All Forum Posts by: Jim Keller

Welcome to bigger pockets I love this site.  I live and work in Riverside County and also buy and sell in LA and Orange County.  My team and I would be happy to help you with anything you need, we work on the premise that if you help people get what they want you get what you want.

Jim

 Logan 

Tell him you are "shocked" that the previous owners would have put 8 layers of roofing material on one roof and ask him how much each layer would cost you extra then ask what it normally cost him to strip one roof. 

Then call a roof demolition company they should be easy to find and ask them to bid it. Once the roof is clear subtract all the original roofers fluff and tell him he has a job you will save thousands is my guess

Good luck

Jim

 I trained with Bruce Norris in Riverside Ca. back in 2008 and use his stuff everyday since.  I also attend at least 1 meetup per month and have learned plenty.  I was on a job site of a associate 1 month ago.  He and his "team" are in the middle of a dream deal, 4.2 million purchase 1.5 million rehab 1.3 million finance and sale cost when its complete there looking at 14 to 17 million.  I asked my associate how he assembled his team, he told me he hired a business coach.  This coach recognized he needed a top quality contractor to complete the type of deals he wanted to do.  The coach made the introduction and the rest is history, by the way this is their 3rd deal over 10 million in 3 years. 

Teaching, Coaching, and Classes work we all had one in high school or collage when we played sports.  I have done well with the few thousand dollars I have spent to be to investoing. If your considering it call Brian he gave me some of his time last week and I'm seriously considering hiring him to help me get to the next level.

Travis

Use your broker to list the property this is a good alternative, most brokers would be happy to keep the deal in house and if the escrow and negotiations are in house why would they not 

Jim

I would recommend private finance.  If the dog can hunt many will want him.  The market can always be counted on to nurse the strong and kill the weak, sorry for the cliches but when we find a deal that no one want to finance it usually is not a deal.

Figure the whole deal out and try and "wholesale" it to someone, something your use to doing.  Then in doing so you get a better handle on the deal, money will just show up.  It always does if it's a real deal, my guess is your missing something.  In Southern California entitlements cost upwards of 125 to 200 thousand per lot.  I was blown away at just how much it all cost and with a smaller development there are less sales to spread your cost around.  

Good luck

JIM

 Phil

In my Southern California market, mainly Riverside and Orange County there is typically a 20 to 40% spread in the high to low comp's specially among areas that were hit hardest by distressed property sales. I stand by the plan to offer at 5% below the low comparable pricing, We typically buy short sales at 55% of ARV and have been doing it for years. These numbers would give any first time wholesaler enough room to offer a good price to the end buyer and make a generous fee for their hard work.

I would agree that anyone buying, selling, and negotiating with a bank fully understand the ramifications of their actions.  We have learned the right and the wrong way to conduct our self and recommend all investors, agent, brokers, and negotiators do the same.  My comments here were to encourage all to move forward and learn to operate at the highest level and be successful.

Come see my latest deal at "my first mobile home flip in Southern California" on bigger pockets I picked this home up on short sale for 50.13% of ARV. Our original offer was 39% of ARV the bank said no and countered us at 50.13 of ARV and that worked good for us.

 Logan

I'm just wondering if you don't know what the bank will be approving as a far price how could you choose your exit so soon.  My usual game plan is to offer 5% below the low market comparable.  This should/may give you an scenario to possibly flip the property if holding the deal is out of the question.  A majority of my marketing efforts revolve around distressed property.  Our goal is to always start out attempting to buy for the lowest price possible price and adapt the buying strategy if needed.  

If the deal is good enough to wholesale to someone for a flip its good enough for you to do the same.  look in some of the hard money postings on BP's or find your own private money and become a flipper.  People tell me all the time how easy it is, I mean we all watch HGTV don't we.  Just being funny....... about how easy it is.  Take this seriously and you could be rewarded well.  A good place to start with your agent,  would be how your two's relationship fits in to the banks arms length agreement you will be required to sign at closing.  

Good luck

Jim

 Hi Ron,

See my post "flipping my first Mobil Home in Southern California" in it I tell all about the deal and you will see some of the pictures of it also also "soon to be updated".  In our deal we will see at least $55,000 in profit, but it has been a huge eye opener.  Mobile Homes are not conventionally framed homes by any means.  My contractor is very experienced and we have completed multiple deal this year together.  Just the other day he flat told me the mobile home has pushed him and his crew to their limits.  The framing is different the electrical is different the pluming is stuffed in Sofits and romex wire is just run with no real regard for the safety codes that are so tough on here in California.

All this believe me is no call to an alarm,  just want to explain your opportunity properly. Our project manager along with the laborers cant seem to get any momentum going.  The whole project is constant tear up and try and figure out how to repair.  I would recommend you consult a Mobile home specialist, my contractor has been working in the Riverside, San Bernardino area for years and has completed hundreds of rehab.  They are no lite weights, just goes to show you that nothing makes up for the right experience.

That is the only bad news I have for you, we weren't prepared for the different conditions that were in front of us.  Luckily we adjusted and worked through it all, and just finished our drywall this weekend.  I'm sure the rest of the deal will be fine, we have one extra work order that he is asking for because of a roof repair that was done poorly buy the old owner so we will fix properly to sell for top dollar.

All and all the choice to buy a 1880 sq ft triple wide on a permanent foundation sitting on 71,000 sq ft of horse property for $184,000 was a good choice.  Its been a battle but lets face it my lender says our job is to make problems turn in to profits.

Good luck

Jim

Tim

I have 2 fix and flips going right now and have close over 10 others this year all using hard money.  Keep this simple, you have another job so you need a person to take the responcability of completing your project.  I have a very qualified GC that subs that i use for that. About half the work and has his own crew of handyman and project managers that he gives the responcability of completing the job.  Then he has a crew of 4 laborers, they work at the direction of the project managers and save the GC money for time consuming high labor cost items.

This works very well for me, and on most of my visits to the site we negotiate the completed "look" we both want.  He understands as do I we both need a win win to stay in business.  If there is an extra that needs to be added it will be easy to see if you don't do it you won't be able to sell or get top dollar.   The other day I was working on a flip in Menifee, Ca "see my first mobile home flip in Southern California  on BiggerPockets " the deck just was not right the contractor has a line item of $800 in the reconstruction of the deck and it's clear he has gone way over that in cost.  He offered to fix it one more time, but I feel like if I want it right I may have to pay a lil more to get the right look, I just know this is coming and won't be suprised.

I hear many people being way to rigid over their original agreement that was made with the contractor.  I think if the 2 of you are true to the goal which is to sell for a profit, you will both be successful.  This business is not for people looking for a one sided gain.  I need partners that Uber stand the concept of the WIN/WIN......

good luck

Jim

One thing I have noticed in my 51 years is you reap what you sew..... 

It would be nice if real life turned out like it was when we draw it up on the chalk board, but it almost never is.  I spent years floundering in real estate only to have thing change big time for me a few years ago.  It could be the same for you, cut yourself some slack and fight on.

Good fortune to you and yours