All Forum Posts by: Moises R Cosme

This is pretty awesome.  

David, 

Clarifying questions: (1) you own property with equity that will allow for a HELOC? If so, how much? (2) is the $30k over and above the equity you have in your property?

Victor, 

Evaluate the property, ignore what others have or have not done.  Make sure you have an inspection contingency, bad inspection results are the number one reason why properties go out of contract.  I love buying properties that fall out of contract - its a gift!!!  Buyers often overreact & Sellers often take low offers because they are emotionally tapped.  

Do you have any resources on how to obtain foreclosure properties for wholesale?  FORECLOSURES ARE POSTED WITH THE LOCAL REGISTRY OF DEEDS, CALL THE CLERK AND ASK THEM HOW YOU CAN GET A COPY OF THE LIST AND HOW OFTEN IT IS DISTRIBUTED.  CALL & MAIL THESE FOLKS.

What has been your experience?  DISTRESSED REAL ESTATE IS OUR BREAD AND BUTTER

Do's, Don'ts, and things to look out for?  $5K DEPOSIT NON REFUNDABLE DEPOSIT.  RUN YOUR NUMBERS.  STAY AWAY FROM OCCUPIED PROPERTIES.  I DRIVE BY AND CHECK TO SEE IF IT LOOKS OCCUPIED BEFORE I BID, IF ITS OCCUPIED I STAY AWAY NO MATTER HOW GOOD THE DEAL SEEMS. 

Bridgeport is a good market; strong rents.  Evictions are difficult all over the north east, there is no way to avoid this.  My partner owned a unit in Hartford, he had a good experience with it. 

1. Awesome deal!!!

2. I expect prices will continue to appreciate; FHA made a major move in April to slow down Buyers, by decreasing its max debt to income ratio that change reduced purchasing power for a lot of Buyers.

3. FHA changed course in June and took what I believe is dramatic action to drive Buyers (a) they increased their max DTI and (b) interest rates in my markets are now at 2.875 for a 30 year fixed. On balance the combination of these two changes adds $10,000 - $15,000 in purchasing power to a Buyer in my markets purchasing a property at the median price.

Low interest rates drive asset prices upwards.  We have stayed aggressive, we just put a property under contract this morning and will continue to look for properties that meet our criteria.  

I hope this helps & again, congrats on the completed project!!! 

Anecdotally:  no, there is too much money to be made by being close to a major metropolitan area.  My gut tells me that there will be a shift away from cities at some point, but history tells us that major population shifts occur during major generational transitions.  

Alex, absolutely!!!  Have a great 4th!!!

If you are down for a fun read.. Check out Scott Patterson's Dark Pools - I've read that book a few times & each time I fly right through it because its so entertaining (it also motivated to design software for one of our businesses).  Happy 4th dude!!!  

Okay, that gives me a reasonable starting point for an answer.  

BRRR requires capital (it is a purchase strategy), you will need a down payment for the purchase and closing costs. Basic formula is something like: 24.5 to 29.5 of purchase price to close depending on the amount of money that the lender requires.

Check the forums for posts on Wholesale, Wholesaling; this is a strategy that typically allows for you to transact without a significant down payment.  I have posted a couple of times on this topic, so you may be able to look at my posts as a starting point.  

I hope this helps!!!  Have a great 4th!!