All Forum Posts by: Sam Craven

the answer is no, because you had an option period.

You still owe the cost for the option period though.  Whatever it says there on page 8 should be paid directly to the seller.

see my second scenario Priyanka.

You have to understand the difference between an option period and earnest money.

So did the contract have an option period?

Well, as always...it depends.

So Ill make a few assumptions here and one of these may answer your question.

Earnest money is due within 3 days by 5pm on the third IF there was earnest money offered in the contract.  (you can in fact put a house under contract and elect not to put up earnest money.  As long as both parties agree its a valid contract.  NOT SAYING TO DO THIS...in fact don't ever do this,  It's just sheisty.   but it is legal in texas)

The contract can be terminated without reason in the time period provided on page 8 of the contract (option period).  if NO option period was given in the contract AND the buyer decided to terminate the contract then you are within your legal right to receive the earnest money that had not been deposited yet.

IF you agreed to an option period and they decide to terminate within that option period window then you will receive the option fee only and the earnest money goes back to the seller.

Get on google, the ones that can afford 20k+ mo in marketing are usually the better ones.

Mike you either need to:

Get over having it in your LLC name so you can access the FHA conventional financing

Transfer it to the LLC after the fact and take on the extremely low risk of a due on sale. (it just doesn't happen)

Go find a commercial lender that will lend to your LLC. Interest rate will be higher and loan term will be 20-30 years but they are also easier to qualify for when buying income properties.

Best of luck!

Robert we dont have enough information, when my company wholesales a condo here is the information we provide to our buyers so THEY can decide if its a deal:

ARV

What repairs and upgrades are necessary to hit that ARV and what will that cost

Rental Value once renovated

purchase price

monthly HOA fee (only for condos)

Without this we can all only project what we like to pay.  

tax deeds are not for the newbie.  We have a 6mo to 2 year redemption period on our tax sale properties and they only need a utility bill from before the foreclosure to redeem in that 2 year time period.  

The tax lein also does not remove any other loans on the property.  So get a good title team but most will not pull that many reports unless you are a volume buyer.

Best advice I have for you Willie is to take that $30k and go find yourself a $150k ARV flip and make money the easier route.

what evaluation programs are you guys using to determine the best mix of price and utilization?  All i did was look at stuff around the neighborhood and got pretty lucky.

I learned VERY quickly to put an age limit on it and explicitly state in the ad that we don't allow parties.

2 bookings within a month where those little highschoolers threw a party.  The last one i beat down the door at 8am, made all of them clean the place up and then made them pay another cleaning fee. since those changes its been pretty smooth.  I keep it booked all but 3-5 days a month.

I have invested hundreds of thousands in both mentors and masterminds.  I love them both.  I think if you are starting out and only have a direction you want to go vs a foundation of success and failures to build from a mentor is worth a lot more money.  Starting off the onslaught of new ideas and directions that can come from being in a mastermind can lead people to not focus on one thing or get them overwhelmed.

Once you have a foundation under you its time to level up your network and find people with similar but different and preferably more advanced experiences that are there to give as much as receive.

Its lonely climbing to the top and lonelier at the top.  Surround yourself with great people every step of the way.