All Forum Posts by: Ricardo Olea

@Jamal Massengale send me a message. I'm in the SD area and would like to find out more. 

@Rami W. you are correct, a traditional loan wont work for me at the moment. I did put the ball in his court and asked what terms he would be looking for. So lets see what he says and go from there.

I do like your comment about driving appreciate up, it could help with traditional loans once the note ran out. Thanks

@Rami W. thanks for the input. I ask all these questions because I have now idea what the typical length of an owner carried note is, if you'd pay close to market value because its owner carried or anything about owner notes. That's why I ask my friend, learning before I jump into it.

Hey BP family,

One of my mailers might have produced a potential buy and hold deal for myself. Still being so new to the game I'm not to sure how to go about this.

The seller is motivated to sell, just waiting till the new tax year so he doesn't have to realize it on this years taxes. This is his last San Diego rental and he needs to max his net because he is retired and has a sick wife to care for. Currently he has had the same tenants for the last 3 years paying under market rent in the highly desirable SDSU college area.(about 500-700 under market). Built some good rapport with the seller. Property comps at 475K, built in 1952, looks like its well maintained. 

He said and I quote: "There's a good chance I could carry a short term, decent yield, 1st note on the sale; there are no liens (other than property taxes)".

So here are some of my questions:

How can I use this or what steps would be required to get this property for myself as a buy and hold?

Do I offer market value and come in with a deposit?

How long do you think he'd hold it for?

I'd obviously need to get another loan once the note ran out? How would that work?

So many questions on this, sorry if I'm all over the place. Background so you know what I do. Currently focusing on wholesaling however its just a stepping stone to get to my bigger plans of buy and hold investing. This just looks and feels to me like something I can use, if properly educated, to kick start my buy n hold strategy.

Looking forward to the feedback.

Thanks

Ricardo

@Michael Mullins I mail to both. Got my first action off an LLC mailer, but either way she already has it in a trust.....

Hello BP family,

Since we're in the business of helping others solve problems I have a question for you guys.

DM'd an Out of State list and had this older lady call me super angry/upset that I sent a letter addressed to her deceased husband. I missed her call but I always call back no matter what just as a good faith practice and to let them know I'll remove them from my list. (I suggest you always call back, people attitudes change when you do this)

So anyway I'm use to the angry phone calls and remove me from your list speeches but this lady was so tired of getting letters from dozens of investors just like me and I felt bad for her. She asked me never to call her again and asked how I got my list. I explained the process to her and told her it probably will never stop, her voice sounded so defeated. Then I said I could do some research and find out if there was a way to remove her property from these sites, and of course she said well call me back if you can figure that out.

Long story to ask my one question.

Is there a way for these property owners to remove their names/properties from listing sites? (Trust me I don't plan on telling all my list how to do this)

Thanks

Ricardo

Hey @Christopher D. send me a pm. I run across deals in the IB area that i can send you way. 

Long Beach Cash Investors

Great turn key opportunity in the Down Town Long Beach area. All properties have tenants in place, clear title. Willing to work with serious cash investors. 

12 Property Package Deal all located in non-rent controlled Long Beach area 3% increase/year

Monthly: 13,450

Annual: 161,400

ROI: 7.41%

Asking 2.6M

Thank you all for your responses! 

This is exactly what I was trying to get, the different perspectives and experiences!

I guess a 1031 exchange is out of the picture but at least I know more about the requirements to qualify for one in the future. 

I plan to pay some debt down and reinvest the remainder in continuing to grow my wholesaling ability and make a big footprint in my area. 

Love this site!!!

Ok, so first I want to say I'm not counting my chickens until they hatch, however, as this deal gets closer to closing I am left wondering what I should do with the money. 

50K profit on my first wholesale deal that I joint ventured with a wholesaling company. We went 50/50 they covered all the paperwork I tracked down the deal. A duplex and triplex located in my back yard of Sunny San Diego. 

My first thought is to pay down some of my personal debts that have higher interest rates and roll over the rest to a 0% introductory credit card and keep paying it down.

Second thought was to throw a big portion of it straight back into marketing for more of these properties. 

The third option is to use a 1031 Exchange and buy a turn key property in Palmdale, CA. My friend is an agent up there and is giving me first pick before it hits the market beginning of next week.  The owner just wants out of the property and is willing to take 30K less than market value. Ran a quick analysis and with a 50K down payment and a conventional loan I could rent out the property and make enough to cover all expenses associated with it. Wouldn't be cash flowing insane amount of money, however, that's something to put me where i eventually want to be, a buy and hold investor. 

My biggest worry is taxes. I know the smart move would be 1031 exchange to avoid capital gain taxes. I would just appreciate some feedback from seasoned investors or newbies who wish they did something different or knew something they should have done with their first deal profits. I honestly cannot wait for feedback! And thanks in advance BP family. 

Best,

Ricardo