All Forum Posts by: Luke Aubut

The Magic of Thinking Big - David J Schwartz

I don't remember all of it, but I think it was an easy read when I read it 10+ years ago.

Positive, encouraging and motivating, with great tips for becoming successful. 

Hey @Brian Pawl, I sent you an email about these. Thanks!

Hey @Julio Navarro, welcome to biggerpockets!

I'm positive you are not the only Puerto Rican on BP. And you have found a great community here, because dozens,  hundreds or even thousands of members here are interested in investing in PR. You will find mixed feelings from the members here about where, when, and what properties to invest in, in PR. And it seems that in general, we are all confused as to HOW real estate transactions take place in PR (attorney only?) and how LONG does a transaction take. So YOU will probably be able to educate many of us, in at least some way, so please jump into our discussions!

Personally I think there is HUUUUGE opportunity for someone, or a team, who can be a liaison on the island for investors from the states. Whether that be as a real estate agent, a contractor, a property manager, a deal finder, or in some other capacity.  Plenty of Americans want to invest there, and I would guess most of them are at least familiar with the Puerto Rican lifestyle and work pace, and what we really want is someone we can trust to help make smart investment decisions and get things done in a fairly expedient timeframe.  I believe whoever can succeed at becoming the eyes and ears on the island by supplying good information and service, will in turn be rewarded with a very wealthy lifestyle.

Best of luck to you in whatever path you choose, staying on the island or moving to the states! Keep learning and listening to those podcasts.  Also, jump into the forums and discussions here on BP.  I have keyword alerts set up so I am notified anytime someone mentions the words Puerto Rico, that may be of benefit to you too.

Luke

Hey John, welcome! I just had to read your post to my wife and we both laughed because you must be my brother from another mother. We're currently working on some minor TLC on our personal residence and are going to look into using a HELOC to fund our first flip. My wife works a job she loves and I'm a stay at home dad; 3 kids with #4 due any day now. We're also a single income family and are going to get into RE out of necessity - the most pressing situation being that I haven't driven a stick shift car in about 6 years since I sold my 944 Turbo before we got married. WORST decision EVER!! If I had started RE long ago, we would be so much farther ahead!

Best of luck to you! Don't give up. Your situation can motivate so many people here on BP. I look forward to seeing your progress.

Luke

Hey Tanner, welcome!

My very brief and simple opinion to find an investor:  

1) Find a deal. 

2) Be prepared to show an investor how and where they will make $$.  (The numbers gotta make sense.)

3) Post the basics of your deal on BP under Reviews and Feedback > Real Estate Deal Analysis and Advice.  Members of BP will NOT steal your deal - most likely encourage you how to proceed (or not) and there will be some who can help you in different ways including investing. Now YOU'RE "holding the gold" as they say.  Probably the best advertising IMO.

I also think with your experience in remodel construction, other members will be happy to partner with you on a deal.

Again, my two cents - worth what you paid for.   Good luck to you!

Hey Kole, welcome to BP and don't get discouraged!

How long would you say you've been looking for a property? 

I agree with you that it seems hard to find a good deal in or around Madison. One idea that comes to mind is to find a property where you can add appreciation by making improvements to the units or property. For example a fourplex; one tenant moves out at end of his/her lease, now you can go in there, revamp the place and raise the rent for the next tenant (obviously depending on market demands and similar rents in the area.) Maybe another tenant vacates, do the same thing. The unit you would personally live in, how can you improve it so when you want to move out it can demand a good monthly rent?  So of course your cash flow could increase if you find this type of property. Plus by adding appreciation to the property you could then consider refinancing to lower your payments, in turn more cash flow - or even sell it. My apologies if you have already investigated of this idea. This is what many, many people here on BP have done, especially to get started.

In your situation, it sounds like you need to find a property where you can force appreciation into it. And I say this because you stated you want to invest in another within a year and "build wealth for us now and for our future." So if you put your 16K, 10K or whatever it is into an already updated, up to date, turnkey rental property, which could also be cash flow positive (or neg I guess), your money will be tied up until it appreciates on its own, or general market rents appreciate over time. If you want equity or return of your investment in order to reinvest in a year, it sounds like this is your option, at least for the Madison market. I'm not an expert however, take what I say with a grain of salt.

I agree with that too, @Matthew Olszak, people may take GC too literal. He is a great promoter! From what I've heard recently, he's been hinting at starting one of his own REITs. So he's been slowly planting the seed with his listeners mindset (maybe for years in the making, he's very smart), and he wants big investors. 

I like what he says, and you can learn from his investing perspective. Personally I like to hear where he likes to invest and why, and even what he looks for in a property aesthetically.

I think BP is definitely a better roadmap for real estate success because there's thousands of contributing minds where someone can find an answer for their own current situation.

The Bottom Line is, There are Several paths to real estate success! No problem in listening to different perspectives. Choose what is realistically going to get you to your goals. Avoid stumbling blocks, such as concepts difficult for you to see doing yourself.

Thank you @Chela O'Connor for letting us check out your flip. I wouldn't miss this opportunity. I'm totally looking forward to learning a ton!

@Doran Summers, excellent thank you!!!

@Scott Schultz (the radio guy), yes appreciate what you took the time to write. Completely agree pre-quals are basically worthless (promises), I understand that and I wrote it incorrectly. Agents want pre-approvals.

I am absolutely going to shop smaller cu's, although I would love some advice as how to approach. I hate to make assumptions and draw conclusions, but in my situation I'm not going to get financing based on income, credit score and reserves. Not to be pessimistic but realistic. But alas I can try. I will set up basically a business plan to show the deal, exit strategy and be prepared to pitch my relevant experiences (sell myself), anything else? Would love a suggestion from anyone about a great lender who can look at all possibilities and make it happen. I've considered cash out refi or HELOC, plus my cash on hand, but to my un-trained eye, it doesnt look like that will get it done. Obviously bank or lender will have lower rates, but my backup plan is HML.

Buy + Rehab = 100k-120k

ARV = 165K-180K

A genuine Thank You for your responses!

Can anyone recommend a hard money lender for a first time flipper/investor in Madison?

I found what appears to be a fantastic fix n flip opportunity that, at least at first sight, outperforms the 70% rule. I’m going to check it out tomorrow with my agent and also trying to get our GC in there with us for an estimate of rehab. My agent indicated that a pre-qual needs to be submitted with an offer.

Fairly certain that hard money is my best (if not only) play for this deal, taking into considering my income, cash on hand, and the opportunity to close fast. In addition to needing a pre-qual, I want to familiarize myself with a hard money lenders' requirements and processes, so I can jump when I need to, now or in the future.

Does anyone have any recommendations?

How should I approach a hard money lender? My first instinct would be to take them the deal and explain the calculations, yes or no?

Not “testing the waters”, I am actively looking for a hard money lender to get started. I’m a newbie and I genuinely want to explore and understand hard money options, so I can set up my financing and get going.

Please ask any questions, if that will help with my situation. Thank you in advance!