All Forum Posts by: Ben Tilbury

There are deals to be found all over the state but you have to find them at the right time and act quickly usually with cash to pick them up. A rehab project like Greg mentioned above might be a great option or if you get something that is a deep value add with an increase in rents would be a great play. The issue is most properties in our area of San Luis Obispo County and even up into Monterey County is that multifamily properties are priced at around 4 CAPs which leaves less meat on the bone for much of anything unless you're betting on appreciation way down the line but we are already at an unsustainable market, we should see a shift in the coming months because people can only stand to pay so much and eventually will realize they are overpaying or will find somewhere cheaper to purchase properties with better returns. 

Another thought is buy the most affordable home you can find with the most bedrooms because when house hacking Rooms=Income. Think of a 4 bedroom home as almost being a mini 4-plex, I'm not sure exactly what your market rents are down there but if they are anything like up here on the Central Coast then you should be able to get between $600-850 per room! Put just enough down in order to cash flow or to live for free and you'll be in the clear. Do account for some expenses though although the other great thing is you can split the utilities equally between all the roommates. 

Your best bet is to just speak with the park manager or ownership if you're able to get a hold of them and they may make you an offer or just say we'll take it off your hands. Sounds like more work than its worth for you since you don't live nearby. Your other option would to be just to put it on Craigslist to wholesale it quickly for a few grand. Obviously there's not enough meat on the bone to pay a realtor to list it from the sound of it. What cities are your current rentals in? 

@Ross Turner Hey Ross, lets meet up and talk I'd be open to team up with you in some capacity. I'll pm you now.

At least we know @Matt K. has great taste in wine....and apparently in investment locations too ;)

Is this home on or off the market? What's included in your rehab budget? Will you be doing the work yourself? Is there space rent for the mobile home in addition to the $90 HOA costs? Is it located near Lake Naciemiento?

I'd have to agree with @Tenzin Gyaltsen & @Ryan Dossey on this one. If a seller has their property listed under an exclusive listing agreement in CA, they are most likely under contract to pay commission fees to the listing agent, your best option is to contact the agent directly to negotiate a price that works for the seller and solves every ones problem. Because going around the agent is just asking for issues and litigation since he is entitled to his/her commission through the contract, not to mention it would raise ethical issues...with this said it will automatically disqualify some of these deals because the seller needs to much to cover outstanding debts and their agents seller commission. The good new for the seller is they won't have to pay the buyers commission so they will be cutting that in half if you're able to negotiate it right. I'd recommend running a net sheet for them after you account for all their costs after the sale and how they may be able to still sell their property before auction, put money in their pocket and save money all just buy selling at a lower price to you. Also check what listing agreement they have signed in their contract. But I'd assume most of them will be exclusive right to sell as defined below. 

Exclusive Right-to-Sell Listing: A contractual agreement under which the listing broker acts as the agent or as the legally recognized non-agency representative of the seller(s), and the seller(s) agrees to pay a commission to the listing broker, regardless of whether the property is sold through the efforts of the listing broker, the seller(s), or anyone else; and a contractual agreement under which the listing broker acts as the agent or as the legally recognized non-agency representative of the seller(s), and the seller(s) agrees to pay a commission to the listing broker regardless of whether the property is sold through the efforts of the listing broker, the seller(s), or anyone else, except that the seller(s) may name one or more individuals or entities as exemptions in the listing agreement and if the property is sold to any exempted individual or entity, the seller(s) is not obligated to pay a commission to the listing broker.

Hey @Jeremiah Lee I'll be happy to send you his contact info in a private message. We actually already talked about your project and he said he can show you a similar project that he worked with another client on over on Phillips Street in SLO.

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<bad joke I know! But construction can be done on your time schedule  if you just want to pull from accounts as it progresses and then once completed refinance and pull some equity back out to replenish your accounts. Another option would be finding the right hard money lender with terms that make sense...I might know a guy. But that's all for you to decide what option suits your needs and comfort level. Do you have a general contractor already? I also know a guy...feel free to message me and I wish you the best on your build! Make sure before you do anything you talk to the county/city building department and make sure they will allow a secondary dwelling on your property if you haven't already :) Also it does make a difference if the secondary dwelling will be attached or detached to the main house for loan possibilities and permits. if you need a lender...let me know and I'll put you in contact with my guy whom I quoted above.

The beautiful thing about real estate is there are always multiple options or solutions to an objective or issue. In this case your objective being a secondary dwelling unit and the issue being funding it. Now I'll quote my lender on this when I just asked him for his expertise regarding your post, he says a "New construction loan where the lender would "roll in" the existing loan, and then make draw payments during the course of the construction to the builder. This is not an easy loan, but he will certainly appreciate the cash flow when they are done." Now that is definitely possibly the most common and some would say best option. But there are other options, another shortly put would be combining a HELOC, your 401k, investment account, and funding the rest as needed with your salaried income. This may leave you stressed and you without "bigger pockets"