Texas Tim's REI Journal

Welcome to the family, Tim. It's good to see a fellow Texan on the board!

I think your best bet is house number two, if the renter is good. Look at the condition of the hosue now. Is it clean? There's no excuse for a dirty house and could be an indication that the renter doesn't care. That's what scares me off on renting, but renting is a great thing and obviously works. If you want the house, make a lower offer, she's already willing to negoiate with you on it.

Welcome to the DG family we're so glad to have you here with us! Well, first thing to do is the comps, to see what if the numbers work. Where did you get the FMV from comps or assessor? FMV $89k she wants $350k??? Is it made of gold? NOT a good deal in my opinion, or did I miss something? LOL! The other might be depending on what repairs, if any, need to be done. If it's under $5k could be a good deal. Sounds like a subject to or lease purchase/option might be the way to go on that one. Let us know what happens, we're all here if you have questions.
Continued success and blessings,

Thanks JamesC and Elena

- #2 is a good tenant. Single low-income mother of 3. Section Eight tenant. Long term renter. House is on Corner across from Elementary and Middle School which all 3 of her children attend and she works at. How could I do a NMD deal on this one?

-#1 FMV $89000 is based on (2) comps from 8 months ago (provided verbally by seller), but entire neighborhood is averaged between $76K - $100K on tax roll appraisals. Personal opinion is that it is worth $70 - $80, but owner thinks they can be the 1st outta the block to start listing "Commercial" for when free way expands etc. Don't think she'll get it...but wondering how I could structure deal since she paid $50K for place in 1997 and it is all paid off now?

With regards to my subject line...JamesC....did you know that if we try to pull any money out at closing from the equity in a house, that we as Texans are only allowed to pull out up to 80% of the value of the property..then subtract the mortgage and the rest is ours...Ex: $100K house./ $30k left on Mortgage: $80K available for equity loan (minus) the $30K on Mortgage...leaves us with only $50K cash... do you understand that the same way I do, or am I out in left field?

Thanks for any input.

Tim
*************

Col 3:23

"..work as though you are working for the LORD!"

Appraised at 89k and asking for 350k? She must be out of her mind, or she have included the commercial potential rezoning for commercial developments. They have talked about it for the past 15 years, and probably will take another 15 years before they actually take any actions. My advise to you is ask for the house and not the commercial future development. If not, skip the house # 1 and work on getting the second house # 2. That's sound like a much better deal than the first house. Don't take it for the asking price, but make an offer of 40 or 50 percent less than the asking price. With the numbers you have provided, that's a pretty good cash flow even if you purhase the house at 30 or 20 percent less than the asking price. For example, if you purchase the house at $70,000.00, 30 years terms at 7%, your payment would be $466.00 plus taxes & insurance (roughly $150.00 per month). Your total mortgage payment per month would be approximately $616.00 total. Instead of raising the rent to 1,425.00, just keep the rent the way it is ($1,250.00) and just have the tenants pay for their own utilities. Your cah flow will be around $634.00. That's not bad huh! I haven't include any repair cost, but i would take $600 plus of cash flow anytime. Good luck and happy investing!

Lloyd

What's she smoking? Just kidding! Great advice. A subject to, assignment, equity trade or lease puchase/option are great NMD strategies. That's if you don't want to get your own loan of course. Remember no money down means using other people's money or other creative ways to make the deal happen without money out of YOUR pocket. But listen to Lloyd and offer 40-50% less on anything you find. That's my #1 rule!!

I agree. And Lloyd's right on with the numbers.
Having that built-in tenant is a bonus, too! Saves you a lot of the work.

Oh, and welcome Tim! Great to have you here!

Rina

Thanks Llloyd for the advice (and all others too..)

Yeah, when I heard Built in Tenant...my REI Radar went off.

keep y'all posted

Working on gathering investor team. Need to generate cash to fuel REI business so looking at assignments. Called REI Investor sign on street corner to ask what criteria they look for. Nice guy - eager to talk about his investment strategy. Then asked me if I wanted to meet a few of the guys he works with on some of his deals. Said, of course (always eager to meet like-minded guys - especially if they may have investment pennies to help out!). He asked me to meet him at lunch today. I showed up, thinking it was a REI group lunch...turned out to be business opportunity briefing seminar for a National REI group.

Kinda caught me off guard - not intending to go into seminar to find out I needed more money to join a program to help me invest. I'm sure there is a ton of good info their, but honestly, I don't have the funds at the moment to even consider it.

Met a few of the other investors there though that are also chasing the dream and was able to get business cards. Will add them to my list of investors for deals that I may need to pass along or get help with.

BTW...JamesC...I just read your Boxer post.....That is sooo hilarious!!! You may be too young to have seen this one...but I got this picture of Fletch. Rent it if you haven't already done so. He combats the doberman's with peanut butter!... Should have told the 'vertically challenged man' that your address was the one with the boxer at it

Tim, as regards to the investing seminar, I think you can find everything you need here at Mr Grazisoi's site. I wouldn't even consider it. I think you're bright enough to make it without giving a lot of money to show you things that Mr Graziosi's book probably covers ten times better.

As for the movie! I have seen it. I was going to combat the boxer with some mean kung-fu, until I realized...I don't know kungfu. I was honestly scared of the 'limited-heighted' man and wouldn't want to come into contact with him again! Do you know how hard it is get teeth out of your kneecap? He could have bit the crap out of me!

Thanks, Tim. Good luck!

Welcome Tim to the DG family! Great to have a fellow Texan on here! Sounds like you are pretty darn determined to escape the normal job whether it be 8-5, 9-5, so on and so forth. I would have to agree that the 2nd deal sounds like a great deal.

The fact that the tenant wants to stay and the seller is wanting to sell is an awesome opportunity to get your foot in the door and build not only equity but get some good cash flow in the process.

Keep us posted! Keep up the Good Work!

David