All Forum Posts by: David Wright

@Brittany Fife

Brittany, I guess it would depend on how much profit you wants vs how much trouble you don't want.  If the goal is to one day sell it within 3 years....ask yourself; what investor would buy it in that area?  There is definitely income in all areas, good and bad, but the question is; how much is your "peace of mind" worth.  Just my humble opinion.

I wish you the best Brittany.

@Monica Abeyta

Hello Monica much success in your new real estate investing business.

From a commercial lender prospective (which is what I do) what you have to be concerned about in addition to the right market and location, is financing.

"Normally"  when you are new to real estate investing the typical guidelines for a "newbie" are: 30% Down Payment + Closing Cost + Reserves.   Many lenders will promote and advertise their most attractive programs such as; 100% financing, knowing that about 100% of newbies will never qualify.

Now that is not to say you can not find a lender to give you 90% LTV (10% down payment), but the likely hood is not great with no experience. Therefore, my advice is to prepare for the 30% down payment + closing cost and reserves and if you 90% great.

I wish you the very best.

@Joshua Davies  I am a commercial lender and I can not speak for the lender who declined your 2nd loan, but this is what I see from banks and credit unions all the time.  Below are a few reasons why your loan was most likely declined:

1.  Most banks and credit unions (even if they do them) do not like doing investment property loans.  Therefore, many times they will have very tight and unrealistic guidelines that may not make sense, because they really do not want to focus on that space.  Banks are into deposits not real estate.

2. The decline based on "not getting the numbers to work" and "out of state borrowers", points back to what I said in number 1 above.  If banks and credit unions do not want to do real estate investment loans they will give you a reason, whither it makes sense or not.

3.  Most banks have a limited on how many loans they will do with a real estate investor and once that investor reaches that limit they are pretty much done.  No more loans for investor.

4.  Having said all that, I tell my real estate investors if you can get a bank or credit union real estate investment loan do it, because the rates and terms will be better than what alternative lenders, such as private investors and hard money lenders offer.  But again remember, they want deposits not loans, but they will do some loans to get deposits, but they are major draw backs as I mentioned here.

I hope this helps and I wish you much success.   

@Stefano Mannino Below is a list I made and used when selecting and hiring a virtual assistant. This is what I instructed my VA to do everyday. Read below and use as you like:

MARKETING FOR "CASH BUYERS" (THIS IS THE NUMBER ONE PRIORITY OF ALL)

1. Post Listings of Properties Under Contract (you should have a property under contract) To the Following Websites: 

Craigslist

Backpage

Oodle

Cast

Kijiji

Zillow

Bigger Pockets.com (under Market Place ONLY)

And to any other Sites you know may be good to post on.

2. Search Craigslist , Backpage, Oodle, Cast, Kijiji, and any other sites you know for cash buyers and enter their info into your CRM.

3. Enter buyer leads from Google Adwords, Find Motivated Cash Buyers Now, and other sources I give you into your CRM

4.Search for cash buyer leads and enter into Buyers section in CRM

5. Use Internet Syndication to blast listing across internet (Extremely Important)

6. Send broadcast emails to our buyers list 

7. Enter Buyers List in CRM for Texting, emailing, and voice-mail. 

Mauricio, a few tips that will hopefully help you:

1.  Take a wholesale training course.  There are many free ones and paid versions.

2. "Normally" if a property is listed on the MLS it is not a good property for a wholesale deal. The profit margins are not as great when a realtor is involved. Remember, they have to get paid as well normally 6% of sales price. One of the main goals of a wholesaler is to get the property under contract BEFORE a realtor does, and that is why many realtors do not like wholesalers (they are some other reasons as well). Many realtors see us as their competition.

3.  You stated you are looking to purchase the property, the main purpose of wholesaling is that you do not have to purchase the property.  You simply need to get the property under contract and have a controlling interested in the property without purchasing it and than assign the property hopefully to a cash buyer.  That is why I listed #1 as  "take a wholesale training course".

I hope these tips help you out.  Much success.

Hello Stefan welcome to real estate investing.

You asked "How Can I turn the sale of my High Priced Bay Area Home into a Win-Win Real Estate Investment strategy?"  Educated yourself, first and foremost.  Before you sale or purchase any property take a real estate investing course.  

Opinion and tips are great but they are based on what normally worked for that investor, and that is great, because you can learn a lot, but not in an organized way like a course.  

That is my humble advise.  I wish you much success.

@Aaron Hunt If you are considering leveraging yourself with financing from a commercial lender like me, keep in mind the more experience you have with MFHs the better the rates and terms will be.  My advice is to get a good relationship with a commercial lender and add them to your team.  Much success.

Very good question Ondrej.  When to get a property manager for many investors comes down to how you value your time.  How much is your time worth is the question.

When looking  for a property manager one of the most important questions you need to ask yourself is; How do you know they are doing what they say they are doing and/or have done?  Therefore, make sure that any property manager you select has a tracking system you can verify, that they can explain, and that you can trust.

I hope this helps.

Much success!

@ Garrett Foster   There are few alternative commercial lenders that will allow you to use a seller carry back.   We have a few lenders that do this.  But it is a case by case basis, but it can be done. 

Its not easy...lol...