All Forum Posts by: Joseph M.

House flipping is at a six year high now so the competition is high and people are seeing less profit /slimming margins on average as a result. The people that are making it work these days seem to be focusing on off market deals . You can look into doing direct mail or other marketing direct to homeowners. It’s a numbers game of buying lists or driving for dollars .. taking note of rundown looking homes and sending out thousands of mail pieces and working to convert motivated sellers into selling their home . https://www.marketwatch.com/story/home-flipping-activity-reaches-six-year-high-2018-06-07

It’s kind of crazy Morris still has an active podcast .. the most recent episode title being “How to Think like a Wealthy Investor “ ... The title of the June 10th podcast is “The worst way to invest in real estate “ I can think of one big one he probably didn’t mention in there .. I know he’s been on other podcasts recently as a guest too .

Wonder if there is demand for for a new book title The BiggerPockets Guide to Boring Investing in Real Estate 🏡

Matt K. Yeah huge difference between 1% on rental income versus 1% on net . Also won’t landlords just end up raising rents to make up for the tax ? I believe Oakland has some rent of rent control like L.A and SF but not sure the details on it .

If this passes , I could see other cities getting the same idea . I have never heard of such a tax and it would set a bad precedent . This Councilwoman says landlords are “raking in cash “ .. in Oakland where cap rates are super low these days .. if one can cash flow at all .. Once they get 1% of landlords revenue I could see it going up to 2% ,3% in the next years . On the related note San Francisco is also proposing an additional tax on businesses for the homeless . https://www.cnbc.com/2018/07/17/san-francisco-to-consider-tax-on-companies-to-help-homeless.html —— OAKLAND — As the Bay Area struggles with an alarming homelessness crisis, voters may soon decide whether to force Oakland’s biggest landlords to pay up to help house the city’s most vulnerable residents. Oakland Councilwoman Rebecca Kaplan wants to impose an extra 1 percent annual tax on rental revenue that exceeds $200,000, and use that money to fund homeless shelters, help homeless residents secure permanent housing and clean up the sprawling encampments that line many of the city’s sidewalks. The city needs more money to tackle the problem, and collecting it from Oakland’s biggest-earning landlords makes sense, Kaplan said. Rising rents are pushing people out of their homes, but at the same time, landlords are raking in cash, she said. “We’re capturing revenue where it is,” Kaplan said, “and we’re capturing the revenue that has a relationship to the problem of homelessness.” https://www.mercurynews.com/2018/07/17/proposed-landlord-tax-would-raise-money-to-house-oaklands-homeless/

If you don’t own your own home I’d say go with a live in flip or house hack . You can use an FHA loan to buy a single family house or a 2-4 unit building putting 3.5% down . Of course you’ll want to run the numbers and make sure it works/cash flows BRRRR method seems to work more smoothly when one pays cash for the purchase and rehab.

Michael Sato Would you be able to PM me one as well ? Thank you

I know there was at least one poster that was using peer to peer loans but I believe they were refinancing pretty quickly into a regular loan as the interest on those peer to peer loans is too high . It seems it could work for lower priced properties as an alternative to hard money . You can look into portfolio lenders or commercial loans if you max out conventional ( Fannie /Freddie ) loans .

sorry to hear about your divorce, my parents divorced so I know how tough and nasty it can be . It’s great to have you back on BP , I remember reading a lot of your great posts on here . The 350 unit project sounds awesome! Look forward to hearing about it and other developments .

Shawn Ward Thanks for updating , been interesting to hear the details of this project , but sorry to hear it’s been such a long painful process . Do you have any other flips going on in the L.A area right now ?