All Forum Posts by: Turner Wright

Hey Jacob!  Funny you should mention renting rooms out!  I just got off the phone with someone who rooms shares his properties using PadSplit.  We are going to meet this week to develop a plan to convert my property into 4-5 bedroom rental. He is doing very well with his properties and believes I can do well, too.  Thanks!

 Hi Joe!  The loan I signed came with a 1 year term.  This was the best of 4 loans I was approved for.  What loans do you normally work with?

 Thanks Dominic!  Cash Out might be a good idea.  I didn't think of that.  But, I'm leaning towards room sharing with PadSplit.  I'm going to meet with someone this week to explore this option.

 $277k purchase price + $22k cash at closing = $299k ALL IN.  If all I can get is $180k for it (per realtors), then that is $10k + 6% commissions ($10,800) + any 'extras' I might have to do after the buyer's inspection--rounded up to $30k.

My first RE investment may be a bad investment, according, to two realtors who specialize in the market area. I estimated an ARV of $310k after rehab, but they say I will be lucky to get $275-285k. Below are the details:

PurchasePrice: $177k

Cash to Closing: $22k

Rehab Budget: $60k

Interest Rate: 11.25%, 12-month term, interest only

Monthly Payment: $1,659-$2,175 per budget used

Both realtors are advising me to rent the house to minimize my losses, but I’ll lose about $200-300 per month with a max $1,550 rent. So, I have considered the following options:

1) Sell as-is and take my losses (approx. 30k)

2) Full remodel and get what I can for it

3) Mid-level remodel and get what I can

4) Rent out and eat cost, little by little

* Will prevent me from buying another property

for a while

5) Owner/Seller finance

* As-Is and at cost, or

* After mid or full rehab

6) Lease Option

* As-Is and at cost, or

* After mid or full rehab

I want to ask experienced and creative investors out there for their help in minimizing my losses. What do you suggest? What would you do? Thanks in advance!

Hello REI Community! I have a SFR I want to seller finance in the Houston area. Where can I find buyers who are interested in SF or will consider it without hiring an agent? Thanks in Advance!

The advantage to working with wholesalers is saving time and money.  I understand if you want to save $10k+ by sourcing your own leads, but it takes an incredible amount to time and money to find a seller who will close.  Established wholesalers have huge budgets for marketing and a team to make and receive phone calls.  They are using every tool and method available to locate a motivated seller (email, SMS, ringless voicemail, direct mail, cold calls, virtual assistants, etc), yet they might only close on a handful of leads per month.  And, it's highly competitive.  The big-shot wholesalers have marketing budgets north of $35k per month!  They have to comb through tens of thousands of properties to find a decent amount of leads that will talk to them. Of that decent amount, only a few might actually follow through with closing.

On the other hand, when you don't have big marketing budgets, a team, or all of the tools the big-shots have, you can still find a motivated seller.  It's more work for an individual and it really helps to know how to find leads, market them, talk to them, and convince them that their house isn't worth the price you are offering.  It's time consuming learning the game and all the different ways to locate and identify motivated sellers.  It's also time consuming phone calling them and learning that about 70% or more of the landlines and cell phone numbers are bad, not answering, or go straight to voicemail.  It's also time consuming going to appointments where you take lots of photos, write notes, and talk to the seller only to be told they aren't interested.

I'm not trying to discourage you, but I do want you to know what is involved when you are sourcing your own leads as an individual and as a wholesaler.  To be efficient at it, you need scale-up and money--money to subscribe to different list sources, a CRM, skip tracing, marketing, robo-dialers or virtual assistants, etc.  If you decide to go through with it, though, check out REIQ who can provide pre-determined leads (pre-foreclosure, probate, etc), REIkit who can provide you a very affordable CRM with a website and phone number, and/or DealMachine for finding distressed leads in your neighborhood.  If you have any questions, PM me.  Good luck!

What is it you want to know about Montrose? I have lived near Montrose for over 20 years and have watched the area get completely taken over by developers and big-shot developers. That area is one of the highest, most expensive areas to buy real estate. I'd be surprised if more than 5% of the property ownership isn't owned by an LLC, Corporation, or other investment company. But, it's also one of the most eclectic areas to live and spend time in. The Montrose is a gem for the Houston area!

Damn @Jimmy Le!  That is a generous amount of helpful info!  You da' man!  I can sense your passion for analytics!

I'm from Houston and I know just what you mean--there are a lot of detached backyard apartments!!  I came across one today I fell in love with.  I can just taste the money!  But, really, if there are a lot of them there is a reason...because they rent out!  Trust me, you'll find someone to rent out the house and the apartment in Houston!