All Forum Posts by: Jason Holtzinger

Thanks for the input Tom. That is a good point.

Thanks for the insight Matt! I will weigh that out. I didn't think of it that way.

My question is:

If I have enough capital in the bank to purchase my first few properties in cash would there be an advantage to obtaining loans for them anyway? If I did just put 20 percent down on each and obtained a loan for each it would obviously leave me additional monies to purchase more by putting 20 percent down. 

However, would it not be smarter to just buy the first 2 or 3 cash as I find the deals and when I want to purchase more or as I find additional deals to just finance against the previously purchased properties as needed? my thinking is that if it takes me months or a year or more to find additional deals I would needlessly be paying the bank interest?

I wanted to throw this out there for opinions incase I'm blindly overlooking something.

Thanks,

Investment Info:

Single-family residence buy & hold investment in Windsor.

Purchase price: $306,000
Cash invested: $14,000
Sale price: $625,000

I purchased this home as a foreclosure. It was not necessarily what I wanted for a first home nor was it in the area I really wanted to live. It was in good shape, had a great concrete tile roof and only needed minor repairs. My goal was to let it appreciate and sell it after about 5 years and move into a larger home in a different area with more property and purchase another investment property with the left over proceeds.

What made you interested in investing in this type of deal?

To get my foot in the door at a young age and wait for it to appreciate to one day sell it.

How did you find this deal and how did you negotiate it?

Through a real estate agent. We did not negotiate as it was bank owned and already a very good deal. We paid asking price.

How did you finance this deal?

I obtained an FHA loan and put down the minimum 3.5%

How did you add value to the deal?

Sweat Equity.

What was the outcome?

I was able to sell the home for an amazing return and the proceeds have allowed me to start looking for and planning for new investment properties.

Lessons learned? Challenges?

I learned A pool is more of a headache than it is worth. I learned there are more maintenance and repair items that come up than I realized there would be. It also showed me that it is not a difficult thing to purchase a property and almost anyone can do it.

Wow, thanks for the reply Theodore! I'll definitely look into this option now 👍🏻

I apologize for the double post, my browser was lagging and I didn't realize I pressed submit twice!

WARNING, long post! But i think I pose a very interesting question/topic for disaster stricken properties if you make it to the end. Hello, My wife and I have been presented with the opportunity to purchase a piece of property we have been interested in for a long time but it has never been on the market, because of the wild fires here in northern CA the house was burnt down and the owners have approached us because they do not want to rebuild... I will try to keep this as brief and to the point as possible. The property is right next to her parents home and right down the street from my parents home. We grew up in a rural area of Sonoma County and have always wanted to move back. About a year ago her parents approached us with the idea of purchasing their home that they built about 30 years go. They know they are getting older and will not be able to take care of the large house and 3 acres of property with horse barn and shop etc. Their plan is to build another, smaller home to retire in on flatter land. We are on board. The property and home next door to them (3 acres) burnt down in the recent wild fires. The owners approached us and would like us to purchase it from them. This works perfect because my wife's parents would be able to build their retirement home on it and have the funds to do so. This enables them to stay where they want to with the added benefit of having us close to them as they get older to help maintain the property and essentially allowing my wife and I to have a larger area for the horses. Since the property burnt down the current owners can obtain permits to build again very quickly and very cheaply but if the property were to sell the new owners would have to submit for permits as if there was never a house there, thus saving potentially over 100k or more in permit fees. The current owners are willing to carry the property for X number of years/amount of time (until the permits can be transferred over). The real question is: Is it possible to build on the property if they were to "carry the note" or if we entered into a lease purchase agreement? Or must the land first be sold? Again, there would be no lending necessary for the build. I know this is a crazy situation but if we can work through it, it is a win for all parties involved. Thanks if you made it this far!

WARNING, long post! But i think I pose a very interesting question/topic for disaster stricken properties if you make it to the end. Hello, My wife and I have been presented with the opportunity to purchase a piece of property we have been interested in for a long time but it has never been on the market, because of the wild fires here in northern CA the house was burnt down and the owners have approached us because they do not want to rebuild... I will try to keep this as brief and to the point as possible. The property is right next to her parents home and right down the street from my parents home. We grew up in a rural area of Sonoma County and have always wanted to move back. About a year ago her parents approached us with the idea of purchasing their home that they built about 30 years go. They know they are getting older and will not be able to take care of the large house and 3 acres of property with horse barn and shop etc. Their plan is to build another, smaller home to retire in on flatter land. We are on board. The property and home next door to them (3 acres) burnt down in the recent wild fires. The owners approached us and would like us to purchase it from them. This works perfect because my wife's parents would be able to build their retirement home on it and have the funds to do so. This enables them to stay where they want to with the added benefit of having us close to them as they get older to help maintain the property and essentially allowing my wife and I to have a larger area for the horses. Since the property burnt down the current owners can obtain permits to build again very quickly and very cheaply but if the property were to sell the new owners would have to submit for permits as if there was never a house there, thus saving potentially over 100k or more in permit fees. The current owners are willing to carry the property for X number of years/amount of time (until the permits can be transferred over). The real question is: Is it possible to build on the property if they were to "carry the note" or if we entered into a lease purchase agreement? Or must the land first be sold? Again, there would be no lending necessary for the build. I know this is a crazy situation but if we can work through it, it is a win for all parties involved. Thanks if you made it this far!