All Forum Posts by: Guillermo Oyola

Two part questions:
How can I do owner financing when realtors are involved? If property is listed on MLS with listing agent and I reach out direct to the sellers agent, is there a way to structure the deal so the agent gets their commission?

If owner still has small loan balance but considerable amount of equity, can I still owner finance the deal?

Hi Tim and thanks for the response. I included insurance at as part of my closing costs because I pay for that upfront with my builders risk policy for the rehab of the property. 12 months policy.
Taxes I pay at the end of the year since this is interest only 12 month payment there is no taxes. However I did include monthly taxes in the Misc. Management is flat fee $85 per unit over 1000 per month. So it is light, but that's what is it.

So in order for this to make sense I would need my ARV to be at 382,000.

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*This link comes directly from our calculators, based on information input by the member who posted.

What kind of COC ROI do you try to aim for on BRRRR deals?

Originally posted by @Greg Kasmer:

Guillermo - I think the mechanics of this analysis look good. I would suggest you add some expense "post-refinance" for reserves/ and/or maintenance. Maybe $100-$150 per month as a good starting point - If you do that you'll increase expenses a bit in the long term. It looks like you're thinking about a 70% LTV on the cash out refinance (270,000 x .7 = $189,000). That would leave you with coming up for the money (~$50,000) to pay back the hard money lender ($243k-189k). Personally, I'd like to get more of my money back in a BRRRR, so I would suggest searching for a lender willing to give 75% or even 80% LTV on a cash out refinance and then running your longer term analysis on a higher LTV amount. I think it would be worth it - so I would call 15-20 different local/regional banks and credit unions and see if they can give you 75%-80% LTV. I would also make sure you have some reserves in case the capital costs of the renovation wind up being higher than you expect. Good Luck!

Yeah thanks for you input. Sorry for late post. I dont get on here as much as I should. Yes I was doing 70% because my conventional lender does 70% LTV for 2-4 units and 75% on single family. I'll been calculating now better by making sure if I go with 70 or 75% I'll be able to payoff the private money lender and not have to come out of pocket.

Dang I missed it. Is there a way to see a replay? I know that area very well. I use to work at Michoud Assembly facility. Amazon is expanding in that area. They are opening a large distribution center in Slidell short drive up I-10 from there. Not to mention NASA facility Michoud also employs hundreds of thousands of people in that area. It is a very rough part of New Orleans and can be dangerous at night but there is alot room for growth as you mentioned in the ad. Tons of potential there. 

I'm pretty sure I filled this out correctly. I included points and private money fees, then for refinance I estimated my closing costs based on the loan amount.

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*This link comes directly from our calculators, based on information input by the member who posted.

The only issue I have with purchasing in a possible flood prone area is the insurance. Find out how much homeowners insurance will cost and if flood insurance is required how much that would cost as well. If keeping property as a rental then take those numbers into consideration. If flipping, then look at comparable sold homes that also require flood insurance. What do those prices go for and does the numbers still make sense? 

Know your market and demographics. I agree with what others said about checking out other rental listings to see what is expected. Also call up as many rental property managers and get their feedback on finishes for that area you are in. Alot depends on the price range and type of tenant you are looking for. 

Anyone have appraisal reports they don't mind sharing? I like to study and review appraisals to help me better understand how to analyze a good comparable. Learn what appraisers look for and how they come up with comps to a subject property. Every appraiser is different, but generally they should all use similar guidelines and criteria for comparables.

Everyone is different. For example, to me financial freedom would be making enough cash flow or overturns on my properties that it would double my current w-2 job monthly income. Start thinking what things you want to have or expenses you want paid for on a monthly basis. Once you know that number, then calculate how many properties you will need to achieve sufficient cash flow to cover all those expenses. Be sure to know your numbers really well, like vacancy and cap ex for unexpected repairs.

I would suggest to also have a side hustle like flipping houses or wholesaling to fall back on for cash to help pay for down payments for more income producing properties.