All Forum Posts by: Adam Garza

@Joe Gonzalez thank you! That’s what we were seeing early on, but for some reason it’s dropped quite a bit. 

For those wholesaling in multiple markets - what’s your overall expense ratio per market? In other words, what percentage do you expect to make in a new market vs the total cost for doing business there? For example, if it costs 120k per year for this market and you made 180k, you’d be at a 66% expense ratio. Hope that makes sense.

Hey Jordan, glad to see another local investor. 

I have only been investing in real estate over the past year however, like you, I have read, watched, and listened to a huge amount of content on BiggerPockets. It's a great resource. 

A couple of suggestions: 

First, I would reach out and begin networking with folks from the local KREIA group. There are a TON of great resources within our REI groups in Louisville and Southern Indiana.

Second, it is very possible to be an all cash buyer but don't let the word "debt" scare you (I am a big fan of Dave Ramsey as well). As long as it's utilized correctly, under leveraged, and viable from a financially defensive position, you can create tremendous growth - faster than you otherwise would have. 

I am currently working on my third flip this year (closed on it today actually!) but there are many niches and diversifying is always the way to go! 

Give me a shout if you ever need anything! 

Thanks,

Shane 

I was wondering if anyone could provide suggestions for a daily newsletter related to the real estate market in the US. I used to read the Gartman letter every morning which was concerned with commodities. Any ideas? 

Appreciate your help!

Hey friends,

I've only done one deal with personal income, but I wanted to ask you seasoned guys how subjective is private or banks lending money?? I know most of the time they look at the security rather than the individual, but if you built rapport with loan officers or liquid individual (for lack of a better term) can you attain cash quickly this way?

Also, what are the "going rates" or terms for most private lenders? To put things into perspective, I have a 635 credit score (because of some unpaid student loans in the past), am in the process of re-building my credit score, but want to leverage outside capital sooner rather than later..

I'd appreciate any help!

Thanks,
Adam

Thanks Chris. I appreciate your help. 

Could use some assistance with understanding financing:

I am looking to understand how a short term home equity loan would work...I recently went to the bank to ask about it, but want to understand the numbers. I own a rental property free and clear and am want to pull out 25,000 for repairs in order to flip it. 

Purchase price: 51,000

Looking to borrow: 25000

Months: 12 w/ balloon after 12 months 

Interest rate: 5.5%

I'm mostly interested in understanding how much my payment each month would be. Also, understanding principle vs interest and how that is calculated. I'd appreciate any help you guys could offer!

Thanks, 

Adam

I'm assuming not much other than the fact that I may have a buyer lined up and could close quickly.

I might be asking the obvious here, but can you wholesale a property to someone who is financing through the bank? If it's under contract to be sold to me and I write in the contract "and/or assigns to" and assign to a buyer who is using finance will that work?

Appreciate your help.

Thanks,

Adam

Thank you guys, appreciate all of the help!