All Forum Posts by: Randy Gutierrez

@James Dainard said it best. I think this is a good compromise. Good balance of moral ethics and business. I hope the situation gets better in New Orleans, I remember reading an article on the situation there I think it the WSJ. Unfortunately another city where "public servants" govern with emotions rather than logic.

Quote from @Eliott Elias:

Quote from @Jonathan Taylor:

@Eliott Elias sounds like you had an interesting experience. Would you mind sharing what happened? My lenders allow cash out refi up to 75% LTV after 3 months seasoning. The issues where we have to decrease the LTV is when the property forms debt cover, lower than expected FICO, rates increase while the loan was floating or unforeseen issues that came up in title search.

Would be happy to offer clarity on your situation.

Sure, I take out DSCR loans because 1. I don't qualify myself 2. I can get as many as I want under my LLC. I was promised by this one particular mortgage broker that I was getting 75% LTV cash out after 3 months of seasoning, great. We went through every hoop and even made me pay for the appraisal, which came back great. I had 4 deals lined up to close the same week I was getting funded to put down payment on hard money. The day of closing the lender came back to me and said she can only give me 40% of what i PUT IN!! Instead of receiving 150k they offered 45k THE DAY OF CLOSING because the seasoning period was too short

 Wow!

Quote from @Ryan Friend:

Awesome, thank you. Sounds like removing myself from the “would I live there myself?” equation is key. For those C/D areas, what are your minimums for income and credit?

For now but the goal would be to answer yes to that question at some point in your RE career. You need to start somewhere, I am merely just adding some insight to hopefully get you started.

Allentown Center City is D with some C- streets/blocks mixed in. I tend to gravitate towards the perimeter of Allentown Center City so west of 12th street, east of 2nd street, North of Tilghman St., and South of Hamilton St. You can use crimegrade.org to sort of map out the blocks. We typically look for at least a 600 credit score with a 2.5-3x monthly rent.

Generally speaking an investor, especially one with little capital, would invest in an area where they wouldn't personally live, the numbers just tend to work out better. Obviously you need to draw a line in the sand where you invest as it relates to crime but remember the tenant is dealing with it not you. School is a non-factor, again - my kids are not going there. If cashflow is your goal, you would need to invest in those class c/d areas. 

The most important variable would be your tenant in these areas, they can make or break your investment. If you screen accordingly you will be fine. They need to pass a credit check, income check, evictions check, crime check, and a "vibe/gut" check. We've had great success so far with our tenant selection, hardly ever hear from them.

Seems clear to me.

$150 pet security deposit. $150 one time pet fee. $25 monthly pet fee. Landlord gets everything. Now is there a separate agreement between you and the PM?

Geez, definitely get them out. Set the standard and good luck!

Yes, too good to be true.

Could be a good deal if the numbers work, you would have to update just about everything by the looks of it. Quite the time capsule, the new tv above the old tv is a nice touch, ha.

If you are in it for the long haul then yes LLC all the way. Anyone who tells you otherwise clearly has not seen the benefits of an LLC firsthand or is severely misinformed. The tax benefits alone make it worth it.

Some interesting and some odd points in this thread. My agent who is also an investor works almost exclusively with investors including OOS investors all the time. He's built a network of OOS investors and instead of him chasing first time home buyers he is instead building relationships with investors that instead come to him to close out deals. 

I guess it just depends on the agent and how well of a system they build for themselves. Some pick the path of working with investors and others don't.