All Forum Posts by: Ronnie Galindo

Hello @Richard Camacho and welcome! So you have just under $100k in equity in your current property? I would say that refinance is a great idea as long as the numbers work! Would this home that you have currently rent for enough to pay the mortgage, taxes, insurance, and any holdings such as vacancy, capital expenditure, maintenance, and property management? If so then I would refinance into a conventional mortgage at roughly the 70% LTV mark. I would then take that left over money (around $59k with the property value at $120k) and then sink that into another property so that you can continue your growth. Interest for homes is high right now but you should be able to get a better rate than 9% as well as if it cashflows, then you're golden! I would use the BP calculators on here and see what ya got! Good luck!

Hey @Matt C. and welcome to the forums! With that said, those "rules" are really not rules, they are guidelines that will help you quickly see if you need to look further into a property. The theory is that if a property meets the rule, then they should "theoretically" cashflow/make money. With that said, when you are new, you have to just analyze a lot and see what the actual numbers get you. Once you get the hang of it, you will start seeing things or finding homes that meet what you are looking for without spending too much time on them. 

To get into any market, you have to be very familiar with a few things. What a typical rehab is going to cost (at each level: cosmetic, heavy, full), what closing costs/cash needed to close (roughly), and the ARV. Once you have those, you will be able to start seeing which neighborhoods to avoid or which ones to go full bore in when a house comes on market. Positive cashflow in markets like SLC, some parts of CA, Austin, etc. can be hard to come by in this crazy market we have right now but don't give up!

Also, don't try to go too fast. Make sure you have the cash reserves and everything in line to keep you going. This is a marathon, not a sprint! I hope this helps! Good luck!

Quote from @Charles Bailey:

@Ronnie Galindo yeah you got out there and made the attempt and saw results, so that's the most important thing. Do you currently have any deals under contract?

 I'm actually selling one of my deals currently (it's under contract and going to close it out at the end of the month) and another one just finished the rehab so I am running numbers on it being an AirBnB or if it would be better to sell. Still waiting on the numbers to come in. Nothing in the pipeline at the moment until I complete the rehab one (either sell or refinance). 

Quote from @Charles Bailey:

@Ronnie Galindo I will go with deal machine. Were you able to successfully make that deal from deal machine?

 I was just starting out so I did not follow up with the seller because I did not know what or how to go about doing deals. The fact that I got a call out of 100 mailers made me feel confident that if I actually pushed the pavement, I could make something happen. I will, however, be starting up again and looking for off-market properties for iBuyers. 

Quote from @Javier Moreno:

Hello I am completely new and have not done my first deal yet.  I was wondering if any wholesalers or investors have previous reports you can share that can give me an idea of how I should present to a hard money lender etc. I know prop stream generates reports with comps but I’m more interested in if anyone has a specific way to organize and present the offers they have. I.E. slide show, folder that is organized? Etc. Thanks in advance. 

Javier, I have found that a general CMA (Comparative Market Analysis) of the property and the area is significant. Usually using an agent is the easiest way to get one of these but if you are doing up one yourself I can send you one that I have done. Of course it doesn't have to be to this extent but it does make them happy to see this. Shoot me over your email in a DM and I will send you one i've done!

@Jeff Ballus, Man this is a hard one! I am in your same area so I know what it feels like to see the potential but potentially just have it out of reach. Well the win-win would be the hard part because if you are looking to move into it that shoots down splitting cashflow from a rental while saving to build. 

If you can't afford the mortgage then could you rent out a room or two in order to cover the mortgage? I know it's not ideal but if you can cover the mortgage, then maybe it would make sense for an investor to come in and help with the down-payment then put another home/adu on the property then rent that one out and split the rent, then in 5-10 years refinance and buy out the other party or whatever you decide. The only problem is making it worth it for an investor. I just spoke with one of my mentors about a property I am thinking of bringing in an equity investor and he said if the investor only gets 6-8% CoC each year but overall gets 15% in a 5 year period, then it's a good deal! I hope this helps!

Quote from @Charles Bailey:

Which mail marketing platforms are the most effective? Or if I am going to do a direct mail marketing campaign would it be more cost effective to print out and send the letters myself?

 Welcome Charles! So I have done some direct mail marketing and can say that I used Deal Machine. It was a cheap way for me to drive around and note locations I wanted to send to in my home town. I have not used other platforms but feel this one was easy, affordable, and quick. It has templates to also use to make your post cards or letters. With that said, yes it COULD be cheaper if you did it yourself but then you have to think about time. I know I was paying around $1.15 per post card, which I think would be cheaper to print it all out myself and send them but then I would need to invest more of my time instead of just letting their company do it. Also for results, I live in a very very low inventory area when it comes to homes for sale. With that said, I sent out roughly 100 post cards and actually got 1 call back! Which was surprising since on the podcasts it would say you'd have to send a lot more! Maybe I was just lucky. I am looking to do it again in my area so we will see. 

Good luck!

Quote from @Ben Boru:

 Okay so where would I go about finding these investors? I knew about one a few years back but can't find his info anymore. 

Well there are a few ways to get some referrals to them. I found mine through an agent I was talking to. He gave me the info to my guy and it was off to the races. There is also, under the Network tab above on here, hard money lenders that BP has allowed to list their information. You will have to be more involved through! They will want to know what your plans are, how much money you have available to you, etc. So call a few of them, get some quotes, and then see if the numbers work. Trust your numbers! If the deal doesn't make sense on paper, then it just doesn't. That was my problem when I started. Good luck!

@Ben Boru, call hard money lenders! Some people will shy away from hard money but I have used them several times and they are great! Even though you pay more interest (usually your payment is just the interest and when you refinance/sell you pay their loan off) it is worth it to make it happen! Everything depends on lots of factors (credit, reserves, project, scope of work, etc.) but if you have the will, there is a way! Good luck! 

And if you have questions, message me and I can try to help!

@Laura Nicol, So the property is listed as one property but in reality is 2 on 2 parcels?! Wow, thats awesome for one! For an appraiser, they should be able to look at comps further out (over the usual 6 month mark) and look for homes that are set up similarly. Unfortunately your lender is correct that if this type of property is not the norm, then it may be difficult but not impossible. 

I may also look into other lenders. Even though you don't qualify under the conventional route, you may be able to grab another loan product, just all depends on your situation. Look into a broker or even a lender that is connected with private money. There are several ways out there to make this work, you just may have to keep hitting the ground running to find it. Call around and fid something that works for you! Good luck!