All Forum Posts by: Ramon Flores

Any lenders doing "Fix and Hold" loans? If so what are your current terms? 

@Nicholas Daniels It really depends in what city and what area you are talking. The short answer is YES, there are good C class properties in decent neighborhoods that rent for that amount and should provide you with decent cashflow. However, be aware that these houses may not appreciate much in value. So there is a trade off when dealing with these properties.

@Joshua Savage I am not sure how much below market you are talking about. Is it 25 dollars or 200 dollars under market? Don't forget that the turnover cost will kill your profits. If it is not too much I would advice to keep the rent the same. Hope this helps!

@Tracy Meyers I wouldn't throw this deal away because it is a D class property. Don't forget that section 8 gives you guaranteed income. A tenant is not going to want to lose their sec 8 voucher right now specially with this economy. 

If I were you I would consult with your agent about this particular area and street. Perhaps it is coming up and may be a C class property in a few years. Also, since it is sec 8 I would advise to keep more of the cashflow towards repairs. Hope this helps!

I received both of my rents on time. The irony is that usually they are late a few days but since the virus started they have paid on the first of the month.

@Adam Bonifant I would advise that you search for lenders that do "Fix and Hold Loans". They will work with you through the rehab, then they will give you a long term loan. From my understanding it is a cross between a HML and a conventional loan. I presume the long term loan will be higher than if you went to a regular bank. Hope this helps!

@Adriana Martinez If you are investing in condos, I would become extremely familiar with their HOA rules. Some of them do not allow rentals, or short term vacation rentals. Don't forget that if the condo is more family friendly, the neighbors can complain about noise and random people coming in all hours of the day. Some cities are also not friendly when it comes to short term/vacation rentals. Please do extra due diligence when it comes to this. Hope this helps!

@Alex Olson I live in Los Angeles and I would love to purchase MFH here but there is no cashflow. It pretty much all about appreciation here.

My advice is to house hack. Get a rental with lots of rooms and charge your roommates. Save all the cashflow and purchase your own SFH with lots of rooms and house hack there as well. Rinse and repeat. Hope this helps!

@Hunter Wolfe Great question! It all depends on the motivation of the seller. How motivated is the seller? What are the reasons he is selling? Does he have a deadline? Is he moving or getting a divorce? Why did the seller not take it to an agent?

Hopefully you asked a lot of questions and found out his true motivation. Offering more money may not make the seller happy. If the seller needs to move fast maybe you can offer a higher downpayment so he his moving expenses are taken care of. If the seller wants to sell fast, then perhaps emphasize that you have a contract ready and you can close within xx amount of days. Hope this helps!

@Account Closed It depends on your finance strategy. If you are looking to get a conventional loan and if you are going to use your W2's and your past taxes to qualify for a loan then an LLC won't work (unless you can show 2 years of income for that LLC). The reason is because want to see a past history of credit and payments.

However if you are using your own money or if you are going to use private lenders to finance a property then an LLC would work great. If you are worried about liability when starting out and using your name on the properties, then perhaps get extra liability insurance for the properties.