All Forum Posts by: Morgan Gutierrez
Morgan Gutierrez has started 25 posts and replied 128 times.
Post: for sale UNDER lot value!
- Wholesaler
- Texas, USA
- Posts 139
- Votes 40
West Monroe, LA 71292
1.98 acres
Lot Value: $40,000
Asking price: $37,500
Property has:
aerobic septic system
city water
electricity
2 storage buildings with electricity
2 bed 2 bath manufactured home that could be remodeled or removed
Post: MAO Formula help
- Wholesaler
- Texas, USA
- Posts 139
- Votes 40
If you are referring to the classic 70% repairs, here is some insight I hope is helpful.
This is a general rule to start at, and used for average priced homes.
You take the ARV of the house and multiply it by 70%. This is is to give you a 30% spread for your holding cost, selling cost, money cost, and profit. Then you subtract the repairs. This gives you your MOA.
Example: House ARV: 100K, Repairs: 25K, MOA: $45,000
100,000*70%= $70,000
70,000-25,000= $45,000
Now when you are looking at homes that are more expensive (450K+) you may not need to use the whole 70% because the cost of your money won't change depending on the price of the house.
This is just a baseline guide, similar to any of the other "rules". It depends on the house, location, market information, rental rate and amount of repairs. There are other factors that could go into play as well.
Feel free to reach out if I can be of more assistance :)
Good luck!
Post: I'm Planning To Buy A House Out Of State early 2024 (any suggested states to invest?)
- Wholesaler
- Texas, USA
- Posts 139
- Votes 40
I would make sure it is a landlord friendly state. You may want to look at what the eviction process is like in the states you are considering. Lots of guidance on states to look into here and why.
Regardless of the state you are purchasing in, it is important to buy right. Get connected with realtors and wholesalers to get insight and access to the best deals!
Good luck :)
Post: Should I rent $2M 7,500 sq ft house?
- Wholesaler
- Texas, USA
- Posts 139
- Votes 40
Quote from @Shiloh Lundahl:
@Vitaliy P. Do a declining lease option. I made a video specifically on how to do this because of this very thing. You have a great interest rate. Don’t throw that away. There are a lot of people who would love to have the house and the interest rate that you have. You could get a second on the house, and increase the loan to maybe 1 million. Then you could do a declining lease option where someone gives you a large option fee, such as 10% to 20% or 200k to 400k. Then they pay you monthly rent that would equal around a 5 1/2% interest rate on a 1.6 - 1.8 million dollar loan which is much better than they could get right now.
Each year you lower the option strike price. But you state that no payments go towards equity build up or the pay down of the house. The strike price just lowers a specific amount each year. Then you keep the underlying loans you have in place and you arbitrage between what they pay you and what you pay the bank until they exercise the option according to the agreement. It is similar to a wrap mortgage but the tenant buyer doesn’t have a mortgage, they just have an option to buy the house with you. Check with an attorney in your state to make sure that you can do this there and that the paperwork is done correctly.
Do this method will creat 3 payment sources for you. First, the upfront option fee, second the difference between their rent payments and your mortgage payments, and third, the windfall of money when they exercise the option. You will likely get a much higher return doing this than selling it outright.
When you do this, you are still the landlord and responsible for all repairs and damages right?
Post: Love to Connect!!
- Wholesaler
- Texas, USA
- Posts 139
- Votes 40
Quote from @Yakini Hawkins:
@Morgan Gutierrez - Great to meet you. Are you focused on wholesaling?
Yes that is mainly what we do in that area.
Post: 1st SFH rental
- Wholesaler
- Texas, USA
- Posts 139
- Votes 40
Stessa is free and can help you with banking and accounting.
Post: Where to begin
- Wholesaler
- Texas, USA
- Posts 139
- Votes 40
That is amazing that you are getting started so young!!!!! Congrats on starting your journey!
Happy to chat with you about Wholesaling if it is something you are interested in.
Post: Ready to purchase first invest property but struggling...
- Wholesaler
- Texas, USA
- Posts 139
- Votes 40
Congrats on getting started and getting your feet wet while learning from the realtor side as well! Abilene is Beautiful and a great city!
Post: Just starting - would love to connect & learn!
- Wholesaler
- Texas, USA
- Posts 139
- Votes 40
Bp is a great community! Welcome!
You have already got some great insight on here! Texas REIAs podcast has some insightful information about the Texas Market you may want to add it to your listen list.
Happy to connect and chat more with you about finding deals or any questions I can answer for you!
(832) 953-4823
Post: Ohio Investment Areas - New to the area Investor
- Wholesaler
- Texas, USA
- Posts 139
- Votes 40
Welcome friend!