All Forum Posts by: Kevin Yoo

Could someone recommend a good RE attorney for Atlanta, GA?

@Mike Kimani

@Mike Kimani

Byron,

We are going to do some minor repairs. We believe it may require about $10K of minor repairs. Otherwise, we have no rehab allocated to it and the $470K reflects no substantial improvements. The profit numbers look very good because the market is that way. San Diego is absolutely crazy now. So, I don't deserve a "great job!" It is too easy to make money in this market and makes everyone look like a genius. All we did was buy and put it back on the market. Sometimes you do have to accept what the market is giving us. But the great job or I would consider myself very good at this would be if I developed this duplex into a 6 unit multiplex in this market and made good money. We have studied this property from thousand different angles and it just does not pencil out in this market.

@Anthony Dadlani

Thanks, Anthony. It is very interesting lending program. However, we already found one of our investors wanted to fund the entire deal for 3%/month return.

Tell me, is this your company or are you a broker?

The following is an investment opportunity from YOJ Holdings, LLC

Our partner in Saint Louis, MO has secured a rehab project that requires a $100K investment. This investment will hold first deed of trust. We have a long standing relationship with this partner and have worked with him for over three years on various projects in Saint Louis area. It is a very active real estate investment market and we currently have buy and hold properties and rehab investments under way.

The property to be rehabbed is located at 3812 Blaine St, St Louis MO. The purchase price is $46,250 and the rehab will cost about $53K. This will be an extensive project to include new kitchen and appliances, HVAC, plumbing and electrical updates, new paint and refinish of the hard wood floors. After repaired value is estimated at $160K and the holding time is estimated to be 5 months. We are offering our investors 2.5% per month for participation in this investment, an ROI of 12.5% over the 5 months, and 30% annualized.

For the protection of the investors, we are going to set up a trust. The investors will be the beneficiaries of the trust, the trust will hold the deed and YOJ Holdings, LLC is going to be the trustee. If you have interest to invest in this deal or have any questions about it, please contact John Hostetler at 760-519-4152or at [email protected].

On any project you invest through YOJ Holdings, LLC we will give you a guarantee of your invested principal on a company level by YOJ Holdings, LLC and on a personal level by Kevin Yoo, M.D. We will always give our investors a preferred return before we take any money for ourselves. We do a tremendous amount of due diligence before we present a project to you and the guarantees demonstrates how confident we are in our abilities and in the projects. It is our promise to you that we will protect your investment and provide you good returns with all the resources we have available.

Update on this project.

We closed on 4044-4046 Cherokee Ave., San Diego, CA on 7/15/2013 for $350K by raising all the money from our investors.

We put the property back on the market within a week. One week after that we had an offer for $450K. This buyer, however, quickly withdrew. Within a couple of weeks, we had another offer for $470K. We did a walk through couple of days ago, and the buyer agreed to open escrow and deposited $14K EM deposit that will go hard after 17 days. We are set to close escrow on 10/9/2013.

We have received $1500 from one tenant and $1250 from another tenant. Our contractor is going out to the first unit to do some minor repairs tomorrow, but we have not put any money into the property so far.

When we close, we will share the profits 50:50 with our investors. We had originally projected sales price of $420K and returns of 4% one time return and 23% annualized return. At $470K, we project the one time return to be 15% and annualized return to be 62%.

I am still looking for a partner. Call me to discuss. 858-449-9847.

Karen Margrave
Thanks for the suggestion. When I did look up San Diego investors, I got a long list of Hello's from newbies and wholesalers. It appears to me that BP has become or really is a site for people that are new to real estate investing and many of them are wholesaler wannabees.

I don't want to discourage anyone to be on BP because I too was once a newbie and BP serves a very important role in getting people started. But it is hard to navigate through BP to really get to some of the more advanced discussions. I am just complaining.

I do agree with you that we can make the marketplace more like a marketplace. Wish Joshua and his group would consider improving it.

2 Units on 4044 Cherokee Avenue in City Heights
This is a 2 unit property in City Heights that was approved for $350K. The first unit is 3 bed/1bath rented out at $1250 and the second unit is 2 bed/1 bath at $1100. The larger unit is a Craftsman home in the front that is in bad shape and needs a lot of rehab. The property is zoned for 3 units and it also sits on 2 parcels and could have up to 8 units. We need to close by July 11, 2013. We will need to raise about $360K to close the deal. At the time of the original brief listing on the MLS, there were 41 other offers besides ours with the highest being $450K. We are looking at 3 possible exit strategies in decreasing order of preferences.

1. Wholesale
a. As soon as we close, we will put it back on the market to find a buyer.
b. We should receive multiple offers quickly; anything above $420K will make us a profit.
c. This process should take 60 days if not sooner.
d. The fact the property is zoned for 3 units and has 2 parcels that can actually have 8 units makes this property attractive.
e. This is our most preferred and first option.

2. Fix and Flip
a. If we cannot get a buyer for the property at an acceptable price of over $420K within a month, we will refinance, rehab and sell the property.
b. BNF Enterprises who is a hard money lender in San Diego will fund 75% of the appraised value. Refinancing should take approximately 2 weeks.
c. Half of funds from the refinancing will be returned to the investors except for funds needed for the rehab.
d. This property will need about $100K and 4 months to fix and sell for retail price.
e. The sales price should be about $540K for owner occupant who rents out the other unit.
f. This is our plan B.

3. Buy and Hold as Rental
a. If the market turns and we cannot sell this property, we will raise the rent, rent out to current tenants or new tenants, and hold while we continuously try to sell it.
b. One of the principals of this company will refinance with conventional investor loan.
c. This is the least desirable and worst case scenario third option.
d. This is also the least likely scenario with the current market conditions.

Wayne Brooks

I understand that transfer of deed can be considered a sale, but is that always the case? If I transfer the deed of my home to someone like my wife or my child where no money is exchanged, is this considered a sale as well?

No matter what, we will try to do this deal with the bank being informed. I do not know if banks will use due on sale clause when and if they are informed, but I know of no case where the clause was exercised by a bank when they were not informed. But there will always be a first. We shall see.

Now, what do you mean by the seller being in bankruptcy. Were you able to dig up something on the owner of this property by the address?

Wayne Brooks

Thanks, Wayne. I don't know what seller BK is. We have discussed due on sale clause with our attorney. My plan is to inform the bank that the owner has deeded the property to us and my company will be making the payments from now on. Technically this is not a sale; so there should be no due on sale. However, if the bank decides to call the note due, we can quickly sell the property for $400K and pay off the underlying note of $293K. The property will sell very quickly for $293K + $70K + $30K (commission + closing costs) = $393K as that is below market value for this home. I will be able to pay back the original $70K invested and pay the 8% I promised my investors which will be $2500 for 4 months. I am a physician by day and paying my investors that amount is something I can do with ease.

As for this deal being tight, it is not a home run but it is very safe deal because the San Diego market is so hot right now. Moreover, the rehab will be done by my own construction company called San Diego Quality Rehab. My GC and I have gone over the strategy of how we will only spend enough money to make the property functional. Moreover, we will use a lot of things we have left over from other rehab projects. It is possible we will spend less. The idea is that we have very tight control on costs.

If we raise $70K, spend $50K on rehab and sell it at $420K, we make $24K after all costs. If the project takes 4 months and I give $13K to my investors, their return is 18%. I know it appears tight, but the market is moving up so fast that I think $420K is on the low end. Moreover, I cannot make it anymore safer for the investor than to personally guarantee your principal and give you a preferred return. I don't need the $70K because I don't have it and can't do this project without investors. I need the $70K because I am looking for cash partners for long term relationships. I will try to give you updates on how this turns out even if I lose money one it.