All Forum Posts by: Jonathan Orr

@Richard Moreno OUCH! Sounds like unless your buyer is ready to pay 100% cash, you must get the seller to play ball. One option potentially could be that you get the seller to put the property into the LLC with the buyer, then try and get a refi to get cash out of the property. That would provide the seller cash from the property plus the 25% down payment from your buyer, then he rehabs it and can then refi again after the seasoning period (getting the seller out completely). Outside of that I can't think of much more.

Not sure how banks will treat his other properties as collateral, they still will want to do an appraisal of the subject property which puts you back into your first problem. Instead of collateral, I would pull cash from his other properties which then could potentially be a 100% cash deal

@Richard Moreno tough scenario! As you know a Bank is going to scrutinize financial statements of the buyer and want to do an appraisal. My 3 thoughts would be A) seller carry the remaining portion or B) do a lease option or C)have your buyer obtain cash by pulling money out of another property through a refi or HELOC to then purchase the property.

That would avoid any lending institutions.  If you go through traditional financing they are going to require an appraisal and historicals, and it sounds like hard money/private money is out of the question.

@Solace Medina Sounds like an exciting opportunity.  From the first glance, regardless of what you want to develop you will need to go through a rezoning or obtain a variance.  However, prior to that as @Greg Dickerson mentioned, you need to find out what your highest and best use is.  I would take a look at what the immediate area. (close to major streets/intersections,  what is driving the micro economy in that area, visability, etc...).  If it is tucked away it may be hard to generate interest from people for any use.  I will say that California is cracking down on mobile homes and most cities are fighting against them, just fair warning.  

With a property that large, you may want to think of a "mixed use" development.  I am finishing one now in Northern CA where we took 12 acres and did hotel, apartments and townhomes.  That is a great way to potentially attract asset classes that compliment each other and can gain more interest.

I know Lancaster is gaining more interest as LA county is quickly running out of room so  I hope you can get something off the ground!

PM me if you have any additional questions.

@Fletcher Clardy Great start, if I am looking at a acquisition I typically like to start with just a Profit and Loss statement (more detail the better) a T12 would be great, and a rent roll, I then use knowledge of what type of loan I can get and what my exit is. Comps are also a great thing to have. After I see it makes sense with real numbers, then it is taking into account proforma numbers and what I can improve on or what risks there are.

For my development deals it is solely based on Comps and profoma numbers so I can guesstimate what my deal may look like.

@Harshil Patel I have done a lot of investing and acquisitions in the Phoenix Metro and surrounding cities.  Great area and some great properties there.  It is a hot market so can be tough to find the right deal.  I was acquiring mostly 100+ unit Class A/B properties.  However, I do know people that have got smaller deals that are killer. 

In terms of markets, that really depends on what you are looking for and what you desire.

@Jason Krueger Are you trying to split the duplex and potentially sell each unit separately?  If that is the case, you will most likely have to go through the CUP process, I doubt that the CUP will be in place so you would need to go through that process.

When I want to find out information about the area or zoning for a deal I typically go into the planning depart (just walk in and talk to the desk planner there) and ask.  There is not rules that you must disclose your address. With a smile and good attitude, you can typically find out most of the information of what you would need to do to get the permits you need.  If they ask you can always say you are looking at a property in the area and you want to plan ahead and see what may need to be done.

@Justin Eaton Wish you nothing but the best in the exciting transition.  I have dabled in a few syndications for a few clients and one thing I learned immeadiatly was is finding the right attorney (usually a securities attorney) to make sure you set it up properly will do wonders.  Someone that can "hold your hand" for lack of a better term to make sure you are tailoring your syndication the right way you envision and can explain the differences in returns and setup as @Greg Dickerson mentioned.  A good syndication attorney does not necessarily need to be in your state so be open to where they are.

@Tambi Harwood as long as your property that you are selling is not your residence, you can 1031 the monies into any state as long as it is going back into a investment property.  I just did this for a guy where he sold a multi million dollar rental home in CA and we closed on on over $12 million in commercial retail assets in TX, IL and NV.

@Account Closed It really depends on what stage the property is in.  Do you have it under control?  Is it zoned correctly?  Have you spoken with the municipality it is located in to see what their process is? Have you run a proforma to estimate that it will be a good project.... ETC...

Once those questions are answered and you can provide a little more detail, then you can start the checklist because it will vary on the condition of the property and the city it is located in.

If this is your first development, I would suggest looking for a development partner who has experience in development.  Being a developer myself, I would say if you find a partner that has experience on what you envision that would be a great first step.

@Bryan Hogsett Smart play in looking out of state. As far as consultants (I am one myself), you can find people to do consultant work on here or in your local REI club. The major benefit of a consultant would be in the analysis of properties if you are not comfortable yourself in doing it or being able to reach into new geographic areas that you may not be familiar with, last would help with putting the pieces together to make a deal run smoothly if you are unsure.