All Forum Posts by: Virgilio Mateo

I am acquiring a 32 unit apartment complex in Mississippi and I have a question about a cash out refinance in the next 6 months. Will lenders still execute the refinance if the property has a promisorry note? The promissory note will be more than 50% paid off in 6 months, property will be at least 80% percent occupied, LTV will be between 60 to 70 percent.

I would love to get input from the BP community and possibly a lender referral in the state of Mississippi. 

Hi Philadelphia Investors, 

I am visiting the great city of Philly in a couple of weeks. I wanted to network with other investors in the area and learn more about your market.  Do you guys have any suggestions for any meetups groups happening in the 1st week of March?

Thanks for your help! 

Hi BP Community,

I am in need of some input from a potential deal I came across cold calling owners through craigslist. 

Property Location: Moss Point, MIssissippi

32 unit complex

4 buildings sits on 2 acres and all units are on the ground floor

All 1x1 units (Market Rent: $500/mo) 

60% Occupied ( most occupants are long term social security recipients ) 

Per the seller (seller from out of state) all vacant units just need cosmetic rehab to be market ready

Potential Gross monthly income: $16000 ( all units rented and are paying market rate) 

Current Total Gross Income: $7400 ( due to vacancy and residents paying BMR) 

Current Monthly Expenses: $1941

Monthly Note Payment: $3419.43

Asking Price: $660,000

Seller Finance Term: 

- Seller wants to be cashed out for the amount left over of the loan balance ($295,000). Note is until July 2027. 

(Seller closed on the property in 2017 for $420,000)  

- take over note ( current balance: $295,000 )

- Note terms are 6% no balloon payment, monthly interest and principle payment total is $3419.43

I am have never worked with notes but this seems like a good deal. I can either acquire the property myself or sell the note if I put it under contract. 

For my acquisition: I am planning to counter w/ 

- No money down

- take over the note 

-pay the seller $2000 a month with the intent to refinance in 6 months ($12,000) 

     - I will handle the rehab costs for the vacant unit (which is about $20,000) and lease all vacant units 

- Once the refinance has been executed I would pay the rest of the balance of $295,000 the seller wants. ($283,000)

If I were to put it under contract I would offer the following: 

- buyer will pay off the balance of the note ($295,000)

- Seller will receive $275,000 in cash because buyer will cover the rehab cost to receive the Gross Potential Monthly Income

- Seller will split the closing cost 50/50 with the buyer

I would love to hear some input from the BP community. If you guys have any suggestions on how I can close this deal, I would appreciate the help. 

Hi BP Community,

Since my initial post on BP stating my search for a Sacramento Contract I have met with about 3 contractors all different in customer service and of course vision on how repairs must be done.

Here is my update @Becky Rodriguez, @Pavan Sandhu, @Paul Choi:  

Please keep in mind this is still my first flip, so I may or may not have approached situations as I should. Well hey! This is all just a learning experience.

Contractor 1: 

 He arrived about 10 minutes before me so that was a plus. Prior to the meeting I sent out the Scope of Work we thoroughly composed so contractors had a rough idea of what we were looking for. As I went down the list while walking through the property, the contractor's only response " Yes we can do that for you" for each item . I instantly was turned off after the 10 minute walkthrough we did. It just seemed like we were going through the motions. Is it because he knew I was a novice investor? Aside from all that, this is was a great experience. I know I should of asked a lot more questions so the contractor has an incentive to elaborate on an item. I can't blame the contractor for going through the motions, I would have to get it right the next walkthrough.

Contractor 2:

I started the day feeling like I was a seasoned investor and ready to take on the Real Estate World (this mindset is a must have as a new investor in my opinion). The reason for this morning revelation was due to the night before leading into the next walk through. I sat my behind on the chair and contemplated what I did wrong in the last walk through. I made a list of questions for each item that needed to be rehabbed and planned on asking the contractor if I could record the audio of the  walk through. I don't think many contractors would agree to this but this one did. Instead of waiting for the contractor for suggestions, I took the initiative to ask for his opinions on the items. This contractor new exactly what he was talking about and it felt like he read the list before he met with me. So far from this encounter I recommend this contractor. This contractor maybe what you are looking for. He specializes in jobs doing flips for investors in the area.  Message me for the info.

Contractor 3:

I found this Contractor through Homeadvisor.com. All I did was search Contractors in Sacramento then just called and asked if they help do flips for investors. 

Side note: I particularly liked this website because they targeted more mom and pop type businesses. All scheduling is done through Virtual Assistants overseas but great service. After the meeting is scheduled the Assistant will give the phone number of the owner or main contact of the company to confirm.

Anyway, when this contractor arrived she was attentive and punctual at the meeting. Before we even went into the house she did a quick introduction of what her company is about. As we went down the list she made suggestions to our current items. She explained if we moved forward with their company, the contract will include an electronic 3D model. She stated we would get a chance to move items in the model. For example, like repositioning a peninsula in a kitchen. I don't know about everyone else but I feel like the Real Estate industry is a little behind so when she presented that to me it was very exciting. All technology aside she was very knowledgeable in every aspect of work needed done at the house. Their company specializes in flips and wants to work only with investors due to the consistent volume of jobs. They also due small jobs like roof repair. They do not use subcontractors, all of them are in house, so that was a definite plus. Message me if want the contact information.

Thank you all for reading my little rant on my first walkthroughs as a real estate investor. There will definitely will be more to come. I feel I have made a ton of mistakes but now I feel a lot more confident going forward meeting with contractors. I am meeting one more contractor tomorrow and then will have to make a decision on which contractor bid we will accept. I will let all of you know who we choose and the progression of my first rehab. Maybe next time I will include pictures. Stay tuned!  

Hi Tony, 

I hope all is well. 

I am interested in speaking with you more in depth regarding this property. 

Please e-mail me at [email protected] 

Hello Bigger Pockets. My business partner and I just bought a Single Family home in Sacramento and are in the process of rehabbing. Wooh our first deal! We are looking for a good General Contractor to help us along, as well as a good roofing company, and possibly sub contractors in flooring and bathroom/kitchen remodel.If any of you Sacramento area investors have any good people or companies that you work with, we would greatly appreciate the reference. Thanks in advance for your time and recommendations.

Hey Matthew,

Thank you for posting this. I would love to get more details on this property. I just e-mailed you. I appreciate your time. Hope to hear from you soon. 

Hey @Augustin Philibert, 

Are you still looking for fix and Flip properties? I may have one for you. It is located in Sacramento,Ca 

Please e-mail me at [email protected]

Hopefully we can do business together. Talk to you soon!

Hi @Luke MacDonald,

I am working with a wholesaler who specializes in the Atlanta Belt line. I would love to connect with you. 

Please message me your contact info. 

Attention Flippers of the BP Community!

I am actively looking for a private lender or seasoned Flippers to partner with in the Sacramento area. An offer was already made and accepted for 205K. Thorough due diligence has already been done. I can give you more information just message me.

Asking Price: 220K
Accepted offer: 205K
ARV: 330K+
Rehab Price: about 40K ( I can give you formal documentation from the contractor who assessed the house)
Potential profit: 80K to 100K (we will split the profit 60/40 and you will receive 60%) I am not asking for much because this will be my first flip. I am just trying to learn the business and seeking guidance to what can increase the value of a property.

Thank you for taking the time to read this. Looking for some guidance and possibly a partnership. I hope we can do business together.

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