All Forum Posts by: Sean Walton

There are a lot of broad questions there.

#1 make sure you have a large amount of contingency money if you are doing new ground up construction. Things never go smoothly. You don't want to run out of money part way.

#2 Be careful if you bring on a buyer part way into the process they will want to change things. Maybe for the better and it will be their home so you want them to be happy just don't let it derail your timeline without your fee going up.

@Matthew Mcdonald I would get them under contract for a certain percentage (60 to 70%) of what he thinks they will appraise for in as in condition. Then ask a local real estate to run a CMA on the property to test his numbers. If he is in the ballpark hire the agent to do a BPO for each for about $150ea then if they are panning out hire an appraiser to actually appraise them. If they appraise for what he originally said then buy them or assign the contracts.

It has a lot to do with all the new apartment buildings coming online in soma and the van ness corridor. Supply was so tight before it drove up prices. The Short term rental law may have a marginal effect as well. I used to get between $4200 and 4000. Now more in the $3900 to $3800 range for furnished month to month 1br 1ba condo. The job market is strong but I think rental and home prices still have a lot of young people looking to other cities around the country

See how long the statute of limitations on construction litigation. A lot of developers hold their buildings for 10 years or however long it is in their state then sell off. A lot of lawyers look for condos approaching their statue of limitations just to drum up business.

My boss says when the apartment model stops working because of land basis and everyone starts building condos we are reaching the end of a boom cycle

It is hard to advise on any code related issues but doing lofts with their own individual entries makes them more desirable to a lot of people but may not work in deep building footprints.

If you are an agent you need to make it clear to the seller that you are not acting as an agent and this is a non agency relationship. (Check your local laws California only allows you to assign 8 contracts per year without being a licensed broker or agent I can't remember which) I always think it is best to be as transparent as possible. If they are truly motivated they won't care that you are making profit in the transaction explain that in order to help people like them you need to be able to make a profit in order to operate a business and market to help as many people as possible. 

Check out this post https://www.biggerpockets.com/renewsblog/2016/07/0...

Personally I think it is better to wholetail buy at a discount sell at full market value. In most cases buy subject to the existing loan or seller finance. Have a hard money lender on stand-by if needed. By assigning you are giving away most of the proffit 

Noelle Saingarm Airbnb charges the guest 12% typically the 3% is just payment processing fee. I'm a big fan of Airbnb and the extra cash flow but it is more hands on. Especially if you are self managing. Look up some of Al Williamson 's responses and posts he knows his stuff. I do 30days or longer because of local laws. I agree tenants treat the space well. Less likely to party than short stays. Generally less wear and tear than conventional rentals but sometimes hard to tell since you see it in such small increments. Just budget new towels and sheets more often than you think. Clean very well between guests. Be friendly and responsive.

Hi all, I work at brick architect and interiors (dba brick.). We are a growing firm doing a lot of cool projects all over the Bay Area. Our start was all developer driven 50,000 to 200,000 SF building. We are more diversified now but still design cool modern buildings with the developer's bottom line in mind. I'm trying to expand our business and thought I'd reach out to the BP community. If you need feasibility studies or tenant improvement test fits let me know. We are all in revit so getting material take-offs and marketing renderings is also pretty easy. All of us have worked at large firms so you get big firm experience with small firm personal attention. Sorry at this time we aren't interested in remodels or legalizing in-laws

Do you have enough equity in your rentals to do a HELOC? Rather than sell the stock I've heard of people using their stock account as collateral for a loan (one of the podcast guests mentioned it) Seller caryback? Friends and family?

Is it a sign of the times as most markets hit a new peak cap rates are getting depressed as are returns so more people are pursuing flips and wholesaling?

Typically when people say wholesailing they mean assigning contracts to end buyers. So you wouldn't actually close or need transactional financing. If you are planning to close and sell to a retail buyer you may need transactional financing or hard money but try and buy it with seller financing or subject to the existing loan. Check out Michael Quarles ' podcast he is a master at this As to your question about brokers I would be very open when you are speaking to them. Say if I find retail sellers I will list them and give you your cut if I find people with beat up houses or people who can't sell traditionally I will buy or assign to investors. Check with your state rules and laws regarding assignment and always disclose to sellers if you are not having an agency relationship with them