All Forum Posts by: Rafael P Martinez

Quote from @Conner Olsen:

@Rafael P Martinez I believe the best first option is always to house hack in your area. Look up NWROI to calculate what your returns would be on a house hack. It is common to get 75%+ NWROI on a house hack. If you want the best return that's where I'd start.

Only take advice from people that are doing what you what you want to do or do that as a profession (Ex: a contractor doesn't know ARV):

Contractor - Cost of rehab, type of rehab for price point, length of time for rehab
Realtor - ARV of house, time takes to sell a house in the market, pulls comps
Investor - Deal analysis advice

Thanks for the advice !!!

I just wanted to add that for the time being I am investing my time in learning, reading REI books, podcast, seminar, etc.   I'm looking into your post talking about NWROI, I haven't heard about it before. 

Hello to all, I'll set my situation with you. Hopping to hear some suggestions.

- Currently good paying job, combined income + $200K
- Savings $60K (Could save a little more if needed)
- Experience Zero.
- Currently living in Southern Ca, so there is no such a thing as cheap property to buy over here. People want $$$$$$$$$ for their run down properties, so buying ugly home, move in and fix is not a cheap option. 
- Currently rent: $3k a month
- Goal get into REI ASAP, probably out of state
- Zero real estate owned
- Rehab experience zero

I have a good friend in Atlanta with experience in flipping and brrrr. Originally he was willing to mentor me, get a property from his wholesaler. he wanted to finance the property cash and me finance the rehab. Because of current state of finances in the country he is not interested in doing any deals for now. I know interest are high but It makes purchasing easier for the small guy like me, I understand that currently buying and flipping may not be good idea, but the opportunity of buying and holding seems good. 

Currently I am back to Zero, I want to get started ASAP, but out of partner. I do not know many ppl with extra $$$ willing to invest, or the ones I know do not have much saved. I am interested in SFH or MFH. How to fund my BRRR? Should I jump into a property and trust a contractor to run numbers for me?

Suggestions?

Hello to all,  I'll set my situation with you.  Hopping to hear some suggestions.

- Currently good paying job, combined income + $200K 
- Savings $50K (Could save a little more if needed)
- Experience Zero. 
- Currently living in Southern Ca, so there is no such a thing as cheap property to buy over here. People want $$$$$$$$$ for their run down properties, so buying ugly home, move in and fix is not as cheap
- Currently rent: $3k a month
- Goal get into REI ASAP, probably out of state
- Zero real estate owned

I have a good friend in Atlanta with experience in flipping and brrrr.  Originally he was willing to mentor me, get a property from his wholesaler  finance the property cash and me finance the rehab. Because of current state of finances in the country he is not interested in doing any deals for now.  I know interest are high but It makes purchasing easier for the small guy like me. 

Currently I am back to Zero, I want to get started ASAP, but out of partner. I do not know many ppl with extra $$$ willing to invest, or the ones I know do not have much saved. I am interested in SFH or MFH.

Suggestions?. 

Quote from @Elena Dubinski:

Does anyone had an experience investing in tax liens with the Tax Lien Wealth Builders?

Pros and Cons?

Thank you,

Elena

For us it was pretty much as scam..  On the first "Free" introductory meeting you get some valuable info about how the process goes.  But the presenter misleads you and try to make it as simple process.  In his presentation he indicated that buying liens or deeds was as simple as going to their website and just clicking on the property and buy the lien getting a guaranteed 18%- 25% interest return or a property if taxes we not paid. Just like in amazon.!!! We felt for it and paid the $300 for the full seminar where you will learn how to analyze the property and make sure you were not buying a lien for a sidewalk. Liens/Deeds on big cities fly away in seconds, you will be run over by big investors. You are limited to small counties or less popular cities on the middle of nowhere. 

I went home and started reading about tax lien investment and found out that EVERY state puts up their liens and deeds for auctions FIRST, and investors must bid either to pay more for reduce the % of interest.   ONLY after the bids are done the UNSOLD liens/deeds go for direct sale and guaranteed max % return.  As you can imagine the unsold debt are pretty much the left overs, bad deals, garbage, sidewalks, 1x1 lots... 

Anyways we had paid for it and attended to the 3 day seminar.  The first day of the seminar was motivational speaking, telling ppl how to become rich with this deal (still not mentioning anything about buying left overs or OTC deeds)  Every presenter gave same little speech, of course they all said "You don't need money" and keep pushing their lender, which is pretty much themselves with a different name asking for 3% interest a month... A few hours after starting our seminar they started pushing "Advanced training sessions" trying to squeeze more money.  End of day one was all BS....  We asked for a refund, as they had offered "Guaranteed Satisfaction and Refunds" if asked for it on the first day.  We put on their face that nothing was said at the training, that the first presentation was misleading and they lied to us.  We never got our money back, had to file a claim with CC company.

This people take advantage on others illusion of making money, and it is pretty sad. We could see trough the beginning there was something off. keep showing examples of how someone got a whole house for $100 back taxes. Not mentioning that although it is possible not everybody forfeits their properties, most people pay their taxes. And chances are even smaller where you are scrapping from the leftover garbage to find a good deal. 

Stay away, there is plenty of free material and books online that lays out the process which is simple but needs dedication. Call the counties were u want to buy.  You don't need an special training to buy them. 

We evaluated the option of buying our primary home, but decided not to follow that route. It is important to mention we live in southern california and $40k for a 10% down wont set us anywhere with the current market. Unless I buy in the desert, inland or seriously far from work. Additionally we live in Orange County and I cannot move out of here for the next 2 years. It will be impossible to find a property in OC for $400K adding that we are a big family and need 3 to 4 beds. 

The more we saved the more we needed in this market, reason why we decided to put our money to work in cheaper states, and postpone our own home. We would like to have a steady source of rental income to cover our own mortgage or bring extra cash while building wealth. 

I read once: Your first purchase must be the most important one to success !  

I have spent many hours searching what's the best way to start our real estate business and decided to start with single family homes.  Originally our idea was to buy a property in Vegas area <$200K using our savings (20%) and renting out.  As I learnt more I understood that the traditional method is not necessarily the worst, it will be the one that takes the longer for us to recoup our investment. It is our goal to buy a couple properties a year, I have a good job that can help me save for another property but it will take me years before I could put another 20% down.  

After reading Mr. Green's book about BRRRR I understood this was the best way to get investment back or more to reinvest. However I am not still clear how to finance that property, certainly I dont have enough cash to finance the deal and then financing the restoration.

So here are my questions,

Savings (Cash on hand): $40.000

- How do I finance the rest of the funds to complete purchase?
- How do I finance the repairs?
- Where should I apply my savings to?
- Any suggestions of what material to read, hear, or watch so I can improve knowledge?

Finally , it is my understanding that once the rehab is done and I get tenants on the property. I can refinance the property and repay pay the purchase and rehab lenders. How is there money left for me to reinvest? Do I need a down payment when refinancing? 

I truly appreciate all of your comments and suggestions.