All Forum Posts by: Robert Herrera

@Sam Bandak just now seeing this. I buy mostly SFHs in Pueblo but I would like to purchase a larger apartment complex

@John Clay

I’d love to see what you have going on. I’ll be in Pueblo again soon, maybe next week

@Jeff White

Yes I did this on our personal home in commerce city. We bought for $125k if I remember correctly. Our payments rounded up were $900/month PITI. We rented it for $1,900/mont with I believe was $10k received as an option fee. Sold later for a gain of $75k after all fees of selling the place on the market.

@Tammy Tivis yes I am. Best bet is to get off market deals. I’m selling and buying at the same time.

@Sam Dangremond

Yes I love renting them out to my tenants on lease options. They are responsible for all repairs/maintenance/utilities, etc. plus I get between $3,000-$20,000 down on an option fee

@Adam Christopher

Everything I purchased met or beat the 1% rule. All of my rentals including the building.

@Adam Christopher

Interesting take on purchasing properties. I personally wouldn’t put 25% down on a property that needs $5k in repairs. Why not just buy a good property off the market to begin with?

My story: quick version

Most of my properties are SFH with only a few exceptions.

Started flipping mobile homes in 2012. I got tired of finding a new deal just to make money so I wanted rentals.

Bought our first Family home with FHA end of 2014, rented it out year later for $1k/month cashflow.

Sold mid 2017, walked away with $75k.

Purchased my first rental in 2015. Put $5k down. Put on the market for a lease with option to purchase. Got $7k back on the contract (option fee) and cashflow $500/month.

Used the lease option strategy to jump years ahead in purchasing properties. I used the option fees and the $75k for continued purchases and got more option fees.

All while increasing total cashflow $500/month on each property.

Most were purchased around $50k-$75k. Most down payments were around 10%. Some I purchased for more and paid no more than $15k down.

Most are owner carry, or private investor carry. I took some properties subject to existing mortgage (we did not assume the mortgage). One was converted to a bank loan to get the old mortgage removed.

I’ve closed on average 1 property every other month. About 12 I have with my business partner. The rest are mine.

I also purchased raw industrial land for my oil company we started. Purchased 1 raw lot as speculation to sell later.

Purchased 1 Industrial building New Year’s Eve 2019 (25,000 sqft building on just under 2 acres I-3 heavy industrial) for $1M with only $35k down. (Long story, great negotiation skills)

Currently appraised at $2.5M

I was at 34 properties, sold 1 to a tenant who executed lease option contract.

Currently have 3 more I’m putting on the market as we speak, possibly a 4th.

All properties appreciated around $50-$100k+

Estimated $2.25M Net-worth over 5 years.

Cashflow around $15K/month and growing. I’m selling because my cash flow is low compared to the equity I’ve accumulated.

@John Clay

Interesting. Have you considered what your holding costs are going to be over the rehab time? How much is that?

Also, how are you going to sell it?

Agents are going to take 6% of the sale price off the top so around $12k is going to them. Then on the remaining portion you will pay short term capital gains tax.

@Sarah McCluskey

Remember, there are always other deals to look at. If it doesn’t fit your criteria, move on and don’t force the deal

@Matthew Grisafe

This can be done with the right lender and the right seller!

This works best with an expensive commercial property

Lender gives 70% loan

Seller does a mortgage (2nd lien pos) for the 30% remaining.

Some lenders will, some won’t.