All Forum Posts by: Luis Alvarado

I have a few investor friends here (I’m based out of NW Arkansas ) and it’s one of the few places they AIRBNB due to the growth it’s had the plans to continue growing.

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Jonesboro, Arkansas

Quote from @John Thibodeaux:

Hi Luis, yes, that's what I'm going for. I have the time to do the boots on the ground work of finding properties, going through the buying process, fixing them up either DIY or hiring contractors for the more extensive work, and then taking the properties through the selling process with an agent. I just dont have 100% of the capital needed. I might only have 10% of the capital that's needed.

That’s great to hear! Let’s connect and maybe jump on a call soon. I know a few local investors that might find this helpful right now in their business.

1 Vote

Fayetteville, Arkansas

Quote from @Jeremy Lee:

In addition to my Colorado friends talking about the area as a destination it is also getting some press in places like the NY Times. I tried to insert the link but the app isn't cooperating at the moment. It was an article last week titled How an Arkansas City Became the Epicenter of the Biking World.

You're absolutely correct. I own in Bella Vista and have been in northwest Arkansas for a long time and have seen tremendous growth. I don't know STR much but personally know many who have great success with it. Jeremy (anyone else) we should connect and see how we can be a resource to each other!

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Fayetteville, Arkansas

Quote from @Jaycee Greene:

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Is there anyone in the NWA (Northwest Arkansas) region that would be willing to mentor or partner up? I'm a Navy reservist, a part-time ICU nurse, and over the past few months, I've set up an LLC, bought a condo in Fayetteville, renovated it mostly by myself and already have a tenant. I'm eager to do more projects like flipping, tax liens, foreclosures, auctions and buy-and-hold deals, but most of my capital is tied up in the rental property now so I don't know how to move forward. I'm willing to learn, research properties, attend auctions, do non-permit renovation work myself, etc. I just need someone to advise me on how to take that next step when all of my capital is tied up in my first property.

I bought the rental property at $168K and the assessment came back at $192K before closing. I paid about $34K as my down payment and then dumped about $10K into new flooring, fixtures, paint and vanities so the property should now reappraise at about $210K.

Any advice for an eager, driven, goal-oriented newcomer? Anyone need an investment/renovation partner in the Bentonville, Rogers, Springdale, Lowell, Fayetteville area?

@John Thibodeaux Is your current loan around $134k?

It's about $137K.

@John Thibodeaux If money were no object, what's your ideal next property/project?

I'm looking for a flip under $100K. I'm not afraid to take on a distressed house that needs a lot of work with a turnaround of 2 months.

I'm also interested in a multifamily to keep as a rental.

@John Thibodeaux So, something like this: 12981 Recreation Dr, Lowell, AR 72745?

Yeah, that's definitely something I'd consider. I'd prefer something a little bigger like between 1,400 and 1800 sq ft

@John Thibodeaux At that SF, I suspect you're going to have a hard time finding something under $100k...unless it's had a fire! But for what it's worth, the HMLs I work with would generally lend up to 85% of the purchase price PLUS up to 100% of the rehab costs, so long as the loan does not exceed 75% of the ARV.

Yeah, I'm looking for a property that's in rough shape, but I'm willing to take on a major project if the price is right to begin with. Thanks for letting me know what kind of financing you encounter. That's good to know!

@John Thibodeaux Oh, great! I don't normally find folks on BP looking for heavy rehab projects. Other than making a profit, are you interested in doing these kinds of rehab projects as a way to improve/rebuild those communities through your real estate development skills?

I enjoy working with my hands so the rehab work doesn't scare me away from an eyesore.

Absolutely! This area is growing super fast not only because it's a great place to live but also due in large part to the Walmart Home Office construction nearing completion in Bentonville and the subsequent requirement for employees to move to the area to work in the office. However, there is a critical housing shortage already. I don't see many affordable, nice multifamily units. It has also come to light that the sewer infrastructure can't handle any new large residential developments so some development permits just aren't being granted until the infrastructure catches up (years from now) thus stifling the housing market even more. A few years from now, I'd like to get to the point where I can buy lots to build 2-3 multifamily units and hold for rental cash flow. For now, I figure that I need to fix and flip to build the capital for those projects. Are you a lender?

@John Thibodeaux That's tremendous insight on the market. I'm a former lender that now works with mostly with community development driven real estate developers helping them find financing for their rehab projects (along with DSCR loans once stabilized).

Hey John when you say partner up, what is it you’re looking for in a partner? It sounds like you’re just eager to get the ball rolling on the next project but considering your funds are tied up in your current property you may be looking for capital partners to fund everything with your role being more of a hands on operator correct?

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Fayetteville, Arkansas

Looking for some advice on things to consider when structuring an REI partnership.

Outside of the obvious equity split and discussion of what eaches contribution will be.

Secondly, how do most resolve different types of disagreements when it comes to making business decisions?

Thanks in advance!

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My house is worth ~$310k according to recent comps. I have a $52k HELOC on my house and $154k balance on my mortgage, therefore only at 66% LTV when you combine HELOC and balance on my mortgage. My property has gone up in value $40 since Oct-Nov, which I did not expect.

I just refinanced in april of 2021 and got my HELOC in November of 2021. Wondering what others think about all the locked untapped equity in my home and whether you'd refinance your HELOC (if thats possible). Assuming my house appraises at even $300k if i get to 80% LTV that'd get me an extra $34k in funds I can use for downpayments or repairs as needed.

Curious as to what others would do in my shoes.

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Thanks all for your insightful responses! It's great to get feedback on what others would do in my shoes.

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Springdale, Arkansas

My wife and I are looking to get our first investment property. We currently own a single family home in Bella Vista, AR which is our primary residence. We refinanced last year (Apr 2021) out of a USDA RD loan from 2017 at 4.25% to a conventional loan at 2.75%. We also have access to a HELOC of $52k on our primary residence.

We are open to moving into another fixer upper and turning our current home into a short term rental, long term rental, or selling if that's what makes most sense. Our current home could probably use $8-12k in work should we look to turn it into a long term rental or i'm thinking $12-16k to turn it into a short term rental or sell it. We've also considered staying in our current home, holding back on doing the improvements on it since we're living in it and could go without the improvements and just put that money into just buying an 2-3 bedroom SFR investment property.

The HELOC is there in case we need it for repairs or downpayment on a property. Looking for suggestions from more experienced individuals as this will my our first REI move. Thanks in advance!

Current Loan -Primary Residence

ARV: $325,000

Current Principal Balance: $154,130.19

Mortgage Payment (Monthly): $648

POA (Monthly): $37

Annual Taxes & Insurance (Annually): ~$3,000

Loan Type: Conventional

Remaining Term (Years): 28.5

Interest Rate: 2.75%

3 Votes

Springdale, Arkansas

I'm new (have not done my first deal) and eager to learn! Is the only local REIA Meetup location in Fayetteville? I have not seen others nor have i been to the one based out of Fayetteville, although i'd like to if its still active.

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Hello I am currently residing in Northwest Arkansas. Not necessarily limiting myself only invest in NWA. I have been in the education phase for the past 3 months research research research on almost all things Real Estate. I have always been intrigued by REI but never had the courage to jump into it. I am now ready to jump in only I'm thinking of maybe doing some volunteer work for local investors or even remotely to help expose me to the real deal. Is this possible? If so, how do I go about finding that opportunity?

I wonder to myself sometimes, "why don't I just try to take action and start looking for leads, making offers, finding ways to get the capital (don't exactly have any capital to put up right now)?" I guess I'm afraid to start something then end up at a roadblock due to something I didn't expect. Afraid that with the pressure of being in the moment I will do something I shouldn't have and set myself on a path that might be difficult to bounce back from.

Lots of books, articles, videos recommend finding a mentor, which I'm all for and eager to do as I know how helpful they can be. Hoping just with networking online, fb, IG, REIA Meetups (yet to make it to the one i have heard of nearby), etc, that i'll eventually connect with people that'll be great help as i'd like to return the favor to others in the future.

I guess you can say what I am experiencing is "analysis paralysis", but how do I go about getting past it ? (Posting in this forum was even hard for me to do) has anyone experienced this and how did you overcome it?!

Thanks in Advance! Excited to learn.

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All Forum Posts by: Luis Alvarado

Luis Alvarado has started 4 posts and replied 10 times.

Post: Best STR Markets in AR

Post: Real estate investor

Post: STR market insights for Bella Vista, AR

Post: Real estate investor

Post: Partnership Structure Questions

Post: Redo HELOC as property value increased

Post: First investment property

Post: First investment property

Post: Anybody here from NW Arkansas?

Post: New at REI, looking to learn with experience (NWA)