All Forum Posts by: Marco Lopez

How do you structure private money loans, where the private money lender gets the 1st position lien on the subject property? Does the private money lender need a self directed IRA where the investor can draw from using a promissory note? Is there a professional that offers assistance with this process? Finally, is there a book or two where this topic covered thoroughly?

Hello BP,

Can I get some help analyzing this deal?

The home is located between San Antonio and Laredo Texas. The home is not far from IH-35 a major highway in Texas. City population 4,000. The property has two homes on one lot. The lot size is 0.1.

Home 1:

Year built: unknown

Stories: 1

Beds: 3

Bath: 2

Sqft: 1,182

Repair estimate: Roof, exterior paint and misc. repairs, interior paint, flooring, landscaping.

Home 2:

Year built: unknown

Stories: 1

Beds: 1

Bath: 1

Sqft: 676

Repair estimate: Roof (including some rafters), flooring, paint, 3 windows.

Comps:

Comp 1: 3 bed, 1 bath, 1,340 sqft, built unk, Sold price $30,000 cash, Home needs repairs offered conventional or cash

Comp 2: 2 bed, 1 bath, 870 sqft, built unk, Sold price $44,000 seller finance, home had tenants.

I have current value at $65,500 based on average sold price/sqft of sold properties.

Additionally: subject property has separate electric meters. However, they share water and sewer.

Deal structure: Owner finance. Price $45,000, down payment $3,000. Interest rate 3%. Term 20 years. P & I = 243.58. PITI = 460.26

Exit Strategy:

E.S. 1: Spend approximately 20K – 25K in repairs and rent both units separately. The 3/2 for $750 and the 1/1 for $500. Tenants pay electricity and I would be responsible for water.

E.S. 2: I find a seller finance or rent to own buyer. I sell the properties as is. Obtain a deposit from buyer of apx. $7,500 and payments around $800 monthly.

Finally, I have minimal data on home sales. Therefore, obtaining ARV would be heavily subjective. So, I used comps from similar properties that recently sold that were not rehabbed. I tried to be as concise as possible to keep fluff low. Therefore, if I missed an item of importance. Please let me know. Thank you!

@Brian Van Pelt

I didn't know excel had that function. Time to how to Google and YouTube. Thank you!

Hello BP,

Does anyone know of a good software that can compare multiple lists for matching information?

Example:

I would like to take an absentee owner list and compare to a code violation list. The goal would be to narrow down target demographic.

Thank you!

Marco Lopez

REALTOR

@Nathan Asher Robson

Location, area school performance, property attributes, renovation work, neighborhood crime to name a few. However, it usually boils down to price, timing and demand.

If I were in your position (assuming your have all financials in order to buy). I would get with a local professional (broker or a brokers agent) and discuss your goals (assuming based on the question, you are looking at on the market deals and you do not know the area well. Additionally, this assuming you have clearly defined goals for RE). I would communicate the goals with the agent or broker and ask: How long will it take to get a list of properties that fit your criteria? I would give the time if reasonable. I would repeat this process until you have a new pro on your side that understands your goals.

A few things to keep in mind. Producing a list is easy for an agent and the time is minimal. Showing properties is much greater investment for an agent. I hope if you get to this point of the process. You're as dedicated to the agent, as the agent is to you. Finally, look at obtaining an agent like hiring an employee, but without all the strings attached. Clearly define your mission and goals from the outset. Be patient and be prepared to compensate talent. Happy hunting!

Marco Lopez LREA

Investor/Agent in San Antonio TX

@May Emery

Great point! Thank you. However, I would like to touch owner occupants too. Nonetheless, I will make the revisions.

Marco

@Candace Price

Hello Candace,

I am in the process of forming a MF list to target. Heres my thought process:

I'm going to begin with list source and look for MF owners. I will then add length of residence to 5 yrs plus. The next filter I will add is market specific. I'm looking for the average rent of $1200 per month per unit. I also will focus on 4 plex or less. Therefore I'm going add a max value filter of $600,000. I will buy this list.

I will then cross reference this list with code violations list. I will add or reduce list based on Equity, owner distance from property, and tax records until I have a manageable list. My proposition and marketing begins from here. I hope that helps!

Marco

@Joseph Alves

I use nest for my cameras. I'm happy with it. I rarely lose connectivity. With one app I monitor security, thermostats and locking my doors from my smartphone. Additionally, to keep a 30 day log of all video recordings will cost $5 per month per camera.

Marco

Hello Mindy,

I am interested. I have submitted my info.

Marco Lopez

@Aaron Gordy

Hello Aaron,

Thank you for the information. I will review the web regarding recent legislation as it pertains to property taxes. Could you share the information of some of these companies? One of my past clients had success this morning lowering property taxes based on a CMA I had provided using accurate and recent sales in his area. The reason I say accurate is due to the fact the appraisal district uses a large radius that includes too many variations in property attributes and location variables.