All Forum Posts by: Will Barnard

Depends on your contract and it may depend on the state you are investing in.
I would stipulate in your purchase contract that the bill must be paid by seller prior to close, or get a credit back in escrow. Either way, make sure the seller pays.

How to Generate $$$ in CA?
There is not just one way, right!

Flipping in example above, buying at great prices and holding until the market rebounds, buying out of state.

Of course, it is not easy. If it were, everybody would be rich here, right!

Many investors are utilizing a repeatable model in CA to make $ in RE. Cash flow from landlording is not the only method to making $ regardless of what others claim.

I personally know of several who buy at great price points, and flip to end users for profit. You can call it speculation, or whatever name you choose, but the end result is cash in the pocket and the abilty to repeat.

Doom and gloom for the general public is $ signs for RE investors. The only hurdle is finding the ability to utilize leverage.

Or at least bird dogs!

Or just line up the investor/buyer prior to finding the investment property.

Having a financial partner to put up 100% of all the acquisition, repairs, maintenance, reserves, and financial risk is a great asset for you. He/She wants a 12% interest return on the money invested (perhaps you can negotiate that down to 10% which is fair) and splitting the net is great. You do the locating, managing, etc. and the partner puts up the cash. This gives you incredible buying power (all cash offers) right off the bat.
I realize it is dissapointing to not be able to pick up a few on your own, but from the partner's viewpoint, he/she is wanting full attention, support, and time spent on your common endeavor. Otherwise, he/she risks you taking the best of the best for yourself, and only passing on the properties you do not want on your own. Plus your time and efforts would be diverted from the common goal, to your indiviual goal.

I would take the offer and run with it.
Keep in mind you can still get creative and buy with owner financing, sub to, etc and take down even more properties. Having 7+ properties and splitting the profits is certainly more profitable (with no finanical risk to you) than having 1 or 2 on your own with 100% of the profit and 100% of the risk.

Even if it was cut in half, divided over two yeras rather than one, it is still too high for that few units, but at least closer.
You may want to look at having each unit individually metered so the water bill is the tenant's responsibility, and reduces your costs over time, but it is quite expensive initially.

I understand. Not odd at all. Look at it from the roofer's perspective, there are many crooks and wanabie investors looking to take advantage of him as well.

I would use the third party idead for each of your protection and comfort levels just to be safe.