All Forum Posts by: Robert Sorrels

Option 2. 

Don’t have to read much. Very well explained 

Everything has went as well as can be hoped for. The scariest part is opening that door for the first time and finding out what you've just purchased! The whole process is not for the faint of heart, and you must have plenty of reserves just in case need to hold it for a while, have a lot a work to do, or be willing to move on it quickly for a loss. 

For myself, I need to be more diligent about getting quality work done ASAP. Not be so worried about the best price on everything, and getting the home on market to rent, or maybe sell. Holding costs will eat away at any potential profit. 

Having a pool is something I wanted because I know how they can really make a STR profitable, on the flip side finding dependable people in Oklahoma to repair, and maintain a swimming pool has been challenging. Mostly because of this I waited to list it and then decided to wait about 6 weeks to accept a renter, there's a lot of renters out there with no credit or poor credit.

By the time a lease was signed interest rates went from around 5.5% to 7.5%. Thus I have not refinanced and completed my BRRR..I guess you could say my actual method is more of a BRRRSTRR, Buy, Rehab, Rent, Refi, STR, Repeat! It takes a little longer, but a successful STR will make you more than a LTR but getting a loan on a LTR is easier with better terms, and you can always go back to a mid term or long term if it's not working out as a STR.

Hi Ali, 

I think Orange County is a great spot to set down roots and acquire a highly appreciable asset down the road. I’d be happy to help your friend find a place out here. Most anything coastal OC is starting around 1mm, but that is mainly for the land and the home itself will most likely need a lot. 
on the other hand there are some pretty nice homes in the 8-900 range that you can find that aren’t too far away from the beach. 

I’d need to ask a few more questions to dial in exactly what it is that they are looking for. Feel free to DM me their preferred contact method, or they are welcome to reach out to me directly as well. 

Cheers! And Happy Investing!!

So.. I was able to get a very detailed title report/ abstract dating all the way back to when the Indians were given title to the land before I paid the remaining 90%. Once the judge signed off and I was on title, I filed a writ of execution, and boy they don’t mess around in OK! I called the sheriff and once they had the writ, he asked me if I wanted him to go out that day! I opted to give them more time and offer cash, and called/messaged them for several days, but got no answers/replies until the Sheriff was at their door.
Long story short, I ended up on a plane a couple days later and met the previous owners.. (long story) we were able to get their belongings into storage and they were able to stay with local family. The house was in really good shape, sans the pool..( about 7k in repairs.) I put in some new flooring and paint, minor electrical, and a couple of ceiling fans (approx 20k in repairs, appliances, travel, and holding)

I put in a new refrigerator, washer and dryer, and leased it myself to a family a few months later (6 months lease) through an insurance company because of their home being a total loss. It is still being rented mo to mo for approx double of local area rent (I’m still paying utilities.) 

They may end up purchasing the home with a very large down payment (80%) and I will pay off my Heloc and owner carry the remaining 50k (profit) at around 7% for 5 years interest only, with a balloon. If not I will try to refinance and then either pull the trigger on furnishing the home for STR (cleaners and handymen were hired/ interviewed on the trip out,) and still have the boots on the ground in case of emergency.. or just long term rental and refinance, repeat…

Not a perfect deal, but I learned a ton! I will do a lot differently on the next one, and repeat some stuff too! Happy Investing! 

Hi Paul, You are posting in a great spot to find people to network with! I think you have got some good advice already on here on how to start. The first being connecting with a lender and finding out what you prequalify for. The next being, yes I agree you probably need to have a side hustle. Property Management is a pretty chill job to have in your 20’s, early 30’s?? You have the energy, and ability to work a second job. I would also suggest getting a p/t serving/bartending job in OC.

Not at Olive Garden though! Haha. Maybe at first if you have no experience, but you want to work at a nice Steakhouse, or Seafood restaurant, or some of the amazing small restaurant groups that are all over OC. Feel free to DM me for ideas. The fact is you will need to 2 years in any secondary industry/(or same industry, 2nd job) to use the second job’s income towards a conventional loan anyway, so sooner the better!
It’s very hard for anyone trying to break into their first property these days so hard work (2+ streams of income,) very good credit, saving (not spending,) house hacking (rent out rooms, or use new 5% down Fannie May program on 2-4 unit properties,) and staying positive and knowing your market are all very important aspects if you want to be successful. The main thing is that you stop paying rent and start using real estate to build wealth! 

 Hi Chad,

First of all, congratulations on the portfolio! I would love to hear more about those investment properties. 

There are so many scenarios that can work for you in Orange County. As you know each of your desired locations has their own unique set of specifications. A good place to start is identifying the specifics property types for each location.. For example looking for a single family in Newport with a detached garage to convert into an ADU, either that or a duplex/triplex in Costa Mesa, Maybe a SFR in Dana point that has land for an ADU build, etc…

We can do our best to get you a 2/1 buydown from the seller to get your initial rate to a more desirable level and then Refi once rates come down. Then rent them all out and repeat, right? 

I would be happy to help in any way I can. 

Hi Rudy,

I also do not see any reason why they would force you to Refi. As long as you keep making the payment you should be good to go! Now the planning department may be another story. They have gotten to be pretty tough, at least in Costa Mesa. The good thing is if it is a single family plot, you are currently allowed to add an ADU, and possibly a Junior ADU to your lot. I would start my research with the city and see what they require if you are doing it yourself.
Any good contractor will take care of the planning and permits if you are going that route.

happy building! 

Hi Katie, 

You two are very good at saving and diversifying, great job! I think you are on the right track with purchasing more real estate as your next investment class. Purchasing for investment anywhere in California can be difficult right now. Orange County housing inventory is at all time historical lows. There also aren't too many properties out there that have a value add because buyers will pay top dollar for whatever comes on the market. Because of all this home values are staying high. With ~230k down at 25% ltv gets you a purchase price around 950k. There will be SFR available in the more inland areas of Anaheim, Fullerton, Santa Ana, and maybe parts of Orange. Your best chance at securing a multi family will mostly come through an off market deal. Happy to keep an eye out and let you know if anything interesting comes along either way.

The other option would be something out of state. If you have any interest in owning property in Oregon, Washington, Idaho, Nevada, or ??. Maybe you have family or someone to be your boots on the ground somewhere. Starting with a SFR is usually recommended, but if you can swing a 2-4 unit out of state with a good property manager, you should be fine and you won't have to break into your planned retirement accounts to do so.

Another thing to think about is the Post Tax monies that you put into your Roth Accounts. If you've had them for a long time, then most of your value is from growth anyway, you can take anything that you put into your Roth's out tax free (might have to be in for 3 years?) to boost your initial outlay, or to improve the properties, etc... 

Where should I start? Any good companies, or things to look out for?