All Forum Posts by: Stephen Stokes

@Kevin Noell you can find the forms to do the deal here. You don’t need an attorney or a real estate agent. Anyone who tells you otherwise likely has something they want to sell you. If you want more details send me a private message and we can connect for a few minutes over a call. Too many people over complicate buying real estate. It’s not much different than buying a car. Technically you could buy the house by signing the deal on a napkin, though I don’t believe anyone will advocate that. 

https://www.trec.texas.gov/taxonomy/pdf-category/contracts-forms-applications

@Aaron Gordy Hope you are doing well my friend! What is the source of this data? 

Terms of the deal not just price are what can make a bad deal look great:

That is roughly 5.2% cap rate (pretty low). I would pass on it unless it was owner financed at 0-5% down, held in an llc, with no personal recourse on the loan, in a class A/B+ neighborhood in a city with 3%+ job growth. Otherwise it will be hard to justify overpaying.

Since you are paying above market, you don’t want to get stuck with a bunch of deferred maintenance so have to hold the seller to providing the property in rent-ready condition. Almost if not all failed portions of your inspection report need to be remedied completely by the seller before closing. This should set you up for success even if you have a relatively small reserve fund. 

@Andrew Bravo how much will it rent for?

@Sean Li why not just buy hotel stock? Or get in on a private placement for a new hotel development?

@Greg H. I stand by my comments and do not agree that conflating the discussion to purchases is an appropriate analogy.

@Greg H. We charge an application fee. If you are going to try to pull a stunt like this you need to do it before anyone pays and you accept an application.

@Greg H. Unethical in that it is false advertising.

@Ronak Shah no but just like any other online based mortgage company don’t expect great customer service. Check out the reviews on Yelp or google.

@Nick Anderson biggest red flags for me right now is everything everywhere you look seems to be in a bubble. RE, Stocks, Bonds, heck even used cars. That said, I do not have a crystal ball to say when the party will end I just know I don't want to be caught in a bad position when the music stops playing. That said, if you get a good off market, deeply discounted property, the risk of timing is somewhat negligible. However, if you are buying MLS / retail priced properties and expecting to never lose money, timing becomes much more important. Hope that helps.