Home Forum Contact Create an Account Sign In Create a Trust

Best Price Range for RB’s

Home Forums General EHTrust/EHT Topics and Creative Real Estate Financing Best Price Range for RB’s

This topic contains 10 replies, has 0 voices, and was last updated by Avatar of davidm davidm 49 years, 11 months ago.

Viewing 12 posts - 1 through 12 (of 12 total)
  • Author
    Posts
  • #4540
    Avatar of davidm
    davidm
    Member

    Are there plenty of RB’s out there that can pay the mortgage payments that a 300k and up property would require, or is it best to be looking at properties with lower values?

    I seem to be finding more motivated sellers around the 450k range, but I don’t know if there’s potential RB’s that can afford that kind of monthly payments.

    Thoughts?

    #24838
    Avatar of scott
    scott
    Member

    I always encourage people to put where they are in thier profile. Here the average price sold is 155K so 100K to 300K is best for RBs.

    #24839
    Avatar of davidm
    davidm
    Member

    Profile updated 8)

    #24840
    Avatar of gshepherd
    gshepherd
    Member

    Hey Scott, are you bragging about location because you live in an airport!?!?!

    Good question David. You know what, write a NEO for a house and see what happens! I say that because when a RB comes in with the funds it comes down to your comfort level and if you think the deal is profitable and the factors that go into that decision.

    Greg S

    #24841
    Avatar of dbhenderson
    dbhenderson
    Member

    I don’t know if there is a “best” price range. After all it’s all free money!

    I prefer (in Salt Lake City) to do deals at $300k and above.

    Here’s why.

    1. I have found that it takes just as much work to close a deal on a $200k house as it does on a $350k house, but the profits and the up front cash flow is about triple. I only have to do 4 house a year to make a pretty good living instead of 12. My average 3 year profit on a $350k house is about $65k with about $18k up front! I can afford to wait a couple exta months to find the right RB.

    2. I have found that above $300k houses require hardly any fix up or fluff and puff (carpet & paint). The homeowner usually had pride of ownership and thus the house is move-in ready!

    3. I have found that prospective RBs for the higher end houses have more than likely been previous home owners at one time and they understand what tax benefits, future appreciation and full rights of ownership are. I don’t have to spend a lot of time getting rid of or dealing with “renter mentality”.

    4. I have found that even though my lease payments are between $2k a month and $4k a month that when I explain the tax advantages (which are better on higher end houses) and furture appreciation (also better) and show them the net lease and how most of their lease payment check goes to savings or “instant equity”, that those higher lease payments don’t kill the deal.

    5. I have found there are lots of buyers with money out there that can’t qualify (even with good credit) for a loan (especially in the tight requirement market that now exists) on these nice houses, but this is the life style they want and they have the money if you have what they want. At $300k and above I have more what they want and with the NEHT System I can give it to them better than anyone else out there.

    Just my opinion for what that’s worth.

    DavidB

    #24842
    Avatar of davidm
    davidm
    Member

    Great feedback guys, thanks!

    #24843
    Avatar of scott
    scott
    Member

    @gshepherd wrote:

    Hey Scott, are you bragging about location because you live in an airport!?!?!

    Greg S

    I live in an airport because i’m going places. :lol:

    I use DFW because since 2000 I have lived in Arlington, Grand Prairie, Red Oak, Hurst, Bedford, Dalworthington Gardens, Plano, and Dallas.

    #24844
    Avatar of bill_gatten
    bill_gatten
    Participant

    David, if you DO WHAT I SAY, your RB candidates will tell you what price range they want to be in. Finding properties first in this market and then advertising for buyers is like loading up on stink bait when the catfish are jumping into your boat.

    Bill

    (There’s an analogy in there somewhere)

    #24845
    Avatar of homesavers
    NULL
    Member

    Bill so you are saying get the RB’s first then the NEO? Some say just the opposite. Get the NEO then market for RB’s. Others say do both at the same time. So I am confused. :? If you market RB’s without an NEO then what property do you put them in? They can find a property they like that is listed or FSBO but that doesn’t mean the Owner wants to play our game. I think the RB’s are driving our market right now. So it would be good to get a pile of them in the bucket. However, they still want a house they like. Let’s say in my area there are 10,000 houses for sale. If I have let’s say 5 under NEO that really limits the selection for the RB so I am not sure how this really gets pulled off since I have not found an RB with money yet.

    #24846
    Avatar of rick
    rick
    Participant

    Don,

    If you have 5 NEO’s signed and have a sign in front of them,

    No Bank Qualifying
    Partner With Us
    Receive Full Tax Benefits
    Only 5% plus 1st month moves you in
    http://www.MyLeaseToOwnHome.com
    800-444-Home

    Or anything you can think of, you will get calls.

    Then advertise for buyers and take it from there.

    Somewhere around 30% of all homes are sold from sign in from of the house. Something to keep in mind.

    I have had 1 house on the market for around 6 months. It has not sold because it is about 50k overencumbered. The owner has a good loan on it and can afford to stay in the house, so they have had me keep the sign up. I have learned more from this one house than you can imagine. To give you a couple of examples: several folks in the same neighborhood have had the 5% to move in. Another guy wanted to pay cash for the 530k house and pay off the loan if we bought his 660k home. That was almost the perfect setup for my SB. So I have learned that you never know how the stars are going to line up and I still say Scott has it right.
    Keep Getting NEO’s Signed, Put The Sign Up and Advertise For The RB’s. That way you can say: I advertise for the RB’s first and I advertise for the SB’s first and you will both be right.

    Prospecting goes something like this:

    Prospector #1: Why are you waving that piece of paper on the creek?

    Prospector #2: I’m fanning for gold

    My 2 cents

    #24847
    Avatar of dbhenderson
    dbhenderson
    Member

    @Rick wrote:

    Somewhere around 30% of all homes are sold from sign in from of the house. Something to keep in mind.

    A recent survey by the National Association of Realtors of 3 million RE agents to find where the best sources to find buyers were, they found that 60% of buyers came off yard signs and directional’s, that 30% came from the internet (including the MLS) and 10% came from the printed media.

    If 90% come from yard signs and web sites why use expensive newspapers and flyers? I guess because 10% is 10%??

    My question is how do you find RBs first if you don’t have a house to find 90% of the buyers?

    #24848
    Avatar of Administrator
    Administrator
    Keymaster

    Just put out signs with an average monthly payment for the properties in your area. Typical Sign you see on this board, No Down, No Bank Qual. etc. when they call tell them the house in question is gone but you come across properties constantly. Then find out:

    1. How much they have?
    2. What they want?
    3. How soon they need it?

    Then go and get it!!

Viewing 12 posts - 1 through 12 (of 12 total)

You must be logged in to reply to this topic.

Posted in
Contact Form
Your Fullname:


Email Address:


Phone:


Best Time to Call:


Subject:


Your Message:


Security Code:

 

Can't read the above security code? Refresh