All Forum Posts by: Manny Alvarado

I was born in Costa Rica (CR) but I live in the us since 1995 and became a US citizen.

I have been using a HML for my flips and earlier this year, after a few successful deals, I asked my HML to lower his rate from 15% to 12% and he said he could not do that because 12% is what he was paying for the money so there was no room for him to profit. That stock inside my head for ever and made me think of a business using OPM.

I have two friends in Costa Rica with access to high net worth individuals who trust them and have high interest in investing their money in the US but they do not know how nor have time to do so and we want to help them solve their problem, invest their money and make a profit in between. (I Sound like Grant Cardone. LOL)

We want to start a business in the US with OPM from CR. My two friends have the connections in CR to the money and I live in the US. I will be the deal finder/maker and share the profits with my two partners. Sounds like a good Plan so far.

I need your advice because I have no idea where to start to structure my business. I have done flips and rental property in the US using HDL and bank financing but this is a new opportunity.

My thought is I could allocate OPM with A few existing Hard Money Lenders but I have no Idea what legal implications that has or if it's even possible.

My ideas:

1 - Allocate foreign OPM at an existing HML at 10-12% Pay our CR investors 6-8% and our profit would be 4%.

2 - Use Foreign OPM for down payment to acquire rental properties.

3 - Use Foreign OPM instead of HML for BRRR or Flips.

Number 1 is my favorite idea.

I would appreciate your advice.. Thanks to all in advance.

Any Advice?

Hello Everyone!!!!

We have been buying distress properties from wholesalers and renovating them to rent and also we have flipped some.  

A few of the properties we held as rentals ended up costing us more money because of plumbing, HVAC, Sewer issues a year after acquisition and renovation making these properties to cash flow negatively because of the large expense due to this repairs.

We try to buy, renovate and hold creating 10, 15 or 20% equity on the deals; but lately we have been thinking about switching our strategy.  We sold all of our rental properties last year and made some good money on the sale. (It is a Sellers market in Nashville and surroundings) . (I know!!. Capital gains; we got that handled.)

We are Licensed General Contractor in TN with well established credit and business relationships with 84 Lumber, Builders First Source, Sherwin Williams and other construction related vendors in the industry as well as the crews or subcontractors to build new houses.  (have not build one yet; Our focus has been Multifamily Renovations.

Our strategy based on all the benefits we have on hand that not everyone normally has would be to build Single family, Duplex and Four-Plex with a Construction loan to finance long term and rent for cashflow.

If we can build them ourselves and be at 15, 20 or 30% below market value we will have built equity in our new rental, zero money our of our pockets and cash-flowing NEW properties with at least 5 years of low maintenance + Loan pay-down + Appreciation sounds very good and high ROI without any money out of pocket.

BTW.  We have lender that will do 10% down on real estate investment properties.

What are your thoughts?

Thank you all for your advice!!

Hello BP Pros!!

Need Your Help and Advice for deal structure.

We are a Multifamily Renovation Company investing in real estate. (Licensed General Contractor)

Opportunity at hand:  14 Duplex (28units) Off market.  

Aprox. ARV $ $2,504,960

1. We already own 3 duplex in same neighborhood purchased and repaired (not rehabbed) refinanced them 4 months ago and the other duplex are very similar in size and shape.  We know what they could appraised for due to that very recent history.
2. Entire neighborhood is around 46 duplex total.  This deal would make us owners of approximately 45% of that neighborhood.
3. Owner willing to hear offer.
4. 1 duplex is brand new (2016) and 1 was built new (2014)  all other built 1957.
5. The other 12 need some sort of repairs and most likely will need interior repairs/upgrades.
6. Most Tenants are long term tenants and most likely to be ok with small increase in rent of $100 to $150 after our repairs.

Our Need and Goal:

End goal is 15% equity + Cashflow.

Need to structure deal to purchase and repair/upgrade as needed to bring up to current market value and hold. Tenants stay in place.  Raise rent as leases become due.  That is what we did to our 3 duplex.  (We only did interior upgrades on one unit that moved out during the deal making; all rents have been increased)  We dropped our management company and do our own management in house using Appfolio software and their call center service for maintenance calls.  (No brainer for us, working great, affordable for us on our 8 rentals)   

Our offer will be under market value; possible offer to purchase $1,815,830 15% equity+15% excluding the two new duplex.  We will estimate all repair cost needed for properties to appraise so our challenge is:

1. Can we structure this deal so Lender will fund 100% of purchase price and hold repair funds on Escrow account. 

Thank you all in advance for your help!!!!

what is the difference between buying turnkey and buying excellent shape retail SFH just off the MLS? Or new to buy and hold. Can I buy discounted turn key deals where there is already a little equity for the investor?

what is the difference between buying turnkey and buying excellent shape retail SFH just off the MLS?

I am originally from Costa Rica.  I come here very often.  What is your investment plan for CR?  Beach rental SGH, Condos, Hotels or Commercial property in small towns?

Manny

A 2700 SF brick house burned in my neighborhood and owner is selling it for 45k. ARV is $255,000

House will need to be demoed, foundation and driveway remain. 

Rebuild cost $130k to $150k

I have no money. 

Any good ideas on how to make this a deal? You can email me. 

Welcome to BP @Alan Troy, we are Rehabber from Murfreesboro TN and would love to network with you and be part of your buyers list.