All Forum Posts by: Tommy Mejia

@Alvina Torres @Abel Curiel You can also consider asking the seller about the possibility of giving you a lease, with the option to buy in 3-5 years.  You will be able to lock down a future price and at the same time give yourself the time you need to raise your credit score and secure financing.  In addition, you will also be able to collect the income generated from the second unit. 

Be Prepared to offer a nice down payment along with reserves for repairs and maintance (Although you are leasing, you will be taking control of the property, making you responsible for all maintance and repairs....and profits/Loss too)

You can also negotitate your lease payments, and other terms so dont be afraid to ask for what works for you. Hopefully you have taken the time to know the seller and know what may work for them, make your offer worth their consideration.  Asking is a huge part of this business, you will be surprised the amazing things you can achieve by just asking the right questions. 

I agree with @Tan Mehedi, consider the high costs of going the Hard Money route especially with only 1 unit generating income in the first year.  

Good luck to you, hope you can land this one! (Or many of the others that will hopefully come your way).  

Thanks @Abel Curiel , you know i always try to have a great read on deck! 

I am currently reading "10X Rule" by Grant Cardone among some other great ones ("The advanced Guide to RE Investing" by Ken McElroy, and "Marketopoly" bty Mark Mackenzie both great books which over amazing insights on identifying market trends and cycles, allowing investors to maximize ROI by staying ahead of the Game..) but the 10x Rule has stood out because of the principles it teaches in TAKING CONTROL of our success by treating success and the massive action that it requires as a personal "duty, obligation and responsibility"....not only today or tomorrow, but continuously throughout our lives. awesome read, one that i was referred to right here on BP.

Thanks for Sharing @Dave Van Horn ! cant wait to pick these up.

-Tommy

Nice! Looks like you got a great deal with a great cash on cash return! the great thing about it is that because of the potential to make your money back in two years you will have enough cushion for any capex repairs that come along later on, wish doesnt sound like much considering the new roof and siding. You can also reinvest it in it at that time if it makes sense by updating thos appliances, maybe itll give you another 200/mo income, which could be a 40% ROI if it costs around 5k to update. I also wonder what the market value of the property is now? depeneding on your desired cash on cash return, you may even have room to refinance and buy more of these!

Good luck to you sir!

Oh Man, Definitely looking forward to this one! 

Hey @Michael Lewis you should definitely Check out the book on Estimating Rehab Cost by Jay Scott. its an amazing resource and answers a lot of the questions you are running into, I was in your shoes a couple of months ago and it has been an amazing resource. You are absolutely right when you say the numbers just dont jive with the estimates, it could very well mean you are being overcharged, but the best way to find out is to get several quotes with the breakdown of each repair and see where the variances come from. that way you can better negotiate your prices based on the going rate for each. the better the quality the more expensive the job, but when you find a good Contractor, that does on time quality work, your ROI may even be better.

would definitley love to hear what others have to say, great question! 

Good luck to you!  

Looking forward to it! 

Emotion.  As a newbie, you based this decision on straight emotion, thinking writing up contracts and getting things down in writing would offend your partners. Obviously I know the situation as we've known each other for a very longtime.  But because of these lessons we were able to form our own partnership based off strict business principles.  All based on the lessons you learned here.  Because of it, our friendship has gotten stronger and our strategy has gotten better as we work to accomplish our goals...Together.   Good looking out on the free lesson(For me) LOL. 

@John Roman Welcome to BP! I am Sure your knowledge and experience will serve many in the community extremely well.  Its always awesome to see like minded folks make themselves available for others to bounce ideas off of.  my partner and i and I are also just starting out and will be looking to get feedback on deals, especially on the rehab/renovation side of things.  if you can lend an ear when the time comes that would be amazing!  

Much success to you both! 

-Tommy M

@Kevin Tran Welcome to BP! there are amazing resources on this site to get you off on the right path. you can literally search any area of interest in REI in the search bar above...youll be amazed by how much experienced investors and newbies the like, are willing to share and assist with.

Much luck to you! 

"House Hacking" ...thats always a great start! Remember to keep analyzing deals and researching your market...dont let the idea of living on one side deter from getting a good deal. you are off to a great start already,  Good luck to you man! wish you much succes!