Dallas-Fort Worth Real Estate Investor Club

Are these guys legit?

  • 01 Aug 2010 11:07 PM
    Message # 394576
    Deleted user
    Hi, I was wondering if anyone has heard or had experience dealing with these guys.  http://www.texascashcowinvestments.com Their properties look pretty "hands off" but I wouldn't know anything because I am not familiar with the Dallas Ft Worth market.


    Thanks,
    Chris
  • 02 Aug 2010 11:24 AM
    Reply # 394822 on 394576
    Robin Carriger (Administrator)
    I don't know them, but, if you talk with them and would like to post details here about how they structure deals or the numbers on a specific deal, we can certainly give you our opinion(s).
  • 04 Aug 2010 12:29 PM
    Reply # 396370 on 394576
    Deleted user
    They have a 4 part strategy.

    1) Buy REO properties from the bank
    2) Fix them up with the construction company that they own
    3) Place tenants with the management company they own
    4) Sell the property as a somewhat hands off investment to out of town investors.

    It seems extremely systematized, which is good.

    My guess is that they must be buying these properties for 60-70K, putting in 10-20K of work then selling for 120K.  So at most 90K of cash yields 120K return in under 3 months.  Which is why they sell instead of keep.  Then in addition their property management company makes some money on the back end.  I think like 8% gross rent.
  • 05 Aug 2010 10:46 AM
    Reply # 397078 on 394576
    Robin Carriger (Administrator)

    For the record, I just want to emphasize that I've never heard of these guys.  Having said that, I have heard of deals that are structured like this.  Some other people I've heard of who have setup deals that sound like this have duped their clients out of a lot of money.  The people who got duped have very sad tales to tell.  Again, I don't know these specific people or their company, so I have no knowledge of them having done anything wrong, but for a variety of reasons, my personal preference would be to avoid any deals that are structured like this.  I'm using the most mild-mannered language I can to describe the situation.  Please come to the DFW REI Club meeting this Saturday.  Bring this up with me, and I'll discuss it with you in more detail.

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