All Forum Posts by: Brian Serina

The lender might buy the insurance and charge it to your loan payment.  Read the fine print in your loan docs where it talks about having adequate insurance.   Home insurance in these outlying areas are becoming extinct since the insurance has become too expensive.

Towards the Natomas area.  Pull up Sacramento on google maps, north of the American River you will see S Natomas, N Natomas, find The Promenade, Arena Blvd.  All areas where money has/is going into (future growth of Sacramento area).

Hi Bronson, I thought people were moving from Sac to Hawaii??    North of Sac would be a decent area to look at and wouldn't be all that far from the airport.  Lots of growth there (lots of growth everywhere really in Sacramento area).

reits, heartland

Hi Bria, I was a member for about two years and left several years ago since our local chapter had weekly meetings and I found them time consuming and not really liking the mix of people’s backgrounds and I didn’t get any referrals.  I came in as a commercial broker and although I did meet a few really good people that I still do keep in touch with there really wasn’t anything there for me there. Each group is about 20~30 people.   It seemed that half the members were stay-at-home moms trying to launch some home business to make some extra change (like selling petrulli oil and one was selling Avon similar products).  The residential realtor seemed to do ok and one or two of the insurance people, but for me after two years it was time to go.

What was it like?  I would get a listing for a commercial retail strip center and when it was my turn to present, I would pitch it to the group but as I would look around I could see people in the group texting and some were dozing off - it was so obvious no one was interested in what I had to offer.   I would be up there pitching a $1.5m strip center to a bunch of people wondering if they were going to make their mortgage payment next month. 

 I kept in contact with the business lawyer and the bookkeeper and it wasn’t until after I left we started to refer business to each other.  The business lawyer was really good and to this day I refer people to him and every now and then he gives me leads (he just gave me one last week in fact for a large restaurant franchise that the owners also own the r/e).  

You have to look at the mix of backgrounds in the group.  I was looking for more of a professional background mix and was hoping to be the door into the investment world for them to venture into but after a year I realized no one had any interest in me or what I did.  Nice people.  But a waste of time. I think if the group had been more doctors, lawyers, dentists, etc it would have been different.  So...my suggestion is to go to a couple of their meetups.  Talk to several members.  Find out what they do and ask yourself if you could see yourself in this group, seeing these people every week, and what are the chances they would refer business to you. I had no interest in exotic oils or high-end beauty products.   Hope that helps.

Also, just one more thing.  In r/e referrals are very important.  I’ve been in this game awhile now.  I work relationships and go out of my way to give referrals out to people I know and trust.  And it comes back full circle.  I am up to my eyebrows in referral business right now.  It just keeps coming in.  So when you find someone that is good and especially in the line of work you do, an HVAC tradesman, the painter, decorator, roofer, the Hazard Disclosure agent, a really good handyman/woman, etc, go out of your way to give those people referrals - they will be so appreciative it will come back as business to you.  Cheers!

Hi Nick, That is a good question for a cpa but I don't think you setting up an LLC matters especially if your LLC is a single member LLC since it will be considered a "disregarded entity". To be considered QBI I am pretty sure the source of the distributions have to be considered and the make-up of those distributions. If it is not QBI at the source, then I don't think you having an LLC would qualify for a QBID. A good CPA can get into the weeds with this one...All RS investment entities were set up as LLCs and the only time I was able to get a QBID was if Box 3 was checked on the K1 and certain qualifying thresholds and requirements were met.

I am sure you would have to get a special use permit on that one. The permit folks take your money up front, and the wait to find out to see if you are approved could take a very long time.

10k new homes going in south of the 50 just between Folsom and El Dorado Hills and they seem to be selling.  Someone is buying them.  New Safeway going in just off of Bass Lake Rd and I am finishing up a lease in there and have had several inquiries from the Bay Area to open up shop in that center. Seems the big money is still very active all over Sacramento area.  Phase 1 retail new center almost complete in a Curtis Park infill development with 500 new homes soon to follow.  The tariffs are starting to affect the cost of building materials so that would be a bigger worry than any misguided ideas our C- one party students under the dome come up with.  I would expect anything they end up doing will result in more homeless.

If you have never bought a business before you should be working with a seasoned business broker. Any reason you are not? I sell businesses and NDAs are ALWAYS required along with a completed buyer profile with buyer's financial statement and credit report. Looking at businesses at this level, you should already have been coached on the process and have been qualified for an SBA loan. Without a signed NDA and buyer profile, the conversation stops. Serious buyers know what to do and are ready with their own paperwork and can demonstrate to the Seller he/she can go the distance (as in close the deal). Also, just so you know, there is no NOI on businesses - that is a term used in commercial real estate. Businesses use terms like SDE (Seller's Adjusted Net), SDCF (Seller's Discretionary Cash Flow), EBITDA (for larger businesses). When real estate is being sold with the business, adjusted earnings are bifurcated (business income vs NOI), imputed market rent placed on the business, and separate valuations are determined. Get a business broker and not your cousin that's been in r/e for a year and has sold a house or two. You should know that there will be no detail information provided by the seller this early in the stage without a purchase contract in place and proof, you the buyer, can perform. Due diligence follows a signed and accepted purchase contract. 9 out of 10 never make it past the front door...

I would expect (or at least not be surprised) to see some kind of rent control measure take hold in all the mid to larger metro cities.   “Under market” rents will become “market” rents as rent control measures tighten over the upcoming years.