All Forum Posts by: Francisco Hernandez

 Link?

 I'll be sending 3k postcards every 6 weeks.

Should my postcards be geared towards listing the house or buying it as an investor?

I'm mailing postcards bc I want to find off market investment deals 

Hello BP members,

I am a homeowner in MD, trying to crunch numbers to decide if I should move to TX or not.
My current home A has 320k left on mortgage from 400k @2.5%, with remodelled kitchen and bath. 
Current valuation of home is about 580k. Rental approx at 2900/pm. 

For new home B, It will be 7.5% for 550k. 
Any pointers on how should I run numbers to compare two cases.

Case 1:  Rent home A, Buy Home B @7.5%, with potential refinance at 3.5-4% ( ifff thats feasible ) after 2 years, once the rates are down. ( i know high hopes , but I dont think 7.5% is the new normal ).

Case 2: Sell the home, get equity out, pay the whole equity ( dont know if thats wise ) towards downpayment of home B, reducing loan amount to approx 320k. 

As a side note, feel free to throw suggestions and let me know its a dumb move to buy property as primary residence and pay 7.5% mortgages, sit out. :) I wont mind at all. I am here to catch your brains and help make a decision.

TIA !

Hi, I have about 13 rental properties likely 14 by end of the summer.  Where is the best place to apply for business line of credit say 30-70k.  I don't need it immediately but likely in case of emergencies or vacancies.  Any advice is warranted on where to get this.

Hello all, I am a retail center investor based in Dallas, TX, looking to connect with other individuals who are passionate about this asset class. Please let me know what areas you invest in. Looking to learn and share my experiences as well!

If anyone had any banking relationships they are willing to share that would be appreciated.

I have a client who is considering investing in an empty lot in Detroit. People are under the impression they will make a fortune holding on to these empty lots, but I am not so sure. There is of course taking into account the area and if it is getting some life pumped back into it, sure you might have a builder or buyer wanting to put a house on it.

I would love to hear from anyone with experience on holding on to an empty lot and just taking the hit on the taxes until you can sell for a large price. 

TIA!

There’s a lot of negativity out there concerning the risks (especially to the seller) of subject to deals.  To sum up the risks to the seller; the seller remains liable on a note which is secured by real estate they no longer own; the property sale has violated the due on sale clause of the mortgage or deed of trust and the note can be accelerated by the lender; the seller’s credit capacity is impaired because he has debt with no offsetting property equity.  The risk to the buyer can be summed up as : violation of sue on sale can lead to note being accelerated:; assuming buyer is an investor and seller a homeowner the buyer will probably be named in a lawsuit should either the note be called or default occur.  

Although there are safeguards that can, and should be set up, this merely modifies the risks, it doesn’t eliminate them.  So my thought on this is that I wouldn’t (personal preference) engage in a subject to transaction with anyone other than an experienced investor on the other side of the transaction.  I feel that if both parties understand the risks; if real estate investing is their business, if both parties are sophisticated and experienced investors, and both decide the risks are worth taking, then subject to can be a workable tactic.  The one exception would be a transaction where the seller IS a homeowner where the loan amount is small enough that I could cover a payoff should it become necessary out of my liquid assets. 

I’d like to hear how other investors feel about using “subject to” as the advantages of (1) no qualifying, (2) lower interest rates and (3) no financing costs seem like enough to turn a marginal deal into a worthwhile investment. 

Hi we are new to wholesaling here in Utah am wondering if you know where I could find contracts that are legal in Utah. We have some but they are good for New York, and other states back east.