All Forum Posts by: Jason Thompson

Jason I just emailed you on some lender information. Thanks for post.
Nice to see other's on here that are somewhat local to me.
I'm going to check meetup.com also. Hope you all are doing well!

Jason from Salinas, Ca

Here's the deal...
I want to buy real estate as out of state investments. I live in California and unless it's do Colorado I don't plan on moving :)

I've found a few small properties and even some medium sized properties that cashflow enough for me to consider a purchase.

Well we were Realtors for a while last year and didn't make much at all, we were busy trying to sell our own investment home to move on to this.
Well the home did sell, so on our loan paperwork we can put a substantial amount of money that we made last year.
The problem is of the regular 'job' we don't list. Our only income is the sale of that previous house, and thats also what we've lived off of.

How finance-able am I??

I mean, any ideas? Any lenders come to mind that would work with such situation. I would really like a non-recourse loan if i can.
I have a new truck and trailer ( about 800 in car payments between the two) and NO other bills other than regular living expenses. I and my wife have very good credit and a paid off home.

I know it sounds like this: :violin: LOL but i need some reassurance/help if you please. Thank you.

- Jason

Please, don't let me rain on your parade. You sound like you have an exciting venture going and I wish you only the best.
This opportunity sounds incredible; so incredible only one thing comes to mind... If it seems too good to be true; it probably is.

All I'm saying is, protect yourself. I hope with this amount of money and opportunity you would be asking us and a few 'specialist' lawyers in the area you're pursuing.
As I said, I don't want to ruin you dreams. that's the last thing I would want for anyone. It's just that with all the 'dearest friend Jason' emails i have been getting from foreign countries with foreign bank leaders promising me a settlement of my rich uncle's oil fields in foreign countries makes me more nervous than ever.

Heya neighbor!
I totally feel your pain here living in Cali.
I'm as well looking into other areas back east or in the upper midwest.
I know everyone (or at least the majority) tell me not to invest my money into something that's not in my backyard but I understand that we have no choice.
I figure if we treat it like a business, and actually fly out and check things out 3 or 4 times a year until we trust our prop management company we'll be fine. Once we see they're doing good; we can just go once a year as a suprise visit.

Well ethically the agents best interest is with the seller. I think one thing you can do is call the agent before you meet, and ask her to bring comps of all sold land (and maybe even homes within the last 6 months - dont do that if it will confuse you.)within the last year (or longer if land doesnt move) and look for yourself.
The most adventageous thing you could do for yourself is be educated BEFORE you make the offer.
To be honest, i dont think it would hurt to lowball the offer. I tell my sellers that this happens often, so expect it. If they don't like it I STRONGLY suggest them to counter offer! This is how deals begin!
Keep this in mind, there has been times when we got LOWBALLED and the seller was SO angry by how low they offered they refused to counter, or ever work with that couple again.
Another thing I would start asking is why are they selling? Some agents will spit it out "they're having financial problems" "Going through a divorce" or somethign like that... then you know you have someone motivated and needing to get this OFF their chest relatively quickly. Other times agents won't tell you the reason, or they'll say something like ' well they bought it a while ago and never use it...' or something like that. Then you know you that seller is motivated (they're ALL motivated; they put a for sale sign on it ;) ) but not as motivated as the first couple.

Have you checked with your bank yet? I'm not trying to wet down your parade, but many times land is alot harder to finance. I would get with my bank and see how much exactly they'll need down for a full price offer (You wont offer full price unless you're comfortable, but, if you get it below full price you still have wiggle room...).
The good thing to this is, if the bank wants say 50K down, and you only have 35K to put down, if you know this in advance you can ask the seller
to help with seller financing for the other 15K so you'll get your land. Keep in mind though, if you lowball the seller and then ask him for something he might feel slapped in the face. Just be fair and everyone should get their way :) (Also ask your bank how they deal with seller seconds... make sure it will work your way in advance.)

Cliffs notes: LOL

Get the seller's reason for selling. Read the comps and educate yourself.
Then when you're satisfied about the price you'll pay - offer. Make sure YOU feel right about it. (Our job is to get the seller the MOST we can for their land, so stick to your guns). By chance they don't counter offer, start a new offer with a new price. It's not the end of the world if they dont get back to you (but most likely the agent will convince them this is the starting point, and they will).

Oh one more thing.... How long has the property been on the market? Land has a tendancy to stay on the market longer than other real estate. So the longer it's been out there, generally the more willing the seller will work on price with you.

BEST OF LUCK and I REALLY hope this transaction works out GREAT for you and is a happy experience.

If it doesnt, walk, please, think with your head not your emotions... It is beautiful, but, there WILL be more! The one that is meant to be, will be. :)
Writing a mortgage check monthly for something you feel screwed on, or had to settle to aquire will in time make you absolutely HATE the property.

I think it'd be a nice place for a house. It'd be great view with a sunset reflecting off of it!!
I wouldnt put more than a jetski out there, it doesnt look very deep and a boat i think would run out of room. Other than what are your plans for it??

The only other thing i can think of is, snakes... LOL I HATE SNAKES, and with water, you'd have wildlife. Have you ever seen that movie funny farm? Where Chevy Chase lets the snake in the house? That would be me, except i think I would blow up the house to get the snake. Kinda like cutting your nose to spite your face, huh? :)

Take care, and it looks really like a neat place!

For some reason i think I've read somewhere that California is the only state that still allows that... Go figure, with our rate in lawsuits they haven't changed that? LOL

Remember, if an associate in the listing office is showing you the property, they are representing the seller, NOT you. Ideally, you should have your own agent. You are not going to save any money nor can you expect a reduction in the price, because the seller has to pay the set commission anyway, which the seller's agent gets to keep entirely.

The seller's agent will be trying to sell you the property, so take everything she/he says with a grain of salt. Do your own sleuthing. Look up the county records for comparables/ liens/ easements on the prpoerty.

Good luck."

While what Rye said is correct. Anyone in the listing office is representing the seller.
I have a different stance on that, I have represented the seller and the buyer multiple times, and my morals and my name are more important to me than money. In all honesty if i didnt believe any of the parties were being unfair I would fire them as my client and show other properties and cancel my listing or wait and find other buyers. Do what you gut tells you, if you don't feel comfortable, and you're wondering where his interests are, maybe it is time you find someone else to represent you. If you feel you have been treated incorrectly, above ALL, tell that agent, or better yet, tell their broker. The broker in that office is responsible for all agents in his office.
When you go preview the properties you keep both points in mind, and you do what you feel is right for you to do.
Above all, whichever agent you do decide to use, be upfront. You are going to take time out of this persons life that they could be making money. If you're not interested, or don't feel the property isn't right for you - walk. Dont let anyone push you into anything, it's part of our job showing properties so you're under no obligation to us.

Ok...One more thing i thought of... You said it was wooded. I know there are areas in California that prohibit you cutting down trees, they are protected. I would ask if that area you're looking in has any sort of law/rule such as that. Sometimes its HOA and sometimes it's a law. I would ask the question to the Realtor, and double check for myself, alright?

HAVE FUN!!

I think you got a heck of a start on that list, good job!!
The other things i would think about are is Power there... and if not How far?
Water... City or Well, and is there a well in place?
Septic or sewer?
Covenants, right of way, encumbrances, do you have to pass anyone else's land to get to yours? And if so, if you're going to build something commercial like (alot of people coming and going) will that void your right of way? I would take you to court if you started out being the great neighbor with just your family and then built the tourist capitol of my county overnight with alot of traffic :)
Something that gets in my head is - since it so close to the water, i know there's a test to find out about the percolation or the resistance to soil. I dont know i'm explaining it correctly but, i would want to know hard the dirt is near the lake, i dont want to slide or the ground to sink :)

Best of luck, and i hope i've been more help than nuissance. :)