All Forum Posts by: Tony Salazar

Great Post.
One thing that isn’t mentioned is your action step in order to get your properties.
You can crunch numbers all day long, but if you aren’t playing the game then you are just a fan in the stand.
So if you are ready, then jump in and start competing.
Find yourself a buyer’s agent that understands what you are looking for and is hungry to work with you.
Locate an area near by you that has a lot of activity, and that you will be able to drive to within 30 minutes or sooner.
Create a spreadsheet that includes everything from offer price, closing cost on initial purchase, resale value, holding costs, and resale expenses. From there you can see your return.
I believe a big mistake with many investors, new and old, is that they move slow. There is too much competition, so plan on writing up offers in groups. This will increase your odds of getting one. Many investors are over thinking and not moving and they only get an offer out here and there, and the laws of average do not stack in their favor.
Think of Kobe Bryant. He practices on his own more then anyone, and during the game he isn’t scared to shoot the ball, and he is notorious for hitting the game winning shot. So play to win!
If a property pencils out, have your agent call the listing agent, gather facts that will assist in getting your offer approved, and write it up and move to the next.
Your offer needs to comply with the listing agents comments. Your offer needs to be complete and legible. Emailing your offer is better then faxing.
Don’t worry about driving around and looking at each property before you write it up. You will have time later if the bank likes your offer and ask for your best and final. At that time you can go out and do your inspections and double check all numbers from comparables and rehab expenses.
You may need to write up 15 to 1. That’s what it took me this time last year.
Lately, I have been blessed and the ratio has been closer to 5 to 1
You want REO properties.
Properties that are distressed, and the uglier the better.
Prepare to write up offers on new listings that just come out that day, listings that have been on the market for some time, as well as listings that have fallen out of escrow.
My general rule is to stay away from un-permitted rooms. You do not want the city inspectors on your butt and over see your entire project.
This is just some info that can help you out. Sorry that I couldn’t finish explaining more on the rehab, but it is time for me to get off the computer.
Good luck!

Motivation
"What ever the mind can conceive and believe it can achieve."
Earl Nightingale.

Scripture
“Call to me and I will answer, and I will tell you great and mighty things that you do not know.â€
Jeremiah 33-3

Welcome aboard Jenny.
You sound like you have the right attitude!
Remember, information without action is merely a dream.
So step out and create synergy. It is ok to get rejected and turned down. Actually that is on the job training.
Be strong and courageous.
I would also turn to your real estate office and broker.

Best of Luck!

Make sure you incorporate exercise. A healthy body compliments a strong mind. I mix it up with running, surfing, hiking, weight training, motocross, mountain biking, spinning.
I notice that I have a clearer mind and body after exercising and it gives me the strength to add more mental tasks, clear projects that I may be procrastinating on, and brings out the youth in me.

Good luck and believe!

Thanks Steve.
New property I am selling doesn't have a 20% down offer yet and it may not.
I have a CalSters offer above listed price wanting to stack costs.
A 10% Down FHA at asking price.
And a couple of 3.5% down FHA that need help with closing costs.
Looks like buyers just have enough funds to close and don't have additional monies unless I would remove appraisal contingency which I have in the past with stronger buyers.

Thanks for the responses. My question has been answered. I usually go Conventional 20% down first, but some markets dictate going FHA.
I have seen huge discrepancies with appraisals so I don't want to get stuck with one that comes in low like on another property where two appraisals were done, one was at 200,000 and the other was 242,000. So if you think appraisals are 100% accurate, then good luck. That property had about 10 offers in one week, and all were above 242,000

If a FHA Appraisal comes in low on a purchase and escrow is cancelled due to appraisal contingency, can the seller go with another FHA buyer and get a new FHA appraisal and hope it will come in at what they feel is the value, or is that first low appraisal value going to be assigned with all new FHA buyers?

I think your demands are out of wack, and any wise person would be insulted.
You want to write something that has more of a win-win situation, not "let's do business together, but you may lose money and have to pay commissions."
There are 1000's of better methods, so on to the next.

Develop and build yourself as much as possible so your in position to Control your destiny rather then relying on others.

Build yourself with as many of these as possible:

cash
credit
income
corporations
licenses

experience with
Closing real estate
Closing Loans
Flipping for profit
Holding rentals for cash flow

Sales experience
marketing experience
Local real estate knowledge
networking
and most of all major action steps to reach your goals.
Good luck!

Having as much control and quailifications will allow you to call your own shots.

Analyze, Analyze and Analyze.
Create a system, and then follow the rules of your system.
It is a number game, so play the game to win.
Do your homework and then write up offers. Your practice and reject’s will help you become wiser and more competent.
If something looks good, don’t let it get away.

Until you flip a home, it is difficult to understand everything involved.
It is like the employee that thinks they can run a business but never had, and when they finally do so, they realize there is a lot more then meets the eye.

Always have exit strategies.
Cash is King.
Be conservative about your resale.
Rehab fees will be higher.
Unexpected expenses will occur.
Lender guidelines are tight for flips.
Risk is high with small margins.

You may also want to partner with a reputable experienced investor until your wings are strong enough to fly, but maybe not.

Best Wishes