All Forum Posts by: Luis Barahona

Well, the main pro is that a SFR total will likely be less expensive than three units. However, the triplex pretty unit cost will be lower.

e.g. $300,000 SFR or $750,000 MFR

You'll need more down payment for the triplex and it may be seen as an investment property by lenders.

What's your goal, cashflow or appreciation?

Hi,

I found an off-market duplex that is in a USDA eligible area. I'm wondering if it'd be possible to use a USDA loan to finance both the loan and the rehab costs. I plan to live in one of the units and rent out the second one.

Here are the details of the property:

Purchase Price: $250,000

Rehab estimate: $100,000

After-Repair Value: $450,000

Rental Income (from vacant unit): $2,600

Would 100% financing be possible through USDA? Can I roll my closing costs into the loan? Also, can I roll-in the lost rents from the 3 to 6 months that the unit will sit vacant?

Hello,

I've been sending mailers to homeowners in the area letting them know I'm interested in buying properties in the area. 

I've gotten responses from a few people. One owner who owns a duplex in San Francisco is interested in selling. We've met once to discuss my plans and I am touring the property soon.

I have comps for the property that I've gotten from a realtor friend. My question is how do I value the property? Is there a guide or someone that can walk me through this? Should I use the comparables approach or the income approach given it's going to be for rental income purposes?

Thanks,

Luis

Hi all,

I recently used direct mail to find a foreclosure that is willing to sell. I handed the lead off to an experienced broker who has found funding for the deal and is going to be making an offer on it soon.

I am wondering, what is a fair commission for me finding this deal assuming he puts it under contract and then assigns the contract?

Hello,

What do you think I should do to learn my market?

I have been reading The Ultimate Wholesale Bible and the first this the author suggests one does it to really learn about the market you're working in.

For me, this consists of 13 zip codes in eight surrounding cities. Here is what I have done so far:

1) Find the median sales price by zip code. I got this info from Trulia

2) Find the median time on market (last three months) - I got this information from realtor.com, albeit only at the county level.

3) Inventory - Searching the MLS with each zip code, I was able to find the number of listings in each area. I will be tracking this on a weekly/biweekly basis.

4) Foreclosures - I searched PropertyRadar by zip code for properties in foreclosure. 

5) Zoning Laws - I've downloaded zoning maps for each zip code and am going to review them. I am also planning on attending some zoning meetings as well.

What else would you suggest a newbie do to learn the market? What metrics should I be tracking on a daily/weekly/monthly basis?

What type of business entity do you have? I'd assume you can do business in any state. My concern would be getting double taxed.

Lorenzo, great post. I am new as well and it's helpful to see your progress.

How did you go about building your buyer/investor list? Also, what characterizes a title company that is investor friendly?

Percy, thanks for the quick reply. I'm curious - do the conditions for wholesaling to be successful rely heavily on the supply and demand of the market? It seems that there would be distressed sellers in any market.

I am currently working on a business plan for a real estate wholesailing business. Part of my research is to determine how big my market is. Are there any good indicators to determine what percentage of homeowners are distressed and could be potential clients?

I am going to get my real estate license after letting it expire. My goal is to wholesale.

I am new to this so I am not sure in what capacity having a license would help me, but I know it will. Do I need broker sponsorship if I am not planning to buy or sell retail?

If so, how does one go about finding a sponsor for that reason? I don't think anyone would want to sponsor me if my plan is to just be another name on their roster.

Thank you in advance,

Luis