All Forum Posts by: Gustavo Perez

So as of now I'm looking at two investment properties. 1 is a 2 possible 3 bedroom with 1 bath that is in good condition but needs the the upstairs remodeled and the sellering is motivated and willing to go down. 2 a multi family 2 unit house in same area that already has a tenant living in it. Now in the area of Peoria I'm looking at I've noticed and the Realtor I'm working with has told me that they are focusing their efforts for new home owners in that area and is getting 600+ Section 8 houses. My problem is Finding financing. I've inquired for hard money lenders but still waiting on them. Also thought about portfolio loans don't know any banks that do that but I can call around. Since I'm low on money but could always use credit cards to get the ball rolling these are my two options unless I find a Investor who is looking at getting some rentals. I would be open to a 50/50 partnership and I've also found other properties that I'm looking at tomorrow with the realtor that identical to the first one. 

Hello Bp, So here's my question the realtor I'm working with has informed me that the area is getting 600 more section 8 properties and that I show invest into this property as one but I've found 8 more like it that would all yield the same return they need some fixing up but not much and I'm getting a list of check offs for the section 8 inspections. Now I've heard of doing hard money lending for getting a larger sum of properties together then refinancing after you get them all renters for a lower and longer mortgage. Are there any issues I should look into before going into this? Thanks!

Hello BP community,

Now here is my problem. I have found a property that seems like a potential flip, I contacted a realtor and just went to see a house today and made a list of the things need (I will list below).  Property info 2 bed, 1 bath 956 sqft (has a 3rd bedroom without closet)

1. windows (6) 

2. Floor has a slight slope to it.

3. laminate flooring was put in incorrectly 

4. stress crack along with minor water damage on ceiling and walls

5 new roof

6. no appliances 

7. the washer and dryer connections are in the kitchen

8. has no central air (95%) of the houses in the area have it 

9. need landscaping 

10. gutters

11. wall trim is in pieces

12. some paint since im sticking to white ( very popular in the area)

13. doors need replaced

14. full remodel of the bathroom

Also the furnace and water heater are exposed in the bathroom (looks very weird) and it does have a garage or a basement but crawl space. Now the comps show it could sell for 73,000 and asking the realtor and another investor could rent out for 700-800 a month the going price right now is 25k so that gives me 48,000 of wiggle room for my rehab, financing cost, monthly fees, and closing cost now talking with some of the contractors int he area since it is a 956 sq ft house the time it will take i'snt long but as for some of the materials I'm at 3,590 for some of the materials (not flooring, drywall, trim, windows) now before I call around what can I look at cost wise for new windows and frames, fixing the cracks in the walls and ceiling, and adding central air and getting the slope fixed? Also give me your opinions is it cutting it to short of a budget ( I will be doing some of the work myself ) 

How do you plan to finance the rentals? Also looking to do turn key or the famous BRRR?

Originally posted by @Shannon K.:

I'm currently working toward finding our first flip. I'm planning on using a hard money loan to get our first official one done. I say "our first official" because my partner already performs repair and renovation operations daily for the last few years at his job. He's bringing the construction knowledge. I'm bringing $15K cash and searching out a HML that will work with us. It seems HML are looking for a combination of liquid cash and experience. Perhaps hard money is something you can look into if you've got some renovation skills or your cousin has cash. Just be sure to account for the cost/expense of the hard money when building your budget though! Some people advocate using hard money to get your first one done, some don't. I'm going to take that risk and am planning for 6-8 full months of holding costs/fees. My numbers still "work" properly even with hard money.

 I'm going to look into hard money lending a bit more just started looking into that, would be a way to get my foot into the door and if need be do some the work myself on the flip.

Originally posted by @Shannon K.:

I'm currently working toward finding our first flip. I'm planning on using a hard money loan to get our first official one done. I say "our first official" because my partner already performs repair and renovation operations daily for the last few years at his job. He's bringing the construction knowledge. I'm bringing $15K cash and searching out a HML that will work with us. It seems HML are looking for a combination of liquid cash and experience. Perhaps hard money is something you can look into if you've got some renovation skills or your cousin has cash. Just be sure to account for the cost/expense of the hard money when building your budget though! Some people advocate using hard money to get your first one done, some don't. I'm going to take that risk and am planning for 6-8 full months of holding costs/fees. My numbers still "work" properly even with hard money.

 I'm going to look into hard money lending a bit more just started looking into that, would be a way to get my foot into the door and if need be do some the work myself on the flip.

Originally posted by @Joel Owens:

Are you a contractor? What skills do you bring to the table when you have no money?

You have to be valuable or you won't be needed. If you are having great success finding properties  you might look into assigning contracts for a fee and building capital. Look up Jason Scott on here and also look for his book.

My whole family are contractors, welder, plumbers, navy seabees, and hvac techs. So to answer your question I do have skills and if not can and will figure it out but that wasn't my question. Was just curious to see what could be done in my position.

Well I have been reading just bought a few books on the topic but the whole point was to hear other peoples point of views on what they would do better to hear it from someone whos done it than in a page of a book you know. But nonetheless I have bought a few book (the book on no and low money down) and have read through some of the investor financing forums here on BP and youtube, I've really thought about hard money lender   have a few plans written up one of which the MOA is higher than the purchase price and is in a area that is selling lots of 3 bed 2 bath, I do have some construction skills but also have a lot of former employers who I know can get the job done right. 

Hello BPers!!

Now I am working on my first flip ever (have a few deals already analysed) I am 21 and in between jobs decided to take this time off and read into real estate investing instead of sitting around and watching T.V. Now here is my issue, since I don't have a job getting a loan can be rather hard (tried local small banks no go) and even though I have found some deals below market value in areas that have a good market just not budging with traditional loans. So read into other types of loans such as hard money lender, 203k loans (still not sure about this one) FNMA loans, etc and just kind of need your opinions on what loan I should go after? Also do have a cousin going in on the deal so may be able to get some cash but for the sake of this forum lets say a broke 21 year old starting off in his dream to invest in real estate. Thanks!!

I have a good friend who does good work at a fair price if you're interested I could message you his info.