All Forum Posts by: Timothy Garza

Its like some weird aggressive ad for SEO services 

@William Broxson awesome thank you, i just got photos today and put up a post, starting to get hits now so hopefully something happens

Hi BiggerPockets Fam,

So I got my first contract in Muncie,IN. Now I am looking for people who would be interested in property. Can anyone help me out and let me know were would be the best place to post the property to get the most eyes on it. Facebook groups? Specific Bigger Pockets forums? Or any other platforms that have active investors? thanks for your help in advance.

I've got 2 buyers interested but I know it doesn't count until the deal is closed. So I'd like to have as many opportunities to help this seller sell her house as possible

@Pablo Avila Im definitely interested in learning more about do what 90% of people arent. Really glad you touched on that 

I hashing out this creative strategy I’m piecing together and i wanted to know if it’s already a thing or even a good idea at all 😂

Here goes:

I want to use the “purchase agreement” element from wholesaling and combine it with the creative financing lease options provide but without tenants

For example:

Bob = Buyer

Tim = Wholesaler with private lenders

- Bobs trying to sell his house for $30k

- House has an ARV of $200k

- House requires $50k in repairs

- Tim has access to $100k in private lender money

So in short...

ARV = $200k

Asking = $30k

Repairs = $50k

MOTIVATION:

The seller is motivated because he can’t afford the rehab and is tired of holding on to the place and he’s not budging from $30k because that’s just breaking even for him and every wholesaler wants to offer $12k so they can include their finders fee hypothetically

Tim offers Bob a creative deal where he can get him the price he wants but it’ll be after they rehab and sell it 6 months later at most

Bob is interested in hearing the terms since he’s desperate, he also owns the house free and clear

Tim offers a 10% deposit towards the asking price ($30k) which is $3,000 plus $300 a month as cashflow to the owner while rehabbing the property (6 months max) which will cost $50,000

The deposit and cashflow go towards the overall principal

So far Tims costs are...

Deposit - $3,000

Cashflow - $1800

Rehab costs - $50,000

Reserves - $15,000

Closing - $10,000

Total - $79,800

Tim gets a private lender to finance the $79,800 with a 10% return in 6 months and it would be paid back all at once so about $7,980 in interest when it’s all said and done

Tim sells the house for $200,000

$200,000 - Gross

$25,200 - Goes to buyer

$87,780 - Goes to the private lender

$10,000 - Goes to closing costs

$77,020 PROFIT

So the play here is that you only pay for the rehab and deposit/cashflow up front and don’t pay the actual purchase price until the house is sold and it comes out of the gross

Constructive criticism is appreciated lol

Please no keyboard overlords who get off on sounding righteous and right 😂

@Justin Fernandez bro that was amazing 🙏

@John Underwood I knew I had to be missing something lol thanks boss I’ll keep digging

I found a house on a website that I paid for, there’s a property that has a “judgement amount” of $7400

The house is worth $181,000

Would all I have to do is pay the $7400?

I feel like I’m missing something here lol

I feel like their could be maybe more liens on it so that’s why it’s still on here, tax lien date is 2015