All Forum Posts by: Joseph M.

@David C. Yeah i had read many multi family buyers in the market are waiting to see what happens Thing is even if it fails they could still come up with something else . I could see how people that already own might just hold ... but seems like a lot of uncertainty right now

@Lesley Resnick Thanks for posting details on some of the rehab costs . Does the 35k include the project management costs as well? I’m assuming also 6 percent or so of sales price for commission ?

@Josh Cooper This might not be true across the board but most turnkey properties aren’t usually in areas known for appreciation They are many times in neighborhoods with a high percentage of renters versus homeowners . It’s easier to buy in these areas generally and sometimes an operator can buy a package of properties from burnt out landlords etc . Can’t really do that as much in mostly owner occupied areas .

@Darryl Jackson How much you need can depend on many factors , the purchase price of the home , the rehab costs etc. Also if you are going to pay all cash or leverage ( hard money or private money loans etc ) If you don’t own your own home I’d suggest doing a live in flip or house hack as you can take advantage of low money down loans like an FHA loan for 3.5% Many people have used this as a way to start out and gain equity that they then use for other deals . It’s possible to do deals without your own money if you do a joint venture type deal but could be hard to find someone to partner without experience, might have to give up more than half the profit but still better than no deal .

@Natalia Avalos Wow a month for an inspection is nuts . Just curious how did you decide to go with this company ? Did you get any references of other people that worked with them ? Are they active on BP? Agree with other posters that if things are going like this it’s not a great sign. Best of luck .

Haven't heard of it ,...just looked it up. Looks pretty guruy...looks like he's charging $497..and says it's a "value" over $2000..  I'd stay away personally. 

Have you checked out Matt Faircloth's book on raising private capital? I haven't read it but he's done a lot of good BP live sessions. I'm always skeptical about these paid for programs, especially when they look like the ones on that website. 

Links:

https://www.amazon.com/Raising-Private-Capital-Bui...

https://www.biggerpockets.com/store/raising-privat...

@Lesley Resnick , congrats , looks very nice!

 What was the net to the investor after holding costs, selling commissions,etc?

You mentioned this being the most profitable flip for the foreseeable future. What are some typical ones you've worked on with investors especially out of town? Or maybe some typical ROIs for the investor within say a 6 month period...based on paying cash. 

Thanks

@Minh Nguyen Thanks for sharing . L.A looks to be going in the direction of stronger rent control and “tenants rights” too . It’s such a waste that you had to go through all that . I feel like if investing in L.A one really needs to consult with a top notch real estate attorney from the beginning just because there are so many lawyers and tenants looking to target landlords for a payday. Just curious what area did you buy in that would actually cash flow as a SFH ? A deal on market or off ?

Originally posted by @KJ L.:

Yo @Joseph M. $700/month is less than Alabama rents. . . That's ridiculous. I'm waiting to see if there will be a rebellion against any new rent control rules because anyone who is newly affect may have standing compared to those who knowingly purchased rent control properties. 

VOTE NO ON PROP 10 

 Yeah , true . The big thing of investing in L.A has been appreciation but if they do some kind of rent freeze where you can’t even raise the rents much if someone moves out that’ll really mess with valuations i would imagine . 

This is part of the ballot . 

“

• Allows policies that would limit the rental rates that residential-property owners may charge for new tenants, new construction, and single-family homes.” 
• Link: https://ballotpedia.org/California_Proposition_10,_Local_Rent_Control_Initiative_(2018)

I’m definitely voting a big NO on Prop 10 . The people voting yes don’t realize it’s going to limit supply and making things worse for a lot of renters . 

@Nurzhan Abenov

Yeah I don’t know the prices well in that area but I know housing is high in that area . 

I would imagine you would be able to profit several times the dollar amount with about the same amount of work especially if you are hiring out all or most of the work.