All Forum Posts by: Oscar Rodriguez
Oscar Rodriguez has started 4 posts and replied 8 times.
Post: How do I get a Loan to buy land and build 7 units ($2m)
- Posts 9
- Votes 11
I just turned 20y/o and I'm having trouble finding a bank to loan me $1m to buy Land and another $1m to build 7 units. I have $200k with the ability to get my hands on another $200k but don't have 2 years of tax statements that say I'm making $600k+ a year. Is there any way to make this happen that doesn't involve crowdfunding? New development is my dad's and I's Bread and butter, we can build for supper cheap and really fast with numerous projects to prove it. If that can help me in any way to convince the bank.
Post: First flip at 19 years old
- Posts 9
- Votes 11
Investment Info:
Single-family residence fix & flip investment in Covina.
Purchase price: $497,000
Cash invested: $60,000
Sale price: $770,000
Flipped house in Covina California east of Los Angeles
What made you interested in investing in this type of deal?
After months of looking for a deal an investor we've done work for offered me this house as a JV
How did you finance this deal?
Hard Money
How did you add value to the deal?
We brought Los Angeles style and Finnish to the Covina suburbs for a fraction of the price
What was the outcome?
Sold in 24hrs for $70k above asking with all contingencies waved.
Lessons learned? Challenges?
1. Don't pay anyone upfront
2. price shop for all Finnish's
3. talk about getting more projects to you subs so they give you a better price
4. make a home depot Lowe's etc account so they email you every receipt
5. buy a dump trailer you'll save a lot of $ in material delivery and dump costs
Post: First flip at 19 years old
- Posts 9
- Votes 11
Investment Info:
Single-family residence fix & flip investment in Covina.
Purchase price: $497,000
Cash invested: $60,000
Sale price: $770,000
What made you interested in investing in this type of deal?
After months of looking for a deal an investor we've done work for offered me this house as a JV
How did you finance this deal?
Hard Money
How did you add value to the deal?
We brought Los Angeles style and Finnish to the Covina suburbs for a fraction of the price
What was the outcome?
Sold in 24hrs for $70k above asking with all contingencies waved.
Lessons learned? Challenges?
1. Don't pay anyone upfront
2. price shop for all Finnish's
3. talk about getting more projects to you subs so they give you a better price
4. make a home depot Lowe's etc account so they email you every receipt
5. buy a dump trailer you'll dave a lot of $ in material delivery and dump costs
Post: Flip financial advice/question
- Posts 9
- Votes 11
Originally posted by @Andy Thompson:
@Steve Sauro there was another post recently asking how to handle a similar deal, except the contractor wasn't family. The contractor ended up bringing receipts at the end of the project that were $40k in excess of the $80k they had budgeted for rehab (so he said rehab cost $120k). They'd had an agreement, don't know if it was written down, which required a PO prior to overages but they didn't get the PO's...so now they're in a sticky situation. All this to say that with fluctuating material costs and lead times it's reasonable to set the expectation early on that he should be reporting costs and submitting change orders--and also what will happen if it isn't handled correctly. Tell your brother that any investor will expect some amount of reporting during the rehab, and you're helping him learn to do the additional administration required to be a partner in a deal. That will hopefully remove the strain from your personal relationship and help keep an air of professionalism to the project.
In this situation what I did as a contractor is make a google sheet with every transaction that I made including material and labor and I would fill in my daily spending at the end of every day ..... to further note every Sunday my partner and I would go over this google sheet so we were always on the same page. What also helps is making a pro account at these material stores so that they keep a record of receipts and what was bought.
Post: Flip financial advice/question
- Posts 9
- Votes 11
the investor found and funded the deal and I funded and did the rehab after the sale we ran the numbers figured out our all-in cost I got paid what I spent on material and labor then we split the net profit
Example:
if I spent $60k on rehab
and the total profit was $100k
I got a check from escrow of $110k
$50k profit and got back my investment of $60k
Post: Flip financial advice/question
- Posts 9
- Votes 11
I'm a contractor and that's exactly how I got into my first flip. An investor that we have done plenty of work for knew that I wanted to get into the business and offered a joint venture where he finds and funds the deal and I take care of the rehab. We net $140k in 3 months. He came to the property once in total I handled absolutely everything.
Originally posted by @Rick Pozos:
You have got to be kidding me!!
You have to go look for them. Go on Facebook. There are groups that sell properties. You will find a bunch of them there.
OR do something CRAZY and find the deal yourself. You will get a better deal, but it takes a little more work than just finding a wholesaler. But then again, it sounds like even THAT is too hard for you.
This is WORK. You can't just post something and expect everyone to give you all the answers to life.
1. I’m the owner of RGV Development currently working on 4 New construction builds so door knocking isn’t an option for me
2. I’m not asking for handouts I’m looking to network with wholesalers and investors.
3. I can assure you that I at 19y/o have 10x the drive, hustle, and work ethic than you’ve ever had
4. This is a real estate forum where people post questions and others answer with the knowledge they’ve gained in the business
I appreciate the comment although it was a bit disrespectful.
Thank you for the advice I’ll go on Facebook and look for them
I flipped a house at 19 years old earlier this year my partner is an active investor and found the deal off-market but since then I haven't been able to find any deals after submitting dozens of offers through redfin and sunade. How do I find wholesalers???