All Forum Posts by: Luis Alvarado
Luis Alvarado has started 4 posts and replied 14 times.
Post: New Bp Member Looking To Expand Network
- Investor
- Bella Vista, AR
- Posts 14
- Votes 4
I like "Walmart" county haha. I'm local and work with other local investors! Come out to a local meetup in Springdale Friday!
Join us for a pop-up meetup this Friday evening in Springdale, AR! Open to the public so everyone is welcome! https://www.eventbrite.com/e/nwa-creative-real-estate-pop-up...
Post: New, Eager to learn and Nervous for "The First"
- Investor
- Bella Vista, AR
- Posts 14
- Votes 4
Quote from @Zach McKinney:
Hello everyone, I'm Zach 36 and my wife Erica 37 coming to ya from Arkansas. New to Real Estate world, let's just say I'm more interested in it than her, but we make a awesome team, I'm great at the physical stuff, she's great at the admin stuff.
That being said, credentials? I have nothing on paper I chose the military not college. Her, she has a BBA with 16+ experience.
What our goal are here at BiggerPockets is Networking and Guidance. We hope to build and protect constant long term cashflow that maybe one day can pass down to our children.
What we can bring to the table, hard work, dedication, and eagerness to succeed.
Although I do not have a degree, I do have a strong background in construction, plumbing, electrical work. Both my father and grandfather had their own construction businesses I grew up doing work with them everything from residential rehabs, commercial work, machine operating, clearing land, landscaping etc.
My wife grew up working at her family's stone quarry, from masonry work to use of demolitions. She currently does all admin work for the company. Which we completely are going to take advantage of in terms of Rehab materials.
With all that said, we welcome everyone's advice and criticisms.
And look forward to meeting and working with all of you.
-Zach
heck yeah Zach!You have more to bring to the table than you give yourself credit for! Have you considered the how you're going to create that cashflow? is it through building a rental portfolio? a wholesaling business? flipping business?
What markets are you hoping to focus on?
congrats on taking the step regardless!
Post: Am I Thinking About This House Hack the Right Way?
- Investor
- Bella Vista, AR
- Posts 14
- Votes 4
Quote from @Alexander John Schmitt:
Quote from @Aaron Zimmerman:
For the house hack, you want to make sure it cash flows after move out. If it doesnt, it's not a good deal.
other than that, you're on the right track! I'd even encourage you to go to 3 or 4 units if you can and you'll have more rents coming in that way
How will I know if it will cash flow after I move out? Should I use an estimate of future rents or current rents right now? If it would not even cash flow right now without me living it could it be a dumb purchase?
Thanks!
Hey Alexander! Congrats on making this decision and taking action. To your question:
"If it would not even cash flow right now without me living it could it be a dumb purchase? "
Not necessarily, that depends on what your goals are. While making positive cashflow is very much possible in NWA...we're in an appreciation heavy market right now. I too am in Northwest Arkansas.
Like others here are pointing out, underwriting for positive cashflow as if you weren't living in it is a good practice but isn't a requirement.
Many of the investors I know locally are buying knowing that their rentals will make little to no, and in some cases negative cashflow, will appreciate so much in 3-5 years that the negative cashflow is not a concern for them.
If you MUST cashflow because that's what your risk tolerance is and what you can afford, financially and emotionally, then buying a non cash flowing asset is not going to help you accomplish your goal.
All that to say, "is it a dumb purchase" depends on what the goals are of the person buying.
How are you going about finding properties to analyze and purse? are you doing off market outreach, searching on market (Zillow) or working with an agent?
Post: A new up and coming investor from Northwest Arkansas
- Investor
- Bella Vista, AR
- Posts 14
- Votes 4
Quote from @Rickie Hill:
I'm here in beautiful Arkansas. Northwest corner to be exact. I'm fairly new to the industry but I'm eager to learn and network. I'm currently partnered and able to close most deals in as little as 30 days. I'm also a hard money lender offering 90% of purchase price and 100% of rehab 65% of LTV. I'm excited to be here and look forward to working and learning with everyone!!
Hey Rickie! I'm also in NWA! Welcome to real estate! I help investors and wholesalers scale by funding their acquisitions. My focus is escrow protected deals funding. I'm always meeting new investors and recently started seeking NWA contacts to make a positive impact to the local market so it's good to find another HML here.
Am I understanding you have access to HML funds as well as looking to buy in NWA?
Post: Best STR Markets in AR
- Investor
- Bella Vista, AR
- Posts 14
- Votes 4
Quote from @Jae Jun:
AR is severely underrated.
NW Arkansas does excellent.
Close to Branson on the AR side is amazing.
Hot Springs has some killer areas, especially around Lake Hamilton. Lots of big groups visit during spring break and other events.
Ozarks is beautiful with good traffic.
Like all things STR, if you stand out, you'll outperform. Otherwise it will suck like any other property.
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.
Post: Real estate investor
- Investor
- Bella Vista, AR
- Posts 14
- Votes 4
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.
Post: STR market insights for Bella Vista, AR
- Investor
- Bella Vista, AR
- Posts 14
- Votes 4
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!
Post: Real estate investor
- Investor
- Bella Vista, AR
- Posts 14
- Votes 4
Quote from @Jaycee Greene:
Quote from @John Thibodeaux:
Quote from @Jaycee Greene:
Quote from @John Thibodeaux:
Quote from @Jaycee Greene:
Quote from @John Thibodeaux:
Quote from @Jaycee Greene:
Quote from @John Thibodeaux:
Quote from @Jaycee Greene:
Quote from @John Thibodeaux:
Quote from @Jaycee Greene:
Quote from @John Thibodeaux:
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?
Post: Partnership Structure Questions
- Investor
- Bella Vista, AR
- Posts 14
- Votes 4
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!
Post: Redo HELOC as property value increased
- Investor
- Bella Vista, AR
- Posts 14
- Votes 4
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.