All Forum Posts by: Ricardo Rosales

@Michael Clevenger just make sure that if you follow @Brandon Ingegneri suggestion you find an Investor Friendly Title company that can do this for you and not mess up the deal with the FHA loan, what Brandon says can be done and you recover your money + interest in the long run. You can also rent the property and refinance the loan with a conventional at 75-80% if you don't have more than 10 properties on your credit, otherwise you will have to go with a commercial loan. I am an investor in the estate of Texas and to me this is one of the best places to buy and hold and flip.

Many investors will fail in this business due to not having different options to offload the properties if not sold (We call it a parachute), we actually shaped our business to rent most of the properties we flip and if we sell them is a bonus. I would encourage you to rent it and refi it, if you sell it a year later when tenants are in and out you can sell the property again and just do minor touch ups, and guess what? You will pay less Taxes on the sale due to paying Capital Gains instead of ordinary income tax due to being flipped the same year you bought it.

I am not a CPA and will recommend that you seek advise with a professional on that area, but if you flip to rent instead of selling on your first years, you tax bill will literally be almost non existent.

Do not let this flip and some appraiser steal your future as an investor, on the next ones, try to invest a lot less on the rehabs and you should be fine!!!!!!!!!! 300+ properties are harder to sell then properties below 200K. Keep that in mind.

@Adam Dahlberg sorry for not getting back to you sooner, I have been a little busy and not being able to get on here lately, Vacancy was only 4 days and just had to replace carpet once in a couple of the bedrooms, when tenants where moving in and out, I factored that in on to the holding cost. I could have been more explicit with the numbers on how the capex was invested. It was a cash deal out of my pockets and those are the correct numbers. However when I first started the rehab I ran out of money and had to wait for a couple of months to put some more money together and use credit cards and things like that for materials, (I said Long Story Short), I quickly became very resourceful on finding more money to end my nightmare. I am not really trying to impress anyone or encourage other investors into getting into a losing deal, I made the mistake of not finding a mentor and paid the price for it. The deal could have been much better than the one I described above, had it all gone right. No discredit or disrespect taken, I will keep it in mind when disclosing further deals in the future. Blessings to you as well, look me up on facebook, you can see some of the ongoing rehabs we got on there. I sleep like a champ at night lol

Sounds to me like you need to start by wholesaling properties, is the easiest and cheapest way for you to start making a living and grow some cash reserves, find a local wholesaler that is willing to mentor you and learn as much as you can. After you master the wholesale game you will be able to move on to the next phase.

@Juliana Limones Invest those 2K on a marketing blast and you will get at least 2-4 deals from it, do not send letter to spring (There must be 1000 wholesalers trying to get into that area) If you need guidance we can connect, there are plenty of wholesalers and real estate investors in the Houston area with lots of success, I would reach out to them and have one of them mentor you instead. Best of Luck to you!!!!!!!

@Dan Green is up to the buyer or his lender to get an appraisal, do your best to estimate rehab and market value and price property accordingly.

@Shiyear Woodbury If I were you, and wanted to build a little bit of cash to get going hard in real estate investing, I would start getting involved into wholesaling apartment complexes and condos. This will get you to know that market very well before you even invest a penny on buying yours, you will be able to make quick cash from the assignment fees and do a lot of the leg work for moving the properties, volunteer with a wholesaler that is doing just that and you will be successful. After that, I have no doubt you will own a few within just a couple of years. Do not risk your parents equity on your dream, risk your own equity on it. Best of luck to you!!!!!

Find a mentor, you will save tons of time and money by doing that.

@Jesus Sanchez you don't have to pass up the profits, share them, I could potentially help you as I use to live in the Miami area for a long time and have family still living there. I can at least give you guidance and we would have to find someone with MLS access to build a good database that is willing to do some of the work. let's connect!!!!!

@Derek Brunson Welcome to bigger pockets, real estate investing will depend on your qualifications both financially and time availability to put into the business. Network and find a mentor in your area, do not go with the first one you meet unless is well known in your community by other investors, make sure you do your due diligence very good and let them guide you on the process once you decide on who you want to work with, understand that is much better to let your mentor make money along the way with you in order to have him motivated to get the best deals for the both of you. Your mentor can be a wholesaler, real estate broker, loan officer, landlord, a house flipper. Define if you want to buy and hold, flip, wholesale and then evolve into what you want long term. Wish you the best!!!!!!

@Rich Hupper the key to wholesale is to move that property in 30 days or less, which means that you have to move fairly fast, I never put more than $100 as earnest money, I have actually put $10 to open title many times, you can ask your buyer (The person you will assign to) to deposit the escrow (Whatever you ask them to lock them on the deal anywhere from $1000 to 10K depending on the size of the deal) on the title company or a check payable to you or your company, and then when they close you get your assignment fee. Here is a summary:

1.-Get property on contract and open title immediately.

2.-Start advertising your property to your buyers and ask them for their money to lock up the deal. ( I get mine moved the first 5 days)

3.-Once title is cleared (Usually 7 to 15 days) you can close. If they are using hard money it will take aprox. 20 to 30 days for them to close.

4.-Have funds lined up in case your buyer falls thru, you close on the property and proceed to resale. (do not let this stop you form putting a property on contract if you can't find private money) Hard money lenders also will charge you a % of the transaction for you to put houses on contract. Is called transactional funding. 

5.-At closing you receive your assignment.

If you put 1k for every property you put on contract, once you start doing multiple deals you will find yourself without money fairly quick.

I hope this helps? Hit me up if you have any questions.