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January 14, 2017

Investor Opportunity – San Antonio Home Sales Are Projected to Surge in 2017

Experts say that San Antonio real estate sales will continue to increase this year. They also note that prices will continue to climb in the consumer home sale market as many local developers are not able to keep up with demand.

Some of the factors that are causing the increase in San Antonio real estate demand are local growth in jobs, very low mortgage rates at 4%, and increasing home values. It is likely that mortgage loans will continue to edge up but will continue to be low by historical standards.

Approximately 27,000 homes were sold in San Antonio in 2016, which is an 8.5% climb from 2015, and a huge 46.4% increase from 2012.

Local home prices in the San Antonio market increased in 2016 to $204,000, which was a 27% increase from a median home price of only $160,000 in 2012.

Owner Finance, Buy and Hold Investment Opportunities!

Given that there is such a strong demand for homes, as a San Antonio real estate investor, I am finding that there are plenty of investing opportunities for under market value properties.

This city has many people who want to buy a San Antonio home but do not have the credit or the down payment to get a conventional loan.

That’s why a major part of my San Antonio real estate investment business is selling homes with owner financing. The end buy has to have $5000 down, have a steady job, and show that they have the regular monthly income to pay the mortgage.

I prefer to owner finance my investment properties than rent them out. I usually only need to spend $5000 or so to fix up the property. Then I can owner finance the home to a family who can finish the repairs themselves.

Remember, there is great demand for homes in San Antonio, but thousands of families lack the credit to buy their home with conventional financing. This is a great opportunity for smart and savvy San Antonio investors! Here is a new under market value San Antonio deal that will make 14% ROI or so:

Address: 549 N San Bernardo Ave, San Antonio, Texas 78228
Year Built: 1958
Description: Under market value San Antonio investment property and another cash flow opportunity for San Antonio real estate investors, large beautiful lot, 4 beds 1 bath, 1000 square feet, lot size: .30 acres, subdivision: Memorial Heights, 6K repairs, lawn maintenance, interior paint, clean trash in/out, After Repair Value: 73K,
Cash Price: $46,900 CASH ONLY.
Exit Strategy: Owner Finance with 6k in repairs: 5K down payment, $750.00 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: $73,000.00, See attached sold/rental comps.
Notes: This San Antonio owner finance, under market value property has a very large lot, which will appeal to many families. It features FOUR bedrooms, rare in this price range. Also, we advise owner financing this house rather than renting, with just $6k in repairs – boosts your ROI.

January 12, 2017January 19, 2017

OFF MARKET – 549 N San Bernardo Ave, San Antonio, Texas 78228

San Antonio Real Estate Investors,

This under market value property is only $46,900 with $6000 in repairs. We will do the repairs needed to get it resold with owner financing. Expect an ROI of ~13-14%. It has a huge yard and 4 bedrooms, which is a rarity in this price range!

Address: 549 N San Bernardo Ave, San Antonio, Texas 78228
Year Built: 1958
Description: Under market value property and another cash flow opportunity for San Antonio real estate investors, large beautiful lot, 4 beds 1 bath, 1000 square feet, lot size: .30 acres, subdivision: Memorial Heights, 6K repairs, lawn maintenance, interior paint, clean trash in/out, After Repair Value: 73K,
Cash Price: $46,900 CASH ONLY.
Exit Strategy: Owner Finance with 6k in repairs: 5K down payment, $750.00 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: $73,000.00, See attached sold/rental comps.
Notes: This San Antonio owner finance, under market value property has a very large lot, which will appeal to many families. It features FOUR bedrooms, rare in this price range. Also, we advise owner financing this house rather than renting, with just $6k in repairs – boosts your ROI.
Contact us for more information or to make offer.
Sold and Rental Comps: sold-comps-549-n-san-bernardo rental-comps-549-n-san-bernardo

More Pics:

January 12, 2017May 17, 2021

Why San Antonio Is A Great Market for Owner Financing

As a buy and hold investor in San Antonio, you have the option of either renting out your investment property, or owner financing it.

I have done both buy and hold strategies in the last 16 years. While I still hold some rental properties, I really like to owner finance properties in San Antonio. I think that the San Antonio market is a good place to owner finance for several reasons:

#1 Huge Blue Collar Hispanic Market

We like to serve the hispanic blue collar market in San Antonio. These are hard working people and are very oriented towards family.

Most of my buyers are electricians, roofers, plumbers, carpenters, painters, cooks, oil workers etc. Many of them have two or three jobs and good income.

They often have large, extended families, and they have the ability to repair the houses that I sell them. To them, hard working blue collar people, I am offering them an affordable opportunity to own their own home.

If the home needs to have a new roof or new flooring, they usually can do the project themselves inexpensively. This saves them money, and it saves me money as an investor because I do not need to spend as much to rehab the house.

#2 Many Hispanics Are Cash Only People

There are hundreds of thousands of hispanics here who lack credit. They may have good income of $4000 to $8000 per month, but they either do not believe in credit, or they have bad credit. However, they have the income and the job stability to afford their own home.

With credit markets as they are, it can be tough for a buyer with no credit or bad credit to get a loan from a bank. It got even harder after the mortgage crash of 2008 and 2009. Sometimes these blue collar buyers have no conventional financing options; even FHA won’t work with them.

Why should a hardworking family that makes $5000 per month have to rent forever? It doesn’t seem fair at all. That’s where I come in.

#3 Owner Financing Is a Win Win for Everyone

Let’s say I have an under market value San Antonio property that I bought for $50,000. To resell it with owner financing, I may need to only spend $5000 to put in flooring, do minor foundation work, clean up the yard, and get rid of junk in the home.

Then, I can sell it with owner financing at $5000 down, $799 per month, 30 year note, 10% interest usually, no prepayment penalty. It is my job to make sure the end buyer has the job and income to support the payments; this is a requirement under Dodd Frank.

Everyone wins in this scenario: Me as the San Antonio real estate investor is making 12% or more per year with no repair costs.

The end buyer gets to own their own home and stop paying rent to a landlord.

The neighborhood gets another home owner who will probably fix up the house, which encourages others to buy and to fix up their home.

The city gets more tax dollars from owner occupied homes, and the local buisness community gets more money from people buying things to fix their homes.

That’s why I love San Antonio owner finance deals. Interested? This is a good San Antonio fixer upper:

Address: 1360 Essex St San Antonio, Texas 78210
Year Built: 1956
Description: San Antonio buy and hold investors – Another cash flow opportunity, 1360 Essex St San Antonio, Texas 78210, 3 beds 1 bath, 1002 square feet, lot size: .19 acres, subdivision: Denver Heights, 6K repairs, clean/lawn maintenance/interior paint, After Repair Value: 79K.
Cash Price on San Antonio Fixer Upper: $45,000 CASH ONLY
Exit Strategy: Owner Finance with 6k in repairs: 5K down payment, $795.00 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: $79,000.00, see attached comps. NOTE: We recommend owner financing this investment property rather than renting; you will be able to save your cash outlays on the repairs by owner financing it rather than renting. Renting out this San Antonio investment property is possible, but at least another $10,000 of repairs will be needed.
Sold and Rental Comps: sold-comps-1360-essex-st rental-comps-1360-essex-st

January 10, 2017May 17, 2021

Make 15-16% ROI in San Antonio Investment Properties

The stock market is back on the way up, and could hit 20,000 in early 2017. Consumer confidence is also at a 10 year high, and many experts think that we are in line for a period of serious economic expansion.

Even though many investors are getting into the stock market, our top investors keep a lot of their money in under market value San Antonio investment properties. Many investors once put their money in the stock market and lost it in the 2001 or 2008 crashes. Generally, putting your capital into owner financed San Antonio properties or rental properties will do better over time.

If you buy your properties at the right price and in the right area, you can enjoy steady, long term returns of at least 10% per year. That is my goal: I want to make at least 10% per year on each buy and hold investment property. And if I can do better than that, well, that’s just gravy!

The good news for San Antonio buy and hold investors is that I am finding more properties in early 2017 that are allowing high returns in the area of 15%. That’s for two reasons:

I have found more under market value properties to put under contract in the $40,000 to $50,000 cash range. I have seen a bit of a dip in some prices in the homes that I buy. I don’t know if that will last, but in the last three months, I’ve seen more sub-$50k homes in my neighborhoods than I did for much of 2016.
I am generally recommending that my investors owner finance houses rather than rent them. The major reason is that construction costs have increased in the last two years. This is making $10,000 rehabs for rental properties cost $15,000 or more. If you owner finance the investment property, you can spend maybe $5000 on rehab, and leave the rest of the repairs to the end buyer, who usually is a blue-collar Hispanic family who can handle rehab work. Saving $5000 or so in rehab costs increases your ROI.

With some of the under market value properties I have found lately in 78210, 78201 and 78207, I have seen investors hit 15-16% ROI. And that is a long term return – most people cannot count on their stock market portfolio making a steady 15% ROI!

Again, I am perfectly happy as an investor to get 10-12% ROI; that type of return allowed me to financially retire early, but these days I am seeing 15%+ returns on some homes. So give it some thought as an alternative to investing in the volatile stock market. Here is a recent San Antonio fixer upper with 15%+ returns potentially:

Address: 1360 Essex St San Antonio, Texas 78210
Year Built: 1956
Description: San Antonio buy and hold investors – Another cash flow opportunity, 1360 Essex St San Antonio, Texas 78210, 3 beds 1 bath, 1002 square feet, lot size: .19 acres, subdivision: Denver Heights, 6K repairs, clean/lawn maintenance/interior paint, After Repair Value: 79K.
Cash Price on San Antonio Fixer Upper: $45,000 CASH ONLY
Exit Strategy: Owner Finance with 6k in repairs: 5K down payment, $795.00 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: $79,000.00, see attached comps. NOTE: We recommend owner financing this investment property rather than renting; you will be able to save your cash outlays on the repairs by owner financing it rather than renting. Renting out this San Antonio investment property is possible, but at least another $10,000 of repairs will be needed.

January 10, 2017January 22, 2017

OFF MARKET – 1360 Essex St San Antonio, Texas 78210

Address: 1360 Essex St San Antonio, Texas 78210
Year Built: 1956
Description: San Antonio buy and hold investors – Another cash flow opportunity, 1360 Essex St San Antonio, Texas 78210, 3 beds 1 bath, 1002 square feet, lot size: .19 acres, subdivision: Denver Heights, 6K repairs, clean/lawn maintenance/interior paint, After Repair Value: 79K.
Cash Price on San Antonio Fixer Upper: $45,000 CASH ONLY
Exit Strategy: Owner Finance with 6k in repairs: 5K down payment, $795.00 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: $79,000.00, see attached comps. NOTE: We recommend owner financing this investment property rather than renting; you will be able to save your cash outlays on the repairs by owner financing it rather than renting. Renting out this San Antonio investment property is possible, but at least another $10,000 of repairs will be needed.
Sold and Rental Comps: sold-comps-1360-essex-st rental-comps-1360-essex-st
For more information, please contact us.

More Images of this under market value San Antonio Investment Property:

January 4, 2017

How to Save on Rehab Costs and Long Term Property Repairs

Most San Antonio real estate investors buy under market value San Antonio properties, rehab them and then rent them out.

I have several rental properties in my San Antonio investment portfolio, but I have found in the last year or two that construction costs are eating too much into my bottom line.

As the San Antonio real estate market is heating up, construction costs have gone up on some of my fixer uppers by as much as 50%! Rather than spending $10,000 to repair and rent a property, I was finding that I was spending $20,000 or more, and my net return was under 10% per year.

Because of higher construction costs, I am advocating more owner financing my San Antonio properties. Here’s how it works in a nutshell:

I buy the under market value San Antonio fixer upper for $50,000.
I do approximately $5000 in repairs on the property, which may include painting, cleaning, minor plumbing and electrical. Basically, I am doing enough repairs on the property so that I can sell it with owner financing to a blue collar worker and his family. They will be able to complete most of the remaining repairs.
By only doing $5000 or so in repairs on the property, I am able to save at least $10,000 in most cases in construction and rehab costs. This often will push my ROI to 14-15%.
Typical terms for the end buyer are 10% interest, $5000 down, no prepayment penalty, 30 year note.

The owner financing exit strategy has the added benefit of not having any ongoing repair costs, which is great for peace of mind and my bottom line.

In summary, the foundation of my buy and hold San Antonio property portfolio is properties owned in cash and owner financed to qualified buyers. It is the primary strategy I recommend to new investors who want to build passive cash flow.

Here’s a good property that will return 14-15% per year with $5000 only in rehab:

Address: 224 Avondale Ave., San Antonio, TX 78223
Year Built: 1957
Description: San Antonio buy and hold investors – Happy New Year! Excellent cash flow opportunity with central AC/Heat. This is a big plus as you don’t need to spend to add it. Has car port and tool shed. The neighborhood is in high demand, booming south San Antonio Market, 2 beds, 1 bath, 866 sqft, lot size: .16 acres, estimated repairs: 5K, clean/lawn maintenance/exterior paint. Max After Repair Value: 85K.
Cash Price on San Antonio Fixer Upper: $49,900 CASH
Exit Strategy: Owner Finance with 5k in repairs: 5K down payment, $850.00 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: 85K. NOTE: We recommend owner financing this property rather than renting; you will be able to save your cash outlays on the repairs by owner financing it rather than renting. Renting out this San Antonio investment property is possible, but at least another $10,000 of repairs will be needed.

January 1, 2017January 6, 2017

OFF MARKET – 224 Avondale Ave., San Antonio, TX 78223

Address: 224 Avondale Ave., San Antonio, TX 78223
Year Built: 1957
Description: San Antonio buy and hold investors – Happy New Year! Excellent cash flow opportunity with central AC/Heat. This is a big plus as you don’t need to spend to add it. Has car port and tool shed. The neighborhood is in high demand, booming south San Antonio Market, 2 beds, 1 bath, 866 sqft, lot size: .16 acres, estimated repairs: 5K, clean/lawn maintenance/exterior paint. Max After Repair Value: 85K.
Cash Price on San Antonio Fixer Upper: $49,900 CASH
Exit Strategy: Owner Finance with 5k in repairs: 5K down payment, $850.00 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: 85K. NOTE: We recommend owner financing this property rather than renting; you will be able to save your cash outlays on the repairs by owner financing it rather than renting. Renting out this San Antonio investment property is possible, but at least another $10,000 of repairs will be needed.
Sold and Rental Comps: sold-comps-224-avondale rental-comps-224-avondale
For more information, please contact us.

More Images of This San Antonio Investment Property:

December 30, 2016January 1, 2017

15.8% Cap Rate Case Study – 1257 Saltillo St., San Antonio TX 78207

This under market value property was purchased by a California cash investor in October 2016. We performed $2000 of clean up and lawn maintenance.

The investor purchased it for $43,000, and the total investment was $45,000. He then owner financed the property for $695 per month, 10% interest, final price $69,900. It took us approximately 30 days to find a qualified buyer.

The total return on this San Antonio, under market value investment property is approximately 15.8%.

We currently recommend that most San Antonio property investors owner finance these fixer uppers, rather than rent them out. Owner financing them means that the end buyer that we find for you will finish any other needed repairs. This reduces your outlay of cash during renovations and increases your rate of return.

Below is more information about this property from the original listing:

Address: 1257 Saltillo St., San Antonio, TX 78207

Description: Investors, this is an under market value San Antonio buy and hold property for you! Only $2000 in repairs that we do for you, and then owner finance it for $695 per month!

Excellent cash flow opportunity with this San Antonio investment property, central AC/heat, 5 year old roof, booming San Antonio Market, very popular location west of downtown, 1257 Saltillo St., San Antonio, TX 78207, 2 beds, 1 bath, 960 sqft, lot size: .1 acres, estimated repairs: 2K, clean/lawn maintenance. After Repair Value: 69.9K, ,

Price: $43,000 firm – cash only

Exit Strategy:

Exit Strategy: Owner Finance with 2k in repairs: 3-5K down, $695 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: 69.9K.

December 24, 2016

Four Simple Ways to Fund Your First Real Estate Investment

Getting going in real estate investing in San Antonio doesn’t require you to have hundreds of thousands in savings. When I first started investing in San Antonio in under market value homes, I didn’t have much of my own cash. I was able to find sources of funding so that I could buy 50 houses in my first year.

Here are some of the best, simple ways to fund your first few deals with limited cash:

#1 Buy San Antonio Property with FHA Loan

If you are buying your first San Antonio investment property, consider buying one with an FHA loan and putting down 3.5%. A classic way to get started is to buy a two or four unit multifamily property and live in one of the apartments while renting out the others.

I never did this myself, but there is a certain logic in living rent free in your own property while enjoying rental income from the other units.

#2 Hard Money Loans

You can use hard money for a few months to flip a property. Or, consider using the hard money loan so that you can rehab an under market value property, and then get a conventional loan on the property and rent it out.

Hard money loans carry high interests rates of 12-15% and don’t make sense over the long term. But it works fine for a flip, or for holding for a few months until you can get a conventional loan on the property.

#3 Mortgages from Non-Bank Entities

Some people have had trouble qualifying for mortgages in recennt years, and companies such as SoFi and Lending Home online are offering more mortgages. Many loans can be closed in as little as two weeks, and some of them will fund 100% of the purchase.

#4 Asset-Based Mortgage

There are companies today that will loan you money for a mortgage on a San Antonio investment property just based upon the income that the property will produce. One of them is B2R Finance.

Because the loans are based upon the rental income that the property will make, it is a good choice if you are just starting out in San Antonio real estate investing.

December 14, 2016January 6, 2017

SOLD – 3108 Vera Cruz, San Antonio TX 78207

Address: 3108 Vera Cruz, San Antonio TX 78207
Year Built: 1958
Description: Tremendous cash flow investment opportunity – 2 beds 1 bath, only 36K, large back yard with large storage unit and an orange fruit tree, ARV:59-65K, $595-$650 monthly PI/TI.
Cash Price on San Antonio Fixer Upper: $36,000 CASH
Exit Strategy: Owner Finance San Antonio under market value property with 5K in repairs: then resell with: 3-5K down, $695 monthly PI/TI, 30 year amortization, 10% interest, Sales Price 59K-65K.
Sold and Rental Comps: rental-comps-3108-vera-cruz sold-comps-3108-vera-cruz
For more information, please contact us.

More Images of This San Antonio Investment Property: