Dallas Mortgage Banker has access to Builder close outs 10-20%discounts for investors

[PatrickD]

Hi my name is Patrick D and I own a mortgage company in Dallas Texas. I have access to new construction builds in the Dallas/Fort Worth metroplex. Most of the builders are closing out old phases and are starting new ones. All homes will have atlest a 10-20% discount. I dont know about the rest of the world but here you can buy a 4,000 square foot home for around $280,000 and 1500 square ft for $125,000. I am looking for serious investors who want to buy properties in the Dallas/Fort Worth area. I also have access to custom homes from 300k+. I look forward to working with you! Sincerely, Patrick D

[3ms]

I am interested. Reply or email please.

[Dan in CA]

Patrick,

Are you saying you have access to multiple close-out homes for $125,000 which after a 10% to 20% discount would normally be worth about $139,000 to $156,000? I'm curious why a builder would discount these homes so drastically. I realize there is a value in closing out a phase and moving on, but is this their best method? The reason I ask is because I am interested in investing in Texas following a recent trip to Houston where I saw pricing that really surprised me (I'm from California, so that might explain my reaction).

What type of rental income would a $125,000 home produce per month? Also, aren't the property taxes fairly high at about 3% of assessed value/purchase price?

What has your experience been regarding appreciation in value and what is the conventional wisdom as to what is to come? Nobody has a crystal ball, but there must be some inclination at least.

Thank you for your input.

Dan in California

[PatrickD]

Dan there are several reasons that builders and individuals will sell for a discount. 1st are long term relationships that myself and my partners have built over the years. I have access to blocks of 1 to 100 homes from the same builder. I use the owners not the sales reps to negotiate prices. To save additional money for my clients in most cases the builder won't have to pay a 6% realtor commission. More like 1 or 2%. Some of the smaller builders who actually build better homes get pushed out by larger builders with larger advertising budgets. These builders must move the homes off of their line of credit. They are happy to break even. I network daily with investors, builders, appraisers, title companies etc. I know where to buy and where not to buy. I know individuals who have several homes that they rehab for a living. 80k-90k. These homes are around 1200-1600 square feet. If they are on their line of credit more that 90 days they must go.

Reguarding taxes. The rate in Dfw is around 2.7%. I have access to excellent insurance companies who deal with CA investors daily. I can make sure that your entire transaction is handled properly. I have access to 100+ lenders so I can shop programs until you are completely satisfied.

Houston. I would stay away from. I did a refi campaign in Houston and all of my appraisals came up short. Thats just my opinion of Houston. I am sure there are a few spots but I would not invest there.

I love Dallas/Fort Worth because all of the Baby Boomers are retiring and need a place to get more for their retirement dollar. I meet more and more of them and they all say the same thing. They have looked around and Texas D/Fw was the best for them.

Reguarding appreciation I would say 5-8%. Some areas are double that. The most important factor is job stability. We have a low unemployment rate. I believe it is around 4%. We are stable.

Cash flow is very important. Texas is one of the few states that you can build equity while your tenants pay down your mortgage. Your payment is a little higher than 1% including your taxes, insurance, mortgage etc. A $130,000 home would probably cash flow around $400.00. I also invest in commercial properties. Huge cash flow but it takes education and time both I am investing in. I can help you in that area as we go.

Feel free to PM me and I will be glad to answer all of your questions. PatrickD