All Forum Posts by: Westley Bachmeyer

Just my opinion, and I know others will vary, but if I was your age, and I knew I wanted to get into real estate-

I would go to real estate school at a local place (community colleges are usually well priced) and simultaneously seek someone accredited as a mentor in investing.  This allows you to not spend too much money on school if you apply for grants, etc. and starts building that much needed experience AND you can start getting paid at a local agency while doing what you enjoy.  Above all, it allows you to network.  Just my opinion, and we will see who backs me up on this.

Honestly, I wish someone had told me all this when I was younger...

I have heard you can take over their mortgage at 105,000 (they would need to go with you to their bank/lender) and then give them the difference.  I second trying to talk them down to $105,000 as I think it would be easier.  Also, I don't think you will need the down payment to take over someone else mortgage and remain with the lender, but you will have to talk to their institution for specifics.  I'm following this thread to see what else happens.

I'm not sure about Dallas, but there is plenty in and around Houston.  I am currently in the process for finding a financing partner on a HUGE(for the area) 2400sq ft, already renovated 3/2 with a detached 2 car garage, a carport in Conroe, with 2-2 unit apartments on site all on a quarter acre of land right in/next to downtown Conroe.  It is going for under 200,000.  I know of tons of others that need to be fixed and flipped, and even others that are good investments.  PM me if you want to know more.  

Your welcome.  

• Buy
• Rehab
• Rent
• Refinance
• Repeat

And my pleasure.  

I personally look at how much I would make on a flip vs. what the rental income to purchase price and repairs are.  For example-

If I purchase a home for 80,000 and put 20,000 in repairs total cost of 100,000

I can sell QUICKLY(under value) in under 3 months for 130,000

OR 

I can rent out at 1500/month, *after expenses* how long would it take me to make back that 30k?

For me, if less than a few(*2-5) years, I prefer BRRR because I should be able to still sell in a few years at an increased cost. I would actually make more money because of the rent, plus an increase in price hopefully. You would need to find your own comfort level and all numbers above are hypothetical and as an example.

However, if there are not many rentals in the area, I prefer to sale, because I may have a tough time finding someone to rent unless I drop the rental price.  In that case, I would sell.  Honestly, a reputable real estate agent or property management company could give you an idea of how long it would take on the market to rent or sale.  

I have a piece of advice for you.  The people that call you back, schedule a follow up and increase your amount offer.  Also, negotiate, but know what your max is.  If you offered me half for my house, I would laugh too, but if you said "ok, what are you willing to do?"  get their feedback and tell them you will follow up.  Work their numbers and see what makes sense.  You may not always get YOUR deal, but you will still get a GOOD deal.  In fact, their situation may not be money at all.  Suggest other things they may need.  A moving expense.  Get to know who you are talking to, not just the numbers.  Don't mistake this for loosing sight of the number, just don't make it all about numbers.  These are people.  If you can handle the "people" aspect by reading them, listening to them, I believe you will have better success.  This is especially true in a HOT market because they probably get a million offers and they are all undervalued, but if you build a relationship, they will be more inclined to take a smaller offer.  Just my advice.  

Knock on doors, read something on BP daily and meetup.com to network with local people interested in doing business with you. All number one. I learned a ton from BP, and networked to find deals. There are a ton of wholesalers where I live and all have under value homes they want to get rid of if you can get a traditional mortgage on one. Find what you want to do. BRRR, Flip, SFR, MFR, Commercial. Research it. Build a business plan and stick to the plan.

Living the dream!

I think option 3 is your best bet, but make sure you get paperwork on it from the tenant for the dispute, exact cost, and a signature of release of liability.  I'm almost positive that the tenant will have a different financial issue going forward, but it may be in another aspect of their life.  However, at least you have your bases covered.  

Also, the contractor will(should) have insurance and if the amount is not great, will probably pay it off before taking it to court too, if you have docs from the utility company stating that they were all billed for the one unit.  

I would leave the overgrowth and trim it, add it into the landscaping and fix/clean the flooring.  Let who mows the yard keep the entrances cleaned and trimmed.  That is natural vegetation and looks nice as long as its not poison ivy.  Shake the structure just to make sure, but it looks pretty sturdy.  There are places around town that pay to have vines and such growing up their walls.  Just a preference and I don't think it would be difficult to upkeep, but that depends on the tenants and if they charge extra to mow and trim.  Where I'm at, it wouldn't be any extra.