All Forum Posts by: John Verduzco

Hi Trudy - congratulations on your Oaxaca purchase. My wife and I are in Naples, FL but have spent quite a bit of time in Oaxaca over the last few years.  From Jalatlaco neighborhood in Centro to Teotitlan del Valle to Puerto Escondido.  We love it!  I am very interested in your experience buying and rehabbing.  Please private message me if you are interested.  Thanks!

Hi Mark - I noticed that you had been searching for a GA attorney at one point to help with a foreclosure.  Did you ever land one?  Would you mind passing on any recommendations, if so?

Thanks in advance

Clearly a killer flip Steven - especially for #1 and especially from MLS purchase! Congrats. Couple questions that may help us all.

1) ROI - may want to step us through your math. I am not sure you gave yourself enough credit on that 21% if your cash outlay was $163K to purchase and your net profit was $65K after 6.5 mos. Should be much greater ROI if you financed the entire Reno with Private $.

2) Since a flip and since you and your partner both have day jobs, did you consider using IRA or other retirement funds to avoid heavy short term Capital Gains tax? Typically we flip with self directed IRA's. We buy and hold (cash flow) with non IRA's for tax efficiency.

3) Do you mind sharing basic Private Lender terms on this one? I assume this is most of what you are calling "Operating Expenses" here.

Thanks for sharing.

Nice job on planning and posting Sam. I can appreciate your approach having challenged ourselves to accomplish as much as possible while working remotely.  I think it forces focus on working on the business not in the business.  We did our first small portfolio of single family rentals close to home, but traveled a great deal during the process.

Can anyone recommend a Real Estate attorney licensed in Indiana, practicing in Northwest Indiana near Chicago?

I have used Quicken Loans, Flagstar, Stearns and Suntrust to finance (not cash out refinance) investment properties. We did our ten properties (including primary residence) which is the conventional loan max and we were happy with rates and terms on each one. Typically 80% LTV on the first four and 75% LTV on the next 6. Rates were between 4% and 5%. all are 30 year fixed. this was 2013 to 2015 so shouldn't have moved much since. credit scores will likely need to be 720 (middle score of 3 for both borrowers. good luck.

Hi Jason - these are number that I am very comfortable with having owned in SWFL for a few years. If your numbers are tight, then I think you can get great CoC returns IFFF you can finance some or all of the rehab. If not, then you can get ok CoC returns. But, lets don't forget to do a sanity check on where you are there in the market cycle as well. Are you on the bottom? Middle? back to 2007 prices? it is ok if you are near the top and have great 30 year fixed financing and want to hold for 15 years + (cuz cash flow is at 10-15% now with principal pay down happening), but if you want to forecast out a 5 year hold time, you may be at a bad spot in your market cycle. 1) CoC returns (are you happy) 2) if so, then where will you be at the end of your hold time? will you be happy then?

I think you are on the right track and your education will now come very quickly with real assets in your control. There are many right answers, and you do have options.  Just depends on what you are trying to accomplish.  Do your homework, talk to many, make your own decisions then execute.

Hi Mike.  Send me a PM.  I am in Naples.  Interestingly, my niece and her boyfriend just bought their first investment property in Aurora.  Where are you located?

Our experience in SWFL with many single family rentals and our primary residences is a $1000 to $2000 range for 1500 to 2000 sf (replacement cost of about $100/sf).  Here, the largest factor is the age of the roof due to Hurricane zones.   We have gone from $2000 premium to $1100 premium with a new roof.  I am told by my insurance agent that the building code (including secondary water proof layer and roof attachment type) has changed and a newer roof will get you the discounts.  BTW - don't forget about flood insurance quotes - know your flood zones before you purchase (those can go from $0 to $5000 per year!).  We spend most of our time on insurance and property management items in this part of FL.