All Forum Posts by: Michael Evans

My first thought is something I've heard on the BP podcasts over and over, NEVER SELL ANY REAL ESTATE. You're giving up any future appreciation, tax write off and potential positive cash flow. 

I was going through the same dilemma a few months ago. I finally decided to build a guest house (I'm a contractor), live in it and rent the main house to cover the mortgage / PITI.

I’m a GC and I have wasted a lot of time with clients who don’t really have a plan or know what they want. A GC is not an architect or designer. They go by actual plans and specs. If you don’t have them and don’t have a clue what you want, then call a designer or architect first or be prepared to pay for my time 

WOW, $150 ft seems really low! In my market SoCal, as a GC I'm quoting $300-350 ft but that would include a pool and landscaping.

There are also the cost plans, permits, developer fees, sewer and water connection fees that add another 10-15%

Thanks David

I was told by the mortgage broker that as long as I have a legitimate business and intend to occupy sat least 50% of the square feet it is possible.

I am open to other forms of loans but I heard that SBA will normally do 90%. Thats why I'm going that direction

Thanks for your input David

I'm making an offer on a five unit property in Santa Rosa, CA. There is a major housing shortage in the area due to the wild fires of last October. The property was built in the 1920's so it needs a lot of rehab. It has four 1 bedroom apartments and an office that was a converted house. I'm a contractor so I intend to occupy the office space unit and one of the apartments, and then rebab the apartments one by one. There are existing tenants all paying way below market rents. I have to move the tenants out to do the rehab. My agent who is also the existing property manager wants to submit the offer with a proof of funds letter showing 20% down payment which was required by the lender. I want the seller, who are the heirs of an estate, to carry a 10% second for three years and put down 10% with an SBA loan.

Any thought on this deal? Thanks

Check out Peter Harris at commercialpropertyadvisors.com

He has a very good explanation on MLOs

Go on Loop Net. They are all used to dealing with investors

Look for properties that you can "add value" unless you want to invest only in "turn key".

Adding value by rehabbing and raising rents is the fastest way to make money without having to wait for appreciation. Buy low sell high.

Education, education, education!

Attend as many RE events as you can, listen to podcasts, network with agents and brokers, and learn to analyze deals.

Good luck and have fun!