All Forum Posts by: Gerardo E. Saldana

Hmmm... Two thoughts come to mind. 

1.) Have you tried getting a referral for a good wholesaler from other investors or REIAs?

2.) It sounds like you found an opportunity! If there are no (LEGAL) wholesalers in Florida, maybe that is an opportunity to be taken advantage of. Just make sure you keep it legal and either close on the property or else get licensed just like some of the other members discussed above.

Also, just like Jay Hinrichs mentioned, there are real estate agents that deal in distressed assets out there. If you can find them and build a relationship with them, they could become your source for deals.

Hi Mark,

If you know how to multiply the GRM and CAP rate, you can use those metrics to see what price you need to get in order to get your desired GRM and CAP rates. Having said that, these metrics are more commonly used for commercial properties (5+ units) although I have used them in the past to help me buy residential properties (1-4 units).

You can find a couple tools and calculators under the "Tools" tab at the top of your BP page.

Hope that helps.

Hi Rashad,

Unfortunately I don't have a straight forward answer for you, but perhaps I can give some suggestions that will help you find someone with your answer.

The first would be to start calling the hard money lenders you do have access to and see if they know anyone funding in the Cayman Islands. Often times people in the same line of business know of other people working in different places.

Alternatively, contact agents, property managers, contractors, investors, and other real estate professionals in your area and ask to see if they know of any private or hard money lenders in your area.

As far as getting help here in BP, it would probably help out if you can give us more detailed information on your deals. We don't need the addresses or locations, just a summarized version of the numbers and the details. That will help people with the resources or the knowledge be able to help you out a bit better.

I hope that helps and good luck!

Awesome! Thanks for the link the post on about Las Vegas.

@Terry Lao

Since you asked me, no, I don't see anything wrong with your post. You are talking about YOUR sacrifices/choices.

Perhaps it was the word "sacrifice" that got some people to adopt an antagonizing attitude? 

For some people getting/affording a 15+ year old car would be a blessing instead of a sacrifice. For you it was a sacrifice though, so I get it.

The way I see it, the things you mentioned are the choices you made to cut back on so that you could have a bit of extra money for the other luxuries or to have a bit of extra money for marketing, negotiating, etc. So congrats for making those choices! 

Will those same choices work for everyone? No, but that's OK. They have to make their own choices anyways :-)

So... I take it you write off all the transportation and lodging when you go to Las Vegas because you always visit some of your rental properties for business reasons, right? *wink*

Hello BP community!

I need some advice/feedback on how to pull my money out of a good deal after I purchase it. Whether I purchase it cash or with conventional financing, the banks only want to lend/refinance up to a specific LTV (usually 70-75%) on the purchase price EVEN if I buy the property at a significant discount (e.g. 50% of its current market value).

In the past I've always struggled with this same issue, and thus eventually I end up tying all my capital in properties and I'm unable to purchase more (even hard money lenders want you to put some skin in the game). So how do you pull your cash out of a property that you wish you hold but which you bought at a significant discount?

Here is the exact scenario I'm facing right now on some vacant land I'm buying.

Purchase price                                                                                                         $65,000

Additional cost (closing fees, easement, county fees, pizza party, etc).         $15,000     

Total cost                                                                                                                  $80,000

Based on comps land should be worth                                                             $170,000*

*The land I'm purchasing is 3 acres. Just four months ago the next door neighbor sold his 1 acre lot for $85,000 cash. Other comps in the area suggest that the price per acre is around $100,000-120,000.

That would mean that my land when compared to the cheapest and latest comp (the neighbor's lot) would be $255,000 ($85,000 * 3). To avoid any discussions on "best use" and diminishing value on the size of the land, etc, let's just go ahead and say its worth twice as much as the 1 acre, thus $ 170,000.  

I spent a few hours today talking to a few different banks and lenders (conventional) and the most they will refinance me after I purchase the land (it has to be a cash purchase) is 50% LTV but really it is 50% of the purchase price, not of the value. When I talked to them about a construction loan they are willing to take the purchase price of the land (not the value) along with construction costs (per licensed contractor) and lend me 70-75% of the total cost of land + construction.

I am facing the same scenario on an apartment building I've been looking at. It doesn't matter that I can get it at a discount, the bank will still only lend me 70-75% of the purchase price.

I know... I'm complaining about a first world problem here, and I am grateful and feel blessed for the opportunities I have found. However, I'm sure many of you have faced this problem before and have already figured out how to overcome it so that your cash reserves are not the limiting factor on the amount of buy and hold deals you make.

Any feedback/ideas/suggestions?

Thank you in advance!

Interesting post.

I also believe that being frugal and careful with the management of your money is a very important skill. However, we also need to see that we are not spending too much time (which is a resource just like money) on activities that could be outsourced to someone else provided that we could do something more valuable with that time.

Having said that, since you like buying and selling things from Craigslist, I have a teacher friend who spends his summers (no work during summer) buying things from garage sales and reselling them on craigslist. He is able to make $3,000-5,000 putting about 20 hours a week. He gets the most money from buying sport related things - such as surfboards, wetsuits, hockey sticks. 

Hope that helps your side hustle!

Why do you say he wont negotiate? You wont know until you ask.

As far as the hard money lenders (similar but not the same as private lenders), there are several listed here in the Bigger Pockets under the tab "Tools" in the option labeled "Hard Money Lenders".

Some of the previous responses gave you some very good options. Consider bringing in a partner if traditional financing wont work (not sure why it wouldn't). Remember that a piece of the pie is better than no piece at all.

Please keep us updated on how this goes.

Best of luck!

As others have said, don't risk a large amount of capital on a business you are not experienced in yet. Specially if you don't yet have that capital.

Try to get better at your craft first and make the money that way if you want to wholesale. In a way, wholesaling is similar to being a real estate agent (yet different in many ways). There are many agents out there who make 100k+ a year, so why not get better as an agent first?

Alternatively, if you really really want to start wholesaling, try learning from someone who is already doing it to cut down you learning curve. Also, you can to start out with bandit signs and driving for dollars so that you don't spend much money up front in marketing.

Best of luck!