All Forum Posts by: Karen Margrave

To do a detailed cost breakdown takes a lot of time. In slow markets, contractors are happy to do it and get the new business. I busy times, it's taking away from them getting paid for their time. See if you can work out a compromise. Half up front, and the balance upon receipt of the cost breakdown. Don't expect a detailed list with pricing of every item. There will probably be allowances for various things. Ask if you can choose the finishes you want within those allowances, or does he have specific things you will have to choose from? 

When the market crashed my husband, our adult kids and their kids all left Redding, CA and moved to Orange County, CA. Why? Because southern CA always is the first to rebound after recessions. That's how I found Biggerpockets. Not knowing the so cal market, I was in search of information, and fell in love with the site. 

We were (2) general contractors, an electrical contractor, 2 Brokers and 1 agent. Our specialty was spec new construction. There was no better place for us to take that risk than the coastal areas of Orange County, in our opinion. There's a broad based economy, everything you can imagine to do, gorgeous beaches, perfect weather, world class schools and medical facilities. Drawback obviously is cost. However; there's a reason everything costs more, there's more demand, and thus high appreciation on properties.  

I loved doing business there. The reason we left was my husband unexpectedly passed away, and I had to regroup. My son and I moved to Bend, OR and did some projects there, then back to Redding, CA. 

Where I live in Redding they say we have 300 days of sunshine. We are one of the sunniest places in America. Our summers are not for the faint at heart, as the heat can get up to 118 (rarely) but we have great air conditioning!!  We have beautiful natural resources all around us (lakes, rivers, caverns and volcanoes). As a Realtor I see every day people fleeing CA for other states. It's basically anywhere but CA (or NY) We also have wildfires. However; there's still a huge demand on housing in CA, and even with people leaving, there's not enough housing. Our weather, the ocean, and all the other natural resources so far have proven to be a draw. However; now that we're seeing businesses leaving, big tech doing layoffs, and manufacturing going, we may see things turn around in the larger cities. Our education system in CA as much of America is failing too, so as they say, sit down, buckle up and hold on! 

All real estate is local. Nobody has any idea what will happen. America has a huge housing deficit, and costs to build new units are out of reach. However; larger cities with broad based economies will always fare better than smaller areas with narrower job base and service related jobs . Once we see job losses, that will impact ability of people to pay living expenses, mortgages and rent. 

All real estate is local is a saying you may have heard of. It depends. What are the costs to buy land, obtain permits and build in the area where you are looking? With fuel costs as high as they are, tight supply chain. interest rates, etc. developing a project, permitting and building it with materials costs where they are probably won't be cheaper than what you can purchase an existing building for. However; if supply is tight, and there's land zoned for multi family that can be purchased at a reasonable price, and permitting costs are low, it may work. As I mentioned, all real estate is local, as are all costs associated with it. 

Justin I'll definitely keep your information.  Get on some of the FB groups too, and Nextdoor. There's always people needing handymen. 

Some photos would help. What color is the roof? A dark roof in high heat ages faster than a lighter one. A flatter pitch ages faster than higher pitched. At 20 years no matter what, it's getting to the end of its life in the hot weather Texas has. We have the same heat here in Redding, CA. The same roof here, and one in the mountains, have huge differences in lifespan. One things certain, it will not devalue the property, so if you have the funds to do it now, I'd do it. 

I fought for 3 YEARS with the County on impact fees on ADUs. Finally an attorney that was looking at the implementation of ADU regulations in various CA counties heard about my dilemma and though he wasn't representing me specifically, he did use my case as an example when writing to the County, and they had to quit charging the impact fees. Mine was on a conversion, and all the fees were paid at the time of original build in 2005. First, go talk to the head of the Building Department. See if you can get your Supervisors, or Council person to help you. If that doesn't work, you'll either have to pay the fees, or hire an attorney, which will probably be as much.

Quote from @Justin Kerstetter:

@Karen Margrave Are you going to try and do a meetup next month? 

If there's enough people that want to come to a meetup, I'd love to have one. I try to get conversations going on these threads, but it's very rare anyone posts. I'd like to see what local investors are doing, are they looking for deals, have deals to sell, need information, etc.?  Having started meetups in O.C. and in Bend, there was more participation from BP members, but in Redding, members don't share as easily. I have lenders, title companies, insurance agents, etc. that I can get to come talk, but I'll need to be sure we will have people there. 

When I schedule the next meetup, I will have a guest speaker so everyone will know what the subject matter is. Right now on deals it seems the most critical things are Financing, Insurance and possibly someone from Cal Fire. Insurance these days is a huge factor, especially for STR buyers looking at properties up in the outlying areas. 

PLEASE WEIGH IN ON SUBJECTS YOU ARE INTERESTED IN! 
Also, what day is best for a meetup for you? 

Areas: Redding, Anderson, Cottonwood, Shingletown, Viola, Cottonwood, Palo Cedro, Red Bluff, Shasta Lake, Shasta, Trinity, Lewiston. 
Property types: SFR, STR, LTR, Duplex, Fourplex, MFD, 

Having been through recessions, the crash, Covid and now this, it will be interesting to see how it shakes out. I'd say start to touch base with every single person you have worked with.

The biggest thing in this market is INFORMATION! For both buyers and sellers, it's important they understand how much "time" can cost them, as rates increase and values fall. Waiting isn't a good idea in this market. 

For buyers, it's imperative that we be up on the different financing programs, DPA programs, Buy downs, etc. that are available, as these markets require creativity, and programs will be evolving.  

Finding a way to get information to your clients is key. Maybe videos, newsletter, website, etc. Be consistent. (It's something I struggle with!) 

Agents/Brokers, Please answer the following: 

What's the best sources of qualified leads you've found? 

What do you do that is most successful for you in your market? 

What do you find to be the greatest return on marketing investment? 

How is your local market doing?