All Forum Posts by: Luciano A.

@Remington Lyman

Great looking doors. When I have an empty property or have contractors working in them I normally put in my SimpliSafe alarm. I can use app to turn on and off alarm. I also use a camera that uses t-mobile prepaid SIM card to help give me real time video of the property. Hope contractor is willing to chip in and help because hard to prove they left open.

Best of luck

@Andres I. Cepeda

Hi Andres

I drove out there to look. While driving got pulled over by State Trooper. After telling him where I was going he told me that is one dangerous area. We chatted and he gave me some tips. After driving through the area myself I was still interested. However I don’t like how a neighborhood can be of all duplexes or fourplex. If you find a deal that makes sense let me know. I prefer to do 5 units or bigger but agree with you Killeen has good pricing compared to other places.

@Jeffery Scullark

After Harvey the flood map has drastically changed in Houston. As your insurance agent to run a history on the house to see if any previous flood claims has been made. I’d only buy a house in a flood zone that hadn’t been flood in the last few storms as an investment. I have had properties flood that were not in flood zone so being in flood zone or not is no guarantee. Investor getting flood insurance is higher than someone getting same policy as primary residence.

Best of luck

@Jase Machado

If not mistaken a HELOC is a lot cheaper to do than a refi in regards to costs. Also HELOC only charges you interest on what you use. If you buy a rental in all cash then refi if possible a BRRRR strategy then you pay off the heloc thus no payments on it until you buy second rental.

Being originally from CA I highly suggest you explore investing out of state. So many greater opportunities for cashflow. Just make sure you fly out before sinking your money into the deal.

I recently drove out to Killeen TX to look at a few multi family as I’ve been hearing there is great value there but some of the properties in the neighborhoods they were in I see risk if market turns. However broker was telling me many CA investors buying these up. Numbers on paper look great but in this business numbers and reality don’t always turn out as planned.

Best of luck

@Kyle Robichau

If you will go the commercial route in my experience will have a 20 year amortization with a 5 year balloon. Rates higher than traditional and if you buy fix then go to the bank make sure you have all documentation on what you did to the property. Some lenders will want to see what you have done before they will do cashout refi. If these are two separate properties with different tax IDs then I’d suggest going with traditional loan if you can as you will have better cashflow.

Who is providing you the numbers? Are these expenses proforma estimates or did seller give you a T-12 showing real expenses?

Just make sure the numbers are realistic because on commercial loans it’s those numbers that are used to help get value of the property. If you need any help analyzing just let me know.

Best of luck

@Ralph R. 

I no longer get traditional loans rather use portfolio loans and commercial loans to buy given my portfolio size. I am not aware Freddie or Fannie requiring 25% on small SFR or anything under 4 units. I know as you get closer to the 10 property limit some banks require extra reserves sitting in an account to be liquid but each bank has its own requirements.
Many of my investor friends here in Houston have found brokers that got them investment loans on their SFR with 20% down. Shopping around to find a bank or mortgage broker that can find lenders with only 20% down just takes a little patience. Now each bank has its own requirements with cash reserves and liquidity. I have found credit unions that will lend on investment properties to have given great terms as do some of the local regional banks. I wish I could get a traditional 30-year loan, even with 25% down at today's rates. I am sure there are many investors here on BP that can steer anyone interested in getting an investment type loan with only 20% down. 

You should find out what materials you would need and price it using HD or Lowes Commercial Dept. Sometimes if your order is large enough you can get a discount from their backroom. You should have contractors price only labor so you can see who is giving you best price for doing the work. Some contractors will give you one price because they will mark up on the materials. Others get cheaper materials like the cheap caulk, materials from side shops. 

Pm me and I can send you a contractor that I spoke with in CS who seemed knowledgeable and had good pricing.

On side note..... How far are you from the campus? Were you looking to attract college kids for the other units? My son goes there and bought a condo but found competition with the newer multi-family can be challenging but doable. They get people to sign leases and renew so much sooner than what I am use to. 

Best of luck

@Brian FitzGerald

I don’t have one buyers agent instead I’m up front with agents if they find a deal worth buying that I’m a reliable investor that will close if I say I’m going to buy. It’s these types of agents that I’m happy to let them have buyers commission to represent me but to sign a 3-6 month exclusive buyer agent agreement is stupid. But this type of relationship works if you show your a solid investor and not someone wasting peoples time.

The last few years I've bought deals in which I went directly to sellers agent. Told agent I'd like to have my closing cost paid or at least portion and sellers agent can have the rest for his time to draft the contract. I've bought a few multi-family like that as well as SFR. However this works primarily with investors who understand their market and the contracts used by RE agents.

@Erin Attwood

As @@Russell Brazil mentioned there are additional fees that come with being an agent. Monthly fees, dues, etc. I’ve taken classes and to be honest these courses are not designed for an investor to become a better investor. Most of these courses to teach a future agent how to dot their “i” and cross their “t” so that clients they represent get professional services. Most brokers and agents I know don’t understand investor mindset.

Another thing to consider once you have your license you have a higher level of scrutiny. You can’t tell a prospective tenant you are not the owner thus can’t do what many do and say they are just the property manager thus giving them a buffer with tenant.

Being an investor and finding deals doesn’t have to involve having license. So much info is available now days on different website that you can use to make sound judgement.

Best of luck

@Ralph R.

In the great state of Texas you can still find cashflowing deals with just 20% down. But I agree the banks reserve requirements can sometimes be challenging for someone just starting out but getting a 30 yr low interest rate as conventional is safer in this market then going with a portfolio loan that has a 5 yr balloon. I myself no longer qualify for traditional loans do to my portfolio so use LOC and cash to purchase deals then refi into a commercial loan from a local bank but for someone starting if they can lock in a lower rate would be more advantageous and help them keep and manage what they have built in a down market.