All Forum Posts by: Sebastian Marroquin

I have several homes in Pasadena and surrounding cities. Are there any investors that are looking to buy and hold, as we often receive great properties. We get a lot of homes that are intended to be "flips" but many times these homes do not have the $200k margins my flipping investors want to take on, but are at $80K to 150k below market value: these would be great for buy and hold investors. 

Example: 539k purchase price: ARV about $650k (for 1400 sq ft home): rehab under 30k for buy and hold purposes.

I would get this home under contract for about $500k 

We have a lot of homes coming to us with these types of numbers. 

I get mine from: 

other whole sellers

meet up groups

asking/ marketing to industry professionals: (i.e. attorneys, doctors, accountants (high net individuals) and then other professions (as is not good to judge ;) ) 

Looking at previously flipped homes: (just sold or just bought)

look for "cash only" remarks on MLS of 'sold' homes (then looking on title)

cross net-work with investors in other industries (as investors like to diversify their portfolios) and are already or will be looking to buy real estate. 

the list goes on... 

@Glenn R. thats what I told him ;) 

@Jeff Wallenius thanks: what are typical returns for syndications? 

@Joe Splitrock @Andrew Johnson

Thank you: exactly what I wanted. Appreciate it.  (I was thinking the same thing: just needed a co-signer for confirmation) 

I am also thinking of buying my first rental this year (2017). So this helps. 

I am in real estate and growing a team now: so, need to allocate funds for expenses, more marketing and growing the team. (and part of me knows that like you said: i should aim at growing my real estate team to make more income and then leverage by buying rentals once that happens). We flip homes in LA county and help investors flip out here also so I have a good understanding in getting off market homes for a lot less than market value).  Thank you for your thoughts: they do bring me a different way of looking at things. Thanks 

@Christopher Brainard @Joe Splitrock

ok guys. thank you and trust me: I get what you are saying and suggesting. :) but I am really not getting the intended responses for this question: 

Lets say that I had $50k (extra money): and I am passionate about real estate and investing: and I wanted passive income. 

What would be your advice/ suggestions then? Home hack? Buy and rent it out? Buy and do airB&B? buy here? buy outside of here? 

What strategies should I use? what has worked for you? What hasn't ? what lessons did you learn?

:) 

Thank you kindly 

Could not read all the posts: :so sorry 

But, I am a realtor and I closed a deal where the seller represented himself (he didn't want to pay a commission) : first off- I found him- bc he definitely did not do a good job on marketing. 2nd - he was a terribly negotiator (I'm sure he has just as much skill as anyone savvy in business, but in real estate- you can win a negotiation and the other party will never know it. I came in about 10k under from the start before even starting there negotiations. Then once all that was done: I continually told him what to do, only bc I felt bad for him, because he was opening himself up to law suits and loss of profit. He did not know how to interpret the contract in his favor. Etc etc : I worked twice on that one- and trust me- other realtors won't be as nice. 

Do what you do best : find the deals and renovate them: unless you are also renovating yourself bc you don't want to pay a professional (I'm only saying this to people that know nothing about rehabbing like me) : higher a good professional: you can negotiate down to 5% or 4.5% (anything below hat and you will be hurting yourself and your profits). 

good points: 

I know that he is investing into his business and as his personal consulting business grows, he is creating a fund for 1- Roth IRA 2- vacations 3- real estate investing

His plan- is to grow his consulting business to 200k and 300k and 500k progressively but he also likes real estate and wants to own rental property. 

His experience stems to working with me initially on flips. 

But he has been a silent jv investor bc he doesn't have the min required capital to flip a home out here. 

That's why I say his risk tolerance is high, bc when we did our first couple of flips, we all lost a portion of our investment.

@Rafael Norat : I think allocating 2 years of reserves is a great idea: wondering though, how much are your total costs for the 30 units you have currently (costs for repairs, utilities etc) and if you will factor those in - into the "2 year" reserve goal or not? thanks 

Hello, My name is Sebastian, a realtor in Pasadena, ca. I was having coffee with a long time high school friend. In conversation he said to me that he has managed to save $50k and asked me to advise him on what to do with it? 

He usually is a risk taker (so the threshold is pretty high), but he wants to be sensible and not lose it in his fist deal. He is open to flipping, buying rentals, JV investing etc... but each has pros and cons) We are in the LA market: so flipping with 50k is very difficult: (unless he does hard money on a purchase price that is really low somewhere far away from us: which brings other downfalls).

Rentals: he doesn't have experience (but has been reading a lot on it) and he is even ok buying rentals in other places like Nashville, Arizona, etc places where you can potentially buy for CASH for about 20k 30k to 50k) and rent it out. 

JV projects: he is open to them but there is a lot of shady people out there and he wants to know how to efficiently do his due diligence and not give his money to the first person that comes along (here or outside CA).

completing the picture: 

- he cannot invest 100% of it: bc he works on project commission base jobs (consultant for social media marketing)

- People do owe him money: and he will get about 20k more from it in March and April: 

- In addition he will save about $30k more by the summer (June) from wages after expenses. 

- Only debt: car payment (about 15k left on loan) and credit card debt ($6k) : other than that no debt. 

- 1099 : He is now earning at least $100k per year and fico over 750

***********

I know the advise I will give him, but I thought it would be fun to hear what you have to say about it! (and maybe other people in his position can learn from your answers also).

How would you advice him to move forward? What strategies can he take NOW to be a millionaire later? :) 

Thanks for the input