Good people. I just want to first off thank you all for your amazing help in my development and education. I especially thank señor Stokely for his active participation and guidance.
Now with the thank you’s aside I’d like some more advice on something.
I am currently in the process of closing my first deal in Houston, TX (I live in NY and have never even been to Houston). Its for a condo and things seem to be moving pretty fast. My broker says we can close on the contract in a week! I just wonder if things are happening way too easily, because it seems so straightforward.
Should I be on the lookout or be asking any questions about anything?
The closing should get me a cool $10k back and the asking. If you need more info to help me out please ask.
Thanks for the kind words senior Manny. Real estate closing always take longer and cost more and are harder to close than expected. You are right to be shocked when all falls in place too easily especially when you are getting money back. I had one once where the HML found out I was getting money and made me pay 6 months payments up front. I still got cash flow and 5 grand. There are some good deals in Houston on condos from what I have been looking at lately. I looked at a few and almost got some but could not get the financing I needed with my horrible credit I can only get HMLs. and these were not that great. You may want to share some more about the deal as I am sure some of the members would love to see how it is put together.
Most definitely Ted. Well here it is. A couple of my Frat brothers and I decided to use leverage and get together to start buying up some property. Houston was chosen first only because of a recent trip one of the brothers took there. He found some decently priced ventures and called us up. We are in the process of buying up 3 Town Houses (not Condos) in the same sub division.
I am taking one on under my name and the other 2 are picking one up under thiers. I am getting mine for about 10K under market. So I would assume that is what I get back at closing. Right now I am getting rates from various brokers to see who can best accomodate my needs. I’m pretty psyched, things seem to be moving and my credit rating is AMAZING (had no idea)!
We plan on renting them out. Six months out we’ll re-evaluate the situation and see which way the market indicates we should go, whether a ReFi, Sale whatever. I’m also seriously thinking about putting it into an LLC before the 12 month mark.
Who knows? So many scenarios, so many opportunities.
What I do know is that this first deal is surely not going to be my last! I am hitting this hard! Been sitting back contemplating too long.
Good to hear you are doing something and you can not go wrong buying in a slow market below retail unless it is going even lower before a correction. You said it is $10,000 below market and you assume you are getting that back at closing. This is not automatic. If you go to Wallmart and it is on sale they do not hand you a refund. How are you working it so you get cash back?
No actual plan in place Ted. I was under the impression that because the comps were 10K over that money would get kicked back. Not the case? Please let me know.
Not the case. If your lender will loan 100% of the appraised value without consideration to what you are buying it for then you could get $10,000 at closing. This does not happen without being creative or even dishonest in some cases.
A correction like in any market is just a change in direction either up or down that says basically that we have been wrong in the past and the price changes to reflect the new market opinion.