All Forum Posts by: Arlen Chou

@Account Closed I assume that this home is gone, but I am wondering if you have anything else in the Wylie area.  I am in California, but I will be in Dallas to look at properties next week.

Thanks,

Arlen

@Bruce Mac welcome to BP.  You should try and make out to the big summit that is happening next month hosted by @J. Martin in Oakland.  I am sure you will be able to meet people who invest locally and out of state and get a ton of good info from many sources in one weekend.

@Grant Smith I have been traveling to Dallas very frequently for the past 10 years.  It is a great market on its own.  HOWEVER, I will caution you on investing in the state of Texas.  Please do some research into the tax ramifications of that state and how it will impact you.  Basically if you live in CA and invest in Texas, you will be hit very hard with taxes: property taxes in Texas and income tax in CA.  

@Account Closed I guess I am still trying to figure out my niche.  I am playing both sides of this discussion with both types of loans, but I definitely have way more to learn about commercial loans.

Minh, are you seeing CAP rates starting to decompress and how do you or do you even have to deal with that when negotiating commercial loans in the future? Have you been able to negotiate the CAP rate used to value your property?

Thanks,

Arlen

@Anthony Dominguez the people you hire are "sub-contractors" so they are responsible for their piece of the work.  However, if you pull the permits as the "owner/contractor" you are responsible for the finished product.  If you are only doing minor work, you might be able to get the subs to pull their own permits, but this kind of defeat the purpose of being the acting GC as the sub will probably charge you for getting the permits.

There is a thin line between being the "GC" and being a program manager. My personal experience has been that being the "owner/GC" is easier and faster, then having the individual subs pull permits.  

But I guess at the end of the day, it really depends on the amount of work you are doing.

@Anthony Dominguez you can pull your own permits as the owner and hire your own people.  Keep in mind that all liability will rest with you as the owner/contractor.

@Micah M. welcome to BP.  The BA has a ton of great BP folks.  The area you are looking at is a great niche.  Try to get out to the local meet ups, @Johnson H. has one down in Milpitas and @Jeff Pollack has one down in San Jose.  Both of these meet up have been around for a long time.  There are also some up in SF and Oakland.

Good luck to you,

Arlen

@Dante G. as @J. Martin has suggested, the best way to learn a market is to get in it.  Reading and online research can only take you so far.  Just like any other research, gathering data points is the key to getting a clear picture.  To get a "feel" for a neighborhood, you have to go many times, at different times during the day and night.  Doing a single recon at lunch time and having a burrito does not really count.  This is especially true in a market that has a shifting demo graphic like Oakland.  Get out of the car and walk the area or get a soda and sit down and watch the area for an hour or two on multiple occasions. As you get use to this, you will see things and get a feeling faster so you won't waste as much time.  Try to blend in, this is really more so you will feel comfortable sitting there for a few hours then for any other reason.  If I roll my big black Mercedes SUV into deep East Oakland people look at me weird.  The same is true if I roll my beat up Ford Ranger into Downtown Palo Alto and just sit and watch people.  

As J has mentioned, talking to the store clerks is a great way to get info.  It is my go to method.  Just buy something and chat the guy or girl up.  Most of the time these people are happy to actually TALK to a person.  I used to carry some smokes with me.  I don't smoke, but if I would see somebody just hanging out smoking, I would ask for a light.  Most people are happy to give you one if you have your own cancer sticks.  I would light it and just let it burn out while talking to the guy about the area.

@Arthur Rivera sounds like you are almost finished...  Fire up the BBQ or order some pizza and get some beer, you should be able to knock the painting out in a day.  Even on your own, painting a few rooms at night should not take long... I know, I have "been there done that" and I have the paint covered shirts to prove it, hahaha.  The flooring takes more time and effort.  Do you mean actual rolled out laminate flooring in the master bedroom or do you mean vinyl planks?  The reason I ask is that I have only put laminate in a kitchen and vinyl planks in bedrooms.  Both processes are not that bad once you get the hang of it.

Hang in there and reap the rewards of your efforts!  You will be glad you crossed the finish line.