All Forum Posts by: Hector Vazquez

Michael, I usually put 10 to 20% down, seller usually pays closing costs (they are less expensive given it’s only a contract execution, the deed passes at fulfillment of contract).  Rates are anywhere from 6 to 10%. It all depends how motivated the selllr is. The beauty of it is that you can negotiate anything both parties agree are generally c class neighborhoods, and the seller is wanted to get rid of their portfolios and are looking for steady cash. The term in year vary from 4 to 30 yrs, and the amortization is usually 20 to 30 years.

However this plan only works if you scale up fast because you need to create enough surplus in cash to pay contracts soon. So everything in surplus goes to additional principal payments in the contracts. Also I negotiate longer terms for the nw houses I purchase. So I have them in a ladder like rotation, the first 5 yrs I only have two balloon payments, but I have forecasted that I can afford 3 at year 7 and etc... as you pay off, your surplus grows and you get a snowball effect. Of course you have to manage it closely. 

Btw sorry for the typos just noticed that Siri botched a paragraph 

Thanks for the info, do you mean the recorders filing? Is there and easy way to search?

Not familiar with Morris, I’ll research. They sell their properties on contract?

Hi All,

I have been buying and renting homes for the last two years. I have been a member for about that same period of time, I have always looked at the posts and listings and have responded to several of them have contributed as much as I can. It has been difficult with having my own business and HR consulting outsourcing plus doing the real estate and maintaining a wife and daughter happy. That being said I’m making a conscious decision of being more involved in this group. Here’s my story, I have about 20 units and a couple in process. I buy and hold, and are considering our first flip later this year.  I have purchased these units in about the last 19 months. After my first deal I got hooked.  Both my wife and I are attorneys, and have multiple graduate degrees (MBA, MHA, LLM).  We achieved this at a very early age. As you can imagine we also have hundreds of thousands in student loans, given that my wife and I are both from Puerto Rico and had to pay out-of-state tuition everywhere we went. Of course I would have done this differently if I had read Rich dad poor dad and all the books I read after this, plus other podcasts I have been listening for the last 18 months. Unfortunately hindsight is 20 we achieved this at a very early age. As you can imagine we also have hundreds of thousands in student loans, given that my wife and I are both from Puerto Rico and had to pay out-of-state tuition everywhere we went. Of course I would have done this differently if I had read Rich dad poor dad and all the books I read after this, plus other podcasts I have been listening for the last 18 months. Unfortunately hindsight is 20/20  however I decided to do something about it  my first step was to create my own business about four years ago on HR outsourcing and consulting  which increase my income pretty well, however scaling it up has been a challenge, Specifically after I got hooked on real estate. However I decided to scale up the real estate business. Given all our student loans, the traditional financing options are not available. After reading investing with no money down, I did a lot of research on land contracts.  I knew that this was probably the only viable model for us. Therefore all the single family homes we have purchased, and duplex (soon to be two duplexes) .   Have been  purchased with seller finance. I have created a table where I tier  all the contracts and their  balloon payments.  The model has worked very well, and the first house is scheduled to be paid off in about 18 months. Mos of our deals have a 25% + coc except one, which was a mistake but it breaks even. We are constantly looking for seller finance deals, given that these are the ones we are eligible for. I am hoping that I can scale up sufficiently where a bank or a lender (private or commercial) is willing to look at us for financing and hopefully refinancing the whole portfolio or give us financing where we can start purchasing in with methods so we have more options on the table given that seller finance deals are hard to come by some times.  We currently work and live in indianapolis and all my units are in indianapolis, within 10 mins to 30mins from Me.

Not sure what other info usually new member, or new introductions include but I hope this helps to tell our story. 

Hope you are all well and enjoy the long weekend.

Hey all,

I am in the Indianapolis area, we have 15 units and are about to consider a triplex. However I need a foundations guide to tell me what's going on because the floor seem to be sinking in some areas. The triplex is about 100+ years.

Thank you for any help,

Hector

All,

I apologize for this off-topic item, as it is a personal question. Not sure who to ask other than a plumber. Although I am an investor, I'm currently doing work in my house. We are currently taking down a wall in the master bedroom in order to make or walk in closet larger. While taking it down, we noticed that there's a gas line that goes through that wall that were taken down. Please see the attached picture. We were wondering what are our options other than building a column around this line? I would prefer to move it, but I do not know how much this would cost. The right wall on the picture is an external wall. If you would go to the left you would start seeing the master bedroom, but there's a divider wall between the sitting room and the master.. I am in the Indianapolis area for any local contractors or investors that may have ideas or have encountered this in the past.

Your help is appreciated, as I do not know how much this will cost us.

Thank you,

Hector

Good point! thanks for the info. I am leaning toward leaving it alone, absent any immediate issues. 

All, 

I am about to get into a duplex for a rent and hold. Its a pretty old duplex (1890) and has a dirt basement. I am not new to old houses, but I am to dirt basements. I generally try to stay away from basements, unless i have a very good deal. Given that it is an old style dirt basement, is there anything i need to be in the look out that i would normally not be in the look out for a regular basement?

My research has led me to believe that the number one issue is for mold and humidity, as it seems they are more prone to it. If that is the case, is there a way do water proof a dirt basement? if so, what is the ball park cost?

thank you in advance for any help. 

Thanks,

Hector