All Forum Posts by: David Friedman

Hello @Di Chen 

I may actually be familiar with the complex you are talking about. I'm an agent local to the Inland Empire. There are a couple of reasons that your complex has an HOA. I am assuming that there are similar fourplexes surrounding your property. They all share common areas that need maintenance. That is the first reason. The second reason is that a development such that you have bought into was meant for investors that are more hands off. The fact that this particular HOA company doesn't do much more than trim the hedges is kind of pointless in this respect. You are still hands on it seems like. I agree with you that an HOA that only pays to have gardeners is pointless, but there could be more to it. Make sure to read all of the HOA rules. The rules might be keeping the properties protected from renegade owners (Who may want to paint their fourplex bright pink) and thus allowing you to have increased rent. If you are further interested in investing in the Inland Empire, I'd be happy to answer any questions.

@Jorge Ortega When talking to buyers you need to be asking questions about their criteria (Size of house, how many bedrooms, distance from school or work, price range). By asking these questions you are making sure you find homes for them that match their needs. You also need to "qualify" people. When someone asks to see a home you should make sure they have the means and motivation to purchase a home. Your first step after getting to know the buyer's needs wil then be to get them a preapproval letter from a lender. From there you can show then homes and help them write offers. 

For sellers, you need to be able to successfully market their house. In my experience, listings have been harder to get as a young person, but listings are harder to get for all agents so maybe my age is not the case. When meeting with a seller, you need to come with a plan on how you are going to market the house. Again, ask questions to find the seller's needs (When do you want to move, do you need to buy another house after this one sells, what price are you willing to accept, etc.) If they agree to go with you then you will then need to negotiate a commission. 5-6% is the norm.

@Jerry Padilla Thank you for the kind words. I'm glad that I can be of any help.

I have access to the MLS so I may have an unfair advantage. First I try to get as many comps as I can, eliminating the ones that don't match the home's characteristics. For example, I won't compare a 2 bedroom house from 1950 to a 4 bed house from 1990. Then I can go on the MLS using the homes that are left and look at their listing pictures. Usually I can see what improvements were made, if the sale was standard or a short sale. Short sales are thrown out along with REO and foreclosures. So if you want the most accurate ARV you will have to follow this process. It is also helpful to know what type of financing was used on a comparable house. If the house sold for $300,000 and the loan is FHA, at least you know a home with comparable improvements will appraise.

Have you added an investor friendly Realtor to your team? They will give you comps for free to get your business. This seems like the most accurate way to get comps.

Hello gentlemen. I got my license when I turned 18. I am currently 21 now and studying for my brokers license. My experience has been that most first time buyers have no problem working with young people. It was how I started out. Now, all of the first time home buyers that I helped to buy a house are referring me to their friends or family that want help selling their house. I started advertising online through Zillow, facebook, and instagram. I told all of my friends and family members what I was doing constantly. Being young is an advantage. Dress sharp. Get a nice suit and where to all meetings. When people first look at you they will be impressed at how well you carry yourself and most forget age. Also, if I look back at the psychology of my previous clients, most of them made it up in their heads that I was in my mid or late 20's. I just never told them my age until it was clear that they were connecting with me. As far as mentors go, my father convinced me to do real estate. He is my broker and we are 50/50 partners. He handles commercial and I handle residential. Once you get a grasp on one concept in real estate it isn't too hard to learn the next. Experience is just as important as book knowledge so make sure you have a good teacher/mentor. Feel free to pick my mind.

Wow thank you for the great responses guys. Very good insight. Sorry it took so long to respond. Driving from SoCal to Vegas. 

@Jeremy Tillotson @Jay Hinrichs I am worried that it won't be an open bidding process, but there is not much I can do about that.

I will try and create a relationship with the person who manages city-owned property. I may want to purchase more in the future.

@Bill Gulley The property is currently off-market. I would like to buy it before it becomes public.

Hello BP! I hope everyone is celebrating the holidays with their family and friends!

I am currently interested in purchasing a city-owned property, but before I send the city a letter of interest I would like to see if anyone on BP has experience purchasing property from a city (Or government body) and what tips they may have. This should be a general discussion, but I do have some specific questions I'd like answered as well:

- Is there anything that I must include in my letter of interest? Anything extra that will make them more interested in selling the property to me?

- If there are other interested parties, what will the purchase process look like?

- Should I let them know that I own land bordering their land?

- The land has a building on it that the city was planning to tear down. Should I purchase the property at a discount and offer to demolish the building? How much is the cost to demolish a building? Do I need contractor bids or is there a general rule of thumb price?

I appreciate all of your answers. Keep in mind this is California. The only builders that I know on here are @Jay Hinrichs and @Karen Margrave (I am having a hard time quoting Karen's name)

@karen

Hello @Romel Aquino !

Congratulations on taking the first step towards investing in Real Estate. Many people get stuck in a loop of reading / researching and never take that action.

I am a full time investor and licensed Realtor in the Inland Empire. I also consult with my clients on how to begin investing in real estate and be successful at it. If you ever have any questions feel free to send them my way. If you ever want to meet for coffee I am happy to do so!

Best Regards,

David Friedman

Hello @Jordan Sizelove 

There are many ways to find your first deal. In the case of a flip, you really should partner with someone who:

1. Has experience

2. Is trustworthy

3. Does real estate investing as his/her full time job

I suggest this route because flipping isn't just investing. It can be a full time job. Because you already have a full time job, do you expect to be able to do what is necessary to protect and foster your investment? 

In real estate investing you either need a lot of TIME or a lot of MONEY, especially when getting started. The people on BP who purchased a property and had the owner carry back a loan, had to have the time to negotiate with the seller. The people who got a great deal on that foreclosure property had to have the cash to do so.

Mentors can be hard to find. Even if you find one, they may not be interested in taking the time to teach you. Your best bet is to be able to offer them something in return for their time. Maybe you can help on their flips for free (Trashout, construction, door knocking) or you can offer to be capital partners with them. If you have some money saved from your full time job, you can offer to partner with the mentor. In return for letting them use your cash, they can show you the ropes.

Side Note: MLS deals are highly visible to everybody. Sometimes you get lucky, but most of the time the property is on the MLS in the first place because it isn't a deal. Negotiation skills might come in handy if you are trying to buy properties off of the MLS.

Let me know if any of that helps!