All Forum Posts by: Marc Gallegos

Hi all, looking for a helping hand. I'm in negotiations on a piece of property that is in the process of being partitioned. The property is currently described as a 10 acre home but I'm buying a 2-acre chunk of the property. The county has the partition application and we're moving towards the completion. The seller and I have agreed to terms but I'm not sure how to write up the contract. I've never written a PSA on a property without an address. I have a plat map showing the proposed partition and I can reference the map in the purchase agreement but that's all I've got. Hoping someone has a rough document or maybe more info on other details I will need to add to the purchase agreement. Bought a lot of homes but never a piece of vacant land without an address. THANK YOU!!

HI BP. I'm looking for any suggestions of where to hang my future RE License. I work full time as a Lender and I rehab properties part time. I want to get my license to list my own properties as well as have the ability to represent a few buyers a year. I don't plan on being an agent full time. I just plan on doing 2-20 deals a year under a managing broker.

What kind of split should I consider? Is there a brokerage that is set up for someone with low volume like my self? 

I don't plan on being a full time agent. Just need my license for a few deals a year. 

2015 was my first year as a grownup... Would love some help/ advice here. Heres the timeline!

Jan 2015 bought first rental property on an interest only note. Graduated college May 2015. July 2015 Finished 5k in renovations to the rental property. August 2015 was my 1st year anniversary with my wife. In September we got a great new tenant for great cash flow.

I've been a mortgage broker since July 2015 so I'm learning how to write off business expenses and rental property expenses. Would this be a good time to get my first accountant or am I just being a baby and can handle the situation?

School tuition write offs, rental property renovation,  and business write offs are all the areas I have questions on. Should I hire an accountant or just work on it myself?

First time dealing with real tax advantage situations....I'm a novice.

Great insight! Thanks Elizabeth 

Does anyone else contemplate starting their own property management company? On top of your career, REI and everything else does anyone else have these desires? Round up investors and take on a few more tenants. I mean if your already managing successful properties a few more cant cause too much more drama?

Any input?

---

Thanks Bill

I do have a servicer that was a great point to add.  I will continue to study the D Frank requirements. 

 ----

Robert

I apologize, I didn't make it clear that I will be occupying the FHA for a year, if I was to get the loan. I will absolutely follow the regulations. Thanks for your clear answer.

Just a quick question I was hoping someone could answer. I cant seem to find the answer without contacting a loan officer. 

Im a few months into a owner financed single family home here in Oregon. We will hold this home, and want to buy one more buy and hold this year. 

Do I lose my FHA option as soon as I refinance this owner finance? My initial thought was as long as I kept finance private through the owner I would still have my conventional FHA in my back pocket.

My plan was to stick with owner finance, while applying and obtaining the FHA property then after both properties are active, I refi the old owner finance... Maybe this was plan was a dream, or is this possible??

Marc- Salem, OR

Ariel- The upscale of this particular house is rare, I could easily contract out the work needed to make my return. I believe ARV is near $130k so I have room in budget but initially I will fix and hold- always ready to sell

My analysis was based on buy and hold DIY but would love a flip opportunity I think that niche fits me best. 

Reason I'm doing the work myself even in my time crunch

- initial strategy is to hold

- create best margin 

- need to sharpen my carpenter skills- little rusty

- I want to be temporarily un employeed post graduation to take advantage of summer so I'll be remodeling "full time"

It seemed like forever but my first deal is finally in the books! Thank you Bigger Pockets community, the knowledge and wisdom is invaluable. 

The Deal:

Through an old contact, I located a SF home in a good neighborhood in my town and put in an offer. 

Negotiated an Owner Finance and closed escrow after 2 weeks.

Price: $72,500

Zillow Est: $111,000

Summary:

It was an absolute emotional roller coaster, navigating through all the small details that wont be a big deal next time around. Some of the details include a 975 sq ft craftsman with unfinished basement and dis-attached garage. Great original molding, trim and hardwood which was burried under nasty carpet. 

The first weekend after closing I was able to get those carpets out, clear the staples prepping for new flooring. Paint all walls and trim and do basic cleaning. 

Next Step:

I am still in college while my wife works full time and I play baseball so time is officially crunched. I have a renter lined up for an interim period before I graduate in May and will then have appropriate time to get the house in best condition.

-Interim renter will cover my mortgage for the 4-5 month period

-Market indicates after small renovations of bathroom and kitchen and floors I will get >$1000 monthly

I am very happy how it all worked out and I wanted to thank everyone on here. This site is awesome. 

Goals for 2015

-one more owner finance deal!