All Forum Posts by: Amanda Cadena

Hello BP!

I'm looking for my core four in both Bakersfield, CA and Phoenix, AZ. 

The Deal Finder, REA, Wholesaler, Bird Dog

Property Management Group

Contractor

Lender

I have already made a few connections through personal relationships I have and referrals, but would like to gain additional contacts to vet. Would really appreciate any referrals, recommendations, or even advice on how to find these people more efficiently.

I am looking to BRRRR properties in these two areas.

Thanks so much in advance!

Amanda 

@Jim Pellerin

Hey Jim thanks for the response! Can ask why not build for the first investment?

@James Wise

Thanks for the response. The funding we were going to use was in an area where the value of homes was a lot less than the cost to build.

We were going to do a construction loan and have it roll into a traditional mortgage.

@John Chapman

Hey John,

1) I do not have enough cash to invest myself. I meant equity partners.

2) There are no pre-existing build options. Nothing on the lot... it is completely empty with just weeds and dirt. From what I have researched the market is GREAT for a new build and also for renting. The average buyers and tenants are asian, average income is upwards of $80,000, the K-12 schools are highly rated, crime rate is low. The house to build could cost around 400,000+... I am still in the process of putting together a pre-construction estimation sheet. The value after built could be upwards of 1.6 Mil.

Thanks for the response!

Just starting out in real estate. Biggest issue I have is lack of funding. I have two directions I could go and would love guidance and opinions from more experienced investors. 

Option 1: Make connections with other investors for funding and BRRRR our first investment property, then build our portfolio.

Option 2: My mom has a property in Walnut, CA that is free and clear. She is willing to let us build on the property since it is not being used anyway. We were thinking to build a house on the land, put a renter in it, and pull out the equity to then BRRRR properties. The location of the property is among million dollar homes, so we are confident that the property will have enough equity for funding our first deal, while simultaneously acting as a SFH rental.

Would love to hear the realistic outcome from experienced investors. Which of the above is the smarter choice?

Thank you in advance!

@Patrick L. @Nick Wing 

I understand!! I think because I am so new and hungry for my first deal that every time a home owner contacts me I automatically want it to "be the one" I think I just need to realize that every home is not going to necessarily be a good deal. I will take your advice and evaluate the value of the home in comparison to the asking price.

@Nick Wing 

Yea I am interested! Can you DM me the information?

@Patrick L. 

I see, she seems to have some motivation to sell her home, but is really firm with $295,000. Thank you for the advice! I will do some more research on the true value of the home and go from there!

I recently created a posting on craigslist that attracted many home owners that are selling.

I want to offer these homeowners a creative financing deal, but do not know  where to start. This is still all so new, but I do not want the fear of the unknown to keep me from doing my first deal.

For example one of the homeowners that contacted me is a lady who is selling her home for a firm $295,000. It is a 3 bedroom 2.5 bath located in Palmdale... it is a beautiful home. When I asked her what type of offer she was interested in receiving she stated, "financed, cash, or assume our current loan at 4.5% with 10,000 cash ( balance $285000)". They pay $1513 per month for their mortgage and impounds are $1,800 twice a year.

Would it be smart to assume their loan and then find a renter to make the payments at 1,600?

HELP!?

@Joshua Nudell 

Currently I am researching homes on websites like Zillow, Searchtempest, Craigslist, and others to find homes that are For Sale By Owner, Pre-foreclosure, or Motivated Sellers. I reach out to the owners with a professional email, expressing my interest and further information. I recently have thought about  mailing out flyers to the addressed home with my business card attached.

I have not received any emails or phone calls in response to my initial reach out. I did come close to a potential deal when I stopped by a home that was for sale where the mother had just passed away. I luckily ran into the son who was visiting the house to  pick up some of his belongings. I began talking to him about his situation and the house, he seemed very interested in the deal I could possibly offer him, but unfortunately the house was left to his younger sister and he had no say. I gave him my business card and asked him if he could pass the card and information to his sister. I have not heard anything back, but it was the closest I have come to speaking with a "motivated seller". It has been about 2 months that I have been using this strategy and I am very interested in learning about other marketing options. I have listened to a few of the podcasts, but I will definitely  take another look at the marketing pod casts. Thank you for your help/suggestions and I will continue to keep posting about my experiences.

@Karen Margrave 

Okay good to know!! My plan of action is to find sellers who are desperate to sell (for countless reasons). I want to be able to help out the seller as well as myself, the terms need to make sense for the both of us so it is a win, win.

I do not have the money to offer a seller up front, my plan is to create specific terms for each deal so in the end seller can walk away from their home peacefully and so that I can obtain a property that I will potentially rent out to generate positive cash flow.

I believe that my plan is  balanced enough that if I could find the "motivated" sellers it would be perfect for both parties.