All Forum Posts by: Diego A.

Hi David,

1. I would do the condo-ing as David, even doing the replatting, they are sharing space they might need to form an association at the end, so going to that from the beginning seems to be the right decision. Though you have to look at the legal cost. I have worked with a few RE Lawyers, and this does not seem that complex. The main concern is passing the responsibility of the association. At the beginning, you will need to be the association board until all condos are sold and they form their own board.

2. I would say with the little that I know about your situation, I would also recommend to hold if you don't need to sell. What I found beneficiary in your situation is to work with a realtor to manager some aspects of the relationship with your tenants, without being a property manager. I have seen and recommended to most of my investors that solution which help you reduce the stress, without the needs to go to a property management solution. 

I would suggest you go an interview a few lenders, they have many different programs that can help you here.

I can share with you the ones I recommend in Dallas.

You have to make sure you check the market your property is. And making sure that you start right now this Is the best time to sell.

start talking with some realtor to see who convinces the best tolist your property.

We can talk more of you would like to.

I am in Dallas two and I am managing my own investments myself too since 2017. I have a couple of other investors doing this too and we meet often to share knowledge, you may join us if close.

By the way, I will follow all recommendations as described by other. 

All comments are valid, but a few things to consider here:

First of all, I am not an attorney, so this is not a legal advice, only options based on my experience.

-  Subject-to is not being accepted by any lender at the current rates. Texas is good in the sense that there are possible options to do this anyways without notifying the lender, so here it comes the second consideration, in which the seller has to have assurance that you have the funds. 

When a seller is in a transaction, the idea is to dispose the property, in a subject-to, he is still at risk and that responsibility on working with you is on him, which makes it a bit discouraging for the seller depending on the situation.

I have only seen this happening when the seller was not going out of the city and they were investors.

- Contacting to the seller directly is un-ethical, this is not because you are by-passing the agent but because the seller is not a real estate professional, and he might disclouse things that affects him on the deal that will make the negotiation tougher for the seller, in which case it will be a lose-lose situation for him.

- You should look at talking with a real estate attorney if you want to know more. Title companies generally won't discuss this matter with general public, but they will speak with an agent because the agent is who brings them business. 

- You should consider working with an agent that is experienced, so that you don't work alone. At the end this is a business transaction and for such as much support as possible is better. They will be able to discuss with a few attorneys and give you possible advise in the situation and direct you to an real estate attorney that will be able to answer your questions. An agent has access to multiple mortgage brokers as well. Currently the loan market due to the interest rates have come with many different programs that can help you as well. Don't stick with one but try a few.

Hi Shivani,

First of all, the number chosen will need to align to your risk tolerance.

Now coming to your question, when looking at distress homes the Cap Ex won't work because of the condition. 

When looking at this you should focus first on the ARV though you may not think on selling that will give you an understanding if you will have a return After the rehab.

Then you look at the cap rate, this is important for the long time investing and It will depend on what you are looking for (Long Term return, cash flow).

An last is cash on cash that will help you to get an idea on how your money is working.

Dallas is a hot market for investors and these are the numbers that I am seeing:

ARV: ~80% (Ideal this Number should be 70% to 75%)

Cap Rate: ~5% to 6% (Ideal this Number should be over 7%)

ConC: ~4% (Ideal this should be 6%)

Trying to get the ideal number could take you a while.

MF with 2 to 4 are completely different than 6, 8 and above. If you haven't done any Operations and rehab of MF start small would be my recommendation.

Congratulations on your move to real estate investment.

You don't need to have a 20% down for a conventional loan. You can just put 5% though the number needs to work as you will need to pay a PMI.

1. I would say as you are first time investor look at places that are close to you so you can manage the property and growing. 

2. I loved Tyler but I am not sure if it is growing. Possible AirBnB may work over there but you should do a market analysis.

3. This will depend on your expertise and what you are willing to sacrifice. There are many side hustles, and there is no "one fit all".

Real estate investment is a long run and if you like to go there is neither is easy nor passive.

What is your budget and location within DFW, for small development we have to look for some builder close by.

This is not easy to do to be honest, mainly when you are out of state, I have built teams for startups remotely and it was hard though with a good accountability and ownership you to things done. The difference is that the physical assets which make it harder for quality control.

In average, it took me about a year to build a strong team, with a lot of hands-on involvement, but I spent a lot of time looking at the work.

Currently, I am building a team for my portfolio in Dallas that I have with some investors, but I am here so I can look at the work closely.

What I have seen is that is better to have one or two employees in a payroll and then all others as contractors.

Hi Alfred,

I can connect you with some land developments, but I would like to know more what you are planning to do.

There are different aspect of land development, one home, up to 10 homes, Multi-Family, and big subdivisions > 10 homes.

In each case it will be a different developer to help you out.