All Forum Posts by: Sebastian Marroquin

people have their views and you have to respect them. 

How about creating a plan? 

say you have 100k together. 

What if you divided that by 50% (and put 50k in the bank as a joint account: and then put 25k in a personal account (25k for him to what ever he wants: and you the same). 

After all: what is money but paper if you do not do anything with it... ??? 

At the same time : I am very frugal and very conservative: and I understand his fear of losing it. In this scenario: the majority of the funds (50%) stays in a safe fund (think mutual funds etc) to also make it grow in a safe way. 

Now you have 25k (which may not be much now: but from this point forward: maybe 10% or 15% of what you make in real estate sales goes to that fund: until you have enough to invest by yourself. (always making sure he knows - he is invited to join with his personal funds if he chooses): you are a team after all so you don't have to rub it in his face if you prosper. (If you do prosper and are successful, then great and enjoy the money with him there after): if you lose it all together, ahh well, you live and you learn! and you planned for it. 

Find something about real estate he likes: 

maybe he is methodical and a type S or C personality : so maybe he will want to take part in accounting, managing and other number driven activities: 

maybe he is a high 'I" : where he will like to have a say in the interior aesthetic and design or talking and interacting with the tenants etc 

Or a high D type: and he will like taking action: negotiating etc  (doesn't sound like this one though ) 

He has to fall under one of these 4: so assess- learn about each other and make it fun. 

No one wants to lose their money- of course not: but take action, research and learn: get a mentor or partner already doing it. 

I bet you both have jobs and salaries : and can get back up if you do something wrong. 

Good luck 

@Christopher Denne cool! Always happy to meet people from the area! @Graham I. looking forward to meeting you! 

what's the address? 

Hello Bigger Pockets! 

This will be our 3rd meeting on Sept. 30th! We've had very interesting people show up thus far! From recently college grads. to accountants, attorneys, Gamers, Doctors and other professionals in and outside the real estate industry ready and eager to network with one another! 

I welcome all walks of life: sometimes we may think that we bring nothing to the table, but trust me, you could not be more wrong. 

We all have life experience and we all have a 'network' of people, family, and co-workers we know that is worth its weight in gold! You bring more value than you think. 

Structure of class: * No selling what so ever of anything

1. learn something

2. Network one on one or in groups (depending on how many people show up)

3. Go over actual deals: break them down and see if they would be good investments. 

4. once meet up catches traction : then we will schedule speakers from (title, escrow, inspectors, etc ) 

Looking forward to seeing new and old faces here! Invest in yourself and your business: make the effort to be here! 

What you do now will pay off in the future. 

251 s. Lake ave. Pasadena, CA 91101 

suite 150

11am 

There are several options here: 

1: first : don't re-invent the wheel and don't make enemies... Go to the realtor (even if you have a trusted realtor): and ask the listing agent questions: (i'm sure he wants to sell it... as he has not made any money on it for 1 year and has been answering questions from people like you all this time). 

so go to him and ask him: what is the seller's bottom line? 

Can you represent me on the sale of this home and at what price? 

What if you go to the seller and ask them what they would want for it CASH and i pay you on the side... (pros and cons to this). 

What is important to the seller? (this way you can craft a plan of action that is solving the seller's problem). 

Would the seller want to partner with me : where I fix it and sell it and we split profits? 

If the realtor is unwilling: 

Go to the seller and ask him to buy it from him 

All the same questions above straight to the seller

Send her a letter by mail and explain your intentions

Get financing from a Hard money lender: offer cash and refinance it into a regular loan. 

** and yes: I don't know how you are arriving at 50k 

But go see it: based on comparable sales arrive at an ARV (after repair value): then get the estimated rehab cost from a reliable contractor:

Then get the ARV $: times 65% : that will give you X: minus repair cost : and that will equal your offer price

For example: ARV is $100k : times 65% : or 65k minus 20k in renovations:

so your offer will be: $45k 

You can't lose with this formula. 

Make sure you do your due diligence. 

Realtors will be your allies not your enemies :) 

(and you didn't want realtors responding to this right... ) ;) 

Good luck: 

Let me know if you want me to make the call for you (no joke) 

@Collin Schwartz hey collin: can you describe the prices for some of your most recent purchases: how many units: what are the costs: what is the cash flow etc? i'm interested and I'm sure more people are! congrats 

** also something I saw someone doing that seemed to be very smart was: 

once you accept someone: either

1: collect deposit (2 months) first and last month of rent (in case you have to evict them: you have enough for the 60 day notice etc) check with local officials to see if feasible in your area. 

2: if they cannot afford the above: 

then get 1st and last: 1 month deposit: and say the rent is 1200$ a month: then let them know that the rent will be $1300 for the first year: where they accumulate $100 a month in a side fund: and their rent will go down at month 13 to $1200 and if they choose to leave and give proper notice: they will get back their $1200 (accumulated thus far). 

Hello :) 

checking credit is important: 

1. Credit check: 

FREE : credit karma.com 

2. Credit check: 

not free: have the prospective tenant pay for it: my smart move.com (you have to create an account: and then they usually pay 45$ for their credit report). 

. Check for high credit card debt 

. high DTI (debt to income) ratios: say they get paid $5k a month but their credit card debt, bills, and car are close to $3500 or $4k (then it will be difficult to make rent.... )

3. references: 

ask for 3 references and then ask for 1 to 2 more references from everyone of the 3 you call. (this way the tenant won't know and have control over the 2nd and 3rd level references. 

4. Employer references: 

call their current employer : and their previous one or two employers: you could even go there or call someone random there: and ask if they know the tenant (again so that they don't have control over who you call). 

5. Landlords: 

Call their previous landlords: (really call them) don't just get their info and not call them... 

6. bank accounts: check for low balances or high balances for that matter (which would be a good thing). 

7. What do they do: teacher? nurse ? bar tender? police officer ? doctor? (some are cyclical and some are more stable than others and more in demand in case they lose their job): some landlords only like jobs in the medical field etc. 

8. Make sure to do your home work! (you worked very hard to get here and now you are not going to protect your asset???? don't be that person... 

9. Consult with an eviction professional now: not once you needed... and prepare yourself for the worst : hopefully you won't need it. 

10.  Learn the laws that protect you as a landlord and the ones that protect the tenant: also know how to properly give notices: to view the place: and then incase they are moving out. 

being prepared + knowledge + action = cash flow :) 

sounds good 

ahhhh 

forgot to say: 

for this one: it seems that the current owner does not care.... 

so my suggestion would be: offer him 8k to 10k or 

*** say to him: look this property has been vacant for 6 years : 

this is what I propose: What if I come in : and do the renovations: then I rent it out or live in it for X amount of months/ years. then I sell it and pay you 10k at the close of escrow: if I sell it for X (45k maybe) ? 

you get your 10k : i put in skin in the game by renovating it: WIN / WIN situation right? 

be quite and let him respond. 

same scenario: and instead of selling it right away: you rent it out and you give him half of the net profit every month and 10k at the sale. 

(essentially owner carry)