All Forum Posts by: Roger Covin

Hi BP Community! I closed my first few wholesale deals in Texas and have now enlisted a few buddies to search for properties for me (Bird Dogs). They aren't my employees so do I just need a basic contract agreeing to our terms (payment splits)? Should I consider payments a referral fee? Are there tax implications?

Interested in knowing a system ppl are using!

Thanks,

Roger

Thanks for the feedback, @Immanuel Sibero and @Andrew Herrig

I understand all buyers have different criteria, so this is helpful. If you'd like more info on what I have, just message me...

Is IRR (internal rate of return) commonly used?
@Andrew Herrig

I'm a wholesaler in Arlington, TX and ran into a few properties with long term tenants. What are DFW, TX cash buyers searching for in this market? Ex: Cap rate, rent/value ratio, cash on cash returns, ect.

@Rachel H. thanks for the feedback. I'm definitely aiming for cash flow right now...I bought the lots for about $800 a piece in a low income subdivision with a few issues. My upside is that they are near a very popular lake where people fish and boat, as well as $600k + homes along the lake. The idea is to sell once the area gets better and there is a demand for more expensive housing near the lake...I can wait a decade or more if I can get it cash flowing. I'm just debating whether I should lease the lots or put a mobile on it to rent out until then. Good strategy?

@Donald Stevens Jr. cool, I'm glad to hear this is common practice! The area I bought in has NO zoning laws, which is weird, but there is an Owners Association regulating the quality of the home. Septic, power, water is already provided as well as other perks. I guess I'll play around with pricing...it's kind of a shady area from what I hear but it's right next to expensive homes near a lake. I guess at this point, I'll start advertising, talk to an attorney, and hope to continue to get feedback from BP. It's not what you know, but what you don't know that you need to know that gets you!

Thanks for your response...the zoning allows it and I couldn't find anything on the market to compare to so I can price competitively. I guess cl is a great place to test market! I have three 40x80 lots (two next to each other and another behind them) and three 50x100 lots (all side by side). I'm not even sure how much space I need for a mobile home...

Are "We Buy Houses" signs effective in San Antonio? I'm moving there in a few months and will be testing the market...Can't wait to network and join the wholesaling community

I have six vacant lots near Cedar Creek Lake in TX and want to hold them for future appreciation. Is there a market for leasing out a private lot to mobile home owners? Would it be better to buy mobile homes for the lots and rent the homes out?

Thanks for any help!

@Mike D'Arrigo I have to investigate that further! My assumption is that the owner rented it out a long time ago and never pushed rents up. She is elderly and has owned the home since 2001. I still have to speak with the tenant and get the "real deal" on the situation. Once a new owner comes in, they're allowed to increase the rent as they please I'm assuming.

Sounds simple enough, but as far as approaching the deal, is there anything different? I understand that I need to search for investors looking for turn key properties but do I still factor in repair costs or anything? The tenant is paying $600 in rent and the average sfh rent is $1200!!! Just from that I want to shut this down but I don't want to be too hasty if there are options.