All Forum Posts by: Cesar Schira

A seller I found through direct mail owned 21 acres of partially developed land , there is one single wide mobile home renting for $475 , there are 4 modular homes 4 beds 2 baths need about 5k to get them rented at $800 each projected income $3675 after the modular homes are ready.

There are 4 lots ready for mobile homes to go in and 11 others that were subdivided and approved before but the approval expired because the owner took too long to start de development but it can be applied for again. Asking price is $305,000

How do I finance this if owner won't do seller finance?

I am on my second mentor, first one was a guru scheme, didn't work and lost a lot of money up front. Now I found someone that seems to be the right person for me. Even though he is 800 miles away in another state he calls me and pushes me to get things done and shares his knowledge. Now my question is, he only asked that for every deal I do I cut him a 70% of my profits, 30% of something is better than 100% of nothing, but here is where I am troubled. I did all the work to get a house under contract that hopefully sells for $35k, after paying closing cost, realtors and seller I'll be left with approx $3000 and he will get $9000. I did everything, estimated the repairs, researched the property, negotiated with the seller and market it. Is it fair that I will only get enough to cover for my time, gas and marketing? And he gets enough for a down payment on a small house? Is there a better way to a fair split? Feeling that if I'm doing all the work I should get the 70%. It harder to find and negotiate deals with enough marging when someone else is involved asking that much in return.

I have been trying to start my Real Estate Investment Bussines for a year now. I have made a few offers and gotten a few contracts but, some fell through due to financing and some wholesale deal did not pan out. In the meantime, my wife got her Realtor license and this opens a big door to a lot of information and connections. Every day I search the MLS for deals and analyze a few and some come back with good numbers. My issue is the funds, I have analyzed a few REO with good numbers and can even make an offer, I personally don't have the funds, and I already use family funds for mentoring that didn't work out. So how do I go about getting one of this REOs with hard money or any other financing methods?

I have 15% for only one of them but I am short on the other one, which I could leverage my credit cards if it came to it. My exit strategy is, since i will be lease purchasing the properties to the end buyers, I will recoup my initial investment  in form of non refundable down payments or also know as option fee, and refinance to a conventional loan once I get the last 7 points that I need on my credit to qualify for it. Does that make sense? Any suggestions?

I have two deals under contract in my local market in Georgia. Deal 1- $75k asking price, ARV $98k rent: low end $900 high end $1100. No repairs needed recently remodeled by the owner. Deal 2- $55k asking price, ARV $90k rent: low end $850 high end $1000, needs $10k in repairs and upgrades. They are both from the same owner, willing to sell individually or together for a total of $125,000. The houses are located in a military town were the is constant demand for rental properties. Now the downside, my credit is a little below to ask for a conventional loan so I was rejected, hard money lenders are asking for a minimum loan amount of $75k, after paying down payments they won't qualify for their minimum, they can do a dual collateral(portfolio loan) but it takes more money and more time and i don't have either of those. I gathered as much private and personal funds as i could but still not enough, the seller won't take any long-term agreement for payments (both houses are free and clear) he will give me an only a year to pay the total of $125,000 but he wants big payments every month, and i can't possibly afford that. I have tenants on my list waiting for those houses. How can i make this work?

we are going.

katie I will piggy back on your plan and Belinda suggestion which are great by the way. I will add that, if possible:

1-Cash out refinance your current house to the max amount you can take out, if I'm not mistaken in some refinance you will skip a payment or two depending on the day you close (you probably know that already as a realtor)

2- Advertise you current house as a lease purchase and ask for 5%-10% no-refundable down payment make the rent amount higher than your mortgage payment to create some cash flow. The tenant end buyer is responsible for all the repairs and maintenance. Make the final purchase price slightly higher no matter the comps, a house is only worth what someone is willing to pay for it. Have in mind that most of the buyers that will apply have some sort of obstacle that they cannot go to a bank and get a loan, but that doesn't mean they don't posses the capability of pay a premium for the privilege of owning in the near future, if they don't come through with the agreement to purchase your house at the end of the term then you get to do it all over again with a different buyer, collecting another down payment and keep paying down the mortgage with their rent. Also their rent don't count towards the purchase price only the down payment and extra money above the rent amount, and that is only applicable if they buy the house at the end of the lease term, if they decide not to go through with it, they are saying bye to all the money they paid.  

While you are leasing your house with terms and collecting down payments, the rent is paying down your mortgage, you are getting cash flow and you don't have to do any maintenance to the property.

3- Find a cheap place to rent, let your landlord do the maintenance. A thing to consider about the school district: I used to live in Rincon and my kids use to belong to Blandford Elementary one of the best schools in Effingham in my opinion; but then we moved to Guyton and they changed them to Sand Hill, well my wife didn't like sand hill and she requested to leave them in Blandford, the only down side is they have to be car riders, they can't ride on the bus because is out of district.

Back to Funds...

So while you are paying cheap rent, leasing your house, and collecting all this money then is time to find some lease purchases deal yourself or owner financing with low money down. Find a house that still have a mortgage on it and offer to take over the payments or lease purchase it from the owners  with the right to sub lease it and use you end buyer down payment to pay for your down payment with the seller. This strategy works best is there is good cash flow and the house is fairly below market value since you will be making payments to the seller sometimes up to market rent. Let the equity build up and refinance to take out the seller. That will lower you monthly payment and increase you cash flow.

Find a owner that will let you do owner finance with a low down payment, there is so many creative ways to structure a deal with owner financing. Right now I have a house that I am ready to buy with owner finance with nothing down, principal only payments with a one year balloon. A year might not sound good but no interest sounded better and I get $200 cash flow from my end buyer, his rent will pay for my payments to the seller and I will only owe $45k at the end of the year, after getting a loan, my mortgage will be around $390 and my cash flow will increase to $500 per month.   

Last piece of advise is: use you marketing money wisely, if you don't have a lot, scrubs those lead list good for potential deal and correct info. I did a campaign of 390 yellow letter, all homemade, with a list a acquired and at least 100 have come back undeliverable, some came back with land parcels without a house, some came back with address incomplete, no mail receptacle, the person doesn't live there no more, right out of the gate I lost almost half of the money I spent. So now I look at every address ( do to my lack of funds) to make sure my mail pieces make where I want them to go.

I hope this helps. let me know if I can be of any help.

Hey everyone, I have been a spectator in Bigger pockets for a while but just decided to get more involved. I live in Guyton, Ga but I like to work in liberty county as well as Effingham and chattam. I am looking to connect with other investors in the area and noticed this thread about the meet up group. I'm all in, if anyone is up for a preliminary meeting to figure out how to create the group we can get together and sort things out. The reason I am interested is because I work nights in Gulfstream and I cannot attend to the Savannah REIA meetings nor their game nights, it would be nice to network on the weekends and share some resources and me and my wife like playing The Cash Flow Game, which to be honest I am not a board game person but this game have though us so much that it will be awesome if we have the chance to play it with others. if anyone is interested in really making this group happen please reply. Even if is just a few people we can still bounce ideas of each other.