All Forum Posts by: Jay Sandefur Jr

Hey Isaac, somehow I ran across this thread and Carson peaked my interest since I'm from LB. Do you have access to the property yet? I've had luck just posting a gig on Craigslist...then paying the "contractor" @ $200 or so to give you a ballpark estimate by category. I basically lifted a template off the internet for him to fill out....think about those "walk thru" documents when you move in/out of a rental; where it lists each part of the house and you list any damage you see.

Juan, this is normal and it's actually a good thing. They'll often do the due diligence for you. And it'll help you refine your own skills. 

@Sean Michael I'll piggyback your post, I'm in a similar situation, yet I do have some experience here in Nor Cal. I'm currently looking in S. Florida as well

Yes. And that's what I'm asking for help on. Like a a ball park cash flow schedule incl. what I might not be catching in this situation.....I would be covering literally everything except the rehab costs. 

Yes assume realtor commission at final sale.

• First off, forgive me because I know there are similar threads but I'm hoping I can get some very specific help.

I'm in Google Sheets/Excel working out what was proposed to me and now we got three people with separate numbers.

Scenario:

• General contractor brings me a deal:
• He will cover rehab costs in exchange for 50% split of profits and by providing me a hard money lender using his reputation, as I have not been able to qualify for one.
• Purchase Price: $410K
• Rehab Estimate: $30K
• Hard Money 10% Interest Only + 2 points @ 85% of total project cost. (Points financed w/total project cost): $8,800 for pts.
• Total Project Cost: $448.8K
• ARV: $545K conservative
• Estimated rehab time 4 months
• Estimated 3 equally spaced draws on the rehab cost
• If anyone can help me reconcile these numbers including the payout to each "partner" it would be greatly appreciated.
• Thank you BP!

Hi all, I have a friend who is a local experienced flipper and General Contractor. He bought an old Victorian in a rapidly gentrifying part of Sacramento. He has finished the remodel and is electing to BRRRR the property, a duplex. Because of the lot size there's an opportunity to add a 750 sq. foot ADU in back. He doesn't have the capital to build it but estimates he can get it done for $50K and it would increase the value by $75K -$100K. I could provide the funds, but I'm unsure of how I would go about setting up the deal on paper. I have a finance background, so I am certain that I'm just over complicating this. Does anyone have experience in anything like this? I'd appreciate feedback on any of these topics

I'm currently investing in those areas that seem rough and there are still plenty of opportunities. Shoot me a message if you want to connect. I'm currently looking for partners on a couple of deals. 

Hi, I googled and found this thread. I'm interested in the same thing. Can anyone recommend any successful wholesalers in Jacksonville?

@Justin Thorpe 

Agreed. The trend of geographic arbitrage has been happening since I can remember. But the WFH phenomenon picked up in late 2000's and has been fueling the growth of inland areas in California since. Coincidentally, for us, WFH had already been the big trend pushing up RE prices in Sacramento in 2019; but Covid has pushed it over the edge.  David Green mentions on the Podcast that Bay Area activity hasn't cooled down in these times,  that's also the case here in Sac. I'm back and forth between the entire bay area and Sac every week. 

Originally, I am from Long Beach and have 15 yrs of MBS & CMBS activity in that market and I would say the relationship between coastal to inland - as far as collateral values are very similar in both places.

So where does that leave us? I dont know. I'm too scared to pull the trigger on my flip right now despite all that I just mentioned. 

@Ian Stuart 

I personally would agree with everything you're saying all day every day.  But it's just not happening.  There's a different dynamic at play. Paradigm shift.  Idk, but there will be no exodus. As logical as it may sound.