All Forum Posts by: Jeremy Segermeister

@Matthew Forrest that would be awesome! Thanks!

@Zab Khan no, the max lot coverage is 25% but total square footage cannot exceed 30% of 2400sqft.

I’m looking to build a custom home in the Bay Area. I have an amazing lot identified that I was ready to pull the trigger on. Unfortunately during my due diligence phase, I learned the maximum square footage allowed on this lot is 2400 sqft (including the garage). 7900 square foot lot, 30% max or 2400 sqft, whichever is greater.

This was quite disappointing because a 2,000 square foot house is too small for our forever home.

Does anyone have any creative ideas to go beyond this? I'm looking into the new ADU rules to see if they can help.

Jeremy

Hi,

I’m looking to either do a custom home or remodel for my new primary residence. I live in Campbell and would consider anywhere from Los Gatos up to Redwood City.

I have mostly looked at new construction from a developer simply because of the hassle and risk associated with building my own, in addition to the carrying costs of my current home.

Does anyone have any good builders that might be open to some creative deal structures? We had one lot that the builder was going to develop the house for a set price (including the land), but ultimately decided the lot was too small.

Budget is around $2M.

@Wes Ripley

I was pre approved for the mortgage and was able to offer 21 day close. That's how I got a good deal on the unit. I wasn't prepared for a HELOC and we were not confident we would get it done in time. Once this deal closes I'm going to open the HELOC so I don't find myself in this situation again.

I’m going to do some of the stuff myself - paint, demo, some trim to save on costs. Although in the future I’m going to be better about not buying such thin deals where I’m obligated to do work myself to turn a profit.

@Megan Mangold

I would love to hear more about this. My agent actually is with Keller williams and she didn’t mention it. Maybe she doesn’t know?

@Mike McCarthy

Thanks! Yes for my next one I definitely will go HELOC.

Completely agree Russel. That is why I am here to figure out how to do better next time, or if there are things I can do to improve now. I still have yet to close on the property.

In all likelihood the profit will be larger, I just am trying to be conservative and keep my expectations low. This is my education. 
 

Hi All,

In progress of my very first flip. I'm starting relatively small for my area to get my education. I purchased the unit for $430k and it appraised for $458k. My agent expects the unit to sell for $530k, but I am assuming $520k into my calculations just in case.

My remodeling costs are coming in much higher than expected - I am trying to keep it to $23k to earn a ~$23k profit. But unfortunately I am learning $23k for the remodel is unrealistic. If I went thru a GC it would be closer to $40k. If I manage a lot of the project on my own I think I can keep the remodel at $30k (assuming $8k closing costs, $5k holding costs, $31k selling/agent fees). 

So when you guys do a flip, what are some ways you control your closing costs and selling/agent fees? In retrospect I should have done a HELOC vs. a mortgage. But anything else I could have done/can still do to maximize profit? Points to reduce closing costs?

Jeremy

Thanks everyone for the feedback. After some more thought, I think I might flip this instead. My agent believes she can sell it for $530k if I fix it up properly. Even if I sell it for $510k, I'll be satisfied and chalk it up as a learning experience. I should have taken a HELOC to save on closing costs, but the timing would not have worked out.