All Forum Posts by: Moises R Cosme

Brandon, 

1. Have you exploited your sphere of influence?

2. How are you networking?  BSI is a great networking organization & will return a much better return than any online marketing venture.

3. Have you attended your local REIAA?

I have been an Agent for a long time, I have never paid for online leads; all my business came from networking.  

1. Calling the building department will tell you how the building is designated and will predicate your CapEx.

2. Markets shift continuously, a value from last year is not relevant

3. Real estate follows macro trends generally, but in my experience asset value is 90% based on the neighborhood. 

In short, I understand that you are looking for an answer that is derived from underlying demographic information but I am telling you that looking at it that way is incorrect.  Make the purchase based on what is going on in the neighborhood over the last 90 to 180 days, looking at it any other way leads to a value that will likely be out of line.

As an example, my partner represented a home owner in Cambridge, MA; an A market with excellent underlying demo trends, high median income, high median prices etc.  Cambridge has every positive metric you can ever imagine.  He listed the property for $435/sq foot, the market at that time for comparable properties was $475/sq foot (he listed at a discount intentionally in order to drive Buyer interest).  The property eventually sold for $415/sq foot even though a comparable property a quarter of a mile a way sold for $495/sq foot.  What accounts for this discrepancy?  The property happened to be on the 'lesser' side of that particular street, and there were factors that he failed to take into account that were known to Buyers in the market and those Buyers acted accordingly.  

@Aaron Singer I am glad my post helped!!!  Happy 4th & congrats again!!! 

This is awesome!!!

Dale, 

I call the non corps first & then call the corps (takes time to locate the owners). 

David, 

This is such a fantastic question!!!  

Here's how we look at these situations:

1. We do not care what someone else paid, we only care what we think the property is worth in the market 

1a. We run two values: 'as is', 'after renovation value'; our offer will always be based on the ARV - minus cost to get there

2. We focus on the asset value first & the cash flow second (the asset value determines your equity & the equity is what saves you if everything goes awry)

3. We always discount cash flow to account for vacancies

4. We always account for CapEx

I hope this helps!!!  Happy 4th!!!

Leland, 

Call a local loan officer or ANY licensed loan officer and run your scenario by them; they will tell you exactly what you do and do not qualify for.  Do not be afraid - loan officers love helping first time home buyers and borrowers like you are a big part of their business strategy (pipe lining!!).  

You will only get direct and clear answers to your questions by talking to someone that can actually get you a mortgage.  I know it is nerve racking to know that you may be rejected, but you will NOT be rejected... Worse thing that happens is you do not meet criteria now, but they tell you exactly what you need to do over a determined period of time to meet criteria.

I hope this helps!!!  Again, do NOT be afraid - do not be intimidated.   

FANTASTIC!!!  Congratulations!!!  

Kyle, 

Talk to an Attorney.  Years back I mentioned to my Attorney at lunch that I wanted to start flipping & was going to get some money from some friends - he cut me off mid stream & told me that taking money from any more than 4 people made me subject to federal statutes and that I needed an investment license to do it...  Invest the money to talk about a structure with an Attorney, the money you spend will be well worth it. 

Maryann, This is awesome!!!  Happy 4th!!!