All Forum Posts by: Carlos Webel

Shanequa,

I heard from the several of the companies doing big volumes that the spend on average between 3 to 5k$ on marketing per each house they buy. So if they buy 100 houses/year, they spend 300 to 500k$/year on marketing. 

Rgds, Carlos 

James, 

I have couple of contacts that I can pass over a private message. 

Rgds, Carlos

Hi,

Can anyone recommend a good Real Estate CPA that practices in Texas. 

Thanks

Hi @Scott Heiman, I also live in Katy and invest in the area. I agree with the previous comments and based on your criteria Katy is probably your best of your 3 options in terms of schools and commute. If you are looking at having a viable rental in the future, you should probably look at houses that will rent in the range of 1200 to 1700$/month, maybe up to 2000$/month. More than that tends to stay longer in the market. That will probably narrow your target to 3/2 SFH with sales price up to ~200k$ (if you but at market rate). Or you can try to do your homework and find some good deals with distressed properties to rehab, capture some equity and have a nice potential rental in the future.

Keep in mind that within Katy your have some prime communities like Cinco Ranch that ranks among the most desirable communities in US. Very nice to live, but not necessarily nice to invest because the prices have increased significantly over the last few years and its very hard to get good cash flow out of them at the rent levels in the area. That said, your still have some other nice areas more investor friendly. 

Rgds, Carlos

@Copelon Kirklin, No, I'm not referring to a long term rental loan with 6-8% Interest rate. The re-fi will be at market rate at the time of closing, I got an estimated 4.75% but the actual rate will be locked after rehab at the prevailing rate in the market at the time. 

@Darren Eady, The first loan closed with no surprises, I haven't closed on the second one, we should do that next week. I don't foresee a problem getting out of the hard money loan, my concern is rather on the final interest rate I'll get on the 30Y mortgage (4.75?, 5? 5+?) and the effect that has on the cash flow of the property.   

@Eric Schleif, yes the 2.5 points on the re-fi mortgage will increase my APR couple of decimal percent, however, the 2.5 points on the Hard Money loan take my APR from 10 to 20%. So you are right, and I'll correct my previous mention, the end product is convenient but not competitive.

Thanks @Jerry Padilla.  When you say: "You can rate and term refinance without seasoning, based on appraised value as long as there is a lien. To cash out refinance on appraised value, you will have to wait the 6 month period."  Does this meas that I can lock an interest rate, fees and conditions today but only cash out after 6 months (plus whatever overlay from the bank)? 

What if I purchase the property cash (or private money) without any lean on the property? How does that affect the seasoning for refinance?

Rgds, Carlos 

Hi all,

I'm working on my acquisition and financing model for my new Houston area based rental properties portfolio. The plan is to purchase the properties with private or hard money, rehab and refinance out of the initial loan using standard 30 year fixed mortgages. I'm currently using a lender that has a very convenient setup whereby they provide the hard money loan at a competitive rate and then, after rehab is completed, I refinance with them to a 30 year fixed loan. The advantage of this setup is the logistics and convenience (all done with the same lender), plus the fact that the re-finance amount is based on the ARV of the property (not the initial loan) and can be re-financed immediately (no freezing period). The disadvantage is the cost and lack of flexibility. I get 2.5 points charged with each one of the two loans, I have no leverage to negotiate the 30Y mortgage rate, no closing credits and if I want to refinance with another lender in the market I'm charged a hefty fee that will make the other loan unattractive anyways. All this said, they offer a very good solution under its constrains, but I need to have other alternatives available in order to make some of the deals economic based on my criteria.

Talking to few of the lenders out there (including Sebonic, Quicken Loans, etc) I realized that the process is not standard within the different companies. Some of them offer to finance up to 10 loans, some up to 4. Some of them will refinance immediately but only up to 75% of the previous loan amount (not the appraised value of the property). The others will refinance 75% of the appraised value but only after a cooling period of 6 months. All in all, I haven't found a solution with the mortgage lenders that allow me to free up most of my capital quick enough to purchase the amount of properties my plan requires for this year.

I'm seeking out for advice from people that has encountered or solved this issue. Any ideas and comments are appreciated. 

Rgds, Carlos       

Hi Jordan, I'm also from Katy and I'm investing in the area. I'm closing on my second rental deal in Houston area and additionally have couple of rental properties out of Texas. Glad to share ideas.

@Sean Dolan, count me in for the next get together in The Hive.

Hi, 

I have a simple basic question. The appraisal of a property I'm about to close on states the following: "Estimated Market Value = $ XXX "AS REPAIRED"". I'm assuming that this implies that the estimated value suggested is contingent to the repairs necessary to take the property to the same standards as the comps used (ARV).

Question: What if the property needs some mayor repairs? (not the case of this particular one), would an appraiser use the same approach and provide his opinion of the EMV based on "as repaired" (ARV)? or will he just provide his opinion of estimated price based on current conditions?

Rgds, Carlos