All Forum Posts by: Owen Schwaegerle

@Brett, congrats, and way to go by getting involved. Multi-family is fantastic! There are some investors that go to the Central Coast REIA every month that invest out of state in Ohio specifically. They are getting some great returns out there. Where do you want to invest?

This 14,200 SF lot is also zoned MF10, which leaves room for future development. An additional 2 units can be developed on this property. Buyer to verify with city how many units could be added to this lot. Owners are motivated - please bring us an offer! Rent out the fantastic 4 bed/ 2 bath home for $2200/mo. An additional duplex on the property could bring in an extra $3800/mo.

Home is in a highly sought after location of Atascadero, within walking distance of the Atascadero Lake, Park and the zoo! This bright and spacious home has a great floorplan with a place for everyone. The kitchen has been updated with white cabinets, stainless steel appliances and granite countertops. The living room has a brick fireplace for those cozy winter evenings and there is a separate family room that could work as a playroom or additional bedroom to meet your needs. The formal dining room has beautiful wood floors and tons of natural light. Your master bedroom is a nice size with a private bath and walk in shower. The fenced backyard is massive with a shed, chicken coops, back patio and room to play, entertain and cultivate! 

That is a fantastic story! Thank you for sharing your success and being an inspiration.

How did you finance the deal?

Hi Ricky, the California Central Coast is a beautiful place! There are still some pockets where you can invest that makes sense. In San Luis Obispo County, there are investors making moves in the North County. If you travel further south, you can find some pretty good returns in Nipomo, Santa Maria and Orcutt which are both in north Santa Barbara County. I know of a 4plex that might meet your criteria. Happy to chat!

Definitely worth asking the loan officer at the nearest branch. Walk in today and see what they have to say. It would be interesting to hear feedback on how that goes

Good question, Jim. Every bank is different so I would first go to the bank and ask how they would handle that situation. I used to underwrite loans at a bank and we would still charge the same amount of fees for the origination of a new loan each time. Sometimes, if it’s a smaller community bank, relationships can go along way in making for more favorable terms of your loan.

Hi @Neems Y. Welcome to BP!!!

Happy to hear you are looking to create a RE portfolio. 

Great question about what business entity to use. What are your real estate goals? In my experience, one of the best entities to hold real estate assets is an LLC. While working in commercial lending, I saw several investors holding large multifamily/commercial buildings in LLCs. They do this for the tax benefit as well as the legal protection. If someone on the property wanted to sue your business, the LLC would limit the liability you have to the assets that are in the LLC. That means your house, car, other personal assets would be protected.

Lots of investors I've worked with over the years also like the LLC. But I have also seen property held as a general partnership, a sole proprietorship, and even an S and C-Corps, though most small investors choose not to use a C-Corp because of the double taxation.

Don't let creating a business entity get in the way of real estate investing. You've got to get in at some point. Just fail forward. He who fails first, succeeds first. Do It!

You may want to talk to a great attorney and CPA though to find out about the pros and cons of each entity and how they would help your business!

There is an owner I've been talking with that owns a property off Highway 1 in Oceano. It is zoned commercial and has the ability to add up to two condos on the lot. There is a single family home on the property currently that is capable of making about $2000 a month in rent. The owner would carry a note, or do a leaseback option. He wants to sell the place for about $385K with $50K down. Looking for a developer/partner that would want to build in that area. Please reach out to connect!

Currently talking with an owner that wants to sell his property in Orcutt, CA. Property is close to Orcutt Middle School. Really great location, and currently has great tenants. There is a 4 bed 3 bath home that is the front house rented for $2100/mo. Then there is a studio rented for $1100/mo. The owner currently lives in a 2 bed 2 bath home which would rent for $1500/mo. That would make for $4700/mo in gross rents. This deal is extremely desirable due to it being off-market and the fact that the owner is willing to carry to prevent themselves from paying huge capital gains. They would like to sell for around $700K with 20% down at 4-6% interest, though he is negotiable. Looking for someone that wants to buy an investment property in the appreciating Orcutt/Santa Maria area. 

Happy to chat more!

@Jason Francia and @Jose Guevarra Thanks for the insight, yes I'd love to chat.