All Forum Posts by: Tom Mozzone

70% of ARV should = purchase price + repairs This is the figure for a flip unless your working with a very expensive home, then you can just look for $50k+ profit rather than strictly percentages but make sure your numbers are good and still leave a bit of padding time wise and repair cost wise. If your doing a true BRRR then you will want to make sure that your holding costs each month after the cash out refi are 20-25%+ less than what your going to be charging for rent. If this is the case than the bank looks at that loan as a wash and you'll be able to keep getting loans of that size (up to 10 through many banks). Any rent above and beyond 125% of your carrying costs will be added to your income to help you qualify for higher loans.

The bank won't ask for a down payment on a cash out refinance, they will only let you take out about 80% of the appraised value though. You may also pay some lending fees out of pocket but those could be included by some mortgage brokers or taken out of the cash from the refi. Also, lenders will want to see "reserves", usually 3 months of carrying costs for the property, in your bank account. Check with your lender to see exactly what they require. I have had mortgage brokers argue the point successfully with underwriters that part of the cash received from the cash out refi will become the reserves but that doesn't always fly.

Sounds like you need a buyers list. Try posting on Craig's list that you sell discounted properties. Re-post this atleast once a week. There are plenty of site about how to make a good Craig's list ad. Hope this helps :) If you have access to lists in your investing area you can also look for buyers that had more than one cash transaction in the last 12 months and send them a letter to the one property that they own where there property taxes are sent to.

The Bigger Pockets Podcast is almost to 2,000 reviews. At the time I am writing this they are at 1,963. Let's all show Josh and Brandon how much we appreciate them by leaving them a rating and review. Every week they ask and inspire us to take action in our businesses so let's take action and do this as well. P.S. If you have any trouble leaving a review here is a link to a step by step guide on how to do it. Apple didn't make it that intuitive. http://m.imore.com/how-rate-or-review-podcast-your-iphone-or-ipad

Welcome to BP. I'm an investor still working a day job too in California. On thing you can start doing now is begin listening to the BP podcasts on your commute to and from work or spar time. It's a great way to gradually learn more about real estate investing. Also, check BP forums to see if there are any meet ups in your area.

I'm looking for someone who has built from the ground up on the outskirts of the Bay Area in California. I'm looking to build in the Gilroy area (95020) If anyone in the area is around for me to pick their brain a bit, that would be great. Also, if anyone from outside the area has any universal suggestions, ideas, things to look out for, I'd also love to hear from you.

I live in California but I'm sure the situations are fairly similar. Each state does have its own licensing situation though.

There are online programs you can sign up for to take the classes and sometimes local community colleges will sometimes host classes that you can take.

The reason for getting your license would be:

1 - Make a bit of money when you buy a property

2 - Save some money when you sell a property

3 - Have access to the local MLS

Reasons not to get a license:

1 - Costs time and money

2 - You can have a real estate professional working for you freeing up more time for you to work on other things.

3 - You have to disclose just about everything in most states when you buy or sell a property, including that you are a real estate agent. If a deal ever went sour and to court for any reason, you would be seen as the professional and possibly seen as taking advantage of the other person.

The choice is up to you if you want to get your license or not. It also depends on the type of investing you pan on doing along with the way in which you want to do it.

I hope this helps you out a bit.

Depends on what exactly you mean by a full rehab. A rough estimate it $10/sf for materials and double that for labor. Labor costs can differ greatly depending on your location. Materials will differ also but usually not as much.