All Forum Posts by: Lara Gonzalez

For those of you with rental properties, who do you use for your banking? I am considering Baselane or Stessa. Does anyone have experience with either banks? I don't really need property management software as I have a PM. I was banking with BoA but can't justify the fees anymore.

Congrats on your flip! Did you bring in your own team for the rehab?

Hi Natanya!

I am based out of Redlands area and I am very familiar with the SB area. I am also an investor myself and would love to connect!

Hi Edgar! I have some experience with renting out rooms. Let's connect!

Hello Matt!

Have you found a good lawyer? Otherwise, I have a referral I can give you. They are based out of Redlands, CA which is right next to San Bernardino. They specialize in Real Estate and Probate Law.

Have a great weekend!

Hi Edith! I am also in the San Bernardino area, based out of Redlands. The only REI meet up I have attended in the area was at the Mission Inn in Riverside. They had a good turn out but personally it is not my style.

I know several other investors in the area and I have been looking to create a small REI meet up. We should connect!

Investment Info:

Small multi-family (2-4 units) fix & flip investment.

Purchase price: $370,000
Cash invested: $74,000

In escrow on a duplex in the Muscoy area of San Bernardino. Our close date is 2/18/22. Partnered with the person who brought the deal to me. I am covering half of the costs and I will be managing the rehab.

The front unit will be 3BD/1BA. Back unit TBD. We are estimating the rehab will take one month. We are planning to list it for $530,000 after we are done. Pictures and more to come!

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

In 2019 I flipped another duplex in the same area so this appealed to me right away.

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

My insurance agent has clients who go to him when they have properties to sell. He had a client come to him with a property that is in a family trust that they wanted to sell. They had an appraisal done beforehand that came in at $370,000 in the current condition. We tried to negotiate for a slightly lower price but the family wouldn't budge so we agreed to a purchase price of $370k.

How did you finance this deal?

We are using a hard money lender who is financing 80% of the purchase price.

How did you add value to the deal?

We are completely gutting the property and remodeling it.

What was the outcome?

TBD

Lessons learned? Challenges?

Getting a loan for the rehab portion.

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

I am a real estate agent so I represented myself. I used Mark with Trimark Funding as my hard money lender. This is my second time personally using him but I have had many other investors use him as well.

@Bob Norton Thank you for responding! My taxes originally were filed as non-filer by accident. I actually owe taxes and will not receive a return. I have spoken to several lenders and they have all stated that I need to pay the taxes and show them a filed return.

@Shaun Weekes Thank you for responding! My taxes were amended to show that I make more. I am not waiting on a refund, I need to pay taxes for 2019.

I am a realtor and do file a Sch C. I made more in 2019 than 2020 which is why it imperative that I complete the refinance before 2020 tax returns are required for a refinance.

Hello BP family! I am hoping to get ideas on how I can refinance my property:

I bought my first property a little over two years ago using seller financing with a wrap around mortgage. It is a four bedroom home in which I house hack 2 of the rooms. The terms of the agreement were that I had to refinance the house in two years. The sellers have graciously extended the agreement to the end of March. Last year for 2019, I made more than enough to be able to refinance however this year my income has dropped due to COVID.

My first option would be to refinance with a traditional loan, however, due to a complicated tax situation, I had to amend my 2019 taxes and now I am at the mercy of the IRS to give me my return back. The IRS has said it can take up to 16 weeks or longer which would put me to mid-January. I would like to have a couple back up options on how I can refinance without a traditional loan in the case that I don't have my 2019 taxes back to meet the March deadline.

I currently owe $284,445.73 and the house is worth $380,000. I have thought about using a hard money lender but then I would be in the same position of needing to refinance again in 6-12 months. I am also weary of what the housing market may look like a year from now and whether I will have the same amount of equity as I do now.

I am located in Southern California, my next thought would be to go to small local banks to see if any of them will use my rental income from the two rooms in addition to my 2020 income. The only problem I can foresee is that they will also want my amended 2019 taxes which I am not certain for sure when I will get back. If anyone has recommendations for banks in So. Cal, I would appreciate that as well.

I am open to any and all ideas. Please keep in mind that the note holder (seller) WILL NOT go for another extension.

Thank you!

@Marc Winter

Thank you for the advice! I will definitely look into putting the property into an entity. This is a great idea.

@Todd Rasmussen

The second note is in arrears $65k. Originally, I had thought to do that but the payment on the first wouldn't give the property any cash flow.

@Wayne Brooks

I wanted to give the investor a higher return for holding the property for longer. I may rework the percentages so that the return for 15 months is slightly higher than 9 month return. Thank you so much for the input! It helps me to figure out what is a win win situation for all parties.