All Forum Posts by: Chris Vasquez

Thank you all for your response.
HML's are out of the question at this time. I have the cash for lower end properties. Unfortunately the lower end does not seem to be selling very well. Even units that have been fixed up. By stepping up into the median price range would put me a little tight but they seem to be more marketable in this enviroment. No risk/No reward you say? "A Man's Got To Know His Limitations." I wanted to hear from you guys what a reasonable ROI would be before I present it to a couple of FWM's. (Friends with Money).
Tiffany. You mentioned there is no contract. Isn't the loan considered a Note or Mortgage secured by the property?
Paul, By amortizing over 6 months doubles the cost to me every month and doubles what my FWM would make. If I hear you correctly that's where the negotiations come in.
J, Great website. You guys do beautiful work on your flips.

Chris

Hello BPers,

I would like the help of any of you who have either loaned private money or have borrowed private money.
My questions for the sake of this topic are very specific.

1)What terms were you giving/given on the loan?
ex. a)Points or no Points. If so, how many?
b)Points upfront? or back end?
c)What interest rate?
d)What amortization time frame do you use to determine payments. ie. 5,7,10,30years?
e)What is better? Using PML to purchase or I purchase with my cash and use PML as a new first mortgage to do repairs.
Or vise versa? PML to buy and use my cash for repairs.

Assuming the property meets all 70% rule criteria for fix and flip.
Using $100k as an example. Answer a,b,c, and d with numbers.
Letter e, I'd like your opinion.
I'm the type of person that needs to see the numbers. I can't seem to find examples of a loan. All I get are Guru websites.
Thank you in advance
Chris
P.s. If I am missing anything like fees, please let me know.

Hello Sorin,
Search posts for the 70% rule. It goes something like this.

70% of ARV - repair costs= offer price.
The 30% difference includes closing, holding and commissions. So your profit is not exactly 30%.

ex. 225k ARV - 30%=157,500

157,500 - 25k repairs=132,500

Breakdown of the 30%; 20% is your profit goal. The extra 10% should cover closing costs, commissions and carrying cost. ie. insurance, your heloc...

Pretty aggressive but you would be surprised what some banks will take.
This is just the general rule. You would have to do the numbers to be more accurate.
I hope that helps.
Good luck
Chris

If the MLS had open access. That would be the end of Realtors. Only 8% of last years sales were FSBO's. The rest were all MLS listed properties. It would definitely open up this market for investors to come in full force. It's hard to find an agent who gets it. It's like training a cat to use the toilet. It can be done. It just takes awhile. Besides, Im sure NAR knows how valuable the MLS is to them. They'll do there damnedest to prevent it.
Thanks again

Thanks Brian but why do you say MLS is dying?
Also, does the agent need the brokers permission in any way shape or form?

Let's face it. The MLS is really the only true up to date data. Not having access could be costly to any investor in this current market. As an ex Realtor from Fl I have saved many wanna be investors including myself at the time, from losing money on deals they thought were great using generic outdated info from the web. shmiLLOW and UnTrulia for example.

I currently am not licensed where I live now, Pennsylvania. I am building up a team of like mindeds. Contractors, Investors, labor and a couple of agents. One is a rising star type with his own team of 4. The other is a newbie part timer.

Here is my question to you. Me, as a full time Investor need access to the MLS. Would you have an issue with either one of these agents hiring me as an Unlicensed-Assistant which in my state is allowed LIMITED access with a seperately assigned password to the MLS? I am fully aware of the limitations. I have read Trendmls and NAR guidelines and would fully comply. I would never ask for someone else's password to gain access.
Pros for me: Access to the MLS, Not have to burden the agent with the doing comps for every single possible investment property. I could have the agent set up appointments and disclose who and what I am to the transaction. Full disclosure.
Pros for the agent: They are my agent, They get the commission. They will also get the listing on the sell side.They learn what to look for in a deal and bring it to me, a cash buyer.
I personally do not want to go through the "process" of licensing, finding the right company to hang my license. Knowing that I would just be there for my own investing. Not drudging around with lookiloos or prospecting for listings. Been there done that. That's not part of my business plan.

If it sounds like a way of circumventing the system, in a way It probably does. Although, everyone prospers. From me, to your agent, to you the Broker. Is it legal? From everything I have read, yes. Think of all the husband and wife investor teams. Where one is an agent and the other is not. They share mls info to make the right buying decision.
I don't have any plans right now to marry a RE agent. Not at this time at least. If I did I would not be asking about this scenario? Brokers, please give me your honost opinion. Good or bad. I would never present this if I thought it was illegal or unethical.
I dealt with enough of that crap in Miami.
Thanks to eveyone at BP.

Hey Guys,
I'm not sure if this has anything to do with how you use your HSA. I read, one of the hidden taxes in the new health care bill will double the tax burden for withdrawing money from that account from 10% up to 20%. Maybe it was the penalty that doubled. Not sure. Just a heads up.

Thanks Guys

I don't know how to get a link to show as a link in here.
Just type the link into you search bar.
or
Left click and highlight the link,
then right click, select copy.
Now go to the top of the page in the search bar.
Left click. Everything should turn BLUE. Then right click. Select Paste then Enter. It should take you to the page.
The hard way. Go to CNBC.com/strategysession and follow my original post instructions. I hope that helps

Hello RE Investors,
The creator of the Mortgage Backed Securities that put this country in the state it's in. Lewis Renieri, was interviewed for the first time on CNBC. Right from the horses mouth we could be looking at another dip in RE values. Just a heads up for Long Term investors here. Once you get to the page. Scroll down to the 3 videos. They are out of order. So watch the third one first, then the second, then the first one last. #1 Lewis Renieri sets the record straight, #2.Should fnma be demolished, #3. Battle of the Barbarians..Here is the link.

http://www.cnbc.com/id/37063865/

When your done there is a article version at the top of the page. Enjoy
Chris