All Forum Posts by: Nolan Chandler

Hey, @Alex U.!  I used Corey Baubault with Steele Insurance Agency: 951-531-5142 [email protected].  He got me a very good rate on a single-family residence in Temecula and he was responsive whenever I reached out.  Hope he can work for you too.

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REALTOR® CalDRE: 02221003 | CA Bar 322013

Hey @Alfred Hall! 

Just to clarify so I understand: are you asking if you can use the potential rental income to qualify for the VA loan (like a DSCR loan)? Outside of that, I know that there is a VA loan, and then a separate product of a construction VA loan, but there are pros and cons that many articles point out regarding the VA construction loan. Probably the most direct answers would come from local lenders--or even national lenders--that would be able to parse through all the specifics of your situation to give you the ultimate "yay" or "nay."

Would be happy to explain more in detail if you you wish or redirect if this was off-point.

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REALTOR® CalDRE: 02221003 | CA Bar: 322013

Hey, Craig!

I just recently moved back home to SoCal after being stationed at Camp Lejeune, NC.  While out there, I invested in three different areas with single-family residences (one short-term at the beach, and two long-term rentals).  Investing in NC was largely driven by being nearby in the markets, and those just fit my needs because of many factors, to include the population migration to NC.

But, sounds like you have the basics down in looking for insurance rates, job growth, population growth, rent growth, etc. in an area.  Two things that I learned earlier on was that if you are looking at a metropolitan area's, or city's, population growth, there could be specific areas within that are declining, stagnant, or growing.  So, depending on what part of town, or area, look at whether that particular area is growing or strong.  The second thing is that if you have ten basic criteria to measure for a desirable market, not every box will be checked.  So, depending on your goals and risk tolerance, that will dictate what markets would best suit your short or long-term goals.

Hope that helps and is not too broad, but would be happy to get more specific if you ever wanted to.
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REALTOR® CalDRE: 02221003 | CA Bar License: 322013

@Joe Homs Thank you for the insight!  I would certainly not want to go out on my own right away.  Would you mind if I followed up in a private message for my unique situation?

Hey, @Marian Huish!  No, I am not a licensed agent but I am a licensed ATTORNEY.  I have read and heard that I can skip the coursework in CA and take sit for the broker's exam because being a licensed attorney and some other requirements met allows for that.

My question is: I just wanted to know if it is beneficial or if anyone has insight into this if being a real estate agent/broker is beneficial as an investor to grow income/network/knowledge?

Thank you :)

Greetings, BP Members!

I am a licensed attorney in CA, but I am currently finishing up active duty in the military before heading back. My understanding is that you can waive the prerequisites and directly sit for the broker's exam. My question is: Is there anyone here that knows of someone, or is a licensed attorney turned broker? I just want to get an idea of the pros and cons of being able to be a broker on my own and any other considerations that I may not be aware of. Thank you so much.

Greetings, BP Members!

I am a licensed attorney in CA, but I am currently finishing up active duty in the military before heading back.  My understanding is that you can waive the prerequisites and directly sit for the broker's exam.  My question is: Is there anyone here that knows of someone, or is a licensed attorney turned broker?  I just want to get an idea of the pros and cons of being able to be a broker on my own and any other considerations that I may not be aware of.  Thank you so much.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $208,000
Cash invested: $47,938

The home is right outside of Camp Lejeune and has a sunroom as a nice bonus to the property.

What made you interested in investing in this type of deal?

I was looking for a long-term rental to diversify from the first investment that was a short-term rental. This property is right outside of Camp Lejeune and I hope that this provides stable cash flow and appreciation.

How did you find this deal and how did you negotiate it?

I came across it on Zillow and I brought it to my realtor's attention. The house needed many repairs--large and small--before we could rent it out. This included receptacles and covers, the crawl space, and miscellaneous handyman items. Sellers agreed to drop the price from $221,000 to $208,000 and include a $15,000 credit at closing for the repairs.

How did you finance this deal?

I used a debt service coverage loan for this property and it required a 20% down payment. I used a company, Hometap, to provide funds for the closing cost in return for their share in an interest in the appreciation of my primary residence. You can either pay them back before you decide to refinance/sale, or they will be paid upon refinance/sale.

How did you add value to the deal?

On top of the repairs with sellers' credits at closing, my friend and I stained and refinished the wood flooring throughout the entire house in order to save on costs.

What was the outcome?

We were able to get the house rented fairly shortly after all repairs were completed.

Lessons learned? Challenges?

Contractors and handymen have ever-changing schedules. I initially thought that our scheduled dates for the three workers were set in stone. I learned that previous jobs set them back, and at my property there were some reasons here and there for some delays. I also learned that I need to be aware of this for future properties and plan accordingly. Additionally, my wife advised me that the floors needed to be refinished before anyone would rent, and long story short, she was right.

Investment Info:

Single-family residence buy & hold investment in Surf City.

Purchase price: $479,900
Cash invested: $12,000

This is a short-term rental through Airbnb. This property was built in 1983 and it is on the second row from the beach. It has a peek-a-boo view of the ocean on the back deck and an unobstructed view of the intracoastal waterway on the front deck.

What made you interested in investing in this type of deal?

I was initially looking at some commercial properties, but the realtor suggested at least looking at a property that she knew of on the beach as a short-term rental. Although this was not the same property as she initially showed me, I saw a great property at a reasonable price, and heard from many that this is a popular area for short-term rentals.

How did you find this deal and how did you negotiate it?

The realtor found it for us, and we offered simply asking price with credits for some minor repairs. Seller was gracious enough to give those credits in the hot market there at the time.

How did you finance this deal?

I financed this purchase with a bank with a 15% down payment.

How did you add value to the deal?

We repainted the storage unit door, the address numbers on the property, and put in a new wrap around deck.

What was the outcome?

Remodel looks great to us and the few items were relatively easy to repair after closing.

Lessons learned? Challenges?

One of the items on the inspection was that the exterior electrical meter box was worn and rusted. I decided not to address it because I believed that it had no impact on the property and was largely out of sight from anyone entering the property. However, the city came by and did an inspection and notified me that it needed to be repaired or else power would be shut off. It was relatively expensive to replace and I should have included that in the request for sellers credit as well.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, I worked with Shelly Wagner and she was very responsive and knowledgeable.

@Peter Walther Yes, I believe I have seen that to, but I will look to verify.  I was mostly concerned with my ability to back out of the deal if I cannot find an end-buyer in time.