All Forum Posts by: Jonathan Orr

@Robert L.

Looks interesting, however one think you need to keep in mind is the repairs that may be needed.  When was the property built?  Are you going to do any updates?

if you are getting a traditional SBA or similar loan, they may require repairs that will require additional costs out of pocket.  Reason I say that is a 13 cap seems really high (good for you), however for the Arizona market still seems high.  The only thing I can think is it may not be a great area of Glendale which could bring a whole world of potential problems like damages or failure to pay, etc....

Do you use any underwriting to gauge the return over time?

With this limited info seems promising but would need to dig deeper.  Good luck!

Thank you @Manolo D.

@Manolo D. Appreciate the help.  I took the 200 from past apartments I have underwritten and thought they are a similar setup with finishes.

Just one added question, would you use the 200 per ft for lets say a 2nd story addition to a home, needing to reinforce foundation and go for a higher quality finishes (maybe 1000 sq ft beds and baths upstairs).

@George P. not the response I wanted to hear but probably needed to hear! : )

I appreciate the honesty, I will start hitting the pavement and get the phone to dialin'

@J Scott @Keith Bloemendaal

Property is Located in LA County.  I am figuring more track homes rather than custom.  However I am thinking a smaller footprint to maximize usage.  Single Story with basic finishing, no marble floors or anything like that.  Composite roof.  Probably 1500-1800 sq ft per home with attached garage. On slab, type 4 construction

That help at all?

@CJ Lee a good start is Loopnet.com

That is basically the zillow of commercial properties.  You can look at everything from land to Mobile Homes there.  There is also the way of connecting with commercial brokerage houses that sell the properties, they may not always put it online meaning that it may not get to Loopnet.  Do you have a R.E. License?

Let me know if you need any help exploring.  Lets connect.

@Donn Yu Welcome!

I will say Multi is a very popular way to go.  However it also means the most competition.  With that being said there are a lot of different opportunities for selling or even acquiring multi here in So. Cal.

Lets connect.

@Mana Silva I have wondered that for some time.  I am in the same boat, I would much rather build ground up than rehab.  However I think everyone on here is correct.  @Paul Ortiz made a good point especially for people in dense areas and the time it takes.  With the time and effort to build in dense area there is a fine line between being feasible or a money pit.  For example I had a property that I thought was perfect for a multi-family in-fill.  However it has a commercial zone that was set many years ago (even though it was surrounded by res.) so in my analysis it wasn't feasible for me to carry on and try to get it rezoned for a small development.  Instead I am able to do a couple quick fix n flips and focus on a bigger ground up development in a less dense area of california.

However, it can be the opposite in different parts of the country.  For example I know people in Oklahoma or Nevada that find it easier to build rather than rehab because they have the land and also the municipalities are easier to work with.

It really is a case by case basis.  Yes the payout is almost always better but the time value of money is a factor people need to take into account.

I am having a difficult time with my contractors. I have developed a good relationship with a few contractors that I have used in the past. However with the market in Southern California being hot with rehab and construction I am having a hard time getting them in a timely manner, just because they are busy with projects I already have and they can't spread themselves thin or other projects.

I am wondering how people go about finding contractors in their area? I am hesitant in just cold calling people because I don't know their work history or speed. I am always wanting to expand my network but how does someone go about to get a new contractor (haven't had to do that in a while). From the few cold calls I have made it seems that the contractors I find are less than interested in actually doing work. Even though they may have good reviews (yelp, facebook, etc...)

Any recommendations on how you guys have found contractors to work with?

I am having a difficult time with my contractors.  I have developed a good relationship with a few contractors that I have used in the past. However with the market in Southern California being hot with rehab and construction I am having a hard time getting them in a timely manner, just because they are busy with projects I already have and they can't spread themselves thin or other projects.

I am wondering how people go about finding contractors in their area? I am hesitant in just cold calling people because I don't know their work history or speed.  I am always wanting to expand my network but how does someone go about to get a new contractor (haven't had to do that in a while).  From the few cold calls I have made it seems that the contractors I find are less than interested in actually doing work.  Even though they may have good reviews (yelp, facebook, etc...)

Any recommendations on how you guys have found contractors to work with?