All Forum Posts by: Sebastian Marroquin

There are several options here: 

1: first : don't re-invent the wheel and don't make enemies... Go to the realtor (even if you have a trusted realtor): and ask the listing agent questions: (i'm sure he wants to sell it... as he has not made any money on it for 1 year and has been answering questions from people like you all this time). 

so go to him and ask him: what is the seller's bottom line? 

Can you represent me on the sale of this home and at what price? 

What if you go to the seller and ask them what they would want for it CASH and i pay you on the side... (pros and cons to this). 

What is important to the seller? (this way you can craft a plan of action that is solving the seller's problem). 

Would the seller want to partner with me : where I fix it and sell it and we split profits? 

If the realtor is unwilling: 

Go to the seller and ask him to buy it from him 

All the same questions above straight to the seller

Send her a letter by mail and explain your intentions

Get financing from a Hard money lender: offer cash and refinance it into a regular loan. 

** and yes: I don't know how you are arriving at 50k 

But go see it: based on comparable sales arrive at an ARV (after repair value): then get the estimated rehab cost from a reliable contractor:

Then get the ARV $: times 65% : that will give you X: minus repair cost : and that will equal your offer price

For example: ARV is $100k : times 65% : or 65k minus 20k in renovations:

so your offer will be: $45k 

You can't lose with this formula. 

Make sure you do your due diligence. 

Realtors will be your allies not your enemies :) 

(and you didn't want realtors responding to this right... ) ;) 

Good luck: 

Let me know if you want me to make the call for you (no joke) 

@Collin Schwartz hey collin: can you describe the prices for some of your most recent purchases: how many units: what are the costs: what is the cash flow etc? i'm interested and I'm sure more people are! congrats 

** also something I saw someone doing that seemed to be very smart was: 

once you accept someone: either

1: collect deposit (2 months) first and last month of rent (in case you have to evict them: you have enough for the 60 day notice etc) check with local officials to see if feasible in your area. 

2: if they cannot afford the above: 

then get 1st and last: 1 month deposit: and say the rent is 1200$ a month: then let them know that the rent will be $1300 for the first year: where they accumulate $100 a month in a side fund: and their rent will go down at month 13 to $1200 and if they choose to leave and give proper notice: they will get back their $1200 (accumulated thus far). 

Hello :) 

checking credit is important: 

1. Credit check: 

FREE : credit karma.com 

2. Credit check: 

not free: have the prospective tenant pay for it: my smart move.com (you have to create an account: and then they usually pay 45$ for their credit report). 

. Check for high credit card debt 

. high DTI (debt to income) ratios: say they get paid $5k a month but their credit card debt, bills, and car are close to $3500 or $4k (then it will be difficult to make rent.... )

3. references: 

ask for 3 references and then ask for 1 to 2 more references from everyone of the 3 you call. (this way the tenant won't know and have control over the 2nd and 3rd level references. 

4. Employer references: 

call their current employer : and their previous one or two employers: you could even go there or call someone random there: and ask if they know the tenant (again so that they don't have control over who you call). 

5. Landlords: 

Call their previous landlords: (really call them) don't just get their info and not call them... 

6. bank accounts: check for low balances or high balances for that matter (which would be a good thing). 

7. What do they do: teacher? nurse ? bar tender? police officer ? doctor? (some are cyclical and some are more stable than others and more in demand in case they lose their job): some landlords only like jobs in the medical field etc. 

8. Make sure to do your home work! (you worked very hard to get here and now you are not going to protect your asset???? don't be that person... 

9. Consult with an eviction professional now: not once you needed... and prepare yourself for the worst : hopefully you won't need it. 

10.  Learn the laws that protect you as a landlord and the ones that protect the tenant: also know how to properly give notices: to view the place: and then incase they are moving out. 

being prepared + knowledge + action = cash flow :) 

sounds good 

ahhhh 

forgot to say: 

for this one: it seems that the current owner does not care.... 

so my suggestion would be: offer him 8k to 10k or 

*** say to him: look this property has been vacant for 6 years : 

this is what I propose: What if I come in : and do the renovations: then I rent it out or live in it for X amount of months/ years. then I sell it and pay you 10k at the close of escrow: if I sell it for X (45k maybe) ? 

you get your 10k : i put in skin in the game by renovating it: WIN / WIN situation right? 

be quite and let him respond. 

same scenario: and instead of selling it right away: you rent it out and you give him half of the net profit every month and 10k at the sale. 

(essentially owner carry) 

draft a plan: 

1: buy and hold and for how long? 

2: buy and flip and sale 

if you choose #1: do all of your numbers: and go to your local real estate office: talk to realtors or other people that can recommend good subs: or contractors : (you can go to your local building and safety permit place: they usually see people that are good and organized and people that are bad: as them for a referral: ask realtors for a 'whole sale' flipper contractor as they will be more reasonable. Subs will be cheaper but you will have to manage them and will take the hit if they F**** it up.... 

800 sq ft should really not be $30k (a cheap kitchen should be about $5k to 7k specially because it is probably small. (white shakers will do the trick) 

bathroom: about 4k to 5k if you are doing plumbing and some electrical : if not maybe closer to 3k to 4k (use 1.50 per sq foot for tile)

drywall and paint: laminate flooring : I don't know about chimney : but maybe don't take it out: just cover it with drywall....

make sure to get a $300 home inspection before putting another penny in there.... of course a flipper will say: I ran out of money.... blahhhhh : We can make a better return on other projects... really.... they know they can't make money here ... and thats the truth... (judging by this: I bet you can't ) but it could be a good home to buy and hold. 

specially if prices went up in the last 6 years. 

offer 10k : 20k for renovations: you are at 30k (if he doesn't want the 10k be willing to walk away: he will come back trust me) and if he doesn't , you just got better at negotiations ! 

Look at the rental market: bc you may have to hold it for some time. 

check in with banks and see if they will refi- cash out for you. (make sure you do your homework before hand: if you dont after reading all this.... then, good luck). 

I'm sure you can find other deals if this one doesn't come through : every month I tell my Girl friend: damn - "this is the deal of a lifetime" lol 

Is this a SFR or is it 2 units?

Learn construction numbers and material costs:  (i.e. go to home depot and act as if you were doing this home: and get pricing for everything: see what everything costs) 

learn ARV calculations

learn rental rates for your area

learn how to find your own deals or work with a realtor that is "investors friendly" 

good luck 

find a deal and I will get it funded for you: where we split returns! 

@Adriel Liwag Hi adriel : thanks for the message (event will be at 11am 251 s lake ave pasadena , ca 91101 suite 150) parking in structure is free saturdays 

Nicely done!