All Forum Posts by: Jonathan Pflueger

Good Morning BP!

I am trying to figure out the average CAP rate for the Santa Cruz/Scotts Valley area? I am going to talk to some Brokers I know but I figured I would reach out to the BP community first. I am looking at buying a owner occupied quad-plex and I am trying to get a rough valuation.

Thanks and I look forward to hearing from you all. 

@Account Closed A deal is only truly good when both the buyer and seller are happy. As long as nothing appears shady I would take the seller at their word that it was a mistake. On the other hand, if the deal is shady do you really want to do business with someone like that. 

Good luck an post an update after you figure out what to do!!

@Ariel Smith that would be great, I would really appreciate it. You can PM or send me an email if you prefer. 

Thanks again. 

BP Community, 

I am on the verge on buying my first couple of deals and I would like to talk to a Real Estate Investors CPA to make sure I am setting myself up for success. Does anyone have an recommendations for a CPA in and around the Bay Area or Santa Cruz area. 

Thank you everyone!!

Jonathan

@Brian C. Thanks for the run-down. I figured the process would be something like that but having never actually done it before I was unsure. 

@Sean Walton I had not thought of hiring a realtor to do a BPO but that is a great idea, thanks for the advice. 

Hello BP,

Once I get an owner interested in seller financing is the process for making an offer the same as if I was using a realtor?

Do I ask the seller to sign a contractual agreement for an agreed upon price contingent on a home inspection?

What is the normal flow of a seller financing deal from start to finish? Contracts, inspection, appraisals (do I really need one if the seller is financing the deal), contingencies, ect..

I would love to hear any tips or advice from people who have negotiated seller financed deals and how they structured the acquisition process.

Jonathan

@Brian C. Thanks for the advice. I do need to look further into the FHA lending guidelines for slightly distressed properties, need to know all of my options. I was thinking the same thing, offer to pay of the existing mortgage plus a little on top.

@Marshall Martinez Have you ever used a a FHA 203K loan? I am familiar with theses but I have heard they are hard to get approved and a lot of work.

Seller Financing Ideas (Santa Cruz, Scotts Valley, Felton, Ben Lomond)

I am looking to figure out the best way to owner-finance a SFR deal. I have fostered a good relationship with the owner and they are very interested in selling to me off market and without a realtor. My goal is to put as little money down as possible, rehab, and live in the house 6 months to a year and then sell or refinance with a 30-year fixed.

The seller’s goal is to sell the house and buy or rent something in the nearby area. The area that I am in is definitely a sellers market and inventory for houses is very low. So how can I create a deal that is good for the seller and good for me at the same time?

I am open to any and all advice, critiques, and comments. I firmly believe that the best deals are those where both parties are happy and that is my goal. I am also open to other ideas, not stuck on owner financing as I am able to qualify for conventional, FHA, etc…

The house is in decent condition but has some deferred mx and needs updating (kitchen, bathrooms, flooring, 400sq ft deck, etc…).

3 bed, 1 bath

ARV: $600,000

Needed Repairs: Approx - $70,000

Acquisition Cost: Approx - $450,000

Amount owed on mortgage: $75,000

@Ahmad Azad

Would you send me the Comparative Market Value Analysis @ [email protected]? Would you also mind sending me a breakdown of your estimated rehab costs? 

Maybe we can meet up for coffee and talk. 

Very interested, thanks! 

@Ryan Landis you make a great point and I like what you mentioned about septic systems and propane tanks. I grew up in Ben Lomond so I definitely understand what you mean by "pockets;" it seems like every little town here is unique and has something different to offer. 

@Anthony Dooley: I have been wondering about a potential bubble myself and have really been thinking about out of state investing, thanks of the advice.