All Forum Posts by: Jorge Ayala

@Gaurav Bhasin  what is your best email to send you more details on the property?   

Thank you, . 

Approved Short sale property fourplex two floors .  each unit is a 2/2 with 1050 sqft liv. space. 

Top two units are currently rented bottom two need renovations to rent. 

Property has violations that can be settle after the two bottom units are renovated for an estimate of 10k -15k 

Rehab estimate is 50k  that includes adding new washer and dryers to all four units to ad value to the apartments.   

property sits on a dead end street with lots of privacy and rents in that area fora 2/2 can go up to 1700.00 ,  two bottom units have space for a small backyard.  

ARV after the property is stabilize is believe to be in the high 600's low 700's

Investment Info:

Single-family residence fix & flip investment in Oakland Park.

Purchase price: $370,000
Cash invested: $120,000

Pick up a property for fix and flip but ended refinancing the property and keep it as a rental. The goal is to let the market adjust and hopefully go up and sell down the line.

Rehab cost was estimated at 100,000 but went over budget by 20k

https://www.dropbox.com/sh/26ltbtgstvqaeqa/AABX2CO52d1IxB4zMcnu16o3a?dl=0

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

The ability to increase my capital for rental properties. Fix and flip was not part of my investment strategy but decided to go ahead and attempt to flip.

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

I found the deal through a wholesaler that had it off market. I definitely should had negotiated more.

How did you finance this deal?

Hard money lender 20% down from two other partners

How did you add value to the deal?

We renovated the entire property, including pool area and a pool house in the back. did the entire yard new and added a modern touch to the property.

What was the outcome?

We decided refinance to get replace the expensive hard money loan and rent the property for a couple of year. We expect the value in that area will increase and might present a better opportunity to sell. we did not see the benefit of potentially losing money now when we could just rent it.

Lessons learned? Challenges?

Where do i Start?

1. Contractor are not always easy to deal with and we should had been really specific with what we wanted. I mean really specific not spare any details.
2. Plan better the end look.
3. More conservative with the numbers and rehab cost.
4. Better partnership structure
5. Pool cost more than expected and the yard cost way more than expected
6. be more aware of scams.

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

any of the people i work with at this time I wouldn't feel comfortable recommending.

Hello Issac, 

I'm been searching and talking to lenders too.   So far I been hearing the same answers as you have.  I'm also researching lines of credit and private money.  I do have a call with a mortgage broker and i will report back what I'm able to find.  

I will keep you posted if I hear anything new. 

Hello Members, 

I been looking at a 16 unit that are 4 four PLex together in the same lot.   The owner is willing to carry some of the loan. How can i structure and what lenders would accept a note fro the seller?   The property is 1.3 Million. 

I would like to be able to use the seller finance with a commercial loan to put the deal together.  I wonder if anyone here has ever done this or something similar. 

Thanks, 

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