All Forum Posts by: Guido Bertoli

My Mom wants to sell her house.  She lives in the Bay Area in California and her house is worth approx $900,000. She will be moving to another state and be paying approx $600,000 for a house.

My idea is to get a loan for 600k and take over her mortgage, repairs, taxes, etc. Her current mortgage is about 3k. So I would essentially be renting her house and cover all repairs needed and then was going to sub lease it out and collect the difference. I can probably get 4k per month in rent. My moms concern is how does she get the additional 300k? I can sell her on the idea of getting the 300k later, but obviously you don't know where the market will be in 6 months or 5 years.

Any advice on how to handle this?

Hey everyone,

I've been looking into real estate as well as purchasing a business. I have found a business that comes with the real estate. Has anyone had any familiarity with buying 2 in 1?

How can I separate the costs? I would assume that I should use 2 purchase and sale agreements? 1 for the land and 1 for the business, is that correct?

I tried using the county tax assessors website to value both the land and the structure, but the land price seems too cheap. I need to do a little more research but I wasn't sure if anyone has done this and has any tricks of the trade.

Any information would be handy.

Thanks!

Thanks guys for all the great information. I do have a few questions...

1. I tried looking up what a Rate and Term loan is and I was confused. Is there a simple way to explain?

2. I am also worried about increasing my loan because I know the market is going to "crash" again soon in the next few years more than likely and I don't want to be underwater on my house. Any advice if this does happen or what to do to help avoid this?

3. Do credit unions typically give investor friendly loans?

4. Do I just explain to the bank that I want to take more cash out because this is my primary residence? 

5. Can they ask what the money is for? And would it be in my best interest to not tell them real estate investing? I don't know if they are investor friendly and they might give a higher rate or less cash out. Am I crazy for thinking this?

Thanks.

Hey everyone,

I've found a potential property investing in through craigslist and I had a few questions regarding it.

Here are the details:

Triplex fully rented: ASKING $479,000

 - 3 Bed 2 Full Bath (rents for $1200)

 - 2 Bed 2 Full Bath (rents for $950)

 - 2 Bed 2 Full Bath (rents for $950)

They say that the tenant pays for cable, electric, gas/propane and the landlord pays for insurance, mortgage, property tax, and trash. It seems fair for who pays what but if anything sticks out at you, let me know. The only thing I don't notice is water. When I asked the realtor for more information he told me, "All other information is normally provided by the owner during the inspection period once an offer is accepted."

I looked up some information from the county assessor's website.

The only thing I could find about property taxes / net assessment was from 2012 it had a net assessment of $299,118. How can I get more current information on this?

A very similar 4 plex down the street is was listed for $449,000 and is pending now. Most of the other multifamilies in this area are bigger than a 4 plex.

How do I know how much I would pay for a property manager to maintain?

Does this seem like a good deal to get more information on?

Thanks

I've read a lot about refinancing and how it is a good thing. I have a few thoughts that for me feel like refinancing may not be the best thing.

My primary residence I owe about $309,000 and it is currently worth about $410,000. I've talked to my lender about refinancing and they said they could do an 85% LTV. If we calculate that that would be a loan of $348,500. So that leaves me with about $40,000 cash. Seems good but I have a few questions that make me think otherwise.

1. If I refinance I'm assuming there will be closing costs. How much is it approximately? Are there any points they charge? Or what would I end up keeping at the end?

2. If I refinance because I'm getting a new loan that is higher than what I had before I would assume my payments each month would be the same. Is this true? Why would I want to do this because this is my primary residence?

Would I do this just to get the cash to make a deal, then use that cash flow to help cover my increased loan on my primary residence? Does this all make sense?

I do understand that having $40,000 of cash is great, but this is my primary residence and I have yet to purchase any rentals / flips and want to make sure this is the right decision.

Completely irrelevant to above but it got me wondering:

Assuming I flip a house in the future...

Example:

I buy a crappy house for $190,000 and it needs $20,000 of repairs and the ARV is $300,000. (70% Rule)

If I borrow from a private lender, hard money, etc with a high interest rate (I don't know 15%) and I have it cash flow $100 per month. When I refinance this out at $300,000 wouldn't my payments be higher and would it still cash flow? How can I know for sure? Is there a certain formula or am I reading too much into this?

Thanks Everyone!

I wanted to ask you guys the best way to go about approaching to make an offer.

I work in retail and every time this one customer comes in we always chat about real estate and other financial endeavors. Last time he came in about a week ago he mentioned he was looking to get rid of a few of his rentals. As far as I know his properties are free and clear and he charges his renters way under market value to assure long term tenants and because he feels rents are too high. Anyways he charges anywhere from $1500 - $2000 in rent for a single family house, which is under market value.

There's a few ways I see this going.
1. Go to a bank but I feel the mortgage might outweigh the rent or be very close in price. I need to get more information from the investor.
2. Having him carry the loan. But I need to see if he's even willing. What are some strategies for having the owner carry the loan?

How would I even approach him? Should I just call him up and say, "I'd like to buy one or more of your properties"
Keep in mind I bought my first condo a year ago as my primary residence and my mortgage is more than his rent.

I was also thinking that if I were to purchase his property would I be able to raise the rent right away or would I have to wait X number of days or not exceed X amount in raised amounts.

Thanks 

Thank you everyone who responded, there's a lot of good information I've just read. I really appreciate all the advice.

@Angelo C. that is why I wanted people to check my comps because it was a big red flag to me. Now if I were rehabbing this and trying to sell on the MLS would those numbers be accurate? I came up with the "ARV" by using the average square foot and multiplying it by my square footage. Also does the appraiser for the refinance look at the inside or no?

I am going to refinance my personal residence to get some cash but I had a few questions regarding how to approach a bank / credit union.

I live in a neighborhood of a bunch of 4 plex condos. I have made a list of 7 properties within 1 mile of my residence that have sold in the last 4 months. They are all 2 bed 1 bath the only difference is the square footage and the upgrades per unit. Based on my comps my "self appraisal" will be higher than any sold so far. I took all the units and got the avg per square foot and multiplied that by my square footage. This is what I've learned from the BP Podcast and what I've read on the forums and in a few books. So I feel confident, but I don't. I'm still just starting out and want to approach the bank as if I'm someone who knows what they're talking about, like they've done all their homework. I feel having more and better information will give me a higher success rate and getting what I want when talking to the bank. I have NOT included the pending or the currently listed into my comps just because those are not sold so I don't think they are accurate data. I'm not even sure if I can negotiate a refinance price or if the bank just does their own appraisal.

Here's a link to my comps:

https://drive.google.com/file/d/0B1tiA9zh4iG7YWhMb05hYnQ3X1E/view?usp=drivesdk

I still need to look at all the upgrades on every unit through zillow, redfin, and whatnot. Anyways I want you guys to look at my comps and see how reasonable my offer sounds. I also don't know too much about how this process works and any advice would be great. I obviously would like to get the most money for my appraisal. I'm assuming (correct me if I'm wrong) that the higher I can show my residence comps for = more cash out I can pull out from a refinance?? I want to try to rinse, wash, repeat, but I bought my personal residence before trying to invest in flipping or rentals.

I want to go to my credit union to get the lowest possible interest rate (I will shop around of course) but I also want to get the maximum appraisal. Does it work this way or am I misinformed?

Thanks,

Guido

Hey Guys,

I'm still new and looking into how I get access to some great deals. I've been listening to the podcasts and reading a lot. I found out that a lot of investors are using preforclosures to get good deals. I found a website that lists preforclosures in my area that seem like a good deal, but because I'm new I thought I'd ask some questions regarding the information I see.

I see it lists the Trustee's address, phone number, loan amount, delinquency date, etc. It has the delinquency date at 7/11/2017.  This is listed as Preforclosure just to make it clear.

Does this mean that is when the Notice of Default was sent out?

It also says that the loan amount in about 300k and has an assessed value of 550k and they are only delinquent 21k.

How does this work? Would I (me or some creative finance) potentially pay 21k to bring this property up to current. Then would we continue to make the current payments or do I need to pay off the 300k?

Any thoughts?