All Forum Posts by: Daniel Mendez

@Daniel Mendez

The lender will order an appraisal (which you'll pay for in your closing costs). Once the appraisal comes back, the lender will then offer 75% (or whatever their % is) of the value.

Trust me, know your ARV ahead of time. A low appraisal can really screw you!

@Daniel Mendez using OPM (whether hard, private, etc.) is feasible for a first time purchase, you simply need to make sure that you factor holding costs in to your calculations.

I work with new investors on projects in Washington & Oregon regularly, and a good hard money lender will want the investor to be successful. We see success on the regular.

If you have people in your network that are willing to fund your purchase, that would be my recommendation. Usually terms are more favorable and its less expensive. That said, you can definitely be successful using hard money.

If your looking to BRRR with HM that's doable that was the core of my business pre 08.

But one thing you must do before anything is get pre qualified for your refi.. don't want to get stuck in a HML with no way to refi out..

So for BRRR with HML

1. qualified for take out and I mean fully qualified not just a pre approval letter.

2. find market were you can be all in at 75% of ARV.

3. get a 75% arv loan  refi out most of your cash.

in some instances all your cash.. but then U also are mortgaged so careful with debt management

I have found all my deals on the MLS. They all have been overlooked by investors, that's why Ive been able to capitalize on them. I also had to work harder to make the numbers work. A lot of that was through negotiation, and sweat equity.

Either im really lucky, or im really talented at presenting an offer that is both beneficial to me and the seller. 

Go out there and search... then MAKE IT HAPPEN!

Good luck!

@Daniel Mendez I do think that Indy is a great place to start, but finding a market where you can build a great team is more important than finding the "best" market.

I recommend finding something will very little risk when starting, which usually means MLS deals. Right now, the MLS is very competitive, but I am constantly networking with brokerages to get access to off-market, pocket listings that are great for investors but difficult to sell on the traditional market. You can follow the wholesale market, but you have to be more careful as there are many pitfalls to avoid when dealing with wholeasalers as they often have very skewed numbers. You will find the same things on MLS properties, but realtors are held accountable to a code of ethics with a license at stake.

Building a team and network is usually going to be the best place to start. One more recommendation... if you haven't ready David Greene's book, Long-Distance Real Estate Investing... I really recommend it. It's easy to digest and laid out really well. Most of my clients have read it and love it. The information is very parallel to what we teach our clients, but it's very nicely packaged.

Best of Luck! Feel free to reach out if you need anything.

@Daniel Mendez I have looked all over for a decent mutli family in Jacksonville and they just are not there. They are all on the west side of the river and in super rough condition. It's truly not worth the money to fix them up because they may not even appraise for that much, and you may have a harder time with tenants there. I do have one property on the west side and we are evicting the tenant as we speak. My other two properties are on the east side. I'm looking for other cities where the multi family properties are better.