All Forum Posts by: Francisco Hernandez

Hello BP,

I am wondering if anyone knows where I can find any registries in Puerto Rico where properties are behind on their taxes? I do not know if they exist, but I’ve had zero luck finding anything.

Thanks in advance. 

Update: since the original thread I purchased a 4plex near Centro Médico. It was a total fixer upper. Unfortunately, the property was illegally built up to a 4plex and didn’t have the proper permits. This is a project almost two years in the making and I’m hoping that the construction permit will be done by June. Rookie mistake to not do enough due diligence. Lesson learned!

Tips: if you are looking for rehab properties in PR, make sure you know somebody who works with permits and has contacts in the agency. This will make your life a lot easier. 

First off, thanks to everyone (@Roberto Torres, @Victor Ayala, @Joe Splitrock, @Aron D., @Aaron T., @Jimmy Dudley) who gave their insights, it definitely helps to see other peoples perspectives which can help you make a more informed decision.

Second, as many of you have expressed as well as direct conversations with others, it might not be the best time to put all my eggs in the PR basket.  I'm definitely going to be taking it slow in this market, at least until the lights start coming back on.

@Eric James I just went through this process back in October, prior to Maria hitting.  US banks did not want to touch an offshore property.  I tried chase, capital one, penned, etc...

However, I was able to find a local bank that was interested in rehab loans (with a higher interest of course).

I went that route at first, but after Maria, I decided to offer a lower cash offer and it was accepted.

@Roberto Torres

@Roberto Torres can you share any contacts for local GC's, plumbers, electricians?

Hello All,

What are your thoughts on the mass exodus of citizens out of Puerto Rico?  Are you hopeful that the economy will pick up and investing in this market will be fruitful in the long run or are you staying clear of the area due to the economic crisis they are in?

Look forward to your thoughts.

Hello,

I am in search for some local contractors in the San Juan area.  If you happen to know some good ones please.  Also, I've already had the pleasure of working with a couple that I'm going to pass on, so any tips on working with local contractors are welcomed as well.

Thanks.

Thanks to everyone who replied.

@Joe Villeneuve I will keep in mind Golden Rule #1.  Thanks for the input

@Mike Hurney Thanks for the tip.  The property is in San Juan and the average rents in the area are around $4-500/door (my wife was tipped off on the property from a fellow investor).

@Cody L. Good point. I am borrowing someone else's money which is already a benefit. As for selling to the LLC, I was hoping to have the bank cut me a check for the property and have the LLC now own the property. :). Wishful thinking!

@Cortney Jones thank you! My wife and I are very excited. This is our first property and we look forward to many more. As far as what I want, I plan to use the knowledge that I've learned (and have been inspired by) from others on BP and the capital that I've gained from selling my house, to help start my own consulting company through REI. (I'm not sure about you, but I'm tired of having a boss and can't wait to be my own boss, haha).

@Joe Villeneuve thanks for the advice.  Now that I have spent the money, are the ways to reclaim it.  i.e.: sell to an llc that I create, if I can get a loan for that llc?

Also, what's your #2 golden rule?

Hello BP Tide (Podcast #240),

I am new to investing and just got into my first buy and hold deal on an mfh, in Puerto Rico at $65k. I am using a conventional nonconforming loan at 5.625%, with 25% down (which I'm able to come up with).  I am looking to continue to grow my RE portfolio, however with a limited amount of capital, at some point I won't be able to come up with the 25% down.  So, here's the question:

1) Is it a good idea to use my own capital to fund RE deals?

2) How would it be possible to start a buy and hold deal without putting any of my own capital into the game?

Thanks in advance for any insight!

Francisco

Hello All,

I was wondering if there are any rules stopping me from turning a residential property (4 units) into a commercial property (6 units) after acquiring a conventional loan. The property is a fixer upper with 1br studio, 1 br apt, and 2x2br apt.  One of the 2br units is extremely large and I was thinking I could turn it into 3 units: 2x1br apt, and 1br studio.  

Thoughts?

Thanks in advance!!