All Forum Posts by: Gonzalo Hernandez

Quote from @Henry Lazerow:

$150 for long term repairs with maintenance combined. 

Make sure do leasing fees I do 3-4% gross rents.

 Darn, this is draining my cashflow!  LOL I'm negative! And I thought it was a good deal... the importance of working out the numbers huh? 

Quote from @Tim Herman:

@Gonzalo Hernandez can't comment on Spains mortgage. Here it is greater than 6.5 %. Feds are talking about raising interest rates again. So mortgage rates will follow. A fully amortized loan has most of the interest paid in the beginning. You have  downloaded a mortgage calculator. If you input my numbers you will see 172k as the amount of interest paid. 

 I've been reading and investigating on fees, and it's aprox 5% in Spain if I'm not mistaken. I will change the numbers to 5%. 

thanks Tim!

Quote from @Henry Lazerow:

Run $150 for cap/ex/maint on a single family rental. $50 a month is not high enough to even cover turnover costs. 

Thanks Henry! 
You mean 150$ for cap, 150$ for ex and 150$ for maint? Or 150$ for all 3?
Thank you for responding, I appreciate it! 

Quote from @Tim Herman:

@Gonzalo Hernandez if he sold to you with zero down and carried at 8% he would receive 172k in interest payments and you are offering 45k. Unless this is your mother not going to happen. Payment would be $770. Why would he accept $300 less. He might end up owing the IRS on imputed interest. Did you do repair and capex budgets. Both look low. My maintenance budget usually works out around $50-$100 per month per unit.

Hi @Tim Herman thank you for responding!
No, the budget is an estimate. i will take your suggestion to my numbers.

Total newb here, I got a question, where does the 172k come from?

When I said 105k and seller financed, I calculate 3.5% interest yearly. That got me the numbers of 150k. Anyway, I calculate badly LOL, because I am calculating the loan at 3.5% and getting 471$ monthly and a total interest of 64.7k, summing 169.7k.


let me try to explain it a bit better, I think  explained my self wrong.

I am not offering 45k on top of the 105k. I am offering the posibility to Win interest on lending the money. Which would land the home owner 45k in 30 years.  That means, my offer is 105k but I am giving you the option to finance your house to me and win 45k on the process. Overall, with financing and selling the house to me , the home owner would end up with 150k before taxes. 

I live in Spain, the market is not as evolved like in USA. 45K is a lot of cash here. That's why I use it in the "sales" pitch.

So you can imagine how much 45k is here, you can buy a nice house with that here, in some cities, not all. 

Hey guys! Hope you're all doing Good and business is goong well. Im New to BP and real estate, i've been reading alot and i had some questions maybe you guys could help me out with.

I want to buy an apartment as an investment. Ive been reading brandon's book and im sticking to the 200€ cashflow after expenses sugesstion he mentioned on the book.

So I am training how to calculate expenses and cashflow. I was hoping you guys could correct me and show me if something is wrong.

Here is a simulation:

This property gets $225 in monthly cashflow

Closing cost are covered by a PML on 42$ a month on 96 months (Miscellaneous). Loan (of closing costs) is 3k, and total payback in 96 months is 4.1k included interests.

Other info:

- got no savings, but a cashflow of 1000$ a month clean for the project.

-property is Good to go, no rehab needed.

-property has 4 rooms, and a garaje. I will rent the rooms 300$ each (Good price for the zone) and garaje 50$ extra (only 1 garaje slot) summing 1250$ monthly of fully occupied.

Regarding price of house and no down-payment. I'm working on creative finance, the deal is:

Seller financed operation, low monthly payments on the property but high debt. If I don't make payments for 3 month, seller has the right to kick me out and get his property back.

For example:

Property is worth 105k I pay him a total of 150k (financing interests included In the 150k) but In exchange for the extra 45k, he finances it at a really low monthly price on 30 years. He gets 45k earning out of a 105k property and I get cashflow monthly because of low monthly payments... Win - Win?

If I don't make monthly payments for 3months , he gets his house back, all legal and signed. (Will look further in to this) PD:I don't get my equity back either.

Alright so now, back to earth. I need criticism to see where I am going wrong. What do you guys think? Is it risky?are the numbers good?