All Forum Posts by: Tom Mozzone

If your looking to buy in the south county then I would aim for Gilroy. The purchase prices are even lower but the rent is the same. Also, the High Speed Rail is going to have a station there so their may be a good opportunity for appreciation in the area in the long run. I've been investing in Gilroy with success for awhile now. Prices are not what they used to be but there are still deals out there.

Also, you may want to check this out. San Jose Meetup - Thursday 8/11/16 on the BiggerPockets forums http://www.biggerpockets.com/forums/521/topics/340232-san-jose-meetup---thursday-8-11-16

It's a small world! I'm a 5th year inside wireman in 332. I only own about 3 rentals plus my home that I also rent out rooms from down here in Gilroy but I am starting up a wholesale operation and may possible have some work for you as that grows later down the pipeline. I also will gladly pay out finders fees if you come across any good deals that your not interested in for yourself. Rich Dad Poor Dad is a great start. In the beginning I was reading atleast a book a month. If your not already listening to podcasts and audio books on you commute to work if recommend that also. Depending on your lifestyle and business tactics I would say house hacking a 1 to 4 unit residential building would be a great start. If you live in one unit you can rent out the others to pay the mortgage if you buy at the right price. You also get the benefits of not needing as big of a down payment and a lower interest rate because it is "owner occupied" Also, the potential rent of the other units can help you have a higher purchase price that you qualify with from a bank or mortgage broker. If your good with your hands in more than just electrical, I'd also recommend something you can put some sweat equity into. I often bought homes that needed some work, put 3.5% down, fixed them up, then refinanced them since I had more equity so I could them get a better interest rate or even take some cash out to put down on the next house. Anyways, welcome to the site and good luck getting your feet wet. If you ever want to pick my brain feel free to PM me.

Is it on the MLS aka mlslistings.com? If your agent only had it in Redfin than most buyers agents are not going to see it. If your agent doesn't use the MLS, get rid of them. They do not have enough experience to get your property in front of enough eyes.

@Josh Calcanis My understanding from onversations with my mortgage broker is that delayed financing is a term for buying a property all cash then financing it after. Most lenders will allow you to take out a loan based off the purchase price from the time you purchase the property til 6 months after. If your trying to recuperate all the money you have in the investment then you would later have to refinance again or take out a 2nd. Either case, banks often don't like you taking out a loan for more than the purchase price of a propert until the property is "seasoned" aka a year has past.

There is another term you might want to know, pocket listing. A pocket listing is a property an a gent or broker has that for whatever reason they don't have it on the MLS yet and may not put it on at all. This is a good reason to network with agents and brokers in your area.

What are the numbers? Purchase price, current value, total rent for all units? I would check to see if there are any issues as to why a bank may not lend on it and as the owner why they want cash. You can get a prequalification free from just about any bank or mortgage broker. Have them run your information and the purchase price and see if they would give you a loan. If they won't because your young without a lot of credit history you may want to see if a realative is willing to co-sign the loan. If the numbers make sense then a hard money lender might be your best option then a bank loan like your saying but if you can get the owner to let you buy it via a bank loan then that would be even better. You may even want to offer to buy it for a couple thousand more if he lets you do that to save the points you would pay to a hard money lender.

A yellow letter is a letter on yellow paper that looks like it's been handwritten and is addressed to an owner. Check out yellowletters.com. The list of people to send them to can purchased from many sites like listsource or rebogateway to name a few. I recommend you look up "starting off in wholesaling" on this site for some great info. There are also some great podcasts BP has out on the subject such as episode 81.

When I did my cash out refi it was just 1% higher than a regular 30 year was at the time. I would shop around more. These rates seem high unless your trying to take our more than 80% of the value of the property or you have a very low credit score.

An LLC is probably a good idea but I know what you mean about difficulties buying a property as an LLC. You may want to consider buying the propert first then imediatly putting it into the LLC. The Individual(s) who carry the loan will still be resonsible for the loan but it's hard to get a loan as a brand new LLC with no track record or holdings. Once you get some properties and equity into the LLC you may be able to get the LLC to carry loans on its own. On another note, make sure whomever is the managing partner of the LLC that they have a good insurance policy. If everything is done right but your LLC still ends up getting sued, the other participants in the LLC can only loose their stake in the LLC but the managing partner can loose more. This is why some people will start layering LLCs. Also, always contact a professional on the subject (tax advisor, lawyer ext) because I am most defiantly not that ;)