All Forum Posts by: Tyler Hungerford

Hey Gabriel, I always use Arbor One Escrow. Lucy Encarnacion is awesome and makes my closings super easy and supppppeeerrrrr cheap! On investment properties, they only charge the buyer's side of closing costs and don't charge the seller side. Pretty awesome. DM and I'll send over her number for you. 

@Bobby S., my partner and I are flipping houses in San Bernardino at the moment, but my partner has about 30 rentals in the SB area. It's a solid spot for Opportunity Zones. Almost the entire city is an Opportunity Zone. So for a developer, it could potentially represent a HUGE opportunity. Just depends on what you're looking to do in the area. 

Hey @Dana Boyd I love investing in San Bernardino County. My business partner has the majority of his 60 units in SB County. Depending on your budget, there are a TON of opportunities to maximize your investment. Would love to chat with you more about this. 

Hey @Elijah Householder, this is a really great question! First and foremost, congratulations on graduating from school man! Where did you go to college? LSU? CBU? or UCR?

Having grown up in Riverside and currently living in Redlands, I can tell you that both are perfect markets to grow your rental portfolio. I love Riverside because of the economic opportunities that are continuing to grow and the diverse economy within this region. Riverside is the larger of the two cities and the neighborhoods vary a lot. Rental incomes however are very similar. Both regions are highly desirable and have a good mix of SFRs and Multi-family properties. I think for your first rental, you should consider going with a city you know well and in a neighborhood you would feel comfortable living in, especially if this is a househack situation. Both regions are going to offer similar price ranges for properties, so really it's just going to come down to personal preference! 

Thank you @Account Closed! It was a very fun project. 

Investment Info:

Small multi-family (2-4 units) fix & flip investment in Riverside.

Purchase price: $240,000
Cash invested: $78,000
Sale price: $470,000

Fix and flip property in Downtown Riverside. A guy I was a huge fan of in real estate investing (Aaron Mazzrillo) was trying to wholesale this property out on Instagram for $260k. I contacted him, told him I could bring in the money to rehab the project along with the contracting crew to fix the place up and ended up doing the deal with him as a 50/50 partner. We split $96k on the deal. I had teamed up with another investor to bring in the cash for the rehab funds and split my half with him. Walked away with about $24,000 and didn't spend a dime on the project myself. All I did was put the deal together.

What made you interested in investing in this type of deal?

I ran acquisitions for a fix and flip firm since 2016. I love seeing the transformation in these old houses and bringing them back to life. Once that fix and flip firm decided to close in June of 2018, I went off on my own trying to find my first flip deal. This came up and I jumped at the opportunity to get a deal done with someone I really admired.

How did you find this deal and how did you negotiate it?

I followed Aaron Mazzrillo on Instagram and literally commented on every post he had. He ended up putting this deal out to wholesale it on Instagram and I messaged him about it. Ended up convincing him that partnering with me was his best option. I put together the rehab financing and the contracting crew and we went to work! Didn't spend a dime on fixing the place up either. Ended up bringing in a money partner who walked away with 25% of the profits.

How did you finance this deal?

Aaron held onto the purchase note $240,000 and I brought in a rehab partner to handle the money needed to fix the property. Aaron and I had a 50/50 split on the deal and my rehab partner and I had a 50/50 split on my end of the profits. We ended up splitting $96,000 when it was done. Aaron got $48,000 and I split my $48,000 with my rehab partner. I didn't have to spend a dime on the deal.

How did you add value to the deal?

I watched the property progress and kept everyone up to date about what was going on at the project. I helped put all of the money together. Because I knew Aaron didn't have a good contracting crew, I was able to bring in my crew I had used at the fix and flip firm I had worked at. I basically put the deal together and made sure it ran smoothly while also not spending any of my own money.

What was the outcome?

We sold the property for $65,000 more than we originally thought. When we first put the property under contract to purchase and fix and flip it, we thought the overall ARV was $425k. That jumped up significantly by the time we sold it!

Lessons learned? Challenges?

This deal went so well, Aaron and I partnered on another deal, then another, and now I work for Aaron and run acquisitions for him. We've become great friends and I love getting to work in such a great environment.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Hi @Jonathan K., great questions here. I've been helping some client's take advantage of this market and figuring out what the best move for them is during this COVID-19 pandemic. Dustin is right about the FHA loan. It may make more sense to go with a conventional loan, especially with your credit. You're going to get a better interest rate and potentially better terms using that. There are conventional loan programs out there right now that would allow you to capitalize on a low down payment. Would love to chat with you more to discuss how I might be able to help you achieve your goals of creating generational wealth through the power of real estate. I'll send you a message to discuss further!

Oh nice! I was just up in Crestline this past weekend trying to help a client find an investment property for himself. Looks like we'll be staying off the mountain for right now, but I love how gorgeous it is up there. Well can you tell me a little about what you're looking for? I worked for a property manager that had a portfolio of rentals in that area, so I'm familiar with it. Yucca Valley is a great place to find a good rental. 

What made you want  to choose that market for rentals? Just curious. I know the market up there and was helping a client purchase a multi-family unit up there. 

Hey @Marco Cruzatt, you are correct, several banking institutions have changed their lending requirements, however, there are still a lot of mortgage companies who are providing competitive programs such as FHA, VA, and low down payment Conventional loans.

FHA loans are good, but there are conventional loans out there right now that you could take advantage of that are better and have a similar minimum down payment structure, it just depends on if your credit is good enough. With a conventional loan, you can typically still get a fixer upper property and get a good deal. Definitely something to explore, especially in this current market.

As of right now, I have several client's looking for investment property all over Southern California, but the numbers have to work. Any time is the right time to buy real estate, especially if you can find a good deal. As of right now, housing prices have stayed pretty steady in the Southern California market due to the high demand and limited supply available. It may make sense to wait a little while before you pull the trigger on your first investment property, but now would be the perfect time to start getting all of your loan docs in, getting pre-approved, and start looking for something. Just because you're looking, does not mean you need to buy right away. But if you have everything ready to go, once you do find that deal, you can pull the trigger and get exactly what you want! 

You and I should have a chat about getting everything in line for you so that when the time does come for you to invest in a small multi-family property, you're ready to go!