All Forum Posts by: Matt Pich-Maxon

Not financial advice, but it may be worth talking to a CPA regarding tax implications for selling a primary residence when the sellers realize large gains.

Also, given the tight housing market, many sellers you might wish to purchase from may have 0 interest in an offer that’s contingent on selling your property if you choose to go that route. Timing the sale and purchase of your current and new primary residence can be tricky in markets with normal inventory. If you’re considering these options, I know of some very interesting opportunities in this space if you ever want to look into it further, feel free to reach out.

Matt 

DRE 02100289

Hello,

I have a lead that is looking to deal with easement issues on 2 parcels.

1 is in Lancaster CA 

1  is in San Bernardino CA 

Please reach out if this is something you're interested in and I'll put you two in touch.

he said he was quoted about $7k for the San Bernardino lot.

Thanks

Matt

Mike, 

Most of the property management firms up here in the mountains I'm aware of charge 25-35% and I've spoken with a number of folks who have been less than satisfied for a variety of reasons. The Big Bear FB forums are full of commentary on this topic. However, the triad of owners, guests, and managers seems to be rife with unrealistic expectations perhaps, maybe in part due to unclear expectations and our cultures current insistence on instant gratification. I remember working with a property management firm for LTR's where some prospective tenants were processed and had keys in 36 hours, and they thought it was normal ...lol

There is a great STR calculator on bigger pockets as well if you haven't used it yet.

Most importantly, and you probably know this as a current investor, having really clear parameters/goals will save a ton of time and energy since many properties will not make the mark very quickly.

What type of property are you considering? Are you looking for value-add or something more vanilla?

I'm happy to discuss further should you want more information.

Matt

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@Emily Mitchell

I don't offer property management services up here even though I have experience. It's a ton of work and returns don't seem amazing.

It seems that if one has an interest in utilizing the property as a getaway, there may be greater value for the investor. Some folks seem happy to have short term guests potentially pay down the debt on the property as a buy and hold type strategy.

I speak with a lot of investors and receive email queries daily from people looking for opportunities. They usually have a "buy box" in terms of location, projected returns, split requirements, condition of the property, exit strategy etc. to eliminate as much emotion from the equation as possible. Then, they don't have to spend the time online, or in person, looking at deals outside their niche.

For example, I know one investment shop that only buys grocery stores. If it's not a grocery store, that meets very specific criteria -- e.g. Specific brands, area population size, employment opportunities -- they aren't buying it, let alone considering it.

Btw Bigger pockets has the best calculators I've seen. Very detailed with graphs, and a lot of variables to help with decisions. Truly, they are exceptional.

Are the deals you are analyzing meeting your investment criteria? It may be much easier to determine if it's a crazy market or not based on data.

I know having clarity on our goals is pretty cliche, especially in the later half of January ....

Matt

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@Bethany Endres

Great questions that investor buyers continue to have up here.

What are your goals with the purchase?

A lot of investors look for multiple strategies when analyzing a property. Certainly lots of tourists visit the Bear Valley every weekend. Additionally, there is an INCREDIBLE shortage of long-term rentals in the Bear Valley (like many 4 season ski towns).

 Have you tried the calculators here on biggerpockets.com? Or other sites like Airdna to give yourself a more wholistic view of this potential purchase?

Also, Big Bear City and Big Bear Lake have different licensure processes.

Big Bear City is through San Bernardino county. Here is the link https://str.sbcounty.gov/

For anyone else who happens across this post, here is some information for Big Bear Lake  https://www.citybigbearlake.co...

Feel free to reach out. Hopefully, your agent can help with this process too.

Matt

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Mike R.

I have some clients who aren't satisfied with their current property managers. Nice place by Boulder Bay area. Happy to make an introduction.

 Martin, I'm curious as to what transpired as well. That property is in a very desirable location based on the feedback I've received and in talking with buyers. I happened to submit the winning offer on that property for my clients. If I recall, we beat out quite a few others as well. Do you mind if I ask what strategies you employed in structuring the offer?

Feel free to reach out with any questions.

Matt

DRE 02100289

Emily,

Here are some of my thoughts on ideas you bring up. 

1. -- Price and Saturation? I was working with clients over 12 months ago who had similar concerns. Certainly, prices have risen dramatically since then. When talking with investors on the buy side, I always recommend that they remember what their "Buy Box" parameters are and use that to help decide.  Get clear on the Single Most important part of the transaction, and that will likely help guide your decsions with clarity. Some folks want only an investment, some folks want a hybrid etc. As for saturation, I am definitely noticing more a more licensed str's up here on an anecdotal basis. In speaking with a colleague, he noted that some areas have ownership that is nearly 80% non-primary residence. As a result, "locals" are reported to put out signs "Neighborhoods need Neighbors"
2. --Management fees, in many instances, seem to me to be incongruent with the services that are being provided (often 25-35%). I've walked properties here with A+ location, where the current management company left broken chairs outside, the floors were sticky with beer, missing fire extinguishers. The owner was on the 2nd or 3rd property management firm. A quick review of local FB groups demonstrates significant dissatisfaction. However, some great ones do exist.  Additionally, it is not uncommon to have dissatisfaction in equal portions among the triad of owners, renters and managers in my experience. Perhaps not having clarity is part of the problem.
3. --Yes, there definitely are busier times of the year and "shoulder seasons' between them as well. However, I've seen properties not in close proximity to the often sought after locations booked regularly throughout the year. These properties appear to be owner managed. The operators of the ski hill do seem to be promoting and building interest in year round attractions. The lake is often bonkers with people during the summer as it is regularly 20 degrees cooler than surrounding areas on hot days. Often I will be "down-the-hill" in the parlance of the area and it will bee 100F in Redlands lets say, and 80f here. I have neighbors, when asked, responded that they bought a home up here for just that reason alone.
4. --If you decide to self-manage, I know an excellent photographer who will take awesome pics for an exceptionally reasonable price.

Feel free to reach out if you have any questions. I live up here full time.

Matt

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@Jimmy Johnson

Not knowing your goals, I would agree with #2 Mammoth.

I drove through that area last fall, it has an amazing amount of public infrastructure to handle tourists. Plus, your friends are operating there, so a great reason to visit perhaps.

However, when discussing opportunities with any buyer or seller (not just investors) coming to an understanding of what is the Single Most Important Goal for them in this transaction is very helpful.

As this won't be your first escrow, you likely understand things can pop up. Having clarity and remembering your singular goal as an anchor can 1) help you pick the right place and 2) ride out any challenges if they arise.

Yeah, I wonder sometimes...

I have some friends who self-manage and live on-site in Sugarloaf -- steps from the National Forest -- who are happy with their returns so far.