In San Antonio, we have an unusual niche of distressed real estate. We buy a house for $50,000, and do not repair it at all. We turn around and owner finance it to buyers we carefully qualify.
We always get 15%+ cap rates for investors, with no repairs or property management needed. Our ‘buyers’ in the houses maintain them as they have a vested interested in the property.
It works very well. Anyone else tried this? My partner retired himself with this strategy years ago.
Sounds like a great business opportunity. How do you handle the Dodd-Frank requirements? Also, it appears as if the Chapter 5 of the Texas Property Code has some specific requirements as well. Have any of these caused difficulties?
We have no issues with Dodd Frank. You can do three deals in a year, and then you just go through a loan originator. No problems at all. I am not familiar with the property code details you mention. My partner has done this for 12 years and does everything legally. He literally retired himself at 28 doing this. It’s a great buy and hold. Get in touch with me if you want more info.
What are you selling and what is the cost?