All Forum Posts by: Alberto Camacho

 I've been following this thread and while I can appreciate the abundance mentality my gut is warning me here as well. 

If your partnering with people you have a relationship your in a good place. If this is something new you may want to approach it a bit more carefully. I'd hate to see a fellow investor walk into something and have it go upside-down. Vendor relationships can be tough under normal circumstances. 

I'd rather see you team up with a local investor and leverage his relationship with a contractor. In time you will have a better idea of wants and don't wants in a contractor.

Condos usually are the last to appreciate and the first to lose value. While a well run association is a tremendous asset the inverse can be financially devastating to owners. You also have to deal with tenant issues that you cant really control. When unit 1A rents to insert problem here..well you get the idea. There is money to be made in that market just it carries more risk than SFR. If you can buy to compensate for the added risk and tiime it can be profitable.

Fair warning here.. educate and do you due diligence, Invest wisely. 

Develop a relationship with apartment investors to partner with. They will get paid for helping put it together and you will get the benefit of working with a pro. You mentioned time isn't plentiful but you will need to invest the time to ensure the venture's success. 

This wasn't in your OP but there is another option. You could potentially be a private money lender. There are much worst things than getting 8% to 12% and even higher while being secured by real estate.

Hi Adam, 

Missing to the equation are your 'out of pocket', down payment, taxes, lawyer costs, insurance, closing cost, points and other assorted fees. These costs are very different from state to state. For example I don't require a lawyer to close in Texas. In NY and NJ you do.  

You can use one of the BP calculator to give you an idea of what the deal is looking like. If you want to hit me up privately I'd be happy to work the numbers with you. In doing so my request is you post the findings here for all to benefit. 

Typically a HML will go 70% of ARV. With the place appraising at 290K they should be lending in the 203K range. Your loan balance is 240K which puts your loan to value in the 83% range.

I'd be leary of anyone lending more than 75% LTV. Going too high makes it costly to refi. A shift in market value could leave you stuck in a undesirable loan. Most conventional lenders want to see you in at least 25% on an investment property. Now there are always exceptions just this is the typical I've seen. This is why going more than 75% is risky. If this is to be a homestead the LTV values change to 80/20.

As far as guarantees go in investing there are none. Making well informed choices and having reserves for when things don't go as plan is how you mitigate risk.  Consider if the market shifted against you 2 years from now at refi you would need to come with funds to the closing table.

Great suggestions  here are a couple more...

Search the Meetup site for local groups that specialize in real estate investing.

Add keyword to your account so you get the BP social alerts.

 Hi Carl, I understand the desire to jump in but there are a few things that worry me about your post. Understand I'm not knocking you here. We are start at the beginning. 

First is verify all numbers. Agents are paid to get sellers maximum value. Its become really rare to find a deal through an agent in the DFW market. This could be one but the cards are stacked against it. 

Zillow\Trulia is not how comps are done. Find a local investor friendly agent that will work with you to do a proper comp.

The rule of thumb for rehab is 70% of ARV minus rehab costs. If you get a deal with those numbers you have a chance at making 15% when all is said and done. If things happen during the rehab well 15% isn't much when mistakes are made. If you want to wholesale you need to subtract your wholesale fee as well. All markets have a variation on that but that is the basic idea.

As far as what else needs to be done, more verification :) - You should walk the property and do a rehab bid. House could need all the big ticket items..roof, hvac, plumbing and foundation work. 

What determines the type of deal is the price you get it for. The lower the sales price the more options you have. 

Depends on the location and the home. I personally don't care for any texture and never was exposed to it until coming to Texas. 

Here it's everywhere. Orange peel and knockdown are typical on new(er) construction. Everyone I've spoken with would rather not have popcorn ceilings but its everywhere on older entry level homes. 

Private or Hard money just the are added closing and holding cost. 

 Nailed it!

Basics here can be applied to any niche. Just change a word here or there and your off. 

google 'syndication site:biggerpockets.com'. 

Subscribe to the multifamily forum. 

Listen to every multifamily podcast you can find. 

Join an investment group that specializes in multifamily investing. 

Offer to buy coffee, lunch, etc to a multifamily investor so you can talk shop. Myself I like the chai at Starbucks. :)