All Forum Posts by: Dennis Rodriguez

@Victor Chicogood to see you jump in. I asked a lawyer about private lenders and how to set up the deeds so they can hold the note and I'm still waiting for an answer on that.  

Also, are evictions now faster when children are involved? I know this was a big issue some years ago with the Departmaneto de la Familia protecting children from being "thrown out" on the street with evictions. Can you explain how it works nowadays.

Thanks,

@Jon Holdman 

This is very complicated question but I'll try my best. Foreclosures are going crazy right now. There's a lot. If you can buy and hold then it might be a great investment opportunity. The problem is... hold for how long? I'm Puertorrican and I moved to Houston about 3 years ago but I listen to local PR radio everyday and stay very updated in the current situation. The main problem is that not knowing what the US Congress will end up doing, you have no way to determine how long this will go on and how many more citizens will migrate to the states decreasing population and hence potential tenants. It might take 5 years for the economy to bounce back or it might take 20, no one really knows. Uncertainty is the biggest problem.

Lending is pretty much shut from local banks and in PR as far as I know (and I'm doing more research on this) the law in PR doesn't allow for private investors to be on the Deed and use that as security for a note. So it's either your own cash or using private money if that person is willing to lend without having a Warranty Deed on the property and being able to foreclose on you.

Puerto Rico is very, very tenant friendly. Laws have change somewhat in the past 10 years but still an eviction can take 6-12 months and tenants have a lot of rights that protect them specially if there are children involved.

As far as good/bad locations... it is very difficult to tell because there are bad and good areas pretty much everywhere. As a rule of thumb, San Juan Metro has more crime than the rest of the island just like any other metropolitan area in the mainland. If buying a house, you would want to focus on subdivisions with controlled access (somewhat safer). If buying a condo/apartment (in PR we don't make the distinction like in the states) I would stick to Condado/Isla Verde/Miramar in San Juan since you can rent it to tourists as well as locals.

Hope this helps.

I have to agree with @Sharon TzibMLS deals can be found but you have to: 1) Be very patient and 2) Act quickly (and I mean 15-30 minutes of it coming to the MLS) for a chance to snatch something. The competition is not only from other investors but owner occupants watching too much HGTV and seeing how "easy" flipping or renovating a house is.

Good luck.  

I you are going to be in the Energy Corridor I would scratch off Sugarland. The commute will make you miserable and it's getting worse everyday specially on the Grand Parkway/I-10 interchange. 

My $0.02. 

@Raphael Collazo

I sent you a PM with a broker's phone number.

Good Luck,

Dennis

@Nicholas Testa

When you get started you will quickly realize all you need is 1 or 2 buyers to sell your deals to. Don't get too stressed about creating the infamous "Cash Buyers List". Once you find a deal post it on the Marketplace and your local REI Club and you will get cash buyers. The trick is that it must be a DEAL with meat left in the bone for the investor.

By the time you find multiple deals that your 1-2 cash buyers can't buy from you, you will already have others asking for deals. At this moment I'm working with ONE cash buyer and he buys everything I bring to him. I have never had to create a "Cash Buyers List". If I start finding more deals that he can't buy, I already have people lined up that came to me asking for properties.

Good luck!

Ask your Realtor to set up your criteria on the MLS auto-email system. Once you receive an email of a new listing jump right into it (and I mean jump fast). If it looks OK, ask your Realtor to do a Quick CMA. If it still looks OK put an offer. Cross your fingers and pray. You will get one eventually. It's a numbers game. Hint* Make sure your Realtor has all your information including the Bank's POF letter ready to submit an offer fast.

Good luck,

Dennis

Oscar,

I'm sorry to read about your situation. The problem is you bought too high. Even with an ARV of $139,000 (and we know that is not moving the property) if you multiply by 70% that only leaves $7,300 for repairs and with a HML you should've offer way less.

But that is the past. I guess your best bet is to list it for rental and hope you get a decent cashflow but with those numbers I see it difficult. Once you rent it take the lease contract to a local/small bank or even you HML and ask for a refi. If your credit score and debt-to-income is in good shape you shouldn't have a problem refinancing.

I'm a little surprised your HML didn't warn you that this wasn't really a deal.

In what part of town is the property?

Good luck, 

Dennis

Hi all,

I'm originally from Puerto Rico but moved to the Houston area three years ago. I have a very good friend who is a Realtor in PR and he also invests and flips in the island. I haven't been able to convince him to become a Bigger Pockets member but I can get you in contact with him if you PM me. I'm pretty sure he could point you in the right direction specially with the current economic situation and the changes that are going on with the massive decrease in population. 

Good luck and happy investing. 

Dennis

Hi Brian,

Just like Ray A. said, traffic should be a big consideration. The best neighborhood to buy your personal property is the closest one to were you work, 'cause Houston traffic is a killer. As far as investment properties... we buy everywhere in the Houston Metro and suburbs and I mean from Galveston to Conroe and Sealy to Mont Belvieu.

Good luck.

Dennis Rodriguez