All Forum Posts by: Sam Craven

Bump! 

We have available a great package deal of 6 properties.  See the image and link to the google sheet below that lays out ALL the details.  

Link to the spreadsheet is at the bottom, below is a screen capture. Spreadsheet contains links to CMA.

We are one of the most trusted wholesaling companies in Houston and I have been featured on biggerpockets show 33 and 137.  Buy with confidence!

This is a break down of how I would approach this deal with commercial financing:

Market rent assumes repairs and upgrades we laid out are made.

At 80% LTC assuming a $435k ALL IN with 5% interest and 25 year amortization (assuming commercial type financing.If you need this type of financing just reach out).

Payment: $2,046

Annual PI Payment: $24,552

Annual Taxes:$7,357

Insurance: $420mo

Annual insurance: $5,040

NET with no accounting for repairs (everyone likes to calculate this differently)

NOI = $51,335

Equity that gets added to your balance sheet: $90k

Cash out of pocket with 20% LTC financing: $87k

Leveraged ROI: 58%

This is just one way to take this deal down.Some of you will be able to do it with less cash out of pocket and some of you may want to just pay cash and refinance it down the road.Either way this is a fantastic opportunity.

Call, email or text now for more details on this cash flowing opportunity.  

832-722-4815

Asad, are you looking to leverage the money or pay all cash?

If you leverage this is going to be easy.  If you are paying cash its going to be tougher to find the house, but your cash flow targets are easy to hit.

Always be honest, always tell them what you are doing.  

The reason someone responds to your marketing instead of calling an agent and listing it is a human issue, not a house issue.  Focus on solving that problem and sellers wont care what you do with it so long as you follow through with your promises.

We are the only company that tracks our customer satisfaction after the sale so we can improve.  We do that for our sellers, as well as our buyers.  We actually track the success rate of our buyers, and its really good.

Your take on the pie is correct, but what you should consider as well is that in Houston that pie is ENORMOUS!

I have helped a lot of people get started, doing all kinds of marketing and acquisition methods.  What i have learned is the best marketing method is the one you pick to do most consistently.

Happy hunting.

Our office is in the Heights actually @Luke H. small world!

Let me give you my .02 on the pros and cons of each of the methods you laid out there.

MLS-great source for deals, just like any other type of marketing you have to do it consistently to get results. The best results are usually had by people that have a laser focus on a certain zip code or neighborhood. Networking with agents that specialize in those areas as well. If you go the shotgun approach you are going to get worn out pretty quick.

HUD homestore/Auction.com/Hubzu ect. These all take making A LOT of offers with A LOT of follow up. Its a full time job to get deals consistently off of these and its a black box of communication and understanding.

Wholesalers-(Full disclosure my company wholesales) There are a handful of reputable companies that have a consistent flow of deals.  I would focus on these companies, especially the ones that have a sales staff that get to know your goals.  You can sometimes have luck with the little guy but a lot of times they dont have enough experience to know what a good deal is, and that pass that "not a good deal" on to the buyer.  The biggest thing you can do there is make sure the company knows what looks like a good deal to you. 

Direct mail - I know this works because we spend a lot of money on it.  But remember as soon as you send out a batch of letters you are in sales.  Taking leads, meeting with homeowners and negotiating on the property.  No doubt you will find your best deals by doing your own marketing, but you will need to work for it.

Hope that helps!

Leah,

Kenny nailed the 1000ft ideas of cold calling someone in this situation.

How are you getting probate phone numbers in your county?

Rule # 1 of working with wholesalers is to always independently verify the numbers they give.  This also includes the deals that we send out.  While i have complete confidence in what we advertise and that since we actually flip, renovate and hold property we know what the real numbers are...always verify.

as for the financing, that gets a bit more complicated.  Would be best to have that conversation in person at our office as the types of financing you choose will depend on your goals.  In the interest of full disclosure my company offers no finance options.  But we can explain them all do you.

Dont make a habit of buying rentals in flood zones, but if the numbers work....and you arent planning to hold the property forever.  I would give it a shot.  I have one rental in a flood area, was not affected by the recent flooding, cash flows like crazy and im currently sitting on a great deal of equity.

I have found that flood zones rarely effect rental rates unless it was affected by a newsworthy flood event.

However flood zones always effect the value of the house.  Check out www.harriscountyfemt.org for the flood maps.  A house across the street not in the flood way will be worth more, no set rule for how much more.  Depends on the cost of flood insurance and how that affects their payment.

@JP Palella with the criteria you have, it can be found in a lot of places.

Using 20% conventional financing limits you on buying from wholesalers, but since you don't care about equity and want something that is rent ready, they aren't much good to you anyway!

I think you will be best served by contact a few agents in parts of town that are relatively close to the areas you want to target.

If you ever feel like getting a bit more creative with the financing or you are willing to manage some minor updates and repairs reach out to companies like mine to help you source deals at a discount to retail.