All Forum Posts by: Arlen Chou

@Moshay Larencongratulations on taking a decisive step forward. You should definitely access the investment calculators under the "analyze" tab.  Print out your findings so you will have actual information to show people.  You should also be very specific on who will be apart of your rehab team.  Don't just say "I will find a contractor"...  Let your investors know that you have already done the footwork and that you have guys who are ready to move forward.  Make sure your comps are up to date and print those out, with a map, so that people can see the upside potential in your building.  If your investors are not seasoned in this industry, I would have pictures of what the space looks like ALONG with pictures of what you want the space to look like after renovation. 

Your biggest challenge will be to defend your "numbers". Those numbers could be from the "hard" costs of construction, to the "soft" costs of your finishes, to your projected ARV. Anything you can do to defend your numbers should take a priority in developing your pitch.

Remember, everybody gets lucky.  But those who are prepared for luck are the ones that become successful!

-Arlen

@Scott Trench  the "aha" moment came to me the day when I got into contract on a 1% deal with seller financing in the SF Bay Area. 

Because of what I learned on this site and pod casts, and the people who I have met through the "unofficial" BP meet ups: I successfully negotiated $100k off of asking, got substantial seller financing, got the seller to agree to demo "non-code" compliant work and do expensive sewer lateral work. 

Big props to , @Michael Quarles, @Johnson H. and @J. Martin for their direct and indirect help in my learning process!

-Arlen

@Patty Tran welcome to the BP clan. You and your husband should definitely come out to the meet up next week that @Johnson H. Is putting together. You will get a chance to meet a bunch of great people with lots of experience. Looking to see you guys around!

-arlen

@Andrew Hewatt welcome to the BP community. @Johnson H. Is holding a meet up in the South Bay next week. You and your wife should head on down if you have the time!

@Azita S. at the beginning of your REI adventure it is important that you have checks and balances in place. Unless you are fully versed in construction lingo, it will be very hard for you to know if the GC is pulling your leg on schedules or cost over runs. You might get a good guy, but at the same time you might get a guy who is trying to milk you. Based upon the information on your post and experience I would highly suggest you get a third party person, who is non-related to the GC or your agent. You will spend a little extra money, but consider it a fee for the eduction. During the process you should be active in the weekly updates and learn about the renovation process as it unfolds. I am sure if you are willing to compensate people for their time, you will be able to find somebody on BP who could be your eyes on the project.

Best of luck to you!

-Arlen

@Max Fisher  from a legal perspective there are some considerations.  I believe that if you are flying them for private use and not intruding on the privacy of others, you are free and clear.  The issue comes up when you start to use them for "commercial" use and start to make money from the activity.  Basically the hook is the FAA's definition of "recreational use".

Every job has an appropriate tool... Fast cars belong on the track

This my 1998 Porsche C4S on the track where it belongs... It is street legal, with A/C and a stereo but has a 6 point harness, a cage and a full fire suppression system.

My street, ride before getting into REI was a 2004 Porsche Cayenne S with air suspension. I would pull a 20 foot enclosed car trailer with it, no problems with power or brakes. Those who tow large objects know the benefit of self leveling air suspension over steel springs.

My ride now that I am doing demo and doing renovations myself is the same Cayenne.  My little dump hauler is not a big tow, but the suspension does make the ride much better!

@Account Closed @Mark F. @Franklin Romine @George P. 

Great thanks for the quick input!  That is what I figured, but I just wanted to get some greater understanding.

Hello BP World,

I have an interesting situation.  I am looking at a property that is not under rent control.  There is a tenant, but the home owner and the tenant never put a lease or rental agreement in place. The tenant has been paying rent for many years. This property is located in Oakland CA. 

I am assuming that at the point which I close, I have the open option to either evict the existing tenant or offer them an actual lease.  

I am just wondering if anybody sees any potential problems with getting this person out, besides a standard eviction process.

Thanks in advance,

Arlen

@David Oldenburg thanks for the words of encouragement.  The deal might be getting better for me this week.  The seller is having problems getting on of the tenants to move out.  They missed one closing and they are concerned they might not make the next date of 2/15.  I am asking for some fairly steep concessions.  I don't expect to get them all, but I know I will get something to make the deal better for me!