All Forum Posts by: Jeremy Garcia

@Nino Alfano,

I highly recommend using the Rental Calculator and Flipping Calculator that BP has to offer in the Tools section of the BP Menu. I have found these tools to be very comprehensive. ..especially if you know your numbers. ...like you do.  I think they will help you with your decision.  Below is a screen shot of where you can find them....

If my quick math is correct you will be able to pull out about $54k with a 75% cash out refinance, after deducting your suggested costs (check my math on BP calculator). I'm not familiar with your market but in mine I would probably buy a multifamily, or two SFH's. Not knowing your long term goals...my advice is a "shot in the dark."

Hello all! 

I wanted to get input on how people have purchased their 3rd, 4th, 5th...nth rentals? 

I really want to start using other people's  money since we have used our savings to fund our first two rentals. I want to use private money before hard money but I guess I just have cold feet to reach out to family and friends through indirect conversation about my real estate investing.  I would like to hear how others went about getting private money from family and friends.  

Based on all the forums,  podcasts, and books that I have read it seems to me that I just need to create a contract between myself and the private money lender (with the input of a lawyer) and have the lender help me with the down payment/fixing costs... then I provide all the subcontracting/sweat equity.  It sounds simple but I have never done this...so maybe I need to JUST DO IT!!! :) 

I just recently used the"borrow from your IRA" strategy and it worked great. I used money from my Thrift Savings Account to fix my latest rental. The only thing I did not like about borrowing from my TSP is having to go several months with a smaller than normal paycheck, since I have the loan payment taken straight out of my paycheck and I try to pay the loans off quick.

Can you all provide the following breakdown for me regarding your private money negotiations:

1) Who did you borrow from?  Family Member or friend

2) What was loan for? Rehab costs, down payment,  etc.?

3) How did you go about getting a contract done between you and the private money lender?

3)  Expected outcome of both parties involved in the deal? 

4) Overall satisfaction with private money investment strategy? 

5) Ideas on how to best gain the confidence of a prospective private money lender?

Thanks! 

Jeremy 

@Delany Olson,

Welcome to BP! I'm also from ABQ and share the same goals as yourself.  I have attended one NMREIA group here in ABQ and met some great people.  I am barely starting to network myself and have found it to be very beneficial.  Keep on networking and it is amazing how many great people are out there ready and willing to lend a helping hand. 

I am always open to having lunch or coffee with fellow, local investors.  Try and do the same and you will not be disappointed! 

Jeremy

3BR / 1.5Ba 1060ft2 available now

dogs are OK - wooof
no smoking
house
w/d hookups
attached garage

Newly updated rental home including the following amenities:
- Appliances include refrigerator, dishwasher, stove/oven and microwave
- Single car garage 
- W/D hookups located in garage
- Large, fenced backyard
- Shaded Patio in backyard
- Tile flooring throughout 
- New paint
- Forced air heating/ swamp cooler with ducting to all rooms
- Landlord to pay water bill

Home is beautiful, clean and ready to move in now! 
Rental is centrally located and within walking distance to elementary school and junior high school. Easy access to city buses and very close to I25.
Neighbors are great and this home is 2 blocks from a park. 
Close to Coronado Mall, Uptown, and Winrock (3 miles), Kirtland Air Force base and Sandia labs (6 miles), UNM (3 miles). 


Monthly rent is $1100.00 (first and last month due at time rent , 1 year lease required)
Damage deposit $1,000.00.

On a two year lease $1050.00 per month

Home is ready to move into with approval/credit check. Serious inquiries ONLY, no spam, local inquiries only, no solicitors. Viewings available upon request and appointment.
No cats allowed
Dogs may be allowed with non-refundable $300 pet fee as per landlord's prior approval
Not accepting Section 8

Upfront costs and requirements of tenant include the following:
- Commitment to a 1 year lease 
- First/Last Month's Rent ($2200)
- Damage Deposit ($1000) which is refundable at time of vacating property depending on any damages needing repair.
- Proof of Renter's insurance to include landlord as additionally insured

Tenant screening to include background/credit check as landlord sees fit. Tenant will be responsible for any fees associated with screening process.

Originally posted by @Al McCoy:

Hi Jeremy: Do a Google "LLC in NM" and you will see a lot of good information.

Al

 Thanks @Al McCoy!

Hello all, I am about to pull the trigger on getting my two rentals on LLC's. I have been l looking at Legalzoom and Incfile but the nagging question is if I should get the LLC done through a lawyer instead? I have read several BP post regarding this question and the answers are all across the board. What have my fellow, New Mexico BP'ers done regarding the acquirement of their LLC's?

My thinking is that since I need to meet with a lawyer anyway, due to my desire to set up an estate plan, I should just get it all done by a lawyer. Any thoughts on this? ? Outside of the greater cost of doing it through a lawyer...I am leaning on the whole notion of letting a "pro" set up the llc for me. I also believe that "you get what you pay for" but I'm not sure if this applies to LLC's. I have always been a DIY guy and have saved a lot of money this way so if I can setup my LLC just as effectively as a lawyer...than that is what I will do. Any thoughts on my thinking????

I listened to the BP asset protection podcast and was interested in setting up a Series LLC which I do not think is available through Legalzoom or Incfile. Has anybody setup a Series LLC here in New Mexico? The podcast was recommending to set up the Series LLC using Delaware as the acting Law because it is more stringent than all other state laws regarding asset protection. To go about this route, I'm sure that I will have to get my LLC setup through a lawyer.

@Marc C. thanks for the information.  I have not done near the research you have regarding apartments.   All I know is that apartments outside of the"war zone" are hard to find!   I agree with you regarding the fact that returns on single family homes are very good here in ABQ. 

Regarding Section 8 renters,  I have strayed from renting out to these renters due to the shadiness and tendency of these types of renters to not care about my rental investment.  I think my fear stems from my in-laws having trouble with section 8 renters.  Outside of your contract and background, I assume these are what has kept you with good section 8 renters?? Have you had any bad issues with them. I think that having the consistent check from the city for section 8 renters is great but I don't like the risk of the low-income, "don't care of o mess up your rental mentality. "

I would love to hear about your experience with section 8 renters.  

As @David Torres mentioned, if construction of apartments in Santa Fe is a great option for an investor,  I also wonder why no one had jumped on this opportunity? I think that a partnership to build apartments would be a great opportunity.  I wish I had my General Contractors license! !!  This is one of my future goals....

Are there any investors from Albuquerque, New Mexico that know any good portfolio lenders or CPA's? I need a CPA that has experience in real estate.  

Thanks! 

Originally posted by @Georgia Baker:

Welcome Jeremy Garcia I'm in Santa Fe, I am very interested in working with prestigious investor in our area.
I am new to BP as well as REI. Let's stay connected, maybe we can help each other succeed.
Georgia

 Hello @Georgia Baker,

Thanks for the message!  I am not familiar with the Santa Fe market but I would like to learn more about it.  I have recently considered buying out-of-state rental properties in better cash flowing markets.  Albuquerque has proven to be a good market for me and so I will continue to purchase properties here but I would liket to expand my horizons :)  I will do my best to stay connected so as to help one another succeed.   Thanks for reaching out!  What are your future goals?  

Originally posted by @Matthew Brito:

Hey man, I too aspire to retire early through real estate. I am looking to invest in santa fe. Where are you located? I would possibly like to share ideas and possibly collaborate 

@Matthew Brito

Good to hear from you and to know that we share the same goals. I do not know anything about the Santa Fe real estate market but I would love to find out more about it.  As of late I have been considering purchasing out-of-state properties in better cash flowing real estate markets through turn key rentals. I am excited about this concept but I have not "jumped off the cliff."

Sorry for the late reply but I did not know you had messaged me because you did not have @Jeremy Garcia in your reply.  

I am located in ABQ. Where are you located? I look forward to more collaboration.