All Forum Posts by: Carloz Gil

Questions for you BPers:

Found this off market deal we'd really like to pursue in Pittsburgh PA. It is a portfolio of 10 properties all which are occupied and are cash flowing but the purchase price is at $630k. Naturally we did not think we could swing that but through some creative financing, we will be able to get 100% of the purchase price. All we are asked is to do is cover the closing costs. Even though we have some funds available to invest (skin in the game so to speak) we are looking at about $30k in closing costs which is like another deal all together.

What creative ways have you all found to cover closing costs? Or what do you all suggest we do with a scenario like this?

Hey there BP community. 

I've reached out on the forums a couple of times and when I get a response I also get a comment on my musical career. As I have listed in my profile, I am an orchestral musician and still perform to this day. I've seen some of you are musicians as well but for those of you who are not (or once were) and are curious how in the world can a trumpet player make it in the real estate business, I've written a blog post on my life as a musician and how it translates to real estate. Feel free to check it out and share your comments with me. I think you will see my profession shares some common attributes with yours.

https://carlozgil.com/from-musician-to-investor/

If you are a musician or once were, reach out! I'd love to hear what your experience was like and how you got in to real estate.

@Jason Carter Carrick is an up and coming neighborhood that fits your criteria. Swissvale and Edgewood are also good choices for lower priced homes. Troy Hill and Millvale are hot areas for investors but they might not be as cheap.

BP community - pleas share with me your pro forma and/or how you analyze a deal.

I love the BiggerPockets calculations, don't get me wrong. I am trying to understand the numbers a bit better and I do better by plugging in formulas and seeing the numbers change.

I am especially interested in: 

-the layout of your pro forma

-the percentage you estimate in vacancy, repair/maint., cap ex, misc

-rough estimate for utilities etc

I know every market is different but thats why I am asking. I am curious as to how the numbers fluctuate accordingly. 

Hi Crystal - welcome to the world of Real Estate! You have a couple of options. If you are just starting I would stay away from conventional loans. That is, unless you have a hefty chunk saved up for a down payment, but by the looks of it, seems unlikely. One option people look at is an FHA loan. The down payment is typical 3.5% but you are faced with some requirements. The most important being that you have to live in the property. Other pertain to the condition of the property. This strategy works will for multi family (I.e. duplex, triplex etc) You can try hard money lending as well. However, be warned that their interest rates are higher so you probably want to refinance soon that way you don’t get stuck with the 7%+ interest rate. And my favorite, partner up with people! If you’ve analyzed a good deal, share it with others. Perhaps you won’t get the investor who will lend you the entire sum of the purchase price but they could lend for a down payment depending on the deal There are many more options out there but those are a few to get you thinking. Do some research.

Could I hear your opinions/knowledge on Community Land Trust properties?

Do you like them? Are they worth it? What are the exit strategies like?

We have found a couple of properties that the purchase price is dirty cheap for a great house and in a great location. This is perhaps more for living than for investing. I know there are some requirements (which we meet) and additional fees associated with these properties but the price is so good even the monthly payment is worth it.

@Dave Skow thanks for the heads up. It it possible to refinance FHA and not be stuck with that mortgage insurance?

Thanks again @David Hurt!

@Edward B. Thanks for the advice, this makes sense. Quick fixes are not what I am looking for but like I stated, beside the debt, the age and number of lines open are negatively impacting the score. I am obviously trying to stay away from hard inquires as a result but I also want to be pro active. Hence, why I am asking questions.

@Caleb Heimsoth thanks for addressing my other question. I have come across deals in the Pittsburgh market that cashflow enough to off set "higher" interest rates. But if I can lowered them by increasing my score, why not! XD

Thanks @Linda S. Does requesting an increase affect the score? This may end up being our next move (beside paying down the debt).

@Randy E. That makes sense. But as a "first timer", would you still look for properties with electrical/plumbing issues?

Wow @Dawn P.! Good for yall. So I take it you rented the place and not flipped it?

Thanks @Caleb Heimsoth. I have questions regarding out of state investing but that is for another forum :)

@Maya Torres, I agree. I would not buy stainless appliances. Although in pittsburgh they are a hott commodity.

@Jorge De Jesus thanks for the advice. Do you primarily do multi?

Perfect @Anthony R. Bullet points are much appreciated.

@Rachel H. I am very curious about mobile homes. I might reach out if its ok. I'd like to pick your brain.  

@Fradel Schaechter Thank you for the recommendations! I have read Rich Dad Poor Dad but I have not read total money makeover. Definitely going to add it to the list. 

@David Hurt I am on your team as far as putting the usual expenses on credit card but that is exactly why i fear that my available credit will always be on the lower side unless we *sigh* get more credit. We pay them off every month and I think once debt is paid maybe the ratio will be different.