All Forum Posts by: Account Closed

Anyone used the private money website called Privatemoneygoldmine .com? They basically give you a list of people who will lend directly to you in your area, but you have to pay for it. Any experience with this? If it's good, could be a great resource for private funding.

Thinking of applying the BRRRR method to buying a lot in downtown Bakersfield where there was once a house but now it's just land. Anyone have an idea of new construction cost per square foot in Bakersfield? Plan would be to be to purchase the land below market price and build a duplex. Average rent for a 2 bed 1 bath place is around $750 for the area.

If I was in this situation, I would perform a mental opportunity cost analysis.  This means, on one hand you can potentially get cashflow from this property, but you lose access to the money tied up in it.  On the other hand, if you flip the property and sell for a profit, you get your money back plus the profit, but lose cashflow.  Since you're a buy & hold investor, I'm guessing you're more comfortable with the former argument, keep the place for cashflow.  The major question I would ask myself as a buy and hold investor is:  Would keeping this property override taking the cash and profits from it to get a property that cashflows more?

I'm considering a small investment with EquityBuild Inc., who appears to be a firm dealing in notes for multifamily properties, claiming 15-18% return for an 18 month term.  

Has anyone had experience investing in this way, or with this company?  Pros & cons?

@Josh Justiniano Thanks for the response and the specifics.  It sounds like you may have done a flip or two in Bakersfield.  I'm curious, what areas do you prefer when flipping? 

Hello BP colleagues, I have always envisioned my REI business as a buy and hold business, but my wife and I have recently realized that to reach our goals we will need to flip a few homes in the next few years. We view flipping as a way to accelerate capital growth to go after additional buy & holds.

Does anyone have experience in flipping homes in Bakersfield? If so, I'd like to hear your thoughts on how successful it is, and if you engage in flips anywhere else in Kern County. I am especially interested in the spreads from purchase price to to sale price. In addition, I'd like to know what percentage of ARV flippers typically purchase at here in Bakersfield. For example, do you purchase based on a price of 50% ARV, or 75% ARV? I would guess the lower, the better.

@Brandon Battle Good points all around.  The roof issues even seem to happen on newer homes sometimes.  I had a house here in CA last year that was missing the flashing under the edge of the roofing tiles, and the tiles allowed the water to wick back into the OSB board.  It ended up being fixed, but it was a hassle.  That house was built in 2003.

@Chris Heeren Sounds like direct mail is working for you, congrats! I haven't done this yet, but am looking into it somewhat, as I'm in California, where good to great deals are slim. Anything on the MLS, well most of it anyway, is higher in price and I'd like to find an off market deal where I can make good money, and maybe help out a struggling landlord by taking a underperforming property off their hands. Can you give me any insight into your experience with direct mail and what your costs versus opportunities received are?

@John D. you can add any attachment you want to your lease regarding rules & regs, as long as they comply with law.  You can't require the person to wash their car every day, for example, but you can state that noise has to stop at a certain time, as long as it's reasonable.

If I was in your shoes I would sell the place and use the proceeds to invest in small multis 2-4 units, maybe 2 or 3 properties with 20% down each.  Multis are great as you can usually cover your costs with 2/3 or 3/4 of the property rented.