All Forum Posts by: Turner Wright

A quick search resulted in over 3,000 residences for sale in greater Houston that are $220k and under, including, new homes.  Honestly, I don't know how this compares to recent years, but 330 of these homes were built since 2015.  Some new construction, includes:

(32) North Park Woods from $175k; (7) Lakewood Pines from $178k; (22) Town Park Village from $193k; (19) Imperial Homes from $193k; (8) Settegast from $150k; (10) Clinton Park from $146k; (6) Acres Homes from $178k; (8) Sunny Side from $178k; and, (12) Clearcroft from $190k.

What I would like to know is how many 'off-market' deals are moving.  @Mark Sewell, do you have any insight in how many off-market properties are moving in greater Houston?  How about through Jet Lending?

Hello Vinh! I'm relatively new to REI in Houston, but from what I have learned, so far, is how well the greater Houston market has faired during COVID. June home values, home sales, rent, and other data points broke records compared to June '19. There is still a lot of inventory, too.

You should check out the Economy at a Glance-July 2020 by the Greater Houston Partnership, which highlights key economic indicators, e.g., job growth, home sales, etc.  Below is an excerpt:

"The U.S. logged substantial job gains in May and June. The number of workers filing claims for unemployment insurance has been trending down. Sales of new single-family houses rose in May. Retail sales have ticked up as has manufacturing output. Closer to home, the Texas Workforce Commission (TWC) reported solid job gains for the state. Recent surveys by the Federal Reserve Bank of Dallas found that Texas service sector showed signs of growth in June and that factory activity rebounded as well. Houston reported job gains in April and May and single-family home sales set a record in June."

Check out the link, here, to access this report and others by the Partnership.  I find it very informative!

Hello fellow investors!

I'm a new investor/wholesaler using REIQ for lead generation, REIkit for my CRM, and Deal Machine for mailing post cards.  I have only been using them for a couple of months and I want to improve the efficiency of my processes and operations, as well, as reduce costs.  I want something that will handle everything I need and want in one place, rather than moving between systems to get the job done.  

I recently completed free trials for PropStream and Real Acquisitions, which are much more comprehensive than what I am using, and offer more features, like phone numbers and websites.  I'm curious to know what other investors/wholesalers are using for their business before I make a decision.  So, what are you using?  What do you recommend?

Cash out re-fi was awesome for me.  I cashed out a re-fi on my primary and had enough to pay off 10 acres I owned in Huffman, as well, as my credit card.  Plus, I was able to lower my interest rate enough to save about $200/month on the new mortgage balance (which, increased when I added the balance owed on the 10 acres).  

I suggest you look at the numbers.  Back then, lenders were willing to cash-out up to 80% of the market value of the home.  Once you determine that and factor in closing costs, you will know better how much money you will have to play with.

Also, search around for a lender that won't charge you origination fees.  These are 'junk' fees they charge at around 1-3% of the loan amount.  This can significantly add to your closing costs, which eat away at any gains you are expecting to make on the new investment.  I closed on a traditional re-fi with CF Bank in Dec. 2019 with no origination fees.  U.S. Bank is another lender I found that didn't charge origination fees.  I researched 5 banks looking for the best product and these two made the cut.  I went with CF Bank, because, the loan officer was cool and very responsive.

I hope you find what you are looking for!

Hey Yancy, thanks for sharing with us!  Seems like you made a good profit from your deal!  How are you going to find your next deal?

Hello Erick, I want to recommend my REI attorney @Ethan G. He helped me draft my LLC docs and just recently reviewed a couple of contracts for me. He has been very helpful with REI questions I have had and has offered great advice, too. I recommend him to anyone getting into real estate investing.

@Jorge Pena For starters, you can contact @Mark Sewell in the above reply.  He works for JET Lending, which has served many investors in the area.  He reached out to you already about how they do things and can be a great source of information.  But, like I said above, contact several to understand better how private money lending works.

As far as startup/new lenders vs larger lenders, they are all going to be different.  Call the new lenders up that you can identify and compare their products with the larger ones.  Honestly, as a newbie, you just have to get started and go through the entire process before you know what lender will work better for your needs.  Good luck!

Hey Jamell, I am just getting into Probates, myself.  I got a list of July probates from my list source and sent out my first mail out.  Various list sources provide leads for different markets, e.g., preforeclosures, probates, absentee owners, etc.  You might consider subscribing to a list source for your probate leads.  I use REIQ, but there are other sources you can choose from.

As far as how to contact them, I suggest you research what probates are and how they work so you know what to expect when talking to someone.  Ultimately, you will want to contact the Executor of the estate and the Attorney handling the probate.  Both are a great source of leads. A popular way to reach out to the Executor and Attorney is using 'white' letters.  Just draft up a professionally written letter for each introducing yourself and services you can provide them, and then follow up with a phone call.  I can't stress enough, however, to research what a probate is and how they work, though.  Like preforeclosures and other leads, you really need to know your audience and be ready to answer their questions and provide a way to help them.

Hey Jorge, welcome to the club! There are several lenders that will lend up to 75%-85% of the ARV on a property. ARV = After Repair Value, which is the marketable value of the property after it is repaired and rehabbed. Many will also loan 100% of the rehab, as long, as the purchase loan and rehab costs are within the loan amount you are approved for. There are other fees and costs to consider, too, but generally, you get these deals after working with a lender on a few projects or more.

I'm sure a couple of lenders will reply to this post, but I recommend you speak with several to better understand what's available for newbies, like you.  You can find several lenders that do business in Texas through Bigger Pockets under the Network tab, or click here!

@Mark Sewell You are absolutely right about how difficult wholesaling can be! It's a lot of work and you have a lot of moving parts. It wasn't what I started out to do, but because I didn't want to risk financing a project during COVID, I decided to build my business around wholesaling. I was surprised at how much is involved, but, at least I have one part of my business that can generate income risk-free, especially during times of uncertainty, while the other part of my business can focus on more risky aspects of REI.