All Forum Posts by: Charles Carillo

@Account Closed

How are you finding these PMs? Is it from referrals? Have you reviewed their reports and cross referenced bank accounts? Tell them that any repairs over $X ($250?) need to be confirmed by you first.

When was the last time you visited the properties? I would check to make sure the work has been completed that you paid for and find out what the actual condition is of your properties.

$925 for a hot water heater is crazy. Lowes.com has a 40 gallon electric hot water heater for $379 (~$400 with tax). That is $525 worth of "fees". It would have cost less to have your attorney install it. I would start confirming any expenses over that set amount and then start getting additional bids for work while you look for another PM that you find via referral (from another local investor).

@Brandon Lee Hicks

I would focus on increasing your income number one. Yes, there are creative financing routes out there but they always require you to put up some money...even if it is only for corporation setup, due diligence, inspections etc. In today's heated real estate market, I doubt there are many 0% down deals being done, unless the buyer has built a substantial relationship with the seller. That being said if you seek out properties that are ripe for creative financing while working to increase your income; you should be able to speed up the timeline for your first investment.

@Eliseo Montes

It is great to have such a trustworthy friend but it is interesting that they loaned the money to you without you having even a business plan. If you had not received the money yet, I would have suggested they loan the money to you by financing properties for you. For example; you are flipping a home and they finance the property 100% and provide funds for rehab or you purchase a property to rent and they loan you 100% of the purchase price. It would have been much cleaner and safer for them.

With that being said; you need to figure out what strategy you want to pursue and then you need to start educating yourself. One benefit of having minimal money when starting a business is that you need to keep expenses low. When you have money and are starting a business; it is important to keep verifying if you need to take on these expenses. Similar to time and Parkinson's Law; "work expands so as to fill the time available for its completion". I would get educated before using any of the money and make sure that the money only gets utilized for actual real estate investing.

@Maricruz Medina

We work with a couple lenders that might be able to help you...DM ME.

@Anne Pitkin

DM Me and I will suggest an underwriter. I am from Avon; I know that area very well. In my experiences; most accountants and real estate agents do not know how to underwrite commercial multifamily.

@Anne Pitkin

We have only discussed the purchase price and financing. You need to run the underwriting on the properties and make sure to adjust the current taxes with your new taxes after purchase.

@Cameron Rouse

You can get approved being self-employed with tax returns (usually 2 years as your lender told you) or you can work with a "No Doc" lender that does not require income verification for the loan.

@Raul Velazquez Jr

I would not file a eviction but the chances of a tenant paying you and moving out on the same day would definitely be the first for me but if they are not paying on time; it is best that they leave without an eviction. 

@Supada L.

This is not just a problem for their car but a lawsuit ready to happen and if your insurance learns of this; they are not going to renew your policy unless this is rectified. However; you might not need to replace the whole driveway; get other bids on just replacing part of it but the correct way of doing it is to redo the whole thing. Did you see this when you purchased the property?

@Anne Pitkin

Always speak to an accountant and attorney before entering into seller financing deals.

What the seller purchased the properties for is not a factor in the equation; what they owe on the properties does matter (if anything). It sounds like they do not owe anything which makes seller financing much cleaner. Typically with seller financing they are not waiting 30 years for a payoff. We might structure this; 10%-15% down (so they know you are serious), ~5% interest only paid monthly, 30 year amortization with a balloon in 5, 7 or 10 years. No prepayment penalty.

Our goal would be to purchase the property with the above terms; add value to the property over the next 4-6 years and refinance the owner out with long-term, fixed, non-recourse, agency debt.

Adding value to the property is key to not going into your pocket when you refinance. You really need to boost the property's value by 15%-20%+ so when you refinance and they are offering only a 70% LTV, you do not have to make up the difference. Of course if you can increase the value by more, you can put some money in your pocket. You are not taxed on any money you pull out of the property from a refinance.