All Forum Posts by: James Thiel

@Joanne Tsai I’m In CA, SoCal near Pasadena. Average DOM barely ticked up, prices still very high, still seeing multiple offers over asking (oftentimes with no inspection contingency). Not sure if prices are lower than their peak or still trending higher, would have to do some more looking into it. Overall, not much seems different from a month or two ago.

@Jack Orthman Interesting that tour initial buyer was willing to give you > $120K over asking immediately, but then balked in a seemingly minor fix. Hmm, ya just never know. 🤔

@Andrew Postell Thanks so much for your reply and advice! Yeah, it’s been a while since I’ve been on BP (was big into it and RE investing, in general in 2015-2017) and a lot of BP’s tools and their website has changed since then. I’ll look into the state forums. Much appreciated.

Hey BP Peeps,

Just wondering if anyone is doing flips in the greater LA metro and having any luck finding deals. My partner and I are doing maybe 3-4 (primarily cosmetic) flips per year and looking for more such deals, open to doing some BRRR deals too. Wholesalers, please hit me up and flippers if you want to partner in any way or need access to capital. Thanks.

James

Wow, what a thread. I just jumped back onto BP forums after a very long hiatus and this made for good reading! As a newcomer to the thread, reading all the comments with fresh eyes and no attachment it seems obvious to me to stay clear of these guys in terms of making an investment. If they can eventually build these homes at the stated prices, then I'd definitely consider that. However, as a former SolarCity/Tesla employee and current competitor, I can see through so many of these "companies" who tout the Tesla Powerwall (or solar roof). They will not get it, period! But it sounds good and, for some reason, people love and want it. I'd personally recommend buying the Ford F-150 and use that as a full-house backup in case of an outage and get dual utility out of it vs. spending $45K on three PWs to hang on the wall waiting for the rare power outage. What's the ROI on that? But I digress.

This thread reads like a story that evokes the memory of that movie title "He's Just Not That Into You."  I'm sure we've all had many a long conversation (or multiple, seemingly endless conversations) with a friend who seems determined to convince us that the girl (or guy) of their dreams does, in fact, love them when all indications are that his person doesn't even know they exist or perhaps has 2-3 real partners already. When I read this thread, either that movie or Trevor Milton is what comes to mind for me, and those are definitely not the thoughts I want to have when considering a potential investment.  Heck, even just a quick search of Google and Google Maps shows nothing related to S2A in Hemet, CA.  Besides, who puts their HQ in Hemet, CA anyway (oh yeah, L.Ron Hubbard and David Miscavige, never mind. LOL) ?!!  Yuck. Sorry residents of Hemet, no offense to you personally.

Hey BP community,

I have a unique lending need and not sure how I can accomplish it, if at all.  I haven't been working for quite a while so have no W2/1099 income. I do have several cash-flowing SFRs with good equity positions and high-balance brokerage accounts.  My goal is to refinance one or more of my properties at a lower rate so I can pay more toward principal each month and own them outright sooner.

Can anyone recommend an asset-based lender or other creative way to do this?

Thanks,

James

Good idea, thanks Anthony.

I have an opportunity to buy a house at a solid discount and want to do seller financing, but don't know the best way to structure it so both parties are happy.  Here's the scenario:

My friend wants to partner with me 50/50 to buy house from his sister.  The house is their father's home that he has owned forever, but he is 88-yr old and going to an assisted living facility. Daughter/my friend's sister is on title to home (my friend didn't inherit 1/2 I guess) and wants quick exit and cash. She's well off and doesn't really need the cash, but does want it to pay off small mortgage left on house ($25K) and cover $4500/mo. of fees for her dad's needs in the facility - very admirable.

She wants minimum $265K for the house and will sell to her brother without listing on MLS. He thinks we should write a check from our own funds for $132.5K each, then we'd still put in another $10-15K each for minor rehab. The house is worth ~ $340K as is with an ARV of ~ $375K and is in great location/market so should sell quick.

I don't want to put that much of my money into the deal since we're not experienced flippers, but would be willing to do a 20% down payment with him and present seller financing for the rest to his sister.  I am looking for advice on some options I can present to her that might work?  Or hard money loan to buy the house cash from her?

Thanks!

James 

@William Walker  This definitely helps, thanks!  This is what I expected as far as the 8% preferred return being similar to debt.  What I was having a hard time evaluating is the 4% accumulation vs. a split of cash flows beyond the preferred return.  First, the opportunity doesn't sound as good as I had hoped, and second, I still have no way of gauging whether this deal or one that offers a similar pref but with a 80/20 split of CFs would be a better investment for me unless I know how the  their projects typically perform.

Their offer summary financials show essentially a 12% return (8% pref, 4% annualized app.) or $60K on a $100K investment at year 5, the planned exit.  What other questions might I ask them as far as returns, or is it pretty cut and dried?  

@Michael Le I haven't seen the actual PPM yet just the overview.  I will ask for that as well as ask them my questions, but wanted an initial take from BP folks.  Thanks.