All Forum Posts by: Brandon Cline

See you all tonight.

Thanks @Alex Shea! I should be in town that week and would love to be there. Keep me posted.

Hi everybody, I won't be able to attend tonight's meetup.  Super disappointed as the last one brought a lot of value.  Hopefully everybody on here can go and I'll get to meet everybody at the next one.  

Take care,

Brandon

Weird, not sure why my post from a few months ago was just reposted....

Anyway, just wanted to jump on here to say that the last meetup in Redding didn't have a huge turn out, but I have to say I was able to find funding for one of my deals by being there.  I have a mixed use property under contract that was a pain to get financing for because the residential lenders didn't want to touch it due to the commercial building.  The commercial lenders didn't want to lend on it because the commercial building is unoccupied due to certain circumstances. What a pain!  One of the people at the last meetup was @Alex Shea.  He said him and his group would look at the deal and see if they could provide funding for me.  Ultimately, he wasn't able to, but he gave me the name of someone he thought could help.  From there, I was able to keep getting recommendations and eventually found a lender who had an appetite for a deal like this.  Just shows the power of networking!  Thanks again Alex and hope to see more people at the next meetup.

@Teresa Buchanan Hi Teresa, just stumbled across this thread.  Did you ever find a meetup group for real estate investors in the Redding area?  I have a 4 plex that's being rehabbed there and we're under contract on a couple more small multis in the area.  Let me know if you found a group, I'd love to get involved. 

Thanks,

Brandon

Not sure on your experience rehabbing places, but I know @Alex Bekeza has been super helpful to me in finding that type of financing.  

@Teresa Buchanan Hi Teresa, just stumbled across this thread.  Did you ever find a meetup group for real estate investors in the Redding area?  I have a 4 plex that's being rehabbed there and we're under contract on a couple more small multis in the area.  Let me know if you found a group, I'd love to get involved. 

Thanks,

Brandon

@Scott Johnson

@Rob B.

Forgot to tag you guys in the previous post.

FINALLY closed on the multi unit I referred to in my previous post.  Just wanted to revisit some of the things we were able to negotiate even after the property was being sold "as is".  Again, it seems CA is different than some other states in regards to the technicality of this wording so if this doesn't exactly jive with the way it's handled in your state, just keep that in mind.

A little recap: Sellers wouldn't let us view the inside of the 4 units until there was an accepted offer.  Listing was being sold as is.  We knew until we saw the inside of the units it would be difficult to make an informed decision as to what we thought the property was worth.  To that end, we figured that there would have to be some negotiations after our home inspection and visual inspection if anything substantial came up.

So we knew that the units needed a new roof and that was factored into our offer.  What we didn't know is that the existing roofing material was an abestos based clay type shingle (sellers didn't either).  We had the material tested and it came back positive with up to 30% asbestos.  Because of this most roofing companies will not touch that project...or at least the removal.  We had to get bids from abatement companies for the removal and they were substantial.  Again, remember this is CA and it seems everything is super expensive.  Our bids, just for the removal, were anywhere between $22K and $36K with most abatement companies asking for the units to be vacant for a week while they do the work.  So not only would we have a $22K expense added to the new roof, we'd have to place the tenants somewhere else for a week.  

The reason I bring this up is because if we would of just bought the units "As is" and had no negotiating power after our offer was accepted then we would be out a ton more money than was expected.  That or we lose our earnest money if we walked.  Our initial accepted offer was $291k, we ended up paying $245k.  We negotiated down the cost of the abatement company removing the roof, placing tenants, and because we figured the sellers wouldn't want to have to disclose the fact the roof contains asbestos if we were to walk, we asked for much more and got it.  So for those of you guys out there asking if it's ok to renegotiate after making an offer on a listing being sold "as is", I would say absolutely.  Every state seems to be different and each purchase has it's own nuance, but I'd for sure do it.  

One other thing I really had driven home on this purchase is it's ok to ask for the moon.  I've always been a little hesitant to ask for too much because I didn't want to blow a deal and upset the sellers.  If you catch someone on the right day you never know how much they're willing to negotiate, but you have to ask. 

Anyone out there have a recommendation for a contractor in Redding, CA that could help me rehab some rental units?