san francisco investment property

March 3, 2016

San Antonio Investment Property Is Still Hot in 2016

Some investors might think that the San Antonio investment property market has slowed down given the decline in oil prices. But you would be wrong!

I am a San Antonio investment property wholesaler, and I am finding that sales are still strong, and prices are rising. The volume of houses that were sold in the city increased in January, and the cost to buy a house generally has gone up.

Total residential sales increased nearly 7% in January 2016 from a year ago, with a total of 1534 houses sold.

The median price of a house in San Antonio is still low – only $186,100 from $176,700 a year ago.

Overall, San Antonio is still a seller’s market, and inventory is low with demand high. I know personally I have sold 15 under market value properties in San Antonio since the beginning of the year. Investors who used to buy San Francisco investment property love to come to San Antonio and buy a distressed wholesale property for $50,000! And overall, the consumer market is still strong, with only a 3 month supply of houses available.

San Antonio’s strong investment property market is being driving by a strong economy, growing population and low interest rates. And it helps that you can still buy a single family home here for under $200,000.

I still am able to find really good under market value deals for out of state investment property investors, especially a few miles north of downtown in the 78201 zip code. Below is a great deal that I have several San Francisco investment property buyers reviewing:

Address: 1723 W Ashby Pl San Antonio, TX 78201,
Year Built: 1925
Description: Under market value property, investors dream north of downtown, 3 beds 1 bath, 1000 sqft, built: 1925, lot size: .19 acres, yearly taxes: $1,700.00, estimated yearly insurance: $800.00; estimated repairs: 35K, includes new HVAC, updated kitchen/bath, flooring, paint in/out, exterior skirt, appliances, plumbing/electric up to code, paint out door storage exterior, trash, lawn maintenance.
Max After Repair Value: $129,000.00
Cash Price: $69,900 firm.
Exit Strategy: Owner Finance with 35K repairs: 5-10k down or more, $1,295.00 monthly P/I, 30 year amortization, 10% interest. Or 15K rehab, new HVAC, paint in/out, kitchen/bath repairs, plumbing/electric up to code, then FSBO at 109K, 10% interest, $1,100 monthly PI/TI, 30 year amortization.
Alternate Exit Strategy: Flip with $35k in repairs for a ~$25,000 profit. Rehab completed in 45 days or less.

March 1, 2016March 3, 2016

Private Investors Wanted – $50,000-$1 Million

As you may know if you peruse this site, I am a financially retired, under market value property wholesaler and investor in San Antonio TX.

I am seeking cash partners to purchase 3 bedroom, 1 bath distressed properties in San Antonio TX. I find the houses. You fund the purchase. I do the rehab in 30 days.

We split the profits 50/50. Or, I can owner finance/rent the property out for you.

Remember, I handle the entire project from acquisition to rehab to resale. You ONLY FUND the deal.

My goal is to transform the city of San Antonio TX into homeowners and to improve neighborhoods.

I need your help. Please contact me.

I particularly like to work with out of state property investors who once bought San Francisco investment property, Los Angeles investment property, and Seattle investment property.

February 26, 2016March 31, 2016

How I Still Do $12,000 Flips in San Antonio With Under Market Value Properties

The San Antonio investment property market has really heated up in the last 18 months. Back in 2014, it was possible to buy houses for $30,000, do $10,000 in rehab at most, and owner finance them for $59,000.

Or, you could buy an under market value property for $40,000, do $10,000 in rehab, and flip it for cash and make $30,000.

Making money in San Antonio investment property is still very possible and I do it every week, but it is more challenging now. The economy has improved a great deal, and San Antonio TX is a booming market, with great numbers of people moving here every month. With all of the construction going on, there is plenty of blue collar job demand.

Lower gas prices have also put more money in people’s pockets, which leads to more economic growth and spending.

All of this has led to an increase in real state prices in my under market value properties.

But, the good news is that because I have been doing this for 15 years and I know how to rehab properties and negotiate investment property deals, I still am able to make excellent returns on flips.

I mostly am a buy and hold investor with owner financing, but I have been doing some extremely profitable flips these days. My work crew loves when I do flips because they pay well, and I like them because they are profitable for me!

I have a current flip that the investor would make $12,000 on, which is fantastic in this hot market. This house is listed below:

Address: 2229 W Hermosa Dr. San Antonio, TX 78201
Year Built: 1948
Description: Under market value property sale in hot north of downtown neighborhood, 2 beds 1 bath, 769 sqft, built: 1948, lot size: .14 acres yearly taxes: $1,200.00, estimated yearly insurance: $800.00, estimated repairs on this distressed sale.
Rehab Option#1: 35K, includes new HVAC, converting to 3 BR, updated kitchen, flooring, paint in/out, exterior skirt, roof, room addition, appliances, paint out door storage exterior, trash, lawn maintenance.
Max After Repair Value: $139,000.00 with owner financing, comps are for 3/1.
Rehab Option #2: 15k AC, flooring paint in and out $109,000 ARV.
Cash Price: $69,900 firm.

This house is located in a hot area north of downtown and is an excellent under market value fixer upper. I was able to get a very reasonable price of $69,900 on this deal.

Of course if I didn’t know what i was doing, this wouldn’t work. Most under market value property investors spend too much on rehab, which kills the deal. I know exactly how much rehab to do on this project – flooring, HVAC, paint in and out, and resell it. By doing that amount of rehab, this will resell for approximately $109,000. Quite a nice flip in this hot San Antonio market!

Try to do this type of flip with San Francisco investment property, Seattle investment property, Los Angeles investment property or San Diego investment property 🙂

February 21, 2016February 21, 2016

How to Turn $10,000 Into $30,000+ in a Year

Most of the time, I only work with under market value property investors with at least $50,000 cash, and preferably $250,000 cash or more.

However, I once started out in San Antonio investment properties without any capital, so I wanted to sketch out quickly how you can make $30,000+ out of $10,000 in a year.

It is possible with my guidance to buy an under market value property with a hard money lender, do $1000-$5000 in clean up and rehab, and flip it to another investor/cash buyer.

On each of these hard money deals, you will need to have $8000 to $10,000 invested. Then, when the deal sells, you will make $8000 to $10000, after your hard money expenses and closing costs.

Hold On!

This is the point where many typical below market value property investors will smirk and say, why bother? Who cares about making a piddly $8000?

Ah :), that is why I financially retired at 28 and you most likely did not. I NEVER turn up my nose at making $5000 or $7000 or $8000 on a deal! Never!

You know what I do? I do 50 of those deals per year, in addition to my large buy and hold investment portfolio, and make another $300,000!

I strongly believe in doing a lot of small San Antonio investment property deals. When you do just four of those deals per year, you can triple your money….transform $10,000 into $30,000 or more. Then you can afford to do more than 1 flip at a time, and do eight per year and make $64,000…..see where this is going?

Of course, in the end, I am a buy and hold investor, and I would advise you after you have at least $100,000 to invest in long term buy and hold, owner financed properties in San Antonio. Then do 2-3 of these quick flips per year to increase your cash as you need it to do more buy and holds.

Here is a fantastic San Antonio investment property for the out of state investor that will make you a quick $8000 to $10,000.

ONE LAST THING!

Before I show you this San Antonio investment property, if you want to turn $10,000 into $30,000, you need to do the following:

Listen to what I tell you to do and do not question it.
Do not doubt my ARVs or rehab costs.
Do not call me every day asking when your house will resell.

I know exactly what I am doing, and it is important for you to trust me.

Out of state investment property investors, this San Antonio investment property has two houses on one lot and offers you a quick $10,000 on a clean and resell flip, or 13-14% ROI on a buy and hold.

Address: 3230 La Violeta St., San Antonio, TX 78211-3728
Year Built: 1950
Description: 2 homes for the price of one; Home #1, 3 beds 2 bath, 928 sqft, built: 1950, lot size: .15 acres, home needs minor plumbing, carpentry, paint, cleaning, estimated rehab cost 10K, Home #2, 2 beds, 1 bath, 600 sqft, has been remodeled no repairs needed
Cash Price: $58,000.
Exit Strategy: Owner Finance with 10K repairs: 5-10k down, $900.00 monthly P/I, 30 year amortization, 10% interest, Price: 89K, ROI will be 13-14% per year. ; or do $1500 in quick clean up and flip to another investor at $69,900. This is a 2 for 1 deal and will resell quickly.
Contact us for more information or to make offer.
Rental Comps 3230 La Violeta St Sold Comps 3230 La Violeta

More Pictures:

Investors, you will never see a San Francisco investment property, Los Angeles or a Seattle investment property at this price point and rate of return! This under market value property is a good option to invest in real estate with IRA, or invest in real estate with 401k.

February 21, 2016March 30, 2016

SOLD – 3230 La Violeta St., San Antonio TX 78211

Out of state investment property investors, this San Antonio investment property has two houses on one lot and offers you a quick $7000-$8000 on a clean and resell flip, or 13-14% ROI on a buy and hold.

Address: 3230 La Violeta St., San Antonio, TX 78211-3728
Year Built: 1950
Description: 2 homes for the price of one; Home #1, 3 beds 2 bath, 928 sqft, built: 1950, lot size: .15 acres, home needs minor plumbing, carpentry, paint, cleaning, estimated rehab cost 10K, Home #2, 2 beds, 1 bath, 600 sqft, has been remodeled no repairs needed
Cash Price: $69,000
Exit Strategy: Owner Finance with 10K repairs: 5-10k down, $900.00 monthly P/I, 30 year amortization, 10% interest, Price: 89K, ROI will be 13-14% per year. ; or do $1500 in quick clean up and flip to another investor at $69,900. This is a 2 for 1 deal and will resell quickly.
Additional Costs: $1500 commission to me on wholesale, $2000 in closing costs, $1500 commission to me on resale, $2000 in closing costs on resale (taken out of $5000 down payment from buyer).
Profit Year 1: 12% ROI
Profit Subsequent Years: 13% ROI
Flip Profits: $7000 to $8000 after expenses (I recommend doing at least 1 of these per quarter to build cash base and then do 1 buy and hold for every 2-3 flips).
Contact us for more information or to make offer.
Rental Comps 3230 La Violeta St Sold Comps 3230 La Violeta
Why You Should Believe My Numbers

More Pictures:

February 19, 2016February 21, 2016

Pseudo Investors – Do Not Waste My Time

I work with many successful out of state investment property investors in my San Antonio investment property business.

But I also have come across many unsuccessful ‘investors’ who typically never make any money in real estate cash flow investing in under market value properties.

I call them pseudo investors.

When I say ‘pseudo investors,’ I am referring to people who flatter themselves as investors but either rarely or never do a real estate investment deal.

Here are the most typical types of pseudo investors i deal with in under market value properties:

The ‘investor’ with zero capital. There are ways to invest in under market value San Antonio investment properties without cash of your own, but most of those methods suck as far as making cash flow each month. The best option you have is to borrow capital from friends or family at a ‘friend rate’ of 7-8%. At that rate, you can buy a $50k house and produce monthly positive cash flow. But if you don’t have capital of your own, I don’t want you to call me yet. You need to go find that capital from a private investor first. I deal ONLY in investors with cash.

Front — Five investors passed on this deal. ‘Too ugly and run down.’ I sold it AS IS with owner financing and $5000 down myself and will enjoy 14% ROI on it. Pseudo investors.

The ‘investor’ with capital but incapable of making an informed decision. I have ‘investors’ on my list with $500,000 or more to invest who never do a single real estate deal. They are simply constitutionally incapable of making decisions. If I send you a below market value deal, I expect a yay or nay in 24 hours. MAX. When I see a hot deal, I make an offer in minutes. Bottom line – if you have cash but are incapable of making decisions, don’t call me please.’
The ‘investor’ with capital and can make decisions but is too picky. ‘Oh that neighborhood is too risky, oh that house only has two bedrooms, that property has a cracked foundation…..” Look folks: I have made MILLIONS of dollars on under market value San Antonio investment properties that look like crap with every problem in the book – roof, foundation, too small you name it. Every deal that a pseudo investor turns down – EVERY ONE – I buy it myself with my own cash and make $5000-$15,000. I already have my own cash and portfolio. I really don’t need it. But if you are foolish, fine, I’ll make the money.
The ‘investor’ with capital and can make decisions but has absurd expectations and is greedy. I have made a fortune on 10-15% ROI buy and hold deals in San Antonio. But this type of ‘investor’ is never happy with a certain return, they always want more. Listen, this is San Antonio TX. It has many advantages – real estate is dirt cheap here, we have a great population of blue collar buyers, the economy is stable and taxes are low. But my typical deal is $50,000 and my profit might be $10,000 or $15,000. If that sounds like pennies to you, please don’t call me. I do 50 or 100 of these deals per year. That’s at least $500,000 i my pocket. That’s real money in San Antonio. You might get big profits in San Francisco investment property, but you have to have millions to invest. Here in San Antonio investment property, you can get rolling with $100,000. Have realistic expectations of $10,000 on a quick flip to another investor, or 12-15% per year on a buy and hold.
The ‘investor’ from out of state who questions my rehab cost, comps and ARV. Please. Don’t let the door hit you.

If you call me, I expect you to have proof of funds of at least $50,000 liquid or more, with expectations of making $10,000 max on a deal in 60 days or less. Or, 12-15% ROI on a long term buy and hold with owner financing or renting, if you prefer the latter.

Right now, I am seeking private investors – such as a former San Francisco investment property investor – who will buy a $50,000 3 BR 1 bath fixer upper. I do all the work – finding the house, doing the rehab, which you pay for. When the house sells, we split the profits on the San Antonio investment property down the middle.

Remember, I am not interested in a pseudo investor. Only a real investors with cash who can make decisions. Former San Francisco investment property investors especially welcome.

Let me know. Thanks.

February 17, 2016

How to Invest in Under Market Value Real Estate for Retirement

I have always invested in my San Antonio investment properties in cash, but more and more of my out of state investment property investors are buying my houses with their IRAs and 401ks.

NEW 4 — Investing in under market value properties can be an excellent way to invest with your IRA or 401k.

If you are interested in investing in under market value properties for retirement, one of your options is a self-directed IRA. A self directed IRA allows you to make your own investment decisions and to invest in real estate, precious metals and almost anything, with some restrictions of course.

With your self directed IRA, you need to have a qualified trustee or custodian managing it. Usually, the trustee will provide a variety of administrative functions, such as keeping records of contributions and investment purchases. Also, they will file IRS reports, issue statements to you and so on.

Self-directed IRAs allow for a much higher diversification of assets than a traditional IRA or work based 401k. Note that not all IRA custodians will allow you to invest in real estate, so you need to make sure you open a self-directed IRA with the right company.

Also, remember, your custodian will not vet whether or not your investment complies with regulatory requirements, so you need to do your homework on anything that you invest in, real estate or otherwise.

Remember that you cannot engage in self-dealing. This is where you buy a property in your IRA where you will live or do business in. The self-directed IRA also cannot purchase property owned where you or some family members have a part of the ownership.

A nice part of investing with a self-directed IRA is that you usually have checkbook control. This is where you can write checks on behalf of your IRA. These transactions occur through an LLC that the IRA owns. Setting up an LLC to do your investing with your self-directed IRA will give you more control over your assets and cut down on fees.

In short, investing in under market value real estate with your self-directed IRA or 401k can make a lot of sense, if you are investing in real estate that produces excellent real estate cash flow and has low risk.

Many of my investors used to buy California investment property and San Francisco investment property with their IRA or 401k, but this year, I have several new out of state investment property buyers who are using their retirement accounts to buy my properties.

The way I work is very simple: I put a San Antonio investment property under market value under contract. I sell it to you the investor, and do about $10,000 in rehab. Then, I resell it for you with owner financing at 10% interest, 30 year note, and about $800 per month. Below is an excellent example of what I do.

Address: 820 South San Manuel St., San Antonio TX
Year Built: 1950
Description: Under market value investment property, three bedroom, one bath that has 928 square feet. Beautiful home with TWO exterior storage units – this is a MAJOR selling point for the end buyer; most buyers are blue collar contractors, and they need their tools to be completely secure.
Max After Repair Value: $89,000.
Cash Price: $59,000.
Exit Strategy: Owner finance this out of state investment property with positive cash flow with only $10,000 in repairs completed in 30 days – $900 per month, $5000 down, 30 year note, 10% interest. This San Antonio investment property offers passive cash flow with no maintenance.
Notes: We recommend that you owner finance this out of state investment property because you will have no maintenance expenses. ROI will be ~13.7%.

This San Antonio investment property is an excellent vehicle for real estate cash flow and investing with an IRA or 401k. Let me know if you have questions.

February 16, 2016

5 Common Problems With Buying Rental Properties (Which Is Why I Don’t!)

Are you a wanna-be real estate investor? Many people do indeed dream of owning under market value rental properties and someday earning positive real estate cash flow from them.

However, before you consider buying under market value investment properties, you really should think about what you are getting into. Being a part time landlord is usually a lot more hassle than many realize.

I am a full time real estate investor in San Antonio investment properties. At one time, I owned more than 100 San Antonio rental properties. I have deal with rental property problems many times and I have since stopped renting out properties and now I make real estate cash flow in another way without maintenance…..

But I am getting ahead of myself! Here are the common issues I’ve seen with rental investment properties:

Repair costs: If you are going to rent out your California investment property or Texas investment property (or wherever it is), you will most likely need to spend a good deal of money to make it ready to rent. Any damage to the roof, plumbing, foundation or electrical systems could cost a lot to repair.

This can especially trip up the part time landlord who has a full time job and has bought rental properties for real estate cash flow. Odds are you are not an expert in rehabs and you could easily overspend on fixing up the house.

Depending on which state you are buying your investment properties, you could have landlord and tenant laws that mandate that you add safety features to the house, such as handrails, peephole in the front door, adding a firewall, and a lot more.

Getting repairs done: As a rental property investor, you are going to have repairs that have to be done fast. Back when I was a landlord 10 years ago, I had water heaters go bad. Sometimes the house got flooded and I had to spend a couple thousand dollars to clean it up. Of course, the after hours plumber can cost you $100 per hour or more.
Collecting your rent: If you are lucky, you will have good tenants who always pay on time. But oftentimes, you have tenants who are late. This is an especially big problem if you buy your rental properties with mortgages. I never buy my under market value properties with mortgages, only cash.
Dealing with pain in the neck tenants: Eventually you are going to have to deal with tenants who damage your house or cause problems with other tenants. I once had a tenant who almost burned the house down. Of course, you will also have to deal with evictions at times, which can be problematic depending upon your state. In some states, the tenant can stay in the house 60 days or more without paying rent!
Keeping the property safe: If you rent out properties, you could be at risk of being sued if someone is injured on your property. You must keep the home maintained so that there are not potential accidents.

The bottom line on rental properties for me is to not invest in rental properties. There is simply too much hassle involved in them to make it worth my time. Been there, done that!

How I Invest in Below Market Value Properties Without Repairs

The way that I invest in San Antonio investment properties today is to buy my under market value property in cash, do $10,000 or so in rehab, and then seller finance it. This type of investing has four big advantages:

I have no mortgage. Yay!
My occupant is buying the house on terms from me. That means they maintain the property and do all of the repairs. Double yay! If they choose to not repair it, that isn’t my problem. I merely hold the note on the house.
I enjoy pure real estate cash flow in my under market value San Antonio properties. No expenses! Is this cool or what?
Because I buy investment property in Texas, foreclosing is very easy. I get the house back in 60 days and resell it again. I have resold the same house three times before: $5000 down, $800 per month.

Of course, this type of real estate investing takes CASH. But if you have an IRA or a 401k, you can often invest in these under market value houses.

Below is a great example of the type of investing my out of state investment property investors and I do.

The house above in on West Poplar Ave. in 78207 in San Antonio. It is a newly completed San Antonio investment property that was bought the the California investor for $44,000 in October 2015.

We conducted $10,000 of rehab on the property and put it on the market in December 2015. Total cost to investor was $54,000. It was resold in late January 2016 with the following terms:

$83,000 sales price
$5000 down
$627.61 per month ($800 per month PITI)
9% interest
30 year note

Total return for out of state property investor is 14% ROI. If you are interested in out of state investment property that earns 10-15% ROI with no maintenance, please contact us.

Below are more rehab pictures:

Based upon this 14% ROI return, I think you can understand why many of my investors from out of state USED to buy San Francisco investment property, San Diego investment property, Seattle investment property, and Los Angeles investment property. Now they mostly buy San Antonio investment property.

February 13, 2016February 16, 2016

14% ROI Case Study on a $44,000 ‘Junk House’

As an experienced and successful investor in San Antonio investment property, all I buy and sell are houses that I lovingly refer to as ‘junk houses’ but are excellent San Antonio investment properties.

As I have noted in other case studies, the smart out of state investor needs to look beyond the surface unattractiveness of these under market value properties in San Antonio and see the value and potential for real estate cash flow underneath.

The house above in on West Poplar Ave. in 78207 in San Antonio. It is a newly completed San Antonio investment property that was bought the the California investor for $44,000 in October 2015.

We conducted $10,000 of rehab on the property and put it on the market in December 2015. Total cost to investor was $54,000. It was resold in late January 2016 with the following terms:

$83,000 sales price
$5000 down
$627.61 per month ($800 per month PITI)
9% interest
30 year note

Note that this is a seller finance property, not a rental property.

Total return for out of state property investor is 14% ROI. If you are interested in out of state investment property that earns 10-15% ROI with no maintenance, please contact us.

Below are more rehab pictures:

February 9, 2016February 10, 2016

What’s Happening with California Investment Property?

As late as 2014, many California investment property firms were buying up dozens of single family homes in Los Angeles, San Francisco and Seattle and then leasing them out.

This was a true flood of cash into California investment property, and helped to push many working families out of the real estate market in California.

But as of 2015, many California investment property companies stopped buying in California, both northern and southern. These investors found that the prices had hit a ceiling and there were no more bargains to be had. In short, there were no more under market value properties; everything was over market value.

Blackstone Group, a major California investment property buyer, cut its purchases of California properties by 90% in 2015. And Oaktree Capital in Los Angeles has been trying to sell off its portfolio of 500 California investment properties.

That is a big changed from 2014, when all buyers of California properties were in bidding wars. The median home price in Los Angeles was a high $385,000, which makes buying properties that produce real estate cash flow a real challenge.

According to Blackstone, prices in California investment properties reached a point where they could not buy a home, rehab it and rent it and make any kind of return.

Among the twenty companies that buy up the most California investment property since 2012, purchases have declined more than 70% in the last year.

One of the places that I see many San Francisco investment property buyers, San Diego investment property buyers and Los Angeles investment property buyers coming is to San Antonio TX. I have several new cash buyers for real estate cash flow so far in 2016.

Here you can buy my under market value houses for $25,000 to $50,000 and make excellent real estate cash flow. Here is a great example.

A Good Example of Under Market Value, Cash Flow Property

This property was sold to my investor for only $25,000:

No one wanted this ‘junk house’ San Antonio investment property. I did! I saw the $100,000 houses next door lived in by the owners, and all of the revitalization going on in this area of San Antonio on the near west side.

Many out of state investment property buyers looking for real estate cash flow would never buy this house. My investor did for $25k, and then I did $27k in rehab:

Electrical update
New flooring (float new floor over that minor foundation issue after it’s repaired)
Clean out
Update bath and kitchen with tile and granite
New light fixtures
Paint in and out
Finish second bedroom

The ARV on this below market value property is $79,900. We just finished the rehab in the middle of January 2016. And guess what? By early February, we already had an owner finance buyer for it: $5000 down, $850 per month, $79,000 final price, 10% interest, 30 year note.

That is what you can do with San Antonio investment property in an under valued market such as San Antonio. Anyone who buys San Francisco investment property or Los Angeles investment property or Seattle investment property will never see these types of returns or prices.