All Forum Posts by: Patrick Fraire

It really depends on your income. That has a significant impact on what you can qualify for. However with 20k you would have to do fha loan on any property. Which means whatever property you choose, you would have to live there. I have 20k and I’m in escrow on a $500,000 triplex in riverside. (You can use the income from other units to qualify you for a higher purchase price) I only qualified for a 400k max purchase price on a single family home. My 20k would only get me and condo in Orange County.

True. I already have the foundation but I’m looking into mud jacking now! Thanks for the tips!

I’d imagine the answer to all of your questions is in your lease agreement. There should be a section for penalties associated with breaching contract. If your entitled to some money and you literally need it to bring that unit back up to standard condition, for sure charge them. I think nail holes and what not are considered normal wear and tear and should not be a line item on your back charge to them.

Also congrats on finding the deal! Hope you get it locked up soon!!!

Just curious how did you find the owners contact info for the multi family? You wrote down the address then pulled the title info? Sometimes I try this on multi family and the name on title is LLC and I have trouble getting contact info.

@Michael Quarles thanks for the comment my man! I’m a listener of your podcast and love your content. You inspired me to start reaching out directly to sellers back when I was in college. I took notes on how you speak to sellers and I still use them before I get on calls. 

Regarding the TDS...he disclosed that the second floor was unlevel but did not specifically mention settlement or foundation issues...sort of walking a fine line there. 

What happens if he knew about the structural issue and didn’t disclose? 

How expensive was your new foundation? 

What’s the total square footage of the building (s). My architects price off of square footage.

A quick way to get an idea if new construction makes sense is by comparing Price per square foot of new construction vs comps. This is what I would do. Go to Redfin.com Set filters for the following. 1) Lot size: similar to what your neighbors lot is 2) Type of Property: Multi family only (since your looking to build 2-4 units Looks at the price per square foot of 3 comps. This is the sell price/house square footage. Let’s say the comps are at $100/sf Now in general (in Southern California) new construction is about $125-$150/sf In this example...new construction would not make sense. Hope this helps.

@Alex P. 

I got the term “podunk” from our beloved founder of BiggerPockets @Joshua Dorkin

He rags on Brandon for it in some episodes they did together. 

Also I agree with you. No one is forcing me to invest local and if I hate it here so much why don’t I go and invest in those same “ podunk” houses right!? 

And finally I want to play nice here but I gotta say I did have a good laugh seeing where you were from 😂

Being from California, take Brandon’s advice with a grain of salt. 10% in Pasadena is a lot different than 10% in podunk Washington. Sometimes I have to turn off the podcast when he’s giving advice. It’s so frustrating to hear him say things like don’t worry about your first deal just go take action. He started by doing houses under 50k the properties we are dealing with in California are literally 10x the asking price. I take bits and pieces from him. Sorry if this didn’t answer your question lol