All Forum Posts by: JohnPaul Pacheco

For a long time I've seen large lenders advertise 70-85% LTV loans. I assumed this meant LOAN TO VALUE, but after getting in touch with some of them, this is deceiving. The ones I have talked to so far are all Loan To Cost period. I've built my portfolio with local lenders doing a true LTV loan with a 15 year note and its worked well. I am working on a larger deal where a 15 year doesn't cashflow that great, but a 30 year would do it. It is 23 actively rented SFRs with a value of $1.5M and a purchase price of $1.07M. The numbers work best for me by only putting up to 10% down on cost for this deal. Does anyone know of any lenders that will work with available equity when making a purchase?

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $37,500

3 bed, 2 bath, large laundry room and pantry, mostly remodeled.

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

Cash Flow

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

bank owned property, found online

How did you finance this deal?

Commercial loan through local bank

How did you add value to the deal?

small repairs and purchase price

What was the outcome?

Replacing gas line was most expensive repair. repairs done and rented out in less than a month

Lessons learned? Challenges?

This one was easy, I was spoiled lucky with this deal.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Not on this deal

They have updated them and improved these forms even further, everything seems to be well written and professionally done. They still only come in PDF, I would prefer a Word doc, but they are now fillable and easy to use! I am very pleased with the last update, I would say there is great value in the purchase. I have used the documents on every property since beginning my rental property adventure. It now appears you can get these with a Pro Membership, go Pro!

They did update these documents somewhat from what i mentioned above to be a little more detailed. A lot better quality than the previous version!

Is there a standard agreement to transfer the purchase of notes receivable to my name? I've yet to turn up anything for a situation like this.  

I came across several Owner Financed properties that I am attempting to purchase. Simply put, the seller holds the mortgage on these properties. I intend to purchase the principle and interest amount owed to the seller. I hope that makes sense. I'm in Texas and would appreciate any information on how to successfully make this transaction. 

I purchased these documents, the lease agreement seems thorough. I went and checked out the Law Depot lease you mentioned and it seems to be just as complete and I liked being able to enter the information that could be saved for later for a fee. A couple disappointing issues with the BiggerPockets forms are that they are only sent to you in PDF format and the fields aren't editable within the document. There is not a guide or directions on how to use the documents although they are mostly self explanatory. At the bottom of every page on my Lease Agreement it says "[Type here]" and of course is not editable as mentioned above, whats this for? At the end of the lease it states that the landlord will provide a "LEAD-BASED PAINT DISCLOSURE" it could have been simple to include this with the purchase, but now I'm going to have to hunt one down. As a newbie too, and about to sign my first lease, I feel that exploring other options may be better before spending a hundo on these documents. 

Hey everyone, this is my first Bigger Pockets post and I’m excited to be here! I found Bigger Pockets through The Book on Rental Property Investing some time back and have been an active content consumer of Bigger Pockets ever since.

I am reaching out for advice on a unique situation I have ended up in. I am attempting to buy a house that is held by the lender Freddie Mac. Zestimate is $230k. It has now been on the market by them for roughly six months now. It initially started at $190k and was pulled of the market at $140k. It was then put on an online auction in which I placed a high bid of $85k, it ended Wednesday, I did not reach the reserve price, but they did counter to me for $112k. I didn’t accept the counter and it is now back in the realtor’s hands. The auction attracted only one other potential buyer that offered $70k. This property currently does not have water as it sits. It is on five secluded acres of steep and rocky terrain. My question to you is at what price does this make investment sense to you? How low do you think Freddie Mac may be willing to go?

I am an active rancher, nearly a year ago, I was able to finance and purchase 400 deeded acres adjacent to government owned land that I lease. I had to travel through this property to get to the land lease which in turn left me feeling obligated to purchase it, the deal made sense and has worked out so far. This property first went up for sale back in March of 2015 for $500k and included a house along with the 400 acres, out of my price range. Almost exactly one year ago, I received a Zillow update for the area that the house and land were now being sold separately. I moved in quick and grabbed the land for my ranch for $130k. The house had been occupied by an older single lady which I learned had passed away. Apparently, she had the house financed separate from the land, I purchased the land from whoever she willed it to and they let the house go to foreclosure. Per the tax record, Freddie Mac is the lender that currently owns and is trying to sell the property.

This house sits in the middle of the land that I purchased, it is down my private road, more than half a mile from a county maintained road, roughly 1.5 miles to a paved highway. I previously toured the house with a realtor, it has been uninhabited for probably 2-3 years now, has a nasty pet related odor inside. Maintenance on the outside is beginning to deteriorate, but overall the property is in sound condition. The property is located about 30 minutes out the door and through the gate to a popular tourist mountain town. 2200 square feet, built in the late 90’s.

I’m not sure why it happened, but when I purchased the land, I purchased the ownership and rights to the well that supplies the house. One of the previous owners had drilled a well at the house, but it turned up dry. The next owner must spend a minimum of $20k to drill and install a new well and that’s if they can find water on the first try. It is very possible they won’t be able to find water at all.

I would love to get ahold of this property, but only if I can cash flow it. I feel that the secluded location of the property will significantly decrease the amount I will be able to get in rent for it. Im not positive about rent prices, but I estimate it would only rent for between $800-1000 per month, Zillow estimates $1,400. Being somewhat close to a tourist destination I have also considered doing an Airbnb option and after considering it I think it could rent for $150-200 per night if people would be interested in it.

This seems like a tough situation to me and I don’t want to end up upside down. What do you think about this? I intend to finance the property and have a bank approval letter which I can do for 15% down. Any thoughts are appreciated, Thank You!