All Forum Posts by: Shawn Ward

BPers,

Do you currently own a vacation rental in Joshua Tree, Palm Springs or Big Bear Lake?

If so, I'd love to have you answer the below questions:

1. What are the 3 best things about having your rental property(s) there?

2. What are the 3 worst things about having your rental  property(s) there?

3. If you could start over, would you still invest in this area?

4. If you were me, someone who is looking into these areas what would you suggest as I begin looking the buying process?

Thanks so much!!!

Shawn

Thanks @Joseph M. ! Appreciate it. 

@Jason Carter this was through a wholesaler. We've bought a couple of houses from them. This had nothing to do with them..the deal is great on paper. The issue has been the delays. Thanks man!

@Patrick Young Leverage your money to buy a few properties that cash-flow. 

Consider vacation rentals also.

All the best!

sjw

@Juan Rubio just ask him when is a good time to stop by one of his properties or his office and chat a bit about his business and answer some of your questions. 

From there, ask if he doesn't mind your reaching out from time to time for advice, or even ask him to be an unpaid intern to help his business. That way you are adding value also. 

All the best!

sjw

@Patrick Martone ABSOLUTELY you can. All our our company's flips have had agents represent us when we sold. Just make sure your analysis takes their fees into account and you'll be fine. 

All the best!

sjw

@Riley Hoffman Jan and Bryan or correct. Get some quotes. Post your opportunity on Craigslist. 

There is also a great BP Meetup in South LA twice per month. Contact @Brandon Foster for more details. 

@Ruddy Anthony Salazar If you start one for DTLA I'd be interested. 

Onward

sjw

I have not done it myself but I've been to a couple and they are totally fine as long as the company leasing from you has the personnel needed to manage the people. Usually, the managers are former addicts also...and that is recommended. 

Also, make sure your block committee or board is aware...because you may get complaints about the tenants who end up hanging around and smoking a lot.

All the best!

Absolutely @Shannon Shue ! Shoot me a DM and we'll link up. 

Unfortunately nothing much to post this month....why you ask? The process it takes to go through this one HPOZ in Jefferson Park.  I will share more details below in order to help others avoid this going forward.

Details:

REHAB (images below):

• We had to hire an architect/expediter to support our next round of meetings with HPOZ

TIMELINE:

• We are in Week 22 of 32 in Rehab
• We are far behind schedule now due to the HPOZ
• We are meeting with HPOZ staff on 3/13/18 in order to see if we can finally get our plans accepted

BUDGET:

• We are on budget still and have only spent $54k of the planned $194k of rehab

SELL:

• Due to the delays, this home may not go on sale until the Fall 2018. It was originally planned to go on sale May 2018. 

NOTES:

So, due to the horrible experience dealing with the staff at this HPOZ, I would strongly recommend anyone investing in LA now to steer away from this neighborhood. Not only have we had this experience, here are a few examples of why any investor should hold off here:

1. I went to the last board meeting and there was a resident (not investor) who just wanted to paint the outside of his home, and he had to wait 2 MONTHS to get an email response from the lady leading the HPOZ!

2. We were in escrow just last week one property and in contract to buy another in this neighborhood (numbers looked great) but we decided to pull out due to this same issue. We decided to lose our EMD in escrow in order to avoid future losses and delays on another property

3. That same property can't find a buyer now because other investors have decided to stay away also.

Unfortunately, the biggest losers are the neighbors because they are relying on these upgrades to have their property values rise and also they have really old ugly houses sitting there that can't be sold now (unless they are steeply discounted from already good prices).

I hope to have better news next month. 

Shawn