All Forum Posts by: Sebastian Marroquin

I have several potential deals: 

I am really looking for Partners that can fund the entire deal: purchase, rehab, holding costs etc for 50% to 60% of Net Profits. (sometimes negotiable) 

I have a deal in culver city right now: Purchase price : $700k construction cost: remodel only (no additions): $100k ARV : resell price: $1.150 Million (a margin of about 450k): after commissions and closing costs: you are looking at a profit of 300k (50/50)

I also have a home in the city of El Sereno: Purchase price $400k rehab 35k plus 5k (foundation): so 40k total resell: 550k to 575K (easy in and out deal). 

Looking for people that want to invest 50k to 200k for a 10% to 12% flat return. 

or people that want to do a Joint Venture: where i find the home, I bring in the crews (i.e. contractor, drafter, architects etc) and I sell the home. 

Homes come a go fast: usually I like to meet face to face with interested parties, then I take them to projects that we have in process and then if they feel comfortable, then we can move forward. 

There are ways to cash flow in CA : you just have to be creative. 

Value add. 

conversions

new ordinances 

etc 

60k can make you at least 12k flat return per year: passively. (I'll probably make about 40k from a 60k investment: if I were putting in any money in the last deal I got into). 

Learn: be creative and take action. 

PM me: lets talk about this

@cj 

@CJ Witmerundefined

to your comment about not being sure of value: or trusting yourself: 

this is the first item you should become good at: reach out to a realtor: and identify a property: assess the ARV yourself and ask him to do the same for you and see how far you are from it. Practice it until you know it: local market knowledge will help also: and sold properties in an area: price per sq foot also: even zillow can be a guide for such (not as accurate but still helpful).

A realtor will be a great resource for you: they will get tired of it if you ask him to do it 25 times and not buy anything with their help. 

Become good at finding deals: with good margins (just because it is off market does not make it a good deal). 

splitting the deal: meaning splitting profits (rental or flips) but in this case bc you lack the funds : flipping just acts as a vehicle to acquire more funds and then do what you want: which is buy rentals. 

My friend knows the ARV because he is a realtor and because he has access to the MLS and knows how to assess comparable sold homes.

for the loans: I'm saying go for the lower rates of course. (there are other parameters like: pre-payment penalties etc): but usually private loans won't have these 

your current deal: I assumed that you only had one deal (finished one deal) 

I'm saying you can sell equity and cash flow spread to someone. 

You can do what ever you want : its your house. 

The point I was trying to make here was to be creative. 

you could rent out the home to one family and rent out the garage for storage to another. 

You can rent out the back yard to a 3rd party for car storage etc. 

Maximize the rental capacity of your home to make a better return. 

good luck 

I would suggest for you to network as much as possible and find private money at the lowest return on investment possible. 

you can start at 12% which should be (not as hard) to find. 

once you find that - then go for 11, 10, and so on : I think below 10% is when it gets tough, but I know a lot of people doing deals at 8 and 7% returns. 

As you are identifying private money: also look for deals: off market would be best so that you can control it. (on market are also good if you can get good ones). 

You don't have any more funds now... so even if it takes you some months - who cares :you are in the learning process now anyway. 

once you find a partner : (usually the person that will fund it): 

negotiate a 50/50 split on profits as long as they fund the entire (100%) of the deal. including purchase, holding and rehab costs. 

They will be smart professionals usually, but rookie to real estate and why you need to be the expert in this field. 

you need to know how to find the deal: how to structure the deal: how to build and manage the teams to rehab it: who to sell it for you (assuming its a flip) i.e. a realtor (I can connect you to a realtor in any part of the country!) 

so: 

they fund everything for 50% of net profits

and you handle everything else for 50% of profits. 

Have a clear contract in place. 

the property can be under the the funding persons name or LLC and you can have a note/deed of trust (lien on the property)

Do that multiple times: until you have enough money to buy your next property. 

By the way: the property you bought: has good cash flow, but its not the best deal. 

think about buying a home that has a little more meat in it after you renovate so that you can be below 80% LTV after rehabbing it: so that you can cash out/ refi right after finishing it: this way you can get your 20% out and use it for another home. (just a thought).

for example: my friend just got a home for $45k + 10k reno: he is at $55k 

value is: $105k so he can essentially refi and get 25k out and do it all over again: (he is flipping so - he will cash it out by selling it) but you get the idea right? 

you can also meet people that already have investors at a flat fee or below 10% : where you partner with them and split 50/50% on net profits after paying investors and costs. 

You don't have to stop now: specially now: this is where you use the experience you gain from your current purchase and you leverage it! 

** how about you let an investor come into your current deal: where they get half of your current equity: or 10K (on paper) and half of your cash flow for say 20% of the current value: or $75k times 25% : 18K (round to 20k bc you did the work already). 

and use the 20k for the next home. 

Think about the long term not the now: you'll have a second property : where you will be cash flowing the 100% of profit plus 50% of the 1st property. 

do it again  and again and again. 

Good luck mate. 

 @ fitrealtor_

on Instagram 

find a deal for 50 cents on the dollar and i'll give you the money for it! (we both make money) 

Hello, 

My co-worker has an OFF Market deal in West Hollywood, CA : 18 units in a prime area. 

$14.75 million Firm 

He has rent-rolls and can show property with appt. 

Let me know if you are interested. 

Yes to everyone... 

home is lacking appeal: don't have enough pictures: the lighting or picture quality- not the best 

: the back yard lacking some zest: no video tour : no staging: bathroom pics are not the best... (if I was a buyer: I would be wondering if the home has : washer and dryer hookups: how big the master is: how big the bathrooms are.... the neighboor-hood: is it close to other things (restaurants ) 

you really have to paint the picture. 

The house itself and the finishes: are great! good job on that- 

zillow that will bring you a lot of traffic: shows it as a foreclosure - so at the very least- it confuses people... 

all selling sites have to be accurate and show the home in the best light... 

facebook- instagram posts: boost them with $10 each... 

Have realtor actively call the market around the home: invite people to open house...etc 

at the end of the day: look at your numbers: and say you are in at $200k (bring it down to $199k) : 

2 things: 

1) if it doesn't get traction at $199k (then you are not selling it my friend)

2) and number two and what I am hoping for: is that you will get multiple offers_ and get around $225k to $235k for it: once buyers are invested. 

Go in hard or don't at all: rent it out. 

anyway- worst case scenario: you learn: get your money out and you can make more deals and more money this year! 

@fit_realtor (instagram) 

put on there : a tenant stoppel : (for now yes- this is a red flag, but it doesn't have to be a reason to walk away from it). 

With a tenant stoppel: you can secure your tenants and make sure that they are aware of what you will be looking for.  (lease agreement essentially): run their credit again - and call their references. 

If you don't like what you see: walk away or request vacant at COE. 

Get an offer accepted and then do as much due diligence as you can: keep all contingencies in place - and don't leave any stone unturned. 

@Ethan Lee congrats! curious: how much were the properties you bought: (the first quad in particular: how much: what were your rents? what were your expenses? and cash flow?) : thanks in advance