All Forum Posts by: Albert Velasquez

Hi BP, 

I have a good amount of money from an inheritance. I want to get started in REI, but I have zero experience. I have learned a lot in the last month. I was thinking of finding someone to partner on a BRRRR with. Any advice on how to go about this? I would like to invest locally.

Thank you guys!

Hi BP 

I know my local area pretty well from living here. I know what areas are crime-ridden, and what areas have the best schools. I feel like my analysis of locations is more subjective, and reliant on my personal experience than it is objective, and based on numbers/statistics. How can I move away from analyzing on the basis of personal experience, and move closer to analyzing a location by doing the proper research? Also, what even is the "proper research" I should be doing? 

I ask this because I want to move towards an OOS investing model, and I need to learn how to analyze a property's location using only the numbers. 

Thank you everyone!

Hi BP Community, 

I am new to investing and I live in the Chicago Suburbs. I would like to immediately start learning about OOS investing. I would like to connect with other investors and vendors in the area. Let me know if you guys think it is too early for me to begin learning about OOS. I've been analyzing a lot of local deals and I feel like the prices over here are a lot. 

Thank you 

Hi, all 

So I'm looking to buy a condo in a specific complex. I have the mailing addresses of the property owners and I want to send them letters. Any tips on the wording? I want to word it properly so they don't think I'm trying to lowball them. I'm willing to offer market value, but I'm sending these letters so I don't need to compete with 10 other buyers. Give me all the tips you got!

Thanks

@Matt Pursley I appreciate your insight, thank you!

@Jon Kelly, 

Thank you, Jon. My goals are to have rental properties and this one does meet my COC return, so I think I'll hold. Just having trouble getting financing :/ I appreciate your insight though!

Hey, @Eudith Vacio

1. Monthly mortgage would be 980 not including taxes and insurance. When including TI and other operating expenses, I still cashflow a little under $600. 
2. Yes I plan on buying more. My question was more about getting financing for this specific deal. Once I own this property I'll for sure do a cashout refi to buy more. I just need help with the financing for this first one. 

Thank you! 

18 months ago my parents had to short sell our home and rent it from the seller. Today our financial situation has completely turned around. We have 100k in the bank and don’t want inflation to destroy it. We want to know what you guys think we should do with the 100k. Here’s the problem, because of the short sale on my parents' credit report, they’re not able to qualify for a traditional bank loan for another 6-18 months. We are aware of the 7.5% inflation numbers this year and don’t want to just let our cash sit in the bank. My parents cannot qualify for a loan, but I myself can qualify. The only problem is that I make very little money as a full-time student. My parents are willing to gift me the 100k so I can buy a property that we’ll own as a family, and possibly rent out.

Here are the only two options we think we have:

1. 1. Let our cash sit in the bank for the next 6-18 months until my parents can qualify for a bank loan and buy property on their own.
2. 2. Gift me the 100k, so I can buy a property for the family.

The cons for choice 1 are the obvious inflation numbers. The cons for choice 2 are the fact that it will require between 75 and 95k downpayment so I can qualify for a loan with my low income. However, we plan on doing a cash-out refi in the future, so we’ll be able to pull out that downpayment again.

TLDR: We have 100k in the bank. Parents can’t qualify for loans due to short sales on the credit report. We want to conserve the value of our 100k and think the best asset to do that in is real estate. I can qualify for a loan, but it would require us to use basically all our capital for the down-payment. What should we do to conserve the value of our money? Should we use it to invest in real estate even though we might need to use all of it for only 1 property?

Here’s some context, I’m a newbie btw:

A single-family home valued at 400k

Purchase price: 225k

Chicago Suburbs

4 bedroom / 3.5 bathroom

3200 square feet

LINK TO RENTAL REPORT

QUESTION 1:

I have the opportunity to buy this property valued at 400k for only 225k. I don’t need to do any renovations or anything. As soon as I buy it, it will be worth 400k. Should I hold this property long-term and rent it out? Or should I just flip it and get the profit?

QUESTION 2:

I have low income. My income alone won’t let me qualify for a traditional bank loan. None of my family can cosign for me. Any creative ideas on getting financing? I was thinking to go to a credit union, I’m not sure if they have less stringent qualifications. I thought that any bank would take me even with low income because of the property’s equity, but I don’t think that’s possible. Let me know, thanks!