All Forum Posts by: John Clarken

I think the safe bet is to lock it in. The question is it worth the risk for a possibly better rate with the chance of getting burned? In this market I would say the number you know is better for forecasting and planning then chancing. Ultimately it is what your risk tolerance is. 

 Great Advice, I read "long distance Real estate investing" and thought I new what I was doing. I bought a Frankstein Triplex that the inherited tenants did not pay on. Every month another $3k issue came up with contractors gauging knowing I was from out of state. I also had an issue where the city charged $3.5k for one month due to a leak. There was a slightly leaking toilet that was fixed as soon as I was notified. When I asked the city how it could be this high they stated to pay or have the water shut off. 

If you are going to invest. Take the time doing lots a research. Schedule a trip to visit as the photos are very deceiving. I'd also start with single family for simplicity. If going the multifamily route make sure everything is separately metered and avoid inheriting tenants if possible - even with a rent role make sure there is a back up proof of payment. The numbers can sounds great but mean nothing if they aren't paying. Good luck!

Thank you for the advice!!

Hi all,

working on the permitting process for an ADU build.

Debating running this as an owner builder or activating my construction license and running it through the company.  Any pros/cons would be appreciated. The main item I've found is as an owner builder I can take on certain scopes and not have specialized licensing and by taking out a personal loan I would not have to deal with the headaches of draws.

I would love to hear from someone who has gone either route.

I agree and would go with hardy Plank. Reach out to a minimum of three siding contractors. You can have them supply the siding and windows which they will mark up or you can send off the materials to a supplier and coordinate with an installer. If you've never done this I would try and source only the windows. Have and siding contractor turn key the siding material, flashing, and cover the window install. Also be sure they include dump fees. You do not want to get stuck managing this and causing a potential delay. The less you know the more is better to put in the contractors scope. 

Hi Michelle, finding a general contractor with a track record building similar types is going to be important. Ideally you can go check out an active or past job to see quality and management. If an active site look for cleanliness, ask how the do quality checks, etc. It is also important in the contract to have a line item stated all scopes to be built per current local and state laws.

In construction there are only a few checks so knowing what companies provide is important. At a minimum you have the city and site management (superintendent/foreman). You would want to ask what quality checks are performed (framing, drywall, punch, etc) also ask for any third party inspections (building envelop, geotech, water erosion plan, etc).

Usually for 4 units vs single you are going to have fire assembly differences - 1 HR- 2 HR rated and/or sprinklers requirements and sound transmission requirements - beefed up walls and floors.

If you have additional questions DM and I'm happy to help.

Hi all, I've been investing with my wife and we are up to 6 properties. I have a family member with investment cash that wishes to implement in real estate. Being as it is family how would you all structure this deal? I'm able to find properties with a partner I'm working with that secures $400-700 above the mortgage rate.

Multiple questions:

Have them purchase the property that I pick and then help manage with a split of profits?
What would this set up look like?

Or have them transfer the capital to and LLC ($100k-$200k)

Sign an investing agreement with an LLC run by myself to then purchase a property?

What is a fair rate of return and timeframe for a loan of this type?

How would you structure the monthly costs above the mortgage?

I would be finding the deal, finding the tenant, doing any cosmetic fixes.

Trying to find an avenue where everyone wins and also figure out if this wasn't a family member how to structure this deal with a partner. Any help or resources is appreciated. 

Hi Amy, the other option is to get a construction to perm loan. Get a couple quotes from GCs and then take the budget to a bank for approval. 

I'm in the process of permitting a ADU, but doing a personal loan and running the management as an owner builder for less restrictions. I have a construction background so I'm familiar with the process.

You could also use a hard money loan with the plan to refinance out after the build. 

Please update with which route you take and follow up if you have any construction related questions!

Hi Jermaine, 

certain lenders will go below this threshold and it is always good to call around to local credit unions. I'd check with Wells Fargo and Chase and they both used to offer loans down to $50k. I believe Wells Fargo is getting out of the loan game though...

 Thanks for the reply. I'm going to work with the city and see if there is an option for a covered walk way to count at connected. I'll update once further in the process.