All Forum Posts by: Rich Lopes

@Michael Magnell, welcome to BP. Your decision to go OOS for RE investing make sense given where you live :) KC is a great market and I have been investing in that Market for couple of years now. Check out this post https://www.biggerpockets.com/forums/48/topics/276800-kansas-city-missouri-zip-codes for detail insight into KCMO zip codes. 

@Joseph Janarski, did you tell the seller your reasons for backing out? Did you show him the quotes from your contractor? Did you try to get other bids or engage other contractors to see how much they are willing to or would be able to get the same work done for? Perhaps the seller would have been able to come down on the price and hopefully meets Both of your expectations— try to find the middle ground and see if you can resolve without any one party having to take the entire hit. Lawsuit is not cheap either and the seller might as well give you a discount for the same money and both of you can enjoy a peaceful and happy holidays. How’s that for win-win?

The VA choice was obvious given that Google is no longer bidding for $10B defense contract. Amazon lIkley to snatch that and they need to be closer to Pentagon https://www.google.com/amp/s/techcrunch.com/2018/10/08/google-will-not-bid-for-the-pentagons-10b-cloud-computing-contract-citing-its-ai-principles/amp/

@Mark Boek, who is your agent at Real Protect? Do you mind sharing his contact info?

@Sanjoy V. Is there a reason the deal was offered to you with no prior experience than to some seasoned investors? Perhaps the big guys have already passed over this and I guess the seller is drumming it up as off market to look good for your inexperienced eyes. Off market is usually offered by brokers to their previous investors, so probably no one wanted it at this point. Lastly if you feel confident enough and have stomach to weather the next loomIng storm go for it. There will always be naysayers.

@Shalom Afraimian, some great advice already, but where are you planning to buy? Just throwing some Ideas.. Why not do BRRR.. with HML and then apply for conventional where you would have enough equity to qualify for a bank loan? Or a live-in-flip with HML and save enough where you wouldn’t even need a bank — again all depends on Market you in since these strategies may won’t work everywhere.

@Bart H. that's what Mr. market / big investor is factoring into when they buy in CA markets based on past performance. It may not come to fruition but that's the trend otherwise there's no reason for them to invest. Investors like us look for market's like DFW and other parts where there is affordability hence creating demand for those markets.

@Saj Shah, well said! I don’t understand what the whole fuss about CA properties not being able to cash flow except for some market like core Bay Area, LA and Parts of SD, but otherwise most secondary and tertiary markets in CA are cash flowing - although it may not be 10 0r 15% that you get with OOS properties.

@Sanjoy V., CA/DFW/TX now you are talking about 2 different geographies with their own vastly different economies - so it will be hard to compare the 2. The TX tertiary market (Kileen, waco) is similar or better than CA tertiary (Fresno, Madera, Stockton) market per my opinion. Now within these tertiary markets there are probably A - D class areas with A-D class properties. It's hard to find a A class product in D class neighborhood but it's probably possible to find D/C class product in A class neighborhood. What I am saying is in DFW, the gap between cap rates for C & A class products has shrunk quite a bit between now and what was it few years ago. What that means, you can probably buy an A class product with almost the same price or slightly more than what you would pay for C class product - so be wary of that.

For  A class neighborhood in CA, there is negative cap rate - because it's more of an appreciate play vs in DFW you might get is for 3 or 4%.

@Gi'angelo Bautista I think Brad comes to Bay Area every couple month or so, so you might be able to check it out. I have been to one of his meetup/seminar in San Jose couple months ago, but I know he is big name in DFW. Other than check out Vinney Chopra who is local to the area - I think he is mostly into syndication.