All Forum Posts by: Dolf Al Emara

Hello all,

I need an insurance quote for my 4-plex rental property in Mountain Home ID. 

Call or text me

Dolf

(323)630-8552

To add to @Calvin Ozanick’s point, there are some companies offer handwritten like font on your card. 
thanks Calvin, that is a good point. 

I am about to start my campaign as well soon. I will be using yellowletterhq.com. let me know what you think of them. if I find another one, I will let you know here. you do the same if you find some good company with track record. 

thank you @Michael Barnhart. I talked to some loan broker, he will tell me how much I would be qualified for.

hello all,

I have purchased 3 deals so far, would like to purchase 5+ units next. my question is, how do banks look at my application to decide how big is the loan the can give me. is it my net worth? do they take into account my previous loans?

can someone (preferably loan officer, or experienced investor who have 5+ units) give me an example on how banks calculate that?

cheers!

Dolf

hi Kyle,

the key is to find the right bank which accept that scenario. some banks would fund rehab cost (80% of rehab costs is normal, 100% if you are lucky!) and add it to your mortgage, if the numbers make sense to the underwriter. what does that mean? it means that if you purchase a house for $50K, your expected rehab is $100K, make sure your comps or ARV in that area is higher than $150K, by 10% or 20% to be on the safe side. give the bank a reason to take extra risk to help you with rehab.

if the above did not work for you, there is another way to do it. you can get loan for $50K, then talk to another bank to fund only rehab costs. some banks specializes in funding only rehabs. you can also get funding from private money lender. after your rehab, rent the property and refinance to pay back the rehab costs. I know it's longer and more expensive method to do, but it's good plan B. 

cheers and best of luck.

Dolf

Hi @Alex Barnett,

I’m assuming you had to find an alternate contractor during the rehabs. 

1. How did you find them? I found them online, in yellow pages, yelp, etc. 

2. What was your biggest lesson learned from working with original contractor? the biggest lesson is do not give contractor too much money in advance. always check for history and ask for referrals first. always work with licensed contractor, not handy man when doing big jobs. 

Investment Info:

Single-family residence buy & hold investment in El Cerrito.

Purchase price: $327,000
Cash invested: $45,000
Sale price: $875,000

this deal opened my eyes to massive shift towards real estate investing

What made you interested in investing in this type of deal?

I wanted to enjoy solid investment, great appreciation. I did not want to pay rent and watch money go into abyss.

How did you find this deal and how did you negotiate it?

through a real estate agent. I did negotiate the pricing little bit and was successful.

How did you finance this deal?

Normal bank financing, then refinanced it to get much better deal.

How did you add value to the deal?

remodeled the kitchen, remodeled one bedroom, new electrical, new paint, redesigned the backyard, front yard, and replaced traditional water heater with tankless to create more room.

What was the outcome?

great, as expected, if not even more.

Lessons learned? Challenges?

working with contractors, filing a lawsuit against one of them, finishing work on time and on budget with no overruns

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

no.

Hi Annie,

I have not yet seen any property that numbers make sense. If I see, I would definitely buy it. 

cheers and thanks for the comments.

Dolf