact someone from there as well if you don't get what you need here.

I really don't buy off the MLS anymore for my rental properties. Lifestyle members do everyday. I still get the email blasts and I have started using other evaluation tools.

Us the 70% rule to start off with. Your offer should be 70% of the ARV minus any cost of repairs. If the property is in a good rental area with great tenants and will rent quickly, then bump it up to 80% of ARV minus the cost of repairs. The 70% is kind of the holy grail out there. But they can be found, just not on the MLS. Hope this helps.

@Nicholas Testa

Have you started networking to build your buyers list yet? 

Do you know how to fill in the TREC contract?

How is your salesmanship? I'm terrible at it but getting better.

You have stiff competition here in Houston, with people receiving 10 letters or more each day. It's really kind of crazy but persistence will prevail.

You may think about a marketing co-op. Share that expensive with others so that you can get 1000 pc out a month.

Send me a PM if you want more information. I am on my 3rd month of 1000 pc per month and trying to land my first deal.