All Forum Posts by: Cesar Mendoza

 Great Response

Property is worth about $450k. Located in Southern California. I bought it for $335k, ongoing renovations. 8 units, average rent $650. I have a hard money loan for $315k on it, looking for an investor willing to take 9% on a 1st note for $250k, no points. Please contact me directly if interested. Thanks.

I have more than 10 tenants, full time investor for the last 4 years, had flipped more than 10 houses in Southern California.

Try a Chinese bank, they are very easy on their terms.

Usually are asset based and with very terms, like 60% LTV, 0.25 points, and about 4-5% yearly rate.

Try Cathay Bank or so.

1. In the examples you offer, Im unclear as to why my ARV would be so low. For example, if Im purchasing for 80k, rehabbing for another 80k, and the ARV is 240, then, even assuming I sold it under market value, wouldn't it be more than 24k? Ideally it would be 80k ROI.   BAD ANALYSIS, YOU HAVEN'T CONSIDERED 1. CLOSING COSTS FOR THE PURCHASE AND THE RESALE (REALTOR'S COMMISSIONS, TITLE, TRANSFER FEES, ATTORNEY OR ESCROW FEE,S RECORDING FEES, ETC.) 2. CARRYING COST SUCH AS UTILITIES, INSURANCE, ALARMS, ETC. 3. FINANCING COSTS AS POINTS AND INTEREST FOR THE LENGTH OF THE FLIP. PLEASE DO NOT BUY A HOUSE UNTIL YOU HAVE AT LEAST READ THE BOOK FLIP OF GARY KELLER.

2. Wouldn't termites show up when you have the property assessed before purchase? I have read that termites are one of the worst issues to deal with, so how do I avoid buying such a property? Do I need specific pest control checks beforehand? I would imagine professionals assessing a property would be trained in identifying termites given the impact an infestation has on value. YOU NEED A TERMITE INSPECTION BEFORE BUYING THE HOUSE, AND SHOP AROUND TO FIND AN AFFORDABLE ONE.

3. When you mention using comps as a guide, and following improvements on similar properties like a map (ie if others took out the kitchen wall on a similar property, I do the same etc), is there an online site or database where I can get such info? I cant afford purchasing in my neighborhood so I wouldn't be privy to casual neighborhood discussions wherever I buy. YOU ALMOST NEVER START ON YOUR OWN NEIGHBORHOOD. I WOULD SUGGEST YOU TO 1. FOCUS ON LEARNING HOW TO CALCULATE THE ARV (AFTER REPAIR VALUE) OF A PROPERTY. 2. LEARN HOW TO FIND CHEAP PROPERTIES. 3. CHASE DOWN A CONTRACTOR OR FLIPPER OR START WORKING FOR ONE SO YOU GET A BETTER IDEA OF COSTS OF REHABS.

ALL THIS WILL IMPROVE THE ODDS OF MAKING A PROFIT ON YOUR FIRST DEAL.

I HOPE THIS WAS HELPFUL

First, if you are currently living in the property just keep a clean yard, it doesn't matter whether it has grass, gravel, etc. as long as it looks clean and nice.

Second, landscaping almost never add value to the property. An appraiser will give your property the same value with dead grass, no grass, or sod. The curb appeal of a nice looking yard only brings in more offers, so it makes sense to invest on it if you're planning to sell the house.

To close, always think "safe and affordable" for your rentals, so you can save money.