All Forum Posts by: Wenecio Godfrey

Matt,

    Thank you. Appreciate the reference!

Hello,

  I'm reaching out looking for a good reference for a reliable Agent with a proven track record in sales for the San Diego Area.  Needs to have extensive knowledge of the area.  We have some immediate work that needs to be done, mainly providing comps and giving general market information on properties we plan on acquiring in the very near future (next week).  We will of course be listing any and all properties we get with the agent.  Exit will be to be in and out of the properties in 3 months or less.  Most of our research has been done, but just need verification and someone with local market expertise to bounce data off of.  If you are an interested Agent who can help, or if you have a recommendation for one please email me directly at [email protected]    Thanks!

Love what you did there.  Something wasn't working, so you re-adjusted based on expert recommendations, kept the pedal down and produced some results.  Great job! 

Or company recommendations will be helpful as well. 

Hello all.  I'm in the process of buying my first commercial property.  It is 2 buildings with a total of 11 apartments.  Anyone have any good advice or tips for me when shopping around for this?  Different types of coverages or anything like that?  Thanks!  :)

Kim, 

  I not to long ago had a renter wanting to pay the deposit and some rent in advance before even seeing the place.  I told the lady that we had a strict policy about interviewing potential tenants first and that we would need to run a background check.  She had pretty much the same attitude as the person you were dealing with and even tried to to give excuses on why she could not arrange a meeting on skype.   This smelled too much like a scam (they wanted a lot of person info in order to send money), so I said "No".   A year's rent in advanced sounds really good, but always keep in mind about what they say about things that seem too good to be true... "They usually are".   Best of wishes! :)

Thanks. Great advice from both of you! I will take all of what you said into consideration.  Very helpful. :)

In the world of real estate, it seems like theirs always something else for you to learn right?  So I have a quick question for anyone who might have some expertise in this area.   My business has its niche in tax liens and deeds.   I have been building up capital to buy deed properties from the state auction.  I now have the funds but I want to make sure my exit strategy is solid.

Here's my question. If I purchase a property for let's say $30,000 at the deed auction for a property that has an current market value "as-is" of around $60,000 and an ARV of $100,000, will I be able to refinance and take my $30k back out to use for future deals with no problem?

These numbers may seem like a stretch, but it actually pretty accurately reflects the types of deals I'm looking at on a normal basis.

My complete exit strategy is to refinance, then rent out and hold for long term.

I appreciate any input and guidance.  Thanks!

Hello Vanessa and congratulations on joining the site!  Once your ready to put your investor running shoes on, you might want to check out the local real estate club.  I hear pretty good things about the OCREIA.  Best of wishes on finding your new first home!  Buying your first home is always a great learning experience! 

Hi Danny.  I think the answer lies somewhere between "Yes and No".  Confusing? Let me explain:  You do not have to have enough capital on hand to purchase the property, but you will need to have some capital on hand. Most investment lenders out there will lend up to 65 -70% of the after repair value (ARV). So let's take for instance you find a distressed home in a market where similar homes are selling for $250,000. You get the house under contract for $150,000. It needs about $15k in rehab. So now your at $175k. If your lender will lend up to 70% of the ARV then guess what? Your complete purchase price and rehab cost are covered!

You're not done yet though.  Your lender will still want to see what most of us like to call "Skin in the Game".  That means that usually they want to see you pay some type of money up front to show that you have a vested interest in the deal and won't just walk away from it if things start going south.   This could come in the form of paying for inspection fees, closing cost, upfront points on the loan, and things like that.

If you don't have any capital at all and you really want to do flips, you might try wholesaling a few deals.  Yes you leave a lot of money on the table, but you build up your cash reserves in the meanwhile and then you will have the capital you need to fund your bigger projects.

Best of wishes! :o)