All Forum Posts by: Luciano A.

@John Anderson

As some pointed out the process of getting permits can take some time. As a builder/developer I have found if you have permits in hand you will get better pricing from contractors than when you are looking for bids and are 6 months from getting permits. With news outlets saying the market is crashing it will cause many projects, and rehabs to be postponed. Contractors will be looking for small projects like the one you are proposing to build to get them by. If you have the money in a few months to 6 months those with money will be finding great deals out there. 

Best of luck 

@Jorge Herrera

Congrats on the success you have had and dealing with all the stresses that come with working in a hospital environment. Given the current market take your time and watch, listen to podcasts, youtube, educate yourself, and watch targeted markets you like to learn price points in those markets. Given you want to flip this is not the right time. With interests having no clear direction on where it will land it makes house buying tough. Don't want to buy now and by the time you are done with rehab you are underwater. California especially given it is an appreciation market and the market can swing in either direction. Save money, and network both with investors and contractors. Learn what is selling for how much in your targeted areas so that when you feel the time is right you will spot a great deal and can jump on it. 

Best of luck 

@Andrew Ibarra

Some lenders will want to see the property seasoned. If you are just finishing up to place as STR it might be hard to get anyone to lend. Having paid for investment property will generate more cash flow and reduce the risk, especially in this market. Hold the property for a few more months and get some income coming from STR and then approach local credit unions or banks and see what options they will give you. One thing to be careful of is to read all loan docs and term sheets. Some have prepayment escalation clauses thus if you refi once rates come down you will be paying a penalty if they have prepayment for 3-5 yrs.

Congrats on buying in all cash and getting your property rehabbed. You are in a good position so don't rush and find a vehicle that will make sense in your situation. 

Best

@Michael Figueroa

Congrats on saving $500k. Beginning of the year people said cash is trash but I think cash is king and won't be long before those who have cash will be buying great deals as banks tighten their lending. I would be in no rush to place the money into anything you haven't educated yourself on. Real Estate even as a private lender is not passive. Market correct just begun. Figure out areas you like and watch how they are affected by this market. As you learn the area you will realize what is an average deal versus a great deal. Or team up with more experienced people and you all can make money. By experience, I don't mean the guy flashing a shiny sports car on IG that has been doing real estate for the last 5 years and wants to teach you how to be successful. The real investors who understand market cycles will be standing in this market as cheap money is removed from the system. 

Best of luck 

@Nicholas Davaul

Haven't been on this site in a while but if you guys are going to do another meetup in Katy please let me know as I am interested. 

Cheers

Luciano 

@Kenny Breeze

As long as you are in first position on the lien that is your protection. You can ask buyer to get Builder Risk policy before they start any build that will give protection both for liability and issues with payment to sub contractors thus helps to keep other liens for being placed. 

Just make sure you use title company to sale the property so they can record the first position lien. 

Best of luck

@Demetrius Harrell

It sounds like with your handy skills and connection you will be good at self-managing this property. You can hire a realtor to list the property and help find a quality tenant thus eliminating the fear. I saw some say to use Zillow with their application BUT I highly don't recommend it. So much fraud with people using other people's identities to get properties. I would hire a Realtor that will help explain the process and show you what they do. Look at Mysmartmove.com to help learn about running background/credit checks. 

If an agent isn't willing to help then find a local investor/landlord that is doing it right and pay him a couple of bucks to walk you through how they run each application.

Just like anything else, when you first do it you are scared. But after you do one you will be less scared. 

Get property listed on Zillow or with an agent time is ticking and you are losing $400 per month lol.

Best of luck

 Hello Karmen,

I was once upon a time a Californian lol. I live in Houston and have been investing here since 2006. I would say you should come out and spend a weekend so that you can see the different areas and meet with different realtors. Whatever you do stay away from flood zones as the insurance for that property can eat up a lot of your cashflow. Also stay away from condos, and watch out about HOA dues. One thing many out of state investors dont realize how the property tax can raise based on what you paid for it thus when crunching numbers update what the new property tax will become based on the purchase price. Right now not many great deals unless you are do short term rental but be patient and dont feel like you will not find a deal. Use HAR.com to help look at local listings.

Best of luck

Luciano

@Rob Meyer

You should check the survey and look if there are any setbacks or easements. Contact the Permit dept and ask to speak with the planner of the day and see if there are any lot size minimums, any setbacks, etc. You can get this info from an architect before you decided to build. There are many steps to do and money to spend before a bank will get involved. Your soft cost will be out of pocket so best to research that before you start tearing it down. Here in Houston takes about 3-6 months to replat a lot. It is best to get a local builder you like and trust on board to help with design as architects are known to over design as do some engineers. Or you can drive around looking at new builds you like and use that as inspiration to give to your architect. After you have designed you will need to price the cost so that the bank can review it with the appraiser. Most likely the bank will require a builder or GC in order to give you the loan. 

Many things go in before you approach a bank. Best of luck

@Jacob Souers

There is an electronic trap that does a great job. All you have to do is put some peanut butter in the middle and turn it on. Safe for any small pets that might get their hand in there but deadly for rats. A vacant home that we bought years ago had lots of rats. Three traps caught 20 plus in just a few days. DM me and I can share the link or name of the brand that is sold on Amazon. All tenant has to do is if they see the light blinking they just have to shake it outside into their trash can and the rat will fall into the trash with no blood or nasty liquids. Then just repeat the process a few times to ensure they are all caught. Can reuse for future.

Best of luck

Luciano