All Forum Posts by: Alejandro Saenz

Hi, A few days ago I took a webseminar from CI, they showed a software they have called Pin software.  I would love to hear from anyone if they have used it before and what are your thoughts.  

Thanks

@Joe Villeneuve  Thank you for your reply.  Have you focused your investments on LO's?

Hi everyone! I introduced myself a few weeks ago. As a new investor in RE both my wife and I studying different investment strategies. We want to make sure to choose a strategy that best fits our budget and knowledge in RE. Last time I mentioned we were looking a lot into the BRRRR method which has pros and cons, however we have also been looking at the Lease Option method (or the rent-to-own strategy).

Would love to hear any advise from investors using the Lease Option method and recommendations on how we can start.  We love meeting and chatting with new people so hope to hear from you and connect.

Thanks

@ZachWesterfield  thank you very much for your reply.  Definitely great points to consider.  I'll be posting as we move on both my wife and I on this new endeavor.  

Hi, I am new here and new to real estate investment.  I just wanted to say hello and introduce myself.  My wife and I decided to start studying and learning about real estate investment after our jobs were highly affected by the pandemic.   She has a real estate license in California that she got right before COVID started.  She has successfully sold 4 properties in her first 6 months.  This inspired us both to pursue real estate investment and for me to get a real estate license as well.  

We have been studying a lot on the BRRRR method: listening to podcasts, reading books, articles, etc. We have used the tools and analysis calculators here in BP but keep hitting a wall with the BRRRR method....finding discounted and/or distressed properties that could work using this method. Following the BP 30-day Real Estate QuickStarter Guide we selected a niche, market and strategy. Before contacting people in the markets we are looking at and trying to build a team (as David Greene suggests in his podcasts and book) we started doing "test" analysis of different neighborhoods and areas in these markets.

However, we found different problems to be able to apply the BRRRR method:

1) Discounted/distressed properties with a great price however in a neighborhood that the rent kills the analysis numbers (we wouldn't be able to have a higher rent based on comparable of the area being analyzed) With the rehab and all expenses into the project we would end up with a no-cash flow property or even negative. 

2) Properties that need a lot of fixing/rehab, however in an area that the ARV would be much higher to the comparables of the neighborhood. For example, we found a $55K SF that needs around $25K of rehab but then the houses on the area are valued at a range of $70K to $80K. This from our point of view, makes it difficult to follow the rule that states that "no bid price at the beginning of a project should exceed 70% of the ARV minus estimated repair costs." Which makes it a very difficult project. If the houses in the neighborhood were listed higher then it would be something to consider but we have not been able to find this.

3) Overpriced properties in good neighborhoods with potential low vacancy and with potential good/better tenants (the "no headache" type of area). The listing price is so high that any upgrade that could possibly increase the value of the property would put it higher against other properties or at the same level, making refinancing difficult or the BRRRR method not as profitable as it should be.

We would love to hear comments from people here about what we are experiencing and obviously on their personal experiences and help each other (advise, research, experiences, etc.) 

Thank you and excited to be part of the BP fam.