All Forum Posts by: Norberto Villanueva

It depends on where you are financially but, why not whatever works for the Seller? This being said, done right, wholesaling and flipping are great fast cash strategies, but not so much for retirement, where rentals reign supreme. All the best!

Beginners and veterans alike have come to know this as a place where real estate happens for real. A long-time member and living testament to that fact, I have come to love BiggerPockets' quality network of real estate professionals. Nice work, Brandon!

Alas, iBuyers, Zillow, REALTOR.com, Zillow, RentalBeast, NAR v DOJ, wholesaler licensing...IYKYK, a lot has happened in the industry I love, but daisy chains? Here?! None of that, please.

Nothing new, certain wholesaling methods (ahem, Sub-to!) brought significant, shall we say, less-than-desirable change to the game, which have precipitated nothing less than whole licensing requirements in a growing number of states. Witnessing that change in the BP forums, I'm here to stand in front of the freight train.

Obtaining a Wisconsin loan solicitor license in 1997, I've been living in Colorado since 1999. Finishing a short IT career in 2003, I became a licensed real estate broker in 2002 and, investor-focused since 2017, have dealt with a fair share of buyers, sellers, agents, wholesalers, and yahoos. With little delight, I saw a massive change happening (licensing) to the wholesaler’s business model years ago.

Still, I missed a step when recently responding to a "deal" not too far from the neighborhood where I grew up, graduated from high school, and joined the Navy from in the mid-80s. Partly because how great to engineer a virtual 7-figure deal back home 40 years later, but also because it was posted in this coveted space, I asked the wrong question of the poster.

Before explaining, please take a minute to consider, "Are you the contract holder/POC for this deal?" Is it the wrong or right question to ask? The answer? Maybe. A "POC" may or may not be the Seller/contract holder, or their mandate, i.e., the ONLY ones with decision-making authority in any transaction. In this case, fifteen hours after directly asking with no answer other than "you'll have to ask the city", they don't seem to be.

Clearly the “POC” of self-interest, you might be saying, just another yahoo. No big deal. I beg to differ. The first thing I did was canvass my peeps for anyone with the capacity to take something this size down. Finding none, I then reached out to an institutional buyer I work with who is also from that neck of the woods. A lot apprehensive about the neighborhood, if these folks know one thing, it's how to count. Immediately seeing the 8 Cap at a 16% vacancy, they bit, only to discover they'd seen the deal a “year or two before”. Recalling a rent-control situation hampering profitability, they needed to pause until they found out for sure. Needless to say, there is no deal, just crickets and possibly, just another bridge burned, for how many times can you waste a whale's time and get a callback?

Another lesson learned, I'm here to plead, no daisy chains please. Change is fine, even expected, but the last thing we need in this industry is burned bridges and more legislation.

Nice work! Not there, but I work with an institutional investor that is buying in Hilton Head, Folly Beach, and Camden, SC on a non-exclusive basis. Let's connect for future reference.

Hello Dylan! Spot on recognizing the challenges of investing abroad, I recommend starting out in your very nice and large backyard, where, with your background in HVAC and presumably construction, there will be plenty to sharpen your pencil, build systems, and form partnerships to venture out with. 

Here are a few of my own to start with. Treat what you see and hear on national news outlets as golden nuggets, then execute knowing real estate is hyper-local, so know the market. Understand and stick to the MAO's golden rule: pay no more than 70 - 75% of ARV all-in so there's meat on the bone for wholesalers and flippers to work with. A little but not much different are buy-and-hold investors who, in it for the long-term, are more focused on potential cash flow (NOI, Cap Rate, ROE) and may be willing to reach 80% - 100% of ARV depending on these and several other factors, not the least of which is the salesmanship it will take to help them recognize the good deal you see. Hope that helps. Feel free to connect. A believer in reciprocity, I don't love gurus.

On a related note, I'm working with an SFR-focused institutional buy-and-hold investor deploying capital in Denver and in select submarkets of 19 other states. Let's discuss how we might build together.

Do you have a T-12, Proforma, and/or an Offering Memorandum to share?

Think about it and wonder, be they a tenant, government, or regulatory agency, who hates a landlord that puts people before profits?

How to, or even whether to finance, or refinance, needs more details to answer including ARV and, calculated by dividing the net operating income (NOI) by the total debt service, the projected income and expenses to determine the Debt Service Coverage Ratio (DSCR).

Typically 1.25 or better, it's possible to get it done with lower, depending on other factors that include the operator's three C's of credit: Capacity, Collateral (think location, location, location), and Character.

Given a clearer picture of these and other factors, the Buy, Rehab, Rent, Refinance, Repeat (BRRR) method is another option. Feel free to reach out.

Excellent. Regularly underwriting for equity in select markets nationwide, along with long-term and short-term rental cash flow, I use both the platforms you mentioned and Rabbu.com, and am grateful for another data point. Thanks for posting.

Quote from @James Wise:

Quote from @Norberto Villanueva:

There I was thinking some people actually experience a personal or financial setback that legitimately prevents them from paying what are often, but not always, the Section 8 slumlords that targeted them disguised as decent landlords. Can you imagine the oblivion?

 Pay your bills bro.

There but for grace go I, bro

There I was thinking some people actually experience a personal or financial setback that legitimately prevents them from paying what are often, but not always, the Section 8 slumlords that targeted them disguised as decent landlords. Can you imagine the oblivion?