All Forum Posts by: Daniel Tanasa

Quote from @Amir Khan:

Quote from @Daniel Tanasa:

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $161,000

I bought this property out of the MLS. It's been sitting on market for over 80 days. Was listed for 240k but it needed a bit of cleaning and touch ups for the messy rehab that was done. I negotiated it down to 161k cash. Closed with hard money. Cleaned and painted it for 5k. ARV came back at 255k, I refinanced and pulled all my money out. Is rented for 1800 and is just breaking even. But I got 75k in equity in the deal for 0$ out of pocket. So I still count it as a great deal.

Congratulations! Yes well done. When you enter commercial REI, it gets even better. You control the improvements in NOI and therefore control the value of the property. You can BRRRR the same property many times...

Thank you!

That's the plan soon enough. 

Quote from @Austin McDonald:

Hey Daniel! Learning/aspiring RE investor here...I'm struggling to see how you were able to be out of the deal with 75k in equity with no $ out of pocket? 

What LTV for your refinance? Even at 90%, wouldn't that only be 230k to pay off the 166k loan...64k (without any closing costs). What am I overlooking?

P.S I hope this doesn't come off as insulting, just trying to learn!
 

 Hello Austin.

The Appraisal came back at 255k. I didn't pull any of the equity out of the deal. I did a bit over 70% LTV, which covered my hard money loan and my closing costs. My new loan amount is almost 180k after I rolled in all the closing costs. And the difference between 255k and 180k is the 75k in equity I was talking about.

I did a rate and term refinance, because I didn't have any money in the deal from the start. My lender finances 100% of the purchase price and 100% of the refinance if you buy bellow 75% of ARV-Repairs. Maybe that's where I was not clear, when I wrote I pulled my money out of it. I actually never had any money in the deal. So the 75k is just equity in the deal, but I didn't pull that money out. It was a 0$ of pocket deal, with a sizable amount of equity left in it.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $161,000

I bought this property out of the MLS. It's been sitting on market for over 80 days. Was listed for 240k but it needed a bit of cleaning and touch ups for the messy rehab that was done. I negotiated it down to 161k cash. Closed with hard money. Cleaned and painted it for 5k. ARV came back at 255k, I refinanced and pulled all my money out. Is rented for 1800 and is just breaking even. But I got 75k in equity in the deal for 0$ out of pocket. So I still count it as a great deal.

Investment Info:

Single-family residence buy & hold investment in Katy.

Purchase price: $160,000
Cash invested: $8,000

This property was bought for 160k from a wholeseller. I got it with a hard money loan that gave me 160k to purchase the house and 20k for the rehab. The appraisal came in at 242k, so I only needed to came up with the closing costs. The Hard money lender gave me 75% of 242k which is a bit over 180k, my purchase price and my rehab cost.
After rehab I rented it for $2200 and is cashflowing about $300/month.

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

There was a funny story when we went to see the house. There were 5 investors in front of the house when I got there, all trying to see and buy the house. When the wholeseller finally gave us the green light to go in we all started to walk the property. When we got in the living area, there was a fire in the fireplace and someone was sleeping in front of it. It was a real mess inside. All the furniture was directly on the slab, all carpet was taken out and a lot of trash all around.

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

I walk to the back of the house and then to one of the bedrooms. Then I hear the person that was sleeping in the living room screaming and swearing, "WTF are you doing in my house, get the F**k out, I will shoot you!". Hearing that we all got out as soon as possible. Seems like that was the seller's boyfriend and he didn't know about the showing that was schedule for that day . Anyway, that being the case, we didn't have time to look around much.

How did you finance this deal?

The asking price was 170k and since I didn't see much I offered 160k, knowing that most likely I won't get it bellow asking.
But seems like everybody got scared of the house and of the situation and none placed an offer. And I got it for 10k less than I was planning to pay for it when I went for the showing.
I attached bellow some before and after photos.

What was the outcome?

Moral of the story. From any bad situation can result a great outcome.

Go out there and make deals happen.

Quote from @Miguel Nambo:

Hello everyone, My name is Miguel and I'm an aspiring real estate investor. My goal is to learn the basics and ask questions to know more. My plan is to learn to flip houses first then go on to rentals. I hope to learn loads from everyone here. 

Hello Miguel,

I am a local investor and agent in Houston market. I would be happy to help you with your questions. First you need to start with some more specific questions for for people like me in the form to be able to answer them and help you out. 

Quote from @Wale Lawal:

@Daniel Tanasa

Congratulations!

Seller financing rises and falls in popularity along with the overall tightness of the credit market. During times when banks are risk-averse and reluctant to lend money to any but the most creditworthy borrowers, seller financing can make it possible for many more people to buy homes. Seller financing may also make it easier to sell a home. Conversely, when the credit markets are loose, and banks are enthusiastically lending money, seller financing has less appeal.

All the best!

Thank you Wale, 
That’s well said, now is a good time for anything creative that allows you to get a property without going to a bank. Especially if you’re able to get a low interest seller financing or a low interest subject to.
And the good thing is that more and more sellers are interested in doing it to because they can get much more money for their houses. 

All the best! 

Quote from @Joe Villeneuve:

Nice job

 Thank you Joe! 

Quote from @Edwin Lopez:

Hello everyone, this is my first post on here (BP). Im excited about the future and looking for opportunities to buy my first buy and hold property. 

I'm looking for properties in Houston and surrounding areas. So if anyone wants to share some info I'm looking for good (real estate agents, lenders, contractor, and home inspectors) people.

single family homes that are turnkey is what I want ideally, but duplex with minor repairs needed or even single family homes with needed repairs is ok.  

If anyone would like to share any info? It would be greatly appreciated!!

Thanks in advance

 Hello Edwin,

I am an investor and an agent in Houston area and especially the West and North West Suburbs.  I would love to help you get in your first deal. Feel Free to reach out if you need any information or advice about where you should start. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $241,000
Cash invested: $20,000

I bought this house Seller Financing with 2.6% interest amortized over 30 years with a 5 years balloon. The monthly payment PITI is about 1400 and I am expecting to rent it for about 2200 for a section 8 tenant. So I will probably make about $500/month in Net Cashflow. The house only needed only paint to make it nice and clean for next tenants. So considering the 20k needed to get into the deal and the $500/month in Net Cashflow, this deal is bringing a pretty good 30% CoC ROI.

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

I found the Deal on the market and reached out to the Agent

How did you finance this deal?

Seller Financing

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

I represented myself as a buyer and also got a commission out of this sell.

Quote from @Ryan Fox:

Hey thanks for your help! We refinanced over a year ago and got a 3.75% interest rate. It's a 30 year fixed. We owe $275k on it and have $175k in equity. The lender we talked to said the HELOC would be around 12%. He said that the low interest fixed and the high interest HELOC would end up being more than if we did a cash out refinance and had just one payment at around a 6% rate. And he said on the refinance we could take 80% of the home value. So is that 80% of the $175k equity, or 80% of the full value of $450k?

 In this scenario I think your bank is probably right. You have quite a bit of equity in the house and since you're not looking to use that capital for a short period of time and put it back, probably the Refinance is a better option, 6% is a pretty good rate at this market if you can get that, also you always have the option to buy it down. The 80% is out of the full value of the house. So you'll be able to get a loan for about 360k and have about 80k cash at closing after you pay the closing costs.