All Forum Posts by: Henry Salinas

RSVP for myself and @DiannaSilva. We are new investors and looking forward to learning and networking!

@Account Closed , I'm borrowing money from friends and family that trust me, support me and offered me the money to get started. Even though it may take me a while to accumulate that down payment on my own, I can get started in investing right now with borrowed money. Borrowed money is an excellent tool for leverage and gives me an incentive to work harder to succeed. If all else fails, I would rather sell the 140k house for 25k to pay the money back and get left with the burden. I would never say screw everyone I did not lose anything. My good credit and my integrity is on the line. Besides, aren't all mortgages borrowed money too? How can you justify which borrowed money is ok and which one isn't?

@Karen Margrave , yes I have already borrowed 25k from friends and family. I'm looking to purchase a home for around 80k. And I still need to borrow another 10-15k for rehab costs. The comps in the location I'm looking are around 140-160k.

@Karen Margrave , I'm a new investor, and I too have borrowed money for a down payment from friends and family to do a rehab flip (as suggested in some bigger pockets podcasts). How would you recommend that I go about using the borrowed money for a rehab flip?

The appreciation value (or forced appreciation value), which means the property will be "comparable" to the 4 bedrooms in the neighborhood as oppose to the last comp of two bedrooms. You will usually automatic raise value to a house by adding rooms to a property or adding square footage.

As far as getting permits for the revised rooms, as @Chris Sweeney says, just get them inspected to see if they are up to code, which is great if they are. But if they are not, as I said before, get a contractor to redo it right with proper permits.

But if got it at a good price and you are happy with the Return in your investment as a 2 bedroom. Your new buyer may be happy to purchase the 2 bedroom home with the bonus rooms, kinda like you where happy about the bonus rooms when you bought it, right!?

Thanks Joel,

I figure that might be the case. My intention is to find a flip property, but I am new to the game, so I must be conservative in my offers.

Now about your advise in the "look long and hard and make offers", what's the best way to make those conservative offers?

I've been looking and studying deals so the next step is to actually make the offer. Should I submit my offers as the investor or should I always use an agent to submit the offers for me?

How tolerable are agents on submitting multiple offers that may not get accepted?

@Marie S.

I have used a thermo fogger to quickly remove odors permanently. I bought mine at a commercial carpet cleaning supply store for about $30. A thermo fogger heats up a deodorizer oil and expels it in a fog/smoke manner which penetrates in the floor and walls for a long lasting fresh smell. I like the orange smell, but there are lemon odors, neutral deodorizers (like the new car smell). This is also great for cigarette odor damaged homes.

I would guess that this would be a perfect investment property. If you buy it as-is, that means your paying the 2 bedroom price for a "would-be" 4 bedroom property. The house is already laid out for 4 bedrooms. You would just haveto start all over with actual permits, thus boosting the appreciation value, or After repair value (ARV).

Hey Justin,

Welcome!

Im from the bay area, Cali. Im a newbie in investing. My brother in law lives in Tracy Ca and advised me to get into the Central Valley market. I think youre going to do great there!