All Forum Posts by: Sebastian Marroquin

the message is, that you did not do anything wrong... 

you are in the beginning stages and it sounds like you got lucky in not getting your offer accepted... honestly. No disrespect, but this will be a learning process for you. First, you are learning to submit offers. Then, you will learn the strategies on how to make your offer stronger with out having to pay more (think along the lines of 'terms' of the offer) and also finding out " seller's motivation". Learn about the pros and cons about taking on properties with tenants: some people only take vacant properties for the obvious 'cons' of having tenants already there. This way you can screen your tenants and have a clean slate: plus you can start with higher rents which on paper will allow for 'better' quality tenants. Put in many lower offers every week: (your realtor wife) will not mind this (I know we Realtors) mind after the 5th low offer (arbitrary number) only because we want to make money with the commission, but if the property is for the family - she should not mind at all. Put lower realistic offers and, YES - practice with the negotiations: as long as they don't accept: you will not lose any money (emd ), everything gets serious after that grace period after an acceptance (before that, I would ask for the pets and furniture if I could). Get familiar playing hard ball and become better at negotiating. I think you have to give yourself a cutoff price- something where you feel comfortable and somewhere - you are making a solid return on investment. One of the reasons you may not be getting the best price on this property is because it is already listed on the market: the realtor's commission is taking it higher and your wife's commission is taking it higher. A way to get it a lot lower is for you to do your own marketing and to get it straight from the seller: this same property at $85k could have been yours if you told your mom that you were looking for a property to buy : where you got in contact with her cousin and walla: just like that you got your $65k value. (at the same time: I have gotten great properties from properties already on the market). Like the gentleman said up above: get familiar and learn NOI, ROI, CAP rates, ARV, cost of renovating, average days on market to sell, rental demographics and how long it takes to rent out in that area, etc (I think time is of the essence) and don't get paralyzed by wanting everything to be perfect, but do learn the basics (and sorry- again no disrespect) but if your wife is not savy with investment homes: maybe get a savy realtor (maybe your wife can get a referral commission and she can learn while he helps you) that way then- she will be better for the second MF property. Learn- learn- learn before you go into something like this: I would suggest for you to shadow a purchase from a savvy investor or realtor and see the ins and outs- (i can recommend and refer a good realtor in your area through our sister company there). No hard money loan for your first deal: unless you have a solid exit strategy (or unless you are flipping it and numbers allow for it). water in the basement... no good... start interviewing contractors: as a contractor should have walked the property with you: I would always keep the inspection contingency, but have bought with out it only because I had a good contractor next to me and advise me on repair costs: (where my counter was lower because I removed the inspection contingency). in closing: i think you had a number in mind and they did not want to budge so you were - a discipline investor in that regard, so GOOD JOB!

not sure if someone mentioned this already but here it goes: 

Go to your realtor: ask him if he can help you lease it. He should have experience with it. If he doesn't, go to someone else. (Take the pressure and liability off your plate and on to a professional like him). 

- you can also search for a rental managing agency - pay them to rented it out and maybe manage the rental for 6 months to a year: then put it on cruise control and do it yourself (once you learn the ins and outs from them). Also ask your or A realtor for references as to a good company.

- a great idea would be: to clean it out spend 15k to 20k on it and sell it for your arv of 180k then get the profit and go buy another one and then rent it out: only this time your profit is making money not your out of pocket money. Less risk and you will feel a lot better having your 100k sitting in the bank.

- ask realtors that focus on flipping properties to recommend their best contractors. (You really just need really good subs: if you are not doing major work)

- go to your local Home Depot early between 5am and 6am: those contractors- in my experience- have been the best. They plan ahead- early hard workers - etc check their work and references 

- if you didn't before- pay the 300$ and get an inspection - if you want to know everything about your home. 

- demo first- roughs next- finishes last 

Important people: electricians and plumbers 

- * also do nothing to the property and sell it to a buy and hold investor for $150k 

Great deal for them - great deal for you! 

Let me know if you have any questions 

thank you

I think he is in-experienced... you can probably get that info from a title rep and or a lender also. 

maybe even: foreclosure radar (a service you have to pay for) but it says how much down payment they put up. 

You can also look up entities (LLCs or corps) that bought homes: you can go to auctions and see first hand - who is buying cash on the spot and lastly - you can go on craig's list and advertise- or run a face book ad. 

most importantly - you need the product- if you have a contract or a house to sell: you will get cash buyers in less time than you think. 

Friendly suggestion: focus on getting the homes- the money will come 

#2

I don't think you will be wasting your time: you will be surprise how many invest in other places too. and you can mastermind with them just like you are doing on here. 

You may even meet people with relationships in the areas that you are investing in and they may bring you deals that you would otherwise not know about. 

Open up to new adventures and new people- learn from them but always be weary because some people may have a hidden agenda. 

#1: you have good options: you may want to drop the money on the current home as you may always refinance later and pull the money out anyway... 

also think about a rainy day: what if you lose your job... what if you need renovations: i.e. plumbing... etc 

always have reserves: 6 to 12 months of mostly mortgages incase something happens: once you have the reserves- think about leveraging into the 2nd and 3rd properties (maybe a duplex that will be almost the same purchase price but will yield more money. 

Better - find off market homes to buy: let me know if i can se you up with someone that can help you with that in the city you are investing in! 

you can always find the closest real estate meet up group in your area. tell them the situation and ask them for a loan and put that amount as a lien on your current property. 

they will be willing to lend: at a rate of 10% to 15% per year. 

I bet someone will do it. 

Tell them - that you will only want the loan as long as you win the property in the auction (so to give you a 10-15 day grace period) if not you will lose the auction and still owe them the interest on it.... no good

Whats the best way to acquire private money at 8% to 12% short term loans (6 to 12 months) 

I haven't heard of anyone - but its a great idea! 

I would say- you look on craigs list (hmmmmm) or get a couple of people by word of mouth. 

I think you can do a lot of the initial work yourself and then get people to come out. 

Get familiar with the cost of everything: i.e. cosmetic fixes: kitchen, bathrooms, flooring, tile, painting, base boards, roof, electrical, plumbing etc. 

If you want to be successful - you better know how much are materials and what the retail labor will be and what you should be paying for labor on flips. 

You have to let contractors know that you will give them a lot of work through out the year and not just one home. To give you an example: I called a home advisor contractor (just for to check) on a property we were starting on: his bid for the work was for $550k .... I went into cardiac arrest.... 

it is a big project... but my contractor is at $350k (and I know he is making a pretty penny at that price... but I can trust him and he doesn't over price stuff). 

once you know the prices of materials and or what for example: AC for a 1200 sq ft home should run for? then you can really interview contractors and know if they are over priced or not. 

Then - you can easily go to a home and say its listed for $250k (bc its florida :) ) 

and you see it needs a kitchen: mid level: at $6500 to $7000 with counter tops: and needs flooring at 1.80 per sq foot and labor another 1/2$ a sq ft. 

2 bathrooms: each for $5500 to $6500 : and paint etc. then you can see that if you buy the home for $230k and home needs about 30k in renovations: (you are at $260k) and home can sell (ARV) for $400k : you will make _______ profit after cost of sales and closing costs. (if the numbers make sense) then you get the contractor to go out there.

You can even make an offer: it gets accepted and then you have 3 days to take a contractor to bid on the work (check for florida contract law about the 3 days) 

Good luck and let me know if you need a good investor friendly realtor in your area I can recommend you to!

Sebastian 

Always consult with a lender as they have the best and most accurate information. (there are ways to legally get around the 1 year mark) 

are you a realtor or investor? and what specifically do you want to market for?