All Forum Posts by: Jairo Freyre

A friend and I frequently browse through loopnet to analyze deals on properties as practice should we ever decide to pull the trigger and we ran across a $1.4 million dollar 30 unit property in Florida with a cap rate of 16.40% which blew our mind. The property comes with $424,000 tax credit which drives the cap rate up to 16.4 but without the tax credit it is at 5.93%. I listened to the latest podcast about the guys who own a section 8 property that was a non-profit so I'm wondering if that has something to do with the immense tax credit.

My questions are how would a property accrue such a large tax credit and would there be any benefits to removing the tax credit? I assume you would want to keep it but why would the broker list the cap rate without the tax credit? I'm just beginning my research on this property so if anyone could point me in the right direction I would appreciate it. Thanks!

I'll post what my research uncovers a little later on. 

My business partner and I rehabbed a house in Texas beginning in April of 2014. We basically were helping a lender out because he made a loan to a person who couldn't finish the property he borrowed on. We were trying to avoid the lender foreclosing on the property. Being that we had no money to put in or experience in rehabbing, it seemed like one of the only ways to get into real estate investing.

We took out another lien with the lender and finished the home. It is in a small town in Texas so it is taking a while to sell the home. Recently the lender had to foreclose on the home from the initial borrower. So far the lender is being very nice and allowing us continue work on the property to sell it so we both break even after everything is said and done. There are a lot of if's but we have kept costs down and breaking even is a realistic goal for both the lender and my partner and I.

The question I really have is how do you get the motivation to start over after this. This house was so much work and time for basically some knowledge. From a good amount of podcasts and stories I have read on this site and other places, people often break even or lose on their first property. How long do you wait before starting again? Is there a certain amount of money you have to build up again in order to start. Is there a book or article that helped you start again? I know there is not one answer to these questions but I would just like to hear what helped others so maybe I can get the drive to do this again. Any advice comments would be helpful. Thanks!

Sure no problem. We have a hard money loan totaling 159k with interest only payments (12%APR). The house is worth 179k. Ideally we would refi into an ARM amortized over 30 years and refinance when the principle is paid down to 80% into a conventional loan. Let me know if anyone would be willing to take that on or if you have any ideas.

We recently finished a flip and put it on the market for sale in Decatur TX. As a back up plan I am looking for refinance options to possibly turn this into a rental. The issue is, our loan-to-value is at 88% and we cannot come in with more money. We can get a lease for the property very quickly if that would help with the refinance but I really don't know if lenders care. Can anyone think of lenders/banks that would be willing to take on the loan or maybe of another exit strategy? Thank you!

One thing to remember is that pre-foreclosure means that a person is 30+ days late on their mortagage. That doesn't automatically mean they are going to be foreclosed upon, it could mean they had a slow month or are forgetful or accidentally changed their direct deposit info, etc. If the lead turns out to be deep into pre-foreclosure then you can respectfully back out or refer them to someone who can help them. Don't give up on your list just because one person cursed you out. You purchased the list so might as well do something with it. Keep pushing and maybe you might find the seller who has plenty of equity and is tired of struggling to pay their mortgage on time. Don't give up!

Easiest thing I did when starting was to set up a keyword alert on bigger pockets for "direct mailing" and it would shoot me notifications everytime anyone mentioned it. After that just start exploring direct mailing in the search bar and you can find seemingly endless info. Good luck and be patient!

I moved from Austin TX late last year and home prices are blowing up. It's a bit cut-throat out there to try and actually get a contract accepted because most homes are going for 10k to 20k above asking. If you can get into a house though, especially in South Austin, it would be ideal. Also the areas bordering Austin (Round Rock, Pflugerville, Cedar Park) are experiencing growth that isn't as aggressive as Austin.  One of my co-workers's house in Round Rock increased in value from 187k to 205k in one year on a 3/2/2 that was 1400 sqft. She made no improvements and barely even made it ready to sell. 18k appreciation a year isn't going to set any records but it's a great way to start off. Good luck and let me know if you do decide to go that route. Good luck!

It's pretty rough in Frisco/Plano area because of the Liberty Mutual and Toyota headquarters going in shortly as @KimAnello was saying. I had to move further west towards Carrollton/Lewisville area or east Plano specifically east of 75. The prices are a bit better however the quality of the homes reflect those prices. Both Carrollton and east Plano are situated on major highways and will most likely experience improvement as people moving to Dallas run into the same situation you are in however, I am just speculating. You definitely want to do the research and decide for yourself. Hopefully this gives you a little direction as to what to research. Good luck!

Wow that post link was useful. For anyone who is a visual learner, it basically breaks down podcast #77 (I think) visually and helps navigate listsource.com. @michaelquarles I feel like I owe you coffee or a high five or something for that info. Gracias!

@garywilson 

The foreclosure lists are public knowledge and can be obtained on any county website here in the Dallas area so there are no legal issues there. As far as stopping the auction, I will have to do some research on that. I have a couple colleges that have helped a couple stop their auction however, I don't know if they advised the couple on what to do or if they actually did it themselves. I'm not sure if that is some sort of tampering being that they intend on selling the property to my colleges. Good question though.