All Forum Posts by: Norm Martinez

Hi Matt,

Brian G. is absolutely correct. Midwest property values have been strong over the past 12 years compared to East/West Coast markets. I live in Tulsa where big corporations frequently host industry and consumer events. It makes perfect sense due to our centralized location and creates pockets or clusters that boom seasonally. Properties there have only increased in value so far.  Same thing with rental units near area universities. Plus, development of new attractions underway offers several promising opportunities that remain largely untapped so far.

Specifically you should consider Air B n B guest income which could be as much as $200 per night with the right amenities and location.  Personally, I would have never even imagined, much less suggested that as an option. But we had to use Air B n B to visit my son when he was sick and were grateful to pay $40 a night just for one room in a 3 bdrm house with no pool, hot tub, or anything special.

It was amazing how thorough and seamless the entire process was while ensuring security and accountability for all parties in the transaction(s). Worth considering closely anyhow no matter where you decide to invest. Let me know if you need someone reliable to help you with scouting, due diligence, equity/strategic partnerships, management, etc.

Would be glad to help you however I can... 

I'm interested in any commercial deals that make sense. 

For future reference,  I can help you with commercial transactions when you need $100k or more. 

Any active BP members in the Pensacola-FWB-Destin area? We moved our company to Tulsa in '04 after hurricane Ivan dumped 4 ft of sand and covered Okaloosa Island beyond recognition. 

After 13 (very long) years, we're heading back to to re-connect with old friends/associates, expand community development initiates and invest in new alliances/partnerships. 

Looking forward to getting together with any and all active BP members in the NW FL area at MeetUps, industry events, etc.  So hit me up here or in a PM and let me know who you are...

Should be there in the next 10 days... YAY!!!

Yes... that is typical bait and switch. Good that you didn't fall for it because unless you're a veteran or some specially preferred/protected group, don't expect to actually get 100% from a first position lender.  At one time, buyers could easily negotiate a price below the appraised value and contract for all their down payments, closing costs, etc. to get into homes with no money down. Since it was rolled into their loan, they still ended up paying for it themselves. There are still some gap funding programs available on residential purchases. I'm just now learning how they work, when they won't and what to do.

In any case, lenders wince and get nervous when buyers don't have at least some "skin in the game." So, to inspire confidence and assure them that you won't simply walk away if/when challenges come about, you should at least have a third of your down payment even if you use gap funding. Then it's not so hard to convince the lender you're financially able to fulfill your end of the bargain.

Hope that helps

Jake & Gino are rock stars! 

Professionals like them make BP even better than expected.

Thanks for the info...

I prefer commercial ventures for a few reasons

A: The checks are bigger. No doubt about that.

B: The passive income streams are far more reliable and steady. 

C: You never really know if/when a residential tenant is going to bail or trash the place. Not so much with commercial leases.

D: There is minimal government intrusion questioning  your every move. Keeping ethics and professionalism in the forefront in all your transactions should be first and foremost anyhow. So that shouldn't really matter much. It's just annoying... lol

Hope that helped a lil bit... I'm new so what do I know, eh?

You'll definitely want to purchase/rehab properties with a buffer of at least 15% built in for contingencies. Because stuff happens as we all know. For example, if the home is appraised at $100k, you'll want to keep your total investment, including labor, closing costs, below $85k. Look at the comps in the neighborhood if you don't want to pay for the appraisal yet. 

Personally, I would add another 15% to his estimates as a margin of error as well. Should help you avoid some predictable issues... like being upside down on the deal when it's ready for sale. If all goes well and within budget... you'll have extra cash to play with on the next deal.

Hope that helped...

N

Count me in for the commercial lending portion of the group...

If you want to avoid taking such a big hit on withdrawing $ from your IRA, there are plenty of equity investors out there who will step in as a partner with non-recourse funding. That's not cheap either, but it will keep your IRA intact if the deal falls apart after you take ownership. I'll send you a connection request if you want more info...