All Forum Posts by: Sean Walton

Yes Segal does seem to contradict himself there. I guess you could stay unlicensed and do all the design yourself "under the supervision" of a friend who is an architect, then have them stamp and sign, if it is multifamily. If it is a single family in most cases it doesn't need to be stamped. I think the big liability is if you have partners who decide to sue you or if you sell off the property before the 10 year statute of limitation on construction defects.

I don't think Johnny bucks are going to get you to a 20% down payment but they might cover a portion of your down payment. I think what went along with that technique is it is better to pay yourself with equity in a project and rental income than architect wages that are taxed less andantagously

@Nathan Hemming A while back I had a rental that used to be my primary residence. I asked my mortgage broker if I want to buy another place will the rental mortgage count in my debt to income ratio and he said if you have tenants and a consistent record of payments that cover the mortgage and expenses they will basically ignore it in my DTI. Unfortunately it was cash flowing about $1000/month which they wouldn't let me count as income. I'm not sure how other banks will look at it but that is just the info I got from one guy.

I would ask the owner what he wants for all the properties? Then do some of the due diligence to see if it is reasonable. If he is looking at it as lots for single family homes and a developer can do multifamily, you may be able to get a good deal you can shop around. Try and get it under contract and shop it around to developers I know one that does large multi families in Seattle if you want to PM me.

We're in the back corner I'm in a blue plaid shirt

We're in the back corner I'm in blue plaid shirt

Originally posted by @Sean Walton:

Hi All San Francisco Real Estate Investors,

   We had a great little networking meetup last month and I want to keep these things regular. I won't be pitching anything just getting some smart people in the room to discuss what they are doing in real estate. Local or out of state, new or expereinced it doesn't matter. Please bring your business cards. Feel free to invite others

6pm Louie's Bar on this Sunday April 30th. It is close to BART but on a side street just south and parallel to Market Street.

55 Stevenson St, San Francisco, CA 94105

@Puran Zach Grewal, @Ralph Forde, @Mark Pedroza, @Eduardo Zepeda, @Ali Goss, @Gagan Chawla, @Matt Sanford, @Sasha Josephs, @Ariel Smith, @Katrina Razavi, @Pratik P., @Dana Dunford., @Chris Mason, @Houston Garcia, @Andrew Clemenza, @Jason Hsiao, @Sherwin Gonzales, @Rollan Dizon, @Account Closed

 See you all in a bit

Hi Nathan Hemming welcome to BP. I'm also an architect with similar long term goals. Generally once you property is seasoned (you can show proof of consistent rents) that cover all or most of the expenses it shouldn't count as a debt in your debt to income. Getting a 203k is great if you don't have the cash but there is more paperwork and oversight by the bank. So it can be good if you aren't that experienced since contractors only get paid in draws as work is completed. However, like you said if you want to do some work yourself or pay cash or get relationship discounts it may not work. I have also heard CDs can be used as part of your down payment. Jonathan Segal FAIA (he has an Arch as developer video course good for mindset and high level but not heavy on concrete steps.) is probably the best known architect developer and he calls the Johnny bucks. A colleague asked one bank and they said no but if you try 30 local banks I bet one will say yes. Chris Mason may have some great financing insight

I'm not sure how it works with an employer 401k but do some research on self directed 401k or solo 401k or self directed IRA. Also possibly using your existing 401k as collateral on a loan. I agree the penalties and possibly losing any employer contributions that aren't vested could wipe out any real estate gains

I'm not a flipper but I worked for a construction forensics expert 12 years ago back then he said out of all the windows he has seen tested only Andersen has never failed a test when properly installed. That may have changed since then but anything I plan to build in the future will be Andersen. My friends bought a flip and all the windows are leaking and they are suing the builders. Make sure they are installed and flashed correctly.

David Eiges make sure you get a lease even with friends and family. Just like you should get a contract with friends for business ventures. It makes sure people don't make assumptions or misremember the deal you had. It makes it so the lease is the bad guy not you if issues arise. I think the previous poster is right owner occupied units are exempt but once you move out that no longer applies, at least in SF but I would check your local rules.