All Forum Posts by: Andres Ospina

Quote from @Christian Leon:

@Kevin Cespedes I am looking to do the same thing down in FL. Seems like a great way to acquire another property with no money out of pocket. I also wondering about time frame to get a HELOC. Figured if you can get one and buy a property, once the property gains some value you can always refi it and pay back the HELOC. But I would like to hear from anyone who has actually done this!

I am conservative on the amount of risk i am taking. So when i pull money from my HELOC, i normally have a goal to pay it back with in 1 year with my other properties rental income and some of my own money if needed.

Hey Kevin,

I have a HELOC with investors bank. They took about 1 month to get it approved and i was able to use the funds about 1 week after that.

Let’s connect when you have some time.

I have heard about apartments.com software is good. Personally I am starting to explore these as well so will be following and looking for feedback. Let me know which one you use and how do you like it.

Quote from @Kirk Bazile:

thanks for sharing, and congratulations!

 Thank you!! Sorry for late response 

Quote from @Mary Smith:

This is awesome @Andres Ospina Congratulations and thanks for sharing!

 Sorry for late reply. I appreciate the kind words! Best of luck 

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $635,000
Cash invested: $90,000

Bought a house hack. Minor updates, may rent for passive income or sell and reinvest profits into larger multi family

What made you interested in investing in this type of deal?

Un market value purchase price. Great house hack opportunity with over $100,000k in equity

How did you find this deal and how did you negotiate it?

Direct mail marketing with Hand written envelopes. Made a quick offer and asked for seller to pay my closing costs. Agreed to purchase the property as is.

How did you finance this deal?

Conventional 15% down financing as primary residence

How did you add value to the deal?

Bought below market value and made minor updates.

What was the outcome?

Still have it.

Lessons learned? Challenges?

Building relationships with the seller makes negotiations easy.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Worked with Walter Gorman from NJ lenders. Best mortgage broker in NJ

Investment Info:

Small multi-family (2-4 units) fix & flip investment in Prospect Park.

Purchase price: $267,000
Cash invested: $100,000
Sale price: $525,000

Bought an old 2 family home and renovated and sold it with in 10 months.

What made you interested in investing in this type of deal?

It had a couple of exit strategies and was very affordable.

How did you find this deal and how did you negotiate it?

Direct mail marketing.
Made an as-is offer to the seller with a quick closing since seller needed money quickly.

How did you finance this deal?

Hardmoney loan, private loan (other people money) and our HELOC.

How did you add value to the deal?

We renovated the interior of the property completely with new mechanicals, we also added a full bathroom and increased living square footage by finishing space in the attic.

What was the outcome?

We had multiple offers and and sold the home within 10 months.

Lessons learned? Challenges?

under appraised values by the HML because of lack of comparables.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Our Hard money lender. They trusted us and still lend us the money during the beginning of the pandemic. Very reliable resource.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Carlstadt.

Purchase price: $1,100,000
Cash invested: $316,000

Sold a 2 family and took my profits and reinvested into this 4 family with much better cash flow, location, and cheaper financing.

What made you interested in investing in this type of deal?

great location. value add with little rehab. Great buy and hold option in an good neighborhood with low taxes.

How did you find this deal and how did you negotiate it?

found it as a FSBO. I appealed to the owners emotions as it had been in the family for many years. Gave them a quick offer with pre approval and attorney information.

How did you finance this deal?

conventional financing.

How did you add value to the deal?

I increased the rents on all the 3 occupies units. I made the property more visually appealing by changing lights fixtures, painting, removed carpeting and staining wood floors.

What was the outcome?

increased monthly cash flow.

Lessons learned? Challenges?

move quick and make offers that work for you.
Because of the conventional financing options. The property was only appraised on a comparable basis with no comparables in the near area it under appraised. Our commercial appraiser actually valued the property for more than what we were paying for it. So we had to bring extra cash to the closing.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Our trusted lender got us a fixed 30 year mortgage at 2.7%