All Forum Posts by: Sean Walton

@Kurush Italia is doing it maybe he can weigh in. It can be done but I would double check that it isn't possible within 1 hour drive of where you are first. 

Check listsource to see if there are a lot of cash buyers (Absentee owners 100% equity purchased within the last 6 months) free to view # of properties that meet your criteria for any list parameters you generate. 10 cash sales in a city with about 40,000 SFRs is probably workable as long as it isn't a place where people are buying a lot of 2nd homes

Welcome to BP. I work in Emeryville. Let me know if you want to grab a beer I'm always up for discussing RE

Jacob you say owner occupant loan does that mean you will be house hacking and living for free plus $700 in cash flow? What are the gross rents? Anything you own free and clear is going to cash flow way more than something financed. Look at the cash on cash returns. Also markets are getting tighter what you bought 3 years ago probably gives way better returns than what you buy today but doesn't mean if this place lines up with your long term goals you shouldn't go for it.

Nicholas Zdvorak talk to a few and get an idea of how much equity or down payment they require. What their rates are for newbies. Have a couple lined up in case one is tapped out when you do find a deal. BP also has a hard money lender directory but I haven't contacted anyone for there yet

Do you know what the floor area ratio (FAR) cap is for that zone? Parking requirement? Are you planning 2 levels above surface parking?

"Michael's Pink Post Card" 0.57% right about the national average for that card. Lower response rate but better quality prospects. Gets you used to talking to sellers but not being flooded.

"Patriot Letter" I did 2 drops and drop 2 should be hitting most mailboxes today so too early to tell but much higher response rate but more tire kickers. Will probably be more in line with the 2% national average

@Jose Castillo I have been using yellowletters for 2 months. So far so good. No deals but a few good leads. Spending on average $1500/mo. If you plan to use yellow letters they can buy your listsource list for you for $0.15/ per address instead of $0.29. Not sure if click2mail does the same.

Generally I was happy with my listsource list. There were about 12 duplicate people that weren't filtered out in their don't give duplicates. Not bad for 2300 addresses. There were slight variations in the name so I get why they were missed.

I signed up for the Michael Quarles coaching which I have been happy with. You can piece it all together on bigger pockets but it will take you a lot longer. They will help you assemble and analyse your markets which may save you hundreds of dollars in marketing to the wrong areas. It was on sale for $797 for 6 months not sure how much it is this month. No high pressure upsell, free to use any marketing company. Check out is podcast for lots of great advice and to get a taste of the program.

Welcome @Chris Strasser!

@Jose Castillo @Cortney Jones is right I think you confused LTV with equity. You want 30 to 100% equity unless you want very skinny deals or short sales. I would try and find an area with a lot of cash sales by absentee owners (using list source 100% equity absentee owner) not to buy that list but to help find the markets investors will buy from you. If you are in an area with different neighborhoods you don't want to target the expensive neighborhoods. Generally speaking they don't procrastinate on their problems to the point they would need to sell to a wholesaler.

Do investors in your area only want 2/2s or are they buying 2/1s?

May be an obvious question but did you live in the property you just sold for 2 out of the last 5 years? I believe that would let you avoid capital gains on the first $250k. But if you've take a lot of depreciation you might need to pay that back. (I know just enough to be dangerous so talk to your tax attorney or CPA)

I would rather pay $30k more out of pocket if you truly believe the property to be worth more than appraised.

If you plan to 1031 exchange until you die then pony up the $30k you can always refi later to pull that money back out if it really is worth the $370k. If you think at some point you were going to cash in the properties then you are going to have to pay the $20k eventually.