All Forum Posts by: Daniel Siapin

Cars need AC in San Diego? I thought it's been 72° down there since the big bang.

A lender will probably let you use 60-70% of GRM as additional income, so that you qualify. I think you can use FHA with low down, but the DTI will be way off, then you probably wouldn't qualify.

Go on Loopnet, Zillow, but the best would be to get a realtor to give you access to do MLS searches on your own.

You'll find one, you just got to be creative.... But you need that down payment and good credit...I think over 650.

You guys make it sound impossible. Find a lender or broker with experience in multi Plex loans, what the confirming standards are in the area you're looking for, then get your pre-approval letter, and you're off to the races.

Of course you need your 20% down, plus a ton of research. Then it works out that the less experience you have, the sweeter the deal has to be!! 

Make sure you know the areas and the prices you're looking in to. For instance, I just missed out on buying a duplex for $270k in Riverside... But I have a super pristine one for sale in Atwater Village (between Glendale and Glassell Park) with a 1 in front of it. Location location location makes a big difference.

Maybe he's gonna make more money taking the booty back to Washington.

He's gonna save from short term capital gains whether he owns property one year or three or twenty. However, it is very common to just deal with STCG tax (which is usually double LTCG) and have liquid money for another deal.

Yorba Linda is a great area, will get a huge chunk of change doing what he's doing. If he's willing to wait till next spring/summer, he might even get an extra $20-30k. 

Rent sounds like around $3000 , maybe more if highly desired school district, nice area, and done well.

So I guess what I'm trying to say is 1) you haven't given enough information to compare his options, 2) there's more than one way to skin a cat. Heck, maybe a 1031 might end up being his best option yet. Not to push a deal or anything, but I'd love to 1031 my duplex in Atwater Village ($7500 monthly income) for a SFR in Yorba Linda. Let's trade!

Thanks.  I forgot to mention that in the deal, I require unilateral control of construction and marketing.  I don't want him to hold me up on things like design or speculating market trends years down the line.

With regards, I'm both the contractor and construction funds.

Item 2 and 3 are great!!! Definitely going on document.

I'm considering a flip in 90210, will take 4-6 months, and liquidated damages after 8 months (unless out of my control):

-Purchased @ $2.1M

-Construction ~ $600k

-ARV $4.5 - 5M

Considerations:

• My compensation: $600k at close of escrow (in addition to my const funds).
• Possibly performance bonus scale, if sales price goes above $4.5M.
• Owner has done deals with my family over the past 15 years or so.
• He had a partner, but bowed out cuz he bought his dream home instead.
• I'll go on title to protect myself
• All these instructions (and more if necessary) will be recorded into escrow.

My question: are there other considerations to include in contract?  I want to cover all my bases.  My primary focus is to protect my money in this deal (FYI - telling me to not do the deal doesn't help).  I want to structure this deal bullet proof...this is a big chunk of money to protect.

I just had a meeting with my cpa regarding 2017 deferrals on flips from this year, especially ones that haven't sold. His take was that one property can buy up to 3, OR buy something big with up to 3 properties. Sounds like you disagree.

(My intent is to defer my short term capital gains by way of 1031s until they qualify as long term capital gains...but that's a different topic.)

if you're a wholesaler in the Brea area, your sign is meant for me. Let's get in touch.

What happens when your Phoenix property appreciates 25%, but your higher price tag goal area from now also appreciates 25%? You'll be even father from affording it. You'd bring that Phoenix money back, and you'd only be able to buy inland empire. 

So why not just buy inland empire now? It's starting to get hot...no pun intended.

@James Griffin Many people would envy your position. HOWEVER nothing can replace loved ones.  Taking a few months to feel out different avenues is a good idea.  Check out a local RE meetup or two to get the ball rolling.  I'd take up @Joe Homs on his offer if I were you, great guy to know.