All Forum Posts by: Patrick Torres

Unable to read your questions on my phone. But I use Rhino Reality and have been satisfied with them, would definitely consider looking into them. 

Instead of buying houses to live in when I was younger I would have started with a 2-4 unit property and lived in it.  I bought my first house when I was in my mid 20s and because of it did not buy my first multifamily property until I was in my early 30s. I also would have invested the time into learning how to buy and purchase properties off market much sooner as that is where you will find deeply discounted deals. 

@Khari F.

In this instance there was a break in the chain of title, which really isn’t something the seller or I could have avoided. Fortunately, the seller had the means to pay an attorney to assist with fixing it so that it could be cleared and the property sold. Her attorney was able to track down the individual that owned the property over a decade before and got them to sign a new deed to fix the issue. If that was not an option the seller would have had to file a lawsuit to quiet the title which could have taken much longer.

@Brandy Thompson

Send me a direct message if still interested

Investment Info:

Smull multifamily / Fourplex

Purchase price: $105,000

Fourplex that had been vacant & boarded up for several years, there was significant water damage due to a roof leak & vandalism.

What made you interested in investing in this type of deal?

The property was the worst looking on a cul-de-sac of decent looking properties.  The units had combo central air & heating which is not common in this class of rental.  Although the property was in poor condition, the owner had received it in a divorce settlement with no debt on it and several of the units already had new windows & cabinets in the kitchens. 

How did you find this deal and how did you negotiate it?

I paid a bird dog that contacted me on Craigslist $500 for the lead. I made contact with the owner and negotiated a price based off the condition of the property & an ARV which turned out to be low due to the strength of the ABQ multifamily market.

How did you finance this deal?

Local non profit lender that specializes in multifamily loans 

How did you add value to the deal?

Nearly a complete cosmetic rehab in all of the units plus a new roof, new electric meter, stucco repair / new paint, new windows, added gas lines for the ranges.  

What was the outcome?

Purchase price $105k, Remodel / Holding Costs / Closing Costs & Loan Fees were approximately $95k, after 6 months we started a cash out refinance on the property at an appraised value of $360k. At 80% LTV we will be getting a check at closing for approximately 120k.

Lessons learned? Challenges?

Reliable contractors that are affordable are an ongoing challenge. We had to work through a title issue on the property with the seller that took about 6 months to resolve before we could close. Out of state retail investors have dramatically driven up the prices of small multifamily properties in Albuquerque, this property a few years ago would have had an ARV in the mid 200's.

@Nikos Arechiga Search “Albuquerque” in the forum search, filter by latest post, and scroll through past posts. You will see lots of them addressing your question.

@Eric Caputo If you dont want to pay any money to learn, YouTube & TikTok are your best friends here. But I can give you an oversimplified version. Find an off market property you can buy for under market value. Fill out a purchase and sales agreement for cash with the seller. Take that purchase and sales agreement to a wholesale friendly title company. Post your deal on the FB investor groups advertised at a higher price than what you paid. When you find an end buyer to assign your contract, fill out an assignment of contract agreement with them, then take that agreement to the title company. On the day of closing the title company will handle all of the paperwork and you will collect a check for the difference in prices between the two contracts. PM me and I’ll give you a good title company I’m town to use.

@Ryan Zamora I own apartments that are considered affordable housing. I believe you can make money in any area of town but you need to be disciplined when underwriting. If you buy something in a rough area and you underwrite 5% for vacancy / capex / and repairs you might be disappointed with how the property actually performs. Tenant screening in any class of neighborhood is a must. Unless you can add significant value to the property you buy, you will find yourself constrained for capital again after your first purchase because your down payment will be locked up in it. I assumed you weren't going to live in the property and needed to put down 20 or 25 % which doesn't buy you much with 20-30k. If you were house hacking that would open up your options quite a bit, but you will still have trouble finding a deal on the MLS.

@Ryan Zamora With the amount of capital that you have I'd recommend either looking for off market fixer uppers in C & D neighborhoods, or looking into wholesaling in any area so you can build up your cash reserves. You might consider finding an experienced partner on your first one to lower the risk, but you might enough to get a hard money loan for a lower end flip or BRRRR project. Developing systems to source solid off market deals will help open doors to other things you need to ultimately be successful. Join the local investing FB groups and attend check meetup for in person meetings if you have not already.

@Laura Geiger The last time I did direct marketing I got more negative responses than warm leads, but it won’t dissuade me from doing it again. It’s about catching the right person at the right time.