All Forum Posts by: Cristo Heatherdale

We have access to a discount properties nationwide, including non-performing notes occasionally. We have received them discounted anywhere from 30%-70% across different areas of the U.S, but primarily Florida, Texas (Dallas and Houston areas mostly), California, Arizona, and Colorado.

What's the CAP? Do you have a pro forma already? As stated above, generally commercial lending does require about 25% down. I don't know what your credit score is or if you established business credit, but 650 is about the minimum you would need as well.

I concur with what Natalia mentioned. There's good debt and bad debt. If your properties are creating cash flow, use lending for leverage and keep as much of your money as you can. As long as your debt is working for you and making you money, you're gold. How long have you studied the ins and outs of the industry and the Denver market? I'm in Denver as well. Great market especially to buy and hold (rent out). Last I looked it was over 50% and rising. Wholesaling is a great way to start to make some quick cash and learn how to acquire properties. It's also a great way to get started with networking in the community. Go to the local REI chapters and start asking questions. If that's the route you want to take, make sure your title company has experience in double closings, not all of them do. Going with an agent isn't a bad idea to get started, or even JV your first couple deals with another investor. That might be a better bet, but RE agents have access to MLS and expired listings, not to mention they will have more practice in determining CMAs. I wish you the best of luck

Welcome Brett and congratulations on taking this step! What are your plans so far? Wholesale, fix and flip, creating rental income? There's a lot of ways to start out and BP has a lot of info on each way to do so, not to mention familiar and frequent scenarios.  I'm in CO but I have clients that invest out there in FL.  Feel free to contact me any time.

Seems like the options in this thread have already been taken care of.  I don't know if you are going to be doing this full time or not, but sticking to certain ground rules and not deviating will save you a lot of time and headache.  Personally, I think there has been too much thought into this than needs to be.  If she has sufficient fixed income (retirement) to cover what you feel is comfortable as a percentage, or set parameters, then there is no need to take it further (such as some places you need to make twice as much as rent, 3x, etc.).  Verify her previous landlords and call them and see how she fared.  

Based on her response, it doesn't seem like her son is really needed on the application or lease.  It could be that she had prior experiences where rented properties, apartments, etc required it if anyone was to stay there for "x" amount of time for liability reasons.  That is very common, landlords want to know who is occupying their properties if it's company that is there for more than a quick visit.  Since her son is going to visit her and have lengthier periods of time, it seems like it was just her being up front and honest with you.  

Welcome @Trevor Kolb! And congratulations also on your decision. Seems like the bulk of starting out in REI was either covered in your introduction or by other members. Networking, being able to sell yourself, and even marketing, is by far some key skills to always develop. Rich Dad, Poor Dad was a great book to start out. Robert also has a few others and it wouldn't hurt to run by the library and pick up a few more or even take a RE course. Think and Grow Rich by Napoleon Hill helped me with commitment setting (others would call it goals), and Roger Dawson's The Secret to Power Negotiating was an enormous help. Whether you decide to start out by wholesaling or get into a JV with your landlord, you will win either way. If you ever need anything, feel free to reach out.

You could also lease-option it.  Being that the Denver area property values are still rising, has become a high rental metro, and is short enough on inventory as it is, a lease option might not be a bad idea for your situation.  

Something is a little off, the bank wants him to put up $80,000 to stop the foreclosure on a $300,000 mortgage? That's quite a bit. As the above stated, yes, short sale or foreclosure would normally be his only option. However he can also request a loan modification and negotiate terms of the loan, seek a HUD-approved counselor, or a Fannie Mae refinance if they accept. I've heard of hopenow.com but haven't exactly dug into that program for details, but they supposedly have programs to help people in that situation, especially after the bubble impacted large areas of the U.S like Florida and Nevada. Either way, banks are more negotiable than people think, they just have to get over to the right department. They would rather have an existing client than foreclose on a home.

No, I meant if someone was starting out in wanting to get into something like a fix and flip project, or a buy and hold.  They want to get into it, have educated themselves, but do not have the experience or funds where an angel investor can come in, but they do not want to be taken advantage of either.  Funding I can do, but I have started getting inquiries from people who have recently brought this topic up when I can not qualify them in their present situation, so this would be good information for them.

Be as accurate as possible with your CMA. A realtor can be of good help because of their access to MLS (don't go by Zillow's Zestimates). Generally it is done by looking at recent sales within the last 6 months and within a quarter mile of the subject property. Make sure the comparable properties used are of the same type and reasonably in the same size, number of bed/bath, etc, and that they didn't cross into a different zip code. Also make sure that the houses sold were sold for full price. This is an after repair value for the house selling for full retail price, so the comps you would use would also have to have been sold for full retail price and not a foreclosure sale, distressed owner, etc. (it's obvious, they are generally a lot lower than the surrounding). If you are doing upgrades, or adding a room, etc., determine about how much value they would add after figuring out the CMA.