All Forum Posts by: Zain Momin

Can anyone refer me to some good wholesalers in the Houston area. I am in need of more quality leads for both my investing portfolio and for my clients. I have serious buyers all around the Houston area and would love for someone to please reach out to me. I can do all cash deals as well. With the market becoming extremely competitive my current leads are not sufficient enough. Thanks!

Yes of course. A due-on-sale clause is a clause in a loan or promissory note that stipulates that the full balance of the loan may be called due upon sale or transfer of ownership of the property used to secure the note. The lender has the right, but not the obligation, to call the note due in such a circumstance. Basically since the ownership would be going from you into an LLC it would technically be a change of ownership. This could trigger something, but most of the time it does not. However, I just wanted to make you aware of this.

Abid,

I would say the easiest way to get started would be to create an LLC. Creating an LLC for your rentals is a smart choice as a property owner. It reduces your liability risk, effectively separates your assets, and has the tax benefit of pass-through taxation while separating personal money from rental money. However, most lenders will not let you close in an LLC which means you might need to have tittle on your name. You can transfer the title into an LLC later but that can trigger a due on sale clause. Also, I would talk with an accountant, as they can advise on your current financial situation better. 

Please let me know if you have any questions and feel free to reach out.

Danielle,

I would be cautious with fix and flip projects with the current uncertainty in the market. Your questions all comes down to the numbers and the market area you are in. The reason I say to be cautious is because most projects take 3-6 months and a lot of over head at first, this can be a little risky at a time like this. As far knowing when something is worth the flip you would need to take in account the project costs, profit, ROI, MAO, and the 70% rule. I think the location of the flip is key, it will determine if it is "worth" actually fixing foundation issues, mold, and termite damages. However, I would make sure you have some really good contractors in place.

For you first questions, I work with buy and hold investors, and I do see a surge of demand increasing the EaDO area. Again, there is still a lot of work to be done. Maybe look into the East River end projects that are taking place.

If you have any other questions please feel free to reach out.