Hold

Posted on April 4, 2019 by Patrick StCin

There is no way around it, when you consider investing in real estate, or anything else for that matter, you need to do your homework to keep your investment safe and avoid surprises.

First, spend time with yourself to define your goals and then, spend time with the math to estimate the costs carefully before you invest. Everything costs something, but somethings are worth the cost.

First your goals: Ask Yourself:

“Do I want to get my hands dirty?”
“How involved do I want to be?”
“Do I want a single pay out of profit”
“Do I want a steady stream of income?

The buy-n-flip model of buying a distressed house at a low price, renovating it, and reselling it for a profit within 12 months is usually pretty hands on. If you don’t actually do the remodeling yourself, you will be supervising your contractors, so you get quality work, on time, and within budget. The Fix-n-Flip model will give you a one-time pay out, and if you did your preliminary market research properly, it will give it to you quickly, in less than a year.

The buy-and-hold model of buying houses, fixing them up or not, and renting them out will give you steady income. In this model, an investor can choose to rent the property out or occupy the property. There are varying levels of involvement for the investor to consider. Landlords are investors who own one to three properties and manage them themselves. This is the hands-on level. Portfolio Investors own four to ten rental properties and hire property management companies to manage them. This level of involvement is less hands on. Turnkey investors are the least involved personally with their investment, they purchase a property that already has a tenant and management company in place. Basically, only their money is involved.

Different Taxes

One of the cost differences between investing in fix-n-flipping and investing in fix-n-holding is the income taxes that you will have to pay on the profits. According to FitSmallBusiness.com, flipping houses is generally not considered passive investing by the IRS. Most real estate fix-n-flippers are considered dealers by the IRS. A real estate dealer is defined as someone who purchases real estate and sells it to customers “in the ordinary course of business.”

Ordinary Income. Profits on flipped houses are treated as ordinary income with tax rates between 10% and 37%. The profits you make are not considered capital gains with the lower tax rate of 0% to 20%. Taxes for flipping also usually include self-employment tax, which is 15.3%, double what you typically pay as a W2 employee.

Capital Gains. On the other hand, according to FitSmallBusiness.com, profits made from properties held more than 12 months are typically subject to more favorable long-term capital gain tax rates ranging from 0% to 20%. This profit is also subject to self-employment tax .

Keep Your Receipts

The answer to handling the tax expense for a fix-n-flipper or the fix-n-holder is to think like a business; budget for the taxes in your expense calculations and take them out of your expected profits so the return you expect is realistic. And, keep excellent books. You will want to itemize your deductions and income in either type of investment so when it comes time to calculate your profit for tax purposes, you can determine your profit by subtracting your expenses from the final sales price. Keep your receipts. If you keep no records, you might have to pay taxes on the entire amount of the sale, not just on the profit.

REI Capital Resources is a direct lender as well as a broker of funding solutions. We offer short and long-term financing options that are perfect for buy-n-flip projects or buy-n-hold projects.

Please give me a call when you have the perfect investment in mind and know how much money you need.

Patrick St.Cin
512-213-2271
Patrick@REICapital.cash

REI Capital Resources: Your Funding Solution

Posted on April 2, 2019 by Patrick StCin

“Focused on Funding Your Success”

Formerly Investor’s Lending Source. New name, new products, same management.

REI Capital Resources is a direct lender as well as a broker of funding solutions. We offer funding solutions in the following areas:

Direct Lending
Private Money Lending
Hard Money Lending
Long-Term Rental Financing
Short-Term Rental (Vacation properties) Financing

Direct Lender

REI Capital Resources is a loan originator for select investor single-family residential projects. Our goal is to provide fast closing loans to fund your investment projects so you don’t lose a good deal.

Acquisition of Property

Bridge Loans
Buy-to-Rent
Fix-n-Flip
Fix-to-Rent

Cash Out Refinancing

Buy-to-Rent
Fix-n-Flip
Fix-to-Rent
Refinancing

Private Money Lending
REI Capital Resources built its reputation when it was ILS on finding private funding for investors for quick turn purchases and difficult situations. This is still true today. Private money loans are primarily for single-family residential projects:

Acquisition of Property

Bridge Loans
Buy-to-Rent
Fix-n-Flip
Fix-to-Rent

These are REI Capital Resources more standard real estate project funding solutions. If your situation is unusual or commercial, stay tuned for information on our non-standard real estate programs, those that run the gamut of lending solutions.

Give me a call or send an e-mail for assistance.

Formerly Investor’s Lending Source. New name, new products, same management.

Patrick St.Cin
512-213-2271
Patrick@REICapital.cash or info@REICapital.cash

Thinking Like Your Buyer: Restrictions

Posted on March 29, 2019 by Patrick StCin

As a real estate investor, contemplating houses to buy and remodel, or to fix-n-flip, you need to think like the house buyer you hope to sell to. It is important to do this before you buy an investment property to protect your profits from withering away while the house languishes on the market. Of course, deals come when and where deals come, and you often have to move quickly to snap up the bargain. Under this pressure, it a very good idea to take a breath and research the neighborhood before you commit.

I was actually thinking about real estate sales and roads when I found this tutorial on buying your first home in the online journal Investopedia.com. But Amy Fontinelle’s tutorial caught my attention with her discussion on neighborhood associations and deed restrictions. The tutorial offers first-time buyers a sensible and interesting mix of things to look at when purchasing a house. As real estate investors planning to buy houses to resell, you need to think like your buyer too.

Neighborhoods Have Rules: Some are Written Down

First, she tells first-time home buyers that different neighborhoods have different characteristics and that you want to pick one that is “the closest fit to your lifestyle and personality.” One of the items she recommends first-time buyers think about is whether there are restrictive covenants in the neighborhood. I hope as I write this that you will not be able to tell whether I am a free-wheeling renegade or a neatnik appreciative of boundaries and rules. Here goes.

Neighborhood associations can be a friend or a nemesis to your buyer. They can impose maintenance requirements on the home owner or forbid certain adornments. As Ms. Fontinelle says, “You might not be able to leave trash cans out past a certain hour on trash day, paint your house blue, or let your grass grow too tall.”

Get the Whole Story

Facts and statistics about the neighborhood are available on real estate websites, but to get the whole story, you may need to talk to the current residents, walk the neighborhood, and visit local Facebook groups. Once you have found out about the neighborhood, ask yourself, who do I think is going to buy this house I am investing in. You need to use your imagination because your buyer may be very different from yourself and have different tastes. Can you picture them and sell a house to them with genuine enthusiasm?

Backyard Chickens and Pit Bulls

When you look at the property you are about to invest in do you picture a buyer who is a bit of an urban farmer who likes freedom and won’t mind a community garden next door and may want to raise backyard chickens, walk a pit bull on a leash, and grow wheat in their front yard?

Are you finding that the neighborhood is so exclusive and restrictive that you are having trouble imagining who would want to live there? As Ms. Fontinelle reminds us, many people appreciate the restrictions and like the tidier appearance that may boost property values.” Others she says, “Find them obnoxious.” Here are a few things to consider:

Are sheds and outbuildings forbidden?

Are you allowed to pasture a cow or a horse?

Are the yards meticulously manicured?

Do the neighbors have extensive gardens?

Is curb appeal a big deal or do the neighbors find the house with a big garden intimidating?

Are pets allowed?

Resales and Loan Request: Why it Matters

As the fix-n-flip investor, these restrictions matter to you in two ways: (1) will you be able to sell the house eventually, and (2) how will these restrictions impact my project’s expenses and loan request?

Let me know if you have found any deals this month that you know you can turn around and resell with enthusiasm. I hope that I can be of help to you this month.

I can be reached at
Patrick@REICapital.cash
512-213-2271
Austin, Texas

References:
Investopedia.com How to Buy Your First Home: A Step-by-Step tutorial. Amy Fontinelle

Thinking Like Your Buyer: Roads

Posted on March 25, 2019 by Patrick StCin

Real Estate and Roads

As a real estate investor, contemplating houses to buy and remodel, or to fix-n-flip, you need to think like the house buyer you hope to sell to eventually. But, you want to do this before you buy an investment property to protect your profits from the fatal sink holes that can literally eat up all of your investment dollars and leave the house you want to sell on the market forever.

Of course, deals come where deals come, and they are not always in the greatest neighborhoods, or at the right time of year, or under ideal conditions.

I was thinking about real estate sales and roads when I found a great tutorial on buying your first home in the online journal Investopedia.com. The tutorial was written by Amy Fontinelle. It offers first-time buyers an interesting mix of things to look at when purchasing a house, they may live in for years.

Ask yourself, who do I think is going to buy this house I am investing in. If you cannot picture anyone, or the bird is so rare you haven’t seen one like it lately, you might want to walk away from the deal.

Picture Your Buyers

When you think about your buyer, do you think of someone who was last seen in a truck that looked like chocolate, mud from roof to wheels, because they like off-road racing? Even if they do like to race on the dirt hills, do they want to travel over them several weeks of every year to get to work?

Do you think your buyer will likely be a young working professional who will want to arrive at work quickly, with a clean car and a clean coat?

Do you think your buyer drives a car with heavy duty tires that can take the wear and tear of a gravel road? Will they be driving a 4-wheel drive with high clearance? Or, will they be driving a small vehicle with two-wheel drive and low clearance.

Mud on the Running Boards

No matter who you are picturing, always consider the quality of the roads or your buyer is likely to be in a conversation like the one I heard this week.

“The boss here,” says a man, nodding his head at his wife who is seated at the same table, “is the one who made me pick a house on the black top.”

“Ah, I wish, I had thought that out,” says their friend shrugging into his coat as he signs his bill that is laid out on the table next to them. “Have you seen all those gravel trucks going by lately.”

“I’ve been replacing a lot of wheels lately,” snickers the local car mechanic leaning out of a nearby booth to join in the conversation while his family snacks on nachos before dinner.

As she swings by with a loaded tray, the waitress adds, “I had to back up and leave my car at home today because I could not make it over a washed-out part of the road. I’m glad I did, or I’d be in your repair shop right now.”

“I had to catch a ride with my neighbor who drives a jeep,” she finishes.

Washboards and Potholes

You may not often find yourself in small towns on the edge of open country, but even in the city, roads are very important and in the Spring the potholes can easily eat axles and wheel rims. Take a good look at the roads yourself and ask yourself, are the ditches and gutters cleaned out, does the water pool on the crown, are there washboards and pot holes that have just been covered with gravel or tar and not cut out. Is the road gravel?

Talk to the neighbors. A good question to ask is “Was the road passable in the Spring?” “In the winter is this hill icy?” “Has anyone you know of ever slid down this driveway into that creek?”

The house buying advisors tell house buyers that they need to pick a neighborhood that is the closest fit to your lifestyle and personality. Their list of things to consider is quite extensive, and it definitely includes the quality of the roads.

Although I just heard about some quirky houses that sold to quirky buyers who thought they were “cool,” I’d say if the house is on 13th street, next to a railroad, a sink hole, and a cemetery, was once owned by a mass murderer, and for sale cheap you want to walk away. Be careful with your money.

Let me know if you have found any deals this month that you cannot walk away from. I hope that I can be of help to you this month.

I can be reached at
Patrick@REICapital.cash
512-213-2271
Austin, Texas

References:
Investopedia.com How to Buy Your First Home: A Step-by-Step tutorial. Amy Fontinelle

How to Use a Hard Money Loan to Get Your Real Estate Property Ready to Sell

Posted on March 6, 2019 by Patrick StCin

How Much Money Do You Need?

There are some basic things you need to know before you can get a hard money loan. First, you need to know how much you need to borrow and how much collateral you have. You begin by finding out how much your real property (house or apartment complex) is worth as is.¹ Note the words “as is.” You can get this information from a real estate appraiser. Then you ask them to make a second estimate about how much more the property will be worth if obvious repairs are made.

Next, get a remodeling contractor to give you a bid on the repairs and a plan or time frame the repairs will take. You might want to get several bids and choose the one that looks best to you.

How Much Collateral Do You Have?

Second, find out how much you owe on the property. The difference between the amount you owe and the appraised value of the property is your equity. It is the equity that will determine how much the lender will lend you.² Compare the amount of the cost of the repairs to your equity after the repair is make. If your equity is larger than the repairs, you might be able to make a profit after paying off the loan.

The amount of money you need to borrow is the amount the repairs will cost plus a cushion of maybe 15 percent. The amount of collateral you can offer the lender is the equity in the real property. If the equity value of the real property is larger than the amount it will take to fix the property up, you have collateral to get a hard money loan.

Who Are the Lenders?

Hard money loans are typically issued by private investors (individuals or groups) lending their own money to borrowers with real property. The real property is their protection for making the loan and will be taken if the loan is not repaid. The primary basis for making a hard money loan is the liquidation value of the collateral backing the note.³ While the bank on the street corner will check basically everything before issuing a loan, including your credit scores, your income, the stability of your income, any missed payments, the amount of outstanding credit you have, and how the internal revenue service feels about you, the hard money lender will be are more interested in the value of your collateral than in your credit history. The hard money lender will determine the value of the property by getting an independent appraisal.

How Much Will It Cost Me?

Interest rates on a hard money loan will start at about 7.7 percent.¹ The rate will depend on several things, including the liquidity of the asset. If the house you are repairing is in a bad neighborhood, it might be hard to sell even after it is remodeled and thus the interest rate on the loan will be higher. Broker fees also apply if a broker helped you find the funding source.

IMG_00003705_edit

The broker offers personal service to the borrower and administrative service to the lender. They give advice, do the paperwork, and make the phone calls involved in the transaction. They will also have the day-to-day experience and contacts to find the best rates for you. They then pass on the completed application to the lender.

Summary

In summary, if you are in a bad credit situation, have equity in real property you own, anticipate a project that will not take too long, and need money quickly, the hard money loan is probably for you.

If you find a deal, give me a call for a quick closing fix-n-flip rehabilitation loan. You can e-mail too.

Patrick@InvestorsLendingSource.com

Austin, Texas

512-213-2271

References

1. Hard Money Loans: A Complete Guide. California Hard Money Direct. Available at https://californiahardmoneydirect.net/2017/04/21/hard-money-loans-guide/. Retrieved November 2018.

2. Justine Pritchard, Hard Money Basics, How Hard Money Loans Work. Available online at https://www.thebalance.com/hard-money-basics-315413. Updated October 31, 2018. Accessed November 2018.

3. Wikipedia. Hard Money Loan. Available online at https://en.wikipedia.org/wiki/Hard_money_loan/. Accessed November 16, 2018.

Beautiful Fort Worth House in the News

Posted on February 28, 2019 by Patrick StCin

The home of LeAnn Behrens and David Montague in Fort Worth’s Park Hill neighborhood appears in the Wall Street Journal (wsj) three times, in film, in article, and in photos. I enjoyed all three mediums. The film was made by Rob Alcaraz. The article written by Alina Dizik, and the photos taken by Casey Woods Maddeaux.

Rebuilding After a Fire

David and LeeAnn completed their home in 2017 to replace the one that was lost in a fire when the fire in an outside grill on the deck spread to the house. This house is on the site of the old house. Out of this tragedy, the couple started from a clean slate, with the help of architect Michael Bennett, to build a home where they could display their collections and live and entertain.

A Video Tour

In the video, David leads viewers on a tour of the home from the front door with a welcoming, “Hello I’m David, welcome to our house,” as he opens the front door. The house he describes as a perfect combination for them, combines living areas, art galleries, a library, and museum in 6,000 square feet with 4 bathrooms and plenty of areas to entertain in.

David shows viewers some of the artwork displayed in the house, his collection of books, and some of the building techniques they used on the back deck, like the burned wood siding, a technique he says is from Japan. The burned wood is proper because it reminds them that the original house that stood there burned down. Also, inspired by their survival of the file are the designed-in multiple decks and multiple ways to get out of the house.

“It Makes Sense to Us”

The art and books are all things David and LeeAnn like and have purchased. “It makes sense to us, even if it may not to anyone else,” says David when pointing out some of the art that is paired with one another in the living room. The central gallery space includes more than 20 masks and two Day of the Dead-themed portraits by multimedia artist Dolan Geiman along with a commanding bird sculpture from Africa. Photos of the house can be found at
https://www.wsj.com/articles/a-fort-worth-home-built-around-a-couples-collections/

4,000 Books

Did I mention already that David Montague collects books? His collection of 4,000 books had to be rebuilt from scratch after the fire. The two-story library in his new home includes a fire place with a white plaster representation of the Continental Divide by a local artist and comfortable places to read. In the film tour, David explains that he is collecting some of the original works about the fur trade written by the original mountain men and how that inspired the Continental Divide plaster relief that extends from the first floor of the library to the second floor.

Some of the other interesting features of the house are glass walkways in the upper floor to foster a sense of connections throughout the home, a second-floor coffee bar outside the couple’s master bedroom that opens up to a second floor living room that overlooks the pool in the backyard.

A Red Stove & Day of the Dead Portraits

The pieces that really caught my eye were the red Bertazonni range that gives color to the modern grey-toned kitchen, the 4,000 books (did I say that already?), the two Day of the Dead portraits in the entry hall, and the African Ship sculpture in the living room that is just calling out to be touched.

Okay to Touch

The home does not have a “no touch” policy according to David like a museum would. David says that the art is “pretty much indestructible—they were built for a tribal setting.” As a tactile explorer myself, I am happy to hear that.

Take a look at this beautiful Texas home on the media you like best, or like me, watch, read, and view all three.

This rebuild was way more radical than a standard fix-n-flip, but don’t forget that you too can make a comfortable beautiful home out of a house, one that will hold and display your or your buyer’s treasures. I’m always on the look out for ways to make a fix and flip house stand out.

Let me know if I can be of help to you this month. I can be reached at

Patrick@InvestorsLendingSource.com

512-213-2271

Austin, Texas

References:

Dizik, Alina, 2019, A Texas Home That’s Part Library, Part Gallery, wsj

Maddeaux, Casy Woods, 2019, A Fort Worth home Built Around a Couple’s Collections, wsj photo article.

Alcaraz, Rob, 2019, A Home Built to Be a Live-In Museum and Expansive library, wsj video

Photo credit: Caroistda [CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0)%5D

Abandonment

Posted on February 27, 2019 by Patrick StCin

I recently added an Escrow Glossary of Terms to my website. You might want to check it out. The first word is a rather sad one, “abandonment.” Of course, the list is alphabetic. “Abandonment” is an official term in real estate the means the voluntary relinquishment of rights of ownership or another interest (such as an easement) by failure to use the property, coupled with an intent to abandon (give up the interest). This subject is relevant because in your search for a fix-n-flip project to invest in, you might run into a house that looks abandoned. It may be. It may not be.

Intention to Abandon

According to the Letter of the Law, volume 13, number 4, 1999, by Judon Fambrough, “an essential element of abandonment is the intention to abandon and such intention must be shown by clear and satisfactory evidence.” Judon goes on to say that non-use and failure to maintain and repair property is not sufficient evidence on its own to prove abandonment.

While title to real property cannot be lost by abandonment, it can be lost in other ways. Land title can be lost by adverse possession when another person possesses and uses the property without permission for a specified time. Real property can also be lost by forced sale when a sheriff sells the property for delinquent taxes, a trustee sells the property for delinquent mortgage payments, or a homeowner’s association sells the property for unpaid assessments.

Adverse Possession

On the LoneStarlandLaw.com website, David J. Willis explains that adverse possession refers to circumstances under which one may lawfully lay claim to ownership of property not originally one’s own. Classic examples include the rancher who fences in an adjoining tract and pastures his cattle there for a decade and the family that gradually takes over the empty lot next door.

According to Willis, foreclosed houses are often perceived to be abandoned because they are sitting idle. These houses are not abandoned and the courts have tended, he says, to protect the interests of the absentee lenders who are now owners.

Facts and the Law

Everything about an adverse possession claim must be based on facts and the law. For one thing, to make a legal claim of adverse possession, you have to have a legal description of the boundaries. The boundaries cannot be uncertain. Paying taxes or back taxes on a property does not guarantee possession either if the original owner shows up, it does however prevent the eventual sale of the property in a tax sale. If a title search reveals an owner of record that can be located, it may be better to contact them and buy their interests.

Willis also says, the law is does not condone or contemplate the use of the adverse possession rules as a business plan for aggressive investors. This strategy is involves breaking the law, for example, breaking and entering, file false instruments, slander of the title, and fraud.

Knock

If you find a house you think is abandon, fall back on my strategies for finding motivated sellers. Knock.

When you find a home that looks abandoned, one that might be up for sale if you can find the owner, knock on the door. Knock on the neighbor’s door too. If no one answers, ask about what is going on with the property. Leave behind your business card. Write down the addresses and research the property from your computer. Write about the house in your journal of prospects and follow up every month. You can keep an online journal too, photographing the house and making notes to help you remember to follow up.

Remember the door hangar. It can be something simple that you make yourself with a hole punch and rubber band, or something you more polished that you order form an online printer. It should say something like, “We buy houses. Call 512-555-1212.” If no one answers when you knock, leave one of your door hangars.

When you have contacted the buyer and have done your research on the value of the property and know how much it will cost to remodel the property, I can help you with a loan program to purchase. Your fix and flip or rental property. I am happy to announce that a loan program is now available to purchase rental property for the purpose of building your short-term or vacation rental property business.

We have funds available for single-family residential property, condos (warrantable only), and ocean beach front property.

I would be pleased to have you call or e-mail too.

Pat St. Cin

Patrick@InvestorsLendingSource.com

512-213-2271

Austin, Texas

References

LoneStarlandLaw.com website, David J. Willis

Letter of the Law, volume 13, number 4, 1999, by Judon Fambrough

The Media Room Must Have

Posted on February 18, 2019 by Patrick StCin

Even though you might not be building or remodeling a 9,000-square-foot mansion in your next fix-n-flip or vacation rental property update, you might want to consider installing a multi-functional media room in the main part of the house you are working on. The WSJ article, “The New Mansion Must: A Media Room,” by Cecilie Rohwedder, says this multimedia room is the latest trend in home design and might include any number of huge flat screen TVs occupying the same space as a fireplace, picture windows, games tables, couches, and computer work stations, all situated a short walk from the refrigerator in the kitchen. This multifunctional room is making itself at home in the “open-concept” floorplan and replacing the dark, sound-proof basement home theatre.

Recessed and No Glare

Making multi-tasking all the more real, in some homes, this multifunctional room might include a bank of multiple recessed flat-screen TVs with anti-glare screens and hidden audio systems so a movie, a social media feed, the news, and a PowerPoint slide you are working on for your job can all be showing at the same time. There might also be large picture windows with automated shades that can be lowered to block out light.

Electrical Outlet Planning

To make all this convenient and easy on the eye, this will take some electrical outlet planning with your electrician before you start the project, even right up front when you are putting together your budget and loan request. (As cheap as flat-screen TVs have become, you might want to consider throwing in a few flat-screen TVs to make the remodeled house more sellable. The RV industry has started to do that.)

The wall where the flat screen or flat screens will appear would need an outlet behind the flat-screen TV (or TVs) so the cords don’t show. For the automated shades, you might want to put outlets along beams in the ceiling or high up on the walls next to the windows. If there is a fireplace in the room, you could plan outlets for either side of the mantel.

Visualizing that work, study, and socializing might also be going on in this room, outlets in the floor where a desk or game table might go will prevent cords from being stretched everywhere, and outlets a little above desk height in the corners will be handy for charging devices or plugging in computers, and you won’t have to crawl around on the floor to reach the plug ins.

Invisible

Now that you are on the road to becoming your own media installation contractor, you might be interested to know that according to Admit One CEO Lance Anderson (interviewed in the WSJ article) the job of the media installation contractor is to “not be an ‘eye sore’ blackening someone else’s design.” You need to make the electronics behind the entertainment invisible. Jason Barth of Premier Group in Carmel, Indiana says, the media system should be experienced, not seen.”

If I can help you with a loan, please call. I have funding for fix-n-flip projects.

Pat St. Cin

Patrick@InvestorsLendingSource.com

512-213-2271

Austin, Texas

References: Rohwedder, C. “The New Mansion Must: A Media Room,” (2019) WSJ

Finding Houses to Buy and Owners to Sell — Strategy #3

Posted on February 15, 2019 by Patrick StCin

When you are looking for properties to buy and owners that are ready to sell, there is nothing like using all your contacts and making new contacts to help you find houses that are ready to buy and owners that are ready to sell. In this strategy you ask others to be a detective with you.

The Mail Carrier and the Dog Walker

Enlist the help of others who can refer you to people thinking about selling their place and moving on, including landscapers, general contractors, cleaning/maid services, dog walking services, pool cleaning guys, mail carriers, etc. There is a whole raft of professionals, like these, who regularly service homeowners. Get to know them, cultivate relationships, keep in touch with them; it can pay off big time for you and the seller.

Distressed Sellers

You can also draft a letter on professional letterhead and it into the hands of a real estate office in your area. Explain you are a real estate investor looking for distressed properties and can close quickly if the price is right.

You might ask, “What is a distressed property.” Well it is a distressed owner that makes a distressed property. An owner who really needs to sell for whatever reason becomes distressed when they cannot get the deal completed. We’ve listed some of these distressed owners in our previous blogs. They include people who can’t afford to make their mortgage payments and are under threat of foreclosure, people with tax debts that have required them to sell the property, and estate executors and estate lawyers for deceased property owners. They are all people, some facing divorce, some facing the loss of their job, some being transferred. They need to sell and often need to sell quickly below market value. You are willing to buy and that is a help to them. You are getting a great deal and they are unloading a headache. It is a potential win-win situation.

The Real Estate Army

By contacting the real estate agency, you can have an entire army of real estate agents working for you, free of charge. If one of them finds a property for you, the seller of the home will pay the agent’s commission. You owe them nothing; it comes off the seller’s side. Promise to use them as an agent when it comes time to sell the home you just fixed up.

Win-Win

Remember this business is a numbers game. The more you detect, the more you find. The more you market the better your chances for success. There are plenty of opportunities in your metro area to find sweet deals that will make the owner happy, you a bit wealthier and the neighborhood happier for renewing a distressed house. It is a win, win, win business.

As soon as you find a deal, give me a call for a loan fix-n-flip rehabilitation loan. You can e-mail too.

Pat St. Cin

Patrick@InvestorsLendingSource.com

512-213-2271

Austin, Texas

Finding Houses to Buy and Owners to Sell — Strategy #2

Posted on February 13, 2019 by Patrick StCin

When you are looking for properties to buy and owners that are ready to sell, the internet is your number 1 detective tool even when you are looking for local properties. Your second most valuable tool in this search for houses to buy and owners ready to see, is your phone. I’m sure you use these everyday already, but just in case you have not considered all they can do for you, I’ll run through my list here.

For Sale By Owner

First search Craigslist ads (for example, houston.craigslist.org, austin.cragslist.org, sanmarcos.craigslist.org) local online newspapers, and even real estate sites like Zillow.com where you can find properties offered by owners. You can wing it too by typing into your browser window, every combination of key words with locations that you can think of related to houses that might need work and owners that might be ready to sell like with a location:

Fixer upper housing
houses for sale
must sell house
house for sale that needs work
vacant house for sale
real estate by owner
seller financing
FSBO (for sale by owner)
motivated seller

14_06_02_Property_For_Sale_Sign_Mamaroneck_NY

Properties Being Sold for Taxes

You might also want to look at government and auction websites where you might find houses for sale and motivated sellers. Some of these include:

Probate Properties

Probate properties for sale are another possible place to find a deal. Probate properties are owned by the estate of a deceased homeowner and are often sold below market value to property investors and potential homebuyers. The process of purchasing these properties can take anywhere from 6 month to several years.

You can find these properties from a real estate agent that might be hired by the estate executor to disperse the property of the deceased. You can also find them with probate lawyers. You can also contact the local court directly and ask for a list of all probate cases filed within the previous six months. There is probably an online docket you can check as well (for example, http://www.traviscountytx.gov). Contact the attorney for the estate or the executor. This information should be on the docket sheet maintained by the court.

Contact each representative directly and ask for information on the status of the property, how they are handling the sale, and whether an asking price has been established. If the executor is motivated to sell, they may negotiate with you directly if the court has already approved the asking price.

Some estate properties sell at public auctions which are advertised. These however often sell at or above the market value of the property.

If you make an offer, you will have to put 10% down and be aware the court will have to approve the selling price. For more information about buying probate properties see https://www.wikihow.com/Buy-Probate-Properties.

After you have accumulated a list of houses, you need to start calling and setting up appointments to visit the property and discuss the purchase. Don’t forget to request an inspection. When you have a price, give me a call for a loan. You can e-mail too.

Pat St. Cin

Patrick@InvestorsLendingSource.com

512-213-2271

Austin, Texas

References: https://www.wikihow.com/Buy-Probate-Properties.