All Forum Posts by: Hector Perez

I personally prefer to start now, than later.

If you can afford a duplex financially with a bank and rent the other half to pay for most of your mortgage, why not?

I wish I was thinking like you at 17, I will have triple what I have today, but I didn't. I started when I was married with 2 kids, and a full-time job, It was not easy when you have others who depend on you, and I was living paycheck to paycheck

You have time, so take advantage now if we can

From personal experience, private lenders usually will not partner with someone who is new.

if they do, usually they will handle the renovation and split the deal, based on what your contribution is. I have partner 50/50 with new flippers, but they put half the money into acquiring the house and repairs, and I pay the other half but I use my crew to do the flip. the other person needs to have skin in the property otherwise, I just pay them a wholesaling fee.

I recommend starting by using a hard money lender, as they will take risks when someone is new, and they won't lend you the money unless they feel confident the deal is good. so you are confident you can be successful.

you may pay some hight interest rates, and points, but at least you know you may make money at the end 

The best way to start wholesaling is to attend local meetups, learn the process from A to Z, and then take massive action.

You can read, watch YouTube videos, listen to podcasts for months, and still be unsure about how to do a deal.

I learned wholesaling by understanding the steps from a to z first and then took action. 

The hardest part is the first deal, then after than it becomes easier

First, you need to contact reiskip to find out if they scrub against DNC records.

You have to be careful. I know a lawyer in Texas who is happy every time she receives a call from investors because she will go after them.

She is crazy because she is an investor, too, but I guess she found a way to make money, which is ridiculous 

I disagreed based on my personal journey

I didn't have the money to invest in real estate, like buying a rental or even doing a fix and flip, my credit was horrible, and I could only saved $125 a month

So I started wholesaling, and I was able to create a bunch of cash in 12 months and become great at finding deals.

Then, I decided to start doing fix and flips, then rentals later on.

I didn't come into the business to make quick cash. I became a wholesaler to build cash over time to invest in other areas.

I still use the same techniques I learned in wholesaling to acquire commercial properties, land, and notes. But thanks to wholesaling I can do all this stuff

I think people fail wholesaling  because they think is easy, and they get frustrated when they don't see results fast. 

The key is consistency over time. You need to be consistent for at least 3 to 4 months to see results. this means every week you need to be talking with sellers and buyers, keep track of how many sellers you talk and how many offer you sent for 3 to 4 months to see progress. If you do it for a week, then stop, and start back in 5 weeks, then you are going to fail misserable

once you have a property under contract, then you need to quickly get in front of buyers.

Post in Facebook Forums

Attend Real estate events

Post property in myhousedeals.com

Search in google for other investment companies and call them

Find a list of cash buyers near your property , do a skip tracing an call them

I always recommend starting in your own market first, then go out of town, then out of state, but I understand California is expensive.

If you need to create cash, wholesaling is the best alternative

If you have some cash, then maybe do a few flix and flips to build your cash reserves.

If you have cash saved, yes you can buy a rental in other markets, but you need to research and create your list of contacts in that market

You can always buy a fixer upper, then refinance, and repeat, you can do that with favorable rates up to 10 times using loans for a secondary/investment home

Rentals create cash flow, and that's what we want as real estate investors, but you need cash on hand for unforeseen circumstances.

The AC needs to be replaced, that's $7K to $10K or more depending on the size of the house and if you have one rental, it will eat all your cash flow, same to replace a roof, etc, or if tenant trash the home, you need money to fix it again.

To me personally a nice rental portfolio that is healthy consists about 10 units, so if you have an issue with a house the portfolio can cover the repairs and still healthy, but when starting you need to have cash on hand just in case

Yes, there are multiple strategies you can use to hack your way to buy your first rental with minimum cash, but I would start wholesaling or fix and flip a few deals to create that cash as fast as possible

I think yes, you can leverage your VA loan.

But before you do that, you need to make sure you have money aside in case of unforeseen circumstances.

ideally, if you buy a fixer-upper and can get 100% of the loan + renovations + Closing costs covered on the loan, then after renovation, you can refinance it to rent. That will be perfect. but you still need additional cash to make the loan payments + refinance closing costs, other miscellaneous costs.

When I started I didn't have a lot of resources, so starting wholesaling then fixing and flip to create cash, before I did my first rental

Of course there are other ways to buy a rental, but these are my two cents

If its your primary home, it is not a bad idea, if you are comfortable with the monthly HOA fees.

The question I have is, what are you planning to do after 2 years?  are you planning to sell it or rent it?

If you are planning to sell it, are you buying a fixer-upper or paying retail? Is they are appreciating in value or remaining steady?

If you are planning to rent it, what would be your cash flow after expenses? Based on current rates

You have to answer yourself this questions to make a decision

I have bought multiple condos over the years to rent or fix and sell, and it depends on the area, value, rents, etc.

Mu biggest issue is dealing with HOA. Sometimes if you are renting the unit and it is not insulated properly, then you hear footsteps and conversations from next-door units, so tenants complain a lot, but there is not much you can do.

Also, one time the unit above mine leaked water into my unit, and the HOA said I needed to talk to people living above mine to fix the issue and they didn't have the fund to fix the bathtub from leaking into mine, so I had to pay for the repairs.

Sometimes working with HOA and is painful, but other times is easy if the unit does not have problems