All Forum Posts by: Mel Hayes

@Jennifer A.

Hi Jennifer, your best bet is to move into the empty unit and move your closest family member into their unit. Your family member will have to live their for 1 year.

Don't pay these people crap outside of relocation fees. Who is on the lease doesnt matter in L.A. There are very few ways to get a tenant out in Los Angeles City and its heavily regulated.

good luck.

Hi Mario,

The first thing I would do is have a conversation with you friend and ask them what do they want to get out of investing with you.  If they are just looking for a return on their money then offer them anywhere from 5%-8% return on their money.  Its more than they are guaranteed to get in the stock market and less than you will spend for Hard Money.  You can structure it that they will get all their money back at closing or you can pay interest only monthly and then return their original investment at closing.  If they want a 50/50 partnership, explain to them that a return is not guaranteed and if there are no profits at the end or even worse, you go over budget and lose money, they will lose money.  A 50/50 partnership may not be good for you either as a new flipper.  You stated this is your second flip, if you bring him/her on as 50/50 partner and it doesn't go right, they may not want to invest with again.  If you bring them on as a lender and give them a return on their money, even if it doesn't go well for you but the lender gets their money back + interest they will be back for more on your next deal.

I hope you find this helpful.

We've all heard the scorpion and the frog story right? Well the landlord didnt do the research to find out these tenants were scorpions. You cant be mad at poop for stinking. Us landlords have to seek education or else we will learn the hard way.

@Jennifer Roberts I'm not as worried about the property itself as I am worried about the area and overall neighborhood. I think visiting the city and getting a feel for the area is more important than touring the property.

@Mahinda Horapakse Does the scope of work have to be from a contractor or you just need to produce a scope of work? You can walk the property yourself and create the scope of work. Have the contractor look over it and fill in the numbers. Submit to your hard money lender.

@Eran R. Why are the utilities in your name? Is this mandated by the county or city the utilities must be in the owners name? I know that is how it works in some areas around the country. Otherwise get the utilities out of your name.

@Kaylee Walterbach The city of Los Angeles has done all they can to kill Air BnB for property owners. They have limited home owners who use the Air BnB platform to a min of 30 days per guest UNLESS your guest is staying in your primary residence. They make you register and pay fees outside of the normal fees that the platform takes. This is only within the city limits.

@Tyler Foshe

Hey Tyler. A Single family home for 1.6 million is never going to cash flow. If you want to cash flow in the LA market buying SFH you will need to get creative. Maybe that property works as a short term rental where you can break even but even then its going to be really tough.

@Joshua Steven Ferrell Regarding the smell, do you have carpet in the house? Carpet can hold odors. Clean the walls, check the plumbing, check the gas.

As far as selling or keeping, do you need cash right now? Are you trying to scale your portfolio? My suggestion would be to look into cash-out Refi. You keep the property, you tap into the appreciated value, and you have cash to address the issues, and are able to scale your portfolio.

Hey Memphis Investors, Do you have a strategy for connecting with wholesalers in the Memphis market?  I know wholesales want to connect with us and we need them for our leads but I have yet to find a way to connect with them.  Am I missing something?