All Forum Posts by: DJ Dawson

Paul, congrats on taking a big step towards your REI goals!! I would suggest this. Create an excel doc, or use the docs available here on BP ( for pro members only) to create a LEGIT property evaluation sheet that you can present to a creative investor. "women lie, men lie, numbers DONT lie" as the great poet Lil' Wayne once said lol. Creating this doc allows you to walk into a bank, a private investor office, even a family friend with big pockets. To say here the property, I've crunched all the numbers and heres a pretty once sheet that will put some concrete evidence behind the words I am putting out there.

If you need any help with this feel free to reach out! 

280k for a triplex in Sacramento seems like a very low price point.

Like mentioned above, I would add more to repairs, just a brief look at the property pictures it will cost at least 1000 to remove all that junk from the back yard. Investor special in general means sold as is so keep that in mind. 

and hey at least that way after due dilligence you can say, nope I can pull back to my original numbers and say this is a damn good deal and I'm all over it.

Also I would have to side with the comment above. 4.25% on a multi family? unless thats already been guaranteed to you, I would anticipate getting higher interest than that.

Good luck man!

step 1. Identify market 

step 2. Partner with someone with sources in that area or somebody literally IN that area. (Biggerpockets is almost made just for this very thing!) 

Best of luck!

@Chuks Erinne I’ll have to get that app!! Thanks!

@Matt Shields I think if your plan is using the MLS, foreclosure lists, and other easily accesible means of finding deals then yes your going to struggle find projects that give you the margins you want. But never underestimate the power of driving for dollars, biking for dollars, running for dollars, around neighborhoods you deem as being good opportunistic locations. That’s where the margins are good

hey Nathan welcome to BP!! I too am from Sacramento and am always looking for partners experienced or not to bounce ideas off of, evaluate properties, and possibly even partner on a deal. to your point about the VA loan, YES the VA loan can be used for a multi family property up to a QUADPLEX (4 units). While the low down payment costs are what entices many veterans to jump on that loan , it will significantly increase your PITI and ultimately thats more money you would have to pay interest on, even 1% down can prevent thousands of dollars in interest over the life of the loan.

Best of luck and feel free to reach out for anything I can help with!

@Charlene Chow REO and foreclosures can certainly be a solid bet on diamond in the rough properties, but those props generally just that..."in the rough". Those may take some elbow grease to get to where you would like them from an appraised value standpoint. Multi families are the way to go from a mitigating risk standpoint (more doors = smaller risk per door), but more doors also = more tenants which CAN (not always) lead to more problems, just something to keep in mind. @Wes Blackwell is VERY involved in the Sacramento market and can provide you with more insight than I on specifics but if you have any questions about specific neighborhoods feel free to reach out, or if you are looking for a partner who can property manage as well as you are in the bay area I am at your service =)

Hey Nick, much like @Pratik P. said the wholesaling market is tough to break into because it is essentially a no money down means of getting into REI so EVERYBODY wants to do it. However that doesn't mean you can't become the best!! Wholesaling in this market is essentially a second job so i would suggest trying to partner with somebody who has been doing it. I'm sure you've seen the "I BUY HOUSES" signs throughout town. Any time you see one jot down the number give the person a call, tell them your goals, and tell them you are willing to do ANYTHING to help their cause as long as you can work with them and gain that necessary experience to develop. best of luck!

Charlene welcome to BP!! Congrats on taking your first step in REI and creating a plan for your future. I would partner with a professional REA who can give you and your partner a realistic idea of what you can afford and how much the "cost of money" will be for you two considering your individual situations. From there you can begin to limit your search based on your price point and that can provide some clarity on the situation. Quick rule of thumb in REI is the "1% rule" which is simply, a good rental property will rent for 1% of the purchase price. Right now in California that's VERY VERY few and far between. House hacking may be your best bet to build equity, and maybe refi to pull funds or continue to save and put yourself in the best position a year or so from now to make the move to strictly investment props!! Again best of luck

moved to Sac in Sep of 17, started to look at housing prices when I moved and couldn't believe the affordability, bought a house 2.5 miles from the Golden 1 center that was built in 07 for 300k! Appreciation is king.