All Forum Posts by: Lee Ripma

Is the "place" a condo or a SFH/MFH?

If you're doing a mail merge (custom name is going to be in the letter) then checkout iti direct, they are in Pasadena and have low rates. It doesn't actually mater where they are since you do everything on the computer. If you only want postcards but no mail merge is involved vistaprint or click2mail will work. Checkout Seth Williams (not letting me tag him) on this site and his own site, he has some youtub videos showing exactly how to do this. 

@Seth Williams

This still works and I'm a huge fan of this site!

@Joshua Ibarra

I think if you can get the 30 year fixed go for that! 

Sure the rates are the same at first, but then you're going to have to refi in 5-10 and you don't know what the interest rates will be. Good chance they will be higher, since rates are low now. 

@Alex Shaughnessy

I actually emailed Brandon requesting that they put a feature in where the property taxes would be a function of sale price. Our property taxes in CA are like this, but it isn't the case in all state. So do what Sarah said, take the purchase price at multiply it by 1.15%. Prop 13 means that the property taxes will only go up 3% a year regardless of the value of the property. In some states your taxes are based on the apprised value. Not true in CA. 

@Chris Nordella

I was just in KC and I looked at some units in this area. Certainly take someone up on getting pictures of the inside and outside of these units and make sure to get your own inspection. I guess the question becomes for the amount out of pocket your talking about is about 60k and yearly from that you're going to get cash-flow of about about $900 a month. So that is 18% CoC. Your expenses might be a little low, but you're still probably looking at 15% CoC.

@Mickey Powell I think lease options are usually done for lower end folks who don't have any money for down payments but I'm just not really sure about it. It's the business model of many, you get to keep the asset and get higher "rent" without the hassle of fixing every little thing. So it totally might work for you. I guess you'll just have to see what your niche ends up being! 

Oh and lease options. It's not that common in CA but I don't think there is anything wrong with it. My guess is that it's not common because CA is such a boom and bust market that you don't want to hold a property for a long time. I'm not really sure exactly what the reason is, perhaps others know. If I found a lease option in SoCal I might go for it depending on the terms. I'm renting here and hopefully going to lock up some multi-families in Kansas City, MO. So I have bailed on the SoCal market entirely for myself but I still keep an eye on all the stuff to look for the right opportunity at home. 

@Mickey Powell

For up and coming areas I know the LA and San Diego areas but I don't know OC. I like Long Beach especially in Signal Hill (technically it's own City surrounded by Long Beach). I have RealtyTrak and I've seen some larger commercial properties I thought might have residential conversion opportunities in that area, but that was more of a passing fantasy, something like that is too large of a project for me right now (in terms of both time and capital).  I'm no pro on how one does that. There are definitely small multi's that need work in the Signal Hill area, I'd go for those to try your high end finishes appeal. But my thing is small multi's so I'm biased. If I were buying in LA I would buy in Signal Hill or right by the two metro stations. Lookup Long Beach memorial Center and Willow Station. There is another station at Wardlow. I think these areas good to target. 

I've heard San Pedro by the water but I don't know it well enough to agree or disagree. 

Folks like to say that Oceanside is really turning around and is one of the last affordable places in CA. I don't love it and I don't think that you could do high end stuff there. 

I really like the Barrio Logan area and neighborhoods south of SD. I was looking at plot where I could put in two modular homes there and I think you could do well there. The whole area is turning but you can still get fixers in the low 400s even high 300s. 

There are still vacant parcels in Mt Washington area, so you could go modular on there. Search for land on the MLS and you'll see what I mean. For raw land development you just need to budget for a whole lot of soft costs before you get going, I actually help with the biological/environmental phases of raw land development, so I can you that it's tough to develop raw land. But the reward is there certainly there.

I think a great area of growth in LA are the hills of east LA by Mt Washington, Highland Park, and Eagle Rock. There is still potential for high end flips in these areas. 

Modular townhouses recently put in Atwater. Living homes makes great stuff but it's not cheap. Still, they are making a good margin on these!

http://www.livinghomesatwater.com/

Modular 

http://www.usmodularinc.com/

http://www.weehouse.com/

Just my two cents! 

Seems like there would be plenty of ways you could structure the deal. Foreigners can own homes in the US, in LA Chinese money is really driving up prices. You could just buy a place using your asian capital as the down payment and after closing add them to the deed so you'd both own it. There is some crackdown in LA on short-term rentals so just make sure you look up what cities like LA have proposed. Santa Monica has already shut short terms down. Just make sure you have a back up plan if short-terms get banded. Do want to put in a bit more detail about what you're thinking to get specific feedback?