All Forum Posts by: Josh Bakhshi

Why don't you just get the umbrella policy in your name or the owning LLC name? I think your insurance agent might be trying to sell you something for his/her own gain.

Welcome Kyle.  We need to know more about this. How much is the loan?  What is the interest rate?  How did you get the funds to pay off the loan?  What are your goals with real estate?  What market are you in?  That being said and knowing what little I know, I would use the funds that you intended to pay off the loan on the original property to buy another property and use the rental income from prop 2 to pay the mortgage of prop 1.  That way you have your cake and eat it too.

If you think you are good, I would give them the first 10% and split it 50/50 after that.  

Put in an elevator. 

Matt,

Welcome and congrats on starting your adventure.  I do see a couple issues with your numbers but respect the thought process and understand where you are coming from.  1- You live in OC and that is an area where it is pretty expensive.  Most properties there are appreciation play and not really cash-flow if that is what you are looking for. 2- You are working on theory.  I would look at a couple properties and talk to a couple PM companies to see how much they are.  The only cost to find properties is time.  Bring a couple properties to our attention and ask the same questions.

Good luck

We have properties in low income and mid-income areas (and a handful in high income like Marin County).  To answer your question, it depends what your goal is.  Typically, low income properties generate the higher rates of return for your cost.  Now if your systems that you implemented are working and your are self-managing with a hands-off approach, then why not keep growing and get more income?  If you wanted to do a play for appreciation, then you should (typically) go for higher class assets.  I am already diversified so I go for more lower income properties and add about 3 properties every two months.  Something I can pass on to my kids.  But you have to decide what your goals are.

Your logic still doesn't make sense, but let's go with it.  How much is the property worth?  How much does he currently owe? Would you take over ownership via a quit-claim?  The mortgage is going to stay on the property.  So if you "sell" it, then you have to make sure the existing loan is paid back.  And the problem that he missed payments are still on record and his credit is F***ed up so him getting another loan wouldn't work.  If property is worth 120K why would he sell it to you for 100K?  And if the goal is for him to stay at the property, why don't you just give him a loan for his missing payments and use the equity as collateral?  So if he doesn't pay you back, then you can foreclose on him.  And what is to say that he wont be in the same boat in a year by missing payments again??  I honestly don't see your logic.

Sorry dude, but I had to laugh at this one.  I would assume it should come out of the security deposit just like if he punched a hole in the wall.  Keep us posted on what happens.

CapEx is low. Find out what the HOA covers. How are you getting the loan w/ zero down?

It's hard to make numbers work in SoCal (or anywhere in CA) unless you plan to buy and hold for 5+ years and cash in on the appreciation.  I do like the idea of looking out of state.  First thing is to READ READ READ.  Find 3-4 areas (cities/counties) you want to invest in.  Call local agents and PM.  Tell them what you are looking for and see if they think it could work.  Ask them if they have contractors they work with to give you bids.  Also find 3 more contractors on your own to give their bids.  Compare work needed and costs.  Make sure you have your agent and/or PM checking in on them.  Understand that people will F*** you over, but that is part of the business so go in with eyes open.

Good luck