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All Forum Posts by: Jim Keller

Jim Keller has started 18 posts and replied 338 times.

Post: Would this marketing plan work?

Jim KellerPosted
  • Investor
  • Riverside, CA
  • Posts 351
  • Votes 220
Originally posted by @Sarah Miller:

I am looking for ways to acquire more properties without using my own money (because I don't have much!).  I had an idea of getting information on possible homes/multifamilies in pre-foreclosure status.  I can find the owner of the properties and try to track down their residential address.  I would then send them a marketing piece explaining how I would be interested in taking the property off their hands for a creative financing situation (maybe a subject-to financing agreement and refinance later somehow).  Is this a good idea? Does anyone else do this?  What are some things I am naïve about with this strategy?

Great to hear your going for it Sarah,

My team and I started doing this 6 years ago and can vouch for the fact that it is the best way I have used to control property with just a listing agreement.  Our approach has evolved over the years, starting with Foreclosure Radar "public record search software" and a $45.00 per month subscription.  We searched pre-foreclosure and action property's in Southern California.  In the beginning we only listed for short sale the sellers that would work with us.  But as the equity position of most home owners has increased most short sales have become equity sales.  The trick is recognizing the bank will not extend them any further on the owners outstanding unpaid balance.  This is your window of opportunity.

We presently have a number of sellers that don't want the services of a Real estate agent I recommend using because of her distressed property negotiating skills.  This is where the investor comes in, I make a standing offer in all appointment to close at one of 3 prices.  Price number one is a 7 day close price all cash none contingent,  to be honest no one takes that deal.  but its important you get that price out there. It is the price you will end up paying, or something close to it.   The second offer is a little sweeter for the seller but I ask them to do specific things at closing.  Like clean up all trash or fix things around the house. Like the first offer few elect for this option.  The third offer is using the agent to sell.  Most of the time there is not the proper time, condition, and sense of reality for the seller to use this option.

You have to be wondering why we go through all this,  well most people know they have to sell "they never could afford the home" your job is to softly help them come to this conclusion.  When done properly it becomes a win/win for both party's.  Never take advantage of them, be an advocate for them in this process.  They will be the buyers on other homes you are selling once they get on there feet.  I heard this somewhere before "if you help others get what they want, you will always get what you want".

Your not naive about this..... figure out what you would need to walk away from your home if you didn't have options or had burnt all the other options you had.  Then provide that answer to them and you will be a winner.

Post: Short sale listing expired, what's next?

Jim KellerPosted
  • Investor
  • Riverside, CA
  • Posts 351
  • Votes 220

Go directly to the seller and have him sign your offer to purchase at includes the words "seller agrees to cooperate the buyers short sale agent" then go on bigger pockets and find the most experienced short sale agents you can find in your city and give them a listing.... and ask to be the buyer on one of there other deals.  its that simple.

Post: Short sale listing expired, what's next?

Jim KellerPosted
  • Investor
  • Riverside, CA
  • Posts 351
  • Votes 220

Go directly to the seller and have him sign your offer to purchase at includes the words "seller agrees to cooperate the buyers short sale agent" then go on bigger pockets and find the most experienced short sale agents you can find in your city and give them a listing.... and ask to be the buyer on one of there other deals.  its that simple.

Post: Contractors

Jim KellerPosted
  • Investor
  • Riverside, CA
  • Posts 351
  • Votes 220
Originally posted by @Sharon Kaye Garrigan:

yes I do know the cost for the flipping but I want to get more estimates.  

 I had a very good handyman for my first 4 deals..... on the 4th one the scope was complicated and we went over budget.  Lucky for me the $8,000 over we went brought good value to the home, and we sold for a good profit.  

This was proof to me though I needed a great contractor.  I called the subs that I had brought to complete my first 4 deals and the heating and air man gave me a great recommendation.  The new licensed contractor has worked on 8 other deals for me and I couldn't be happier.  

Don't keep your problems a secret, just ask the good people around you for help.  The term "water seeks it's own level" is very true.  If you pay your bills on time and are realistic about time frames and cost every contractor in town will want to work with you.

Good luck

Post: Rehabbing Kitchen Estimate - is this a fair price?

Jim KellerPosted
  • Investor
  • Riverside, CA
  • Posts 351
  • Votes 220
Originally posted by @Watson Smith:

I think all those labor prices are high... Even for LA.  I couldn't imagine paying that in Atlanta.   I mean $950 to tear out cabinets and haul away... It would take you 2 hours max to do that and then you could buy a bagster from home depot for like 60 bucks for the debris. 

Framing the header for $1200...? Moving a water line for $450..? I've had my plumber move tons of water lines for and hook up sinks... both would cost me together $175 max.  $1150 for installing granite?  Since you are supplying the granite you know they offer free installation and sink when you buy it.

If I were you I would hire each trade out separately.  This is a small job and you don't need a contractor.  Find a plumber for the water lines, find an electrician for the can lights, buy the granite from the store and they will install it, find a painter and floor guy.  Reasonable labor should be like 7.5k total if you are buying all the material.

Remember the contractor is just subbing all this work out to the lowest bidder anyways.

Best of luck.

 Good job Watson...... I completely agree with you.  I was thinking also that $3000 for appliances and then paying for a range vent is excessive.   Good luck to all

Post: Interesting Driving for Dollars Trend

Jim KellerPosted
  • Investor
  • Riverside, CA
  • Posts 351
  • Votes 220
Originally posted by @Will F.:

I haven't noticed that here in Los Angeles County most properties have addresses or I can look at the neighbors addresses to figure it out.

I've been driving for dollars for years, but none of my deals have been from driving for dollars. All have come off the MLS-- standard, distressed or short sales off the MLS or through networking.

If you use a program like PropertyRadar.com you can pull up a map.  Then you can see all the property details, ownership and transaction/foreclosure/loan history.  You can also do this for free in some cities by pulling up public records often but it might take longer to get all the details.

It's probably not worth the effort unless you do it in major volume like hit up 5k addresses a month or more.  Over the past 2 years I've contacted about 10k owner by direct mail, dropping off post cards, 1,000 address mailing lists, direct yellow letters and through all the effort it hasn't transpired to much. 

I still think you have to hit up major volume like 5-10k properties a month to really get a good deal, but I haven't done that yet...I've only hit up as many as 1000 properties in a single month.

 I have kept in contact with some owners of houses and a few rental 2-8 unit properties who have had interest in selling to me "at some point."  Also I've seen a couple houses where they just owner wanted too much for what the condition of the house was.

I'm a direct buyer and not outsourcing the deals or wholeselling.  I'm just a cash buyer and haven't had much success with direct mail... I still continue to try

 Direct mail is a looser in Riverside county also.... just to prove my point I kept 2 weeks of mail in a bag.  Over 100 items came to my home 16 were bills and letters from friends and family. The rest ads fake letters postcards flyers catalogs local store sale advertising, just to much to keep up with.  So it just goes in my trash.

Face to face will always be the best bet.

Post: 1st Home/ investment property advice and help.

Jim KellerPosted
  • Investor
  • Riverside, CA
  • Posts 351
  • Votes 220
Originally posted by @Joseph Urrea:

Hi, This is my first post here, so I'm just looking to get some advice on buying my 1st home, hopefully a duplex or triplex or more to help paid off the mortgage and get some cash flow going. For me right now i think buy and hold is the way to go. I have saved up money for a down payment and have a great credit/ fico score, 831. But I do not have a very high income. Is there anyone out here that can help guide or advice me on how to get started.

Thank you for the time.

Tony.

I KNOW OF MANY 4 PLEX APARTMENT BUILDINGS UNDER 400K.....

Spend the time to find deals like this Riverside and San Bernardino county's are full of them.  You can also find duplex buildings under 375K in LA and Orange county's 

Don't give up the deal you need to start your investment portfolio is out there.  At a young age you could just buy 1 deal like this every 3 years and be a multi millionaire in 12 to 15 years.  

I have heard this from the likes of Dave Ramsey and years before he came to radio I read this quote from Mike Milian a investor "do things you don't WANT to do for 5 years so you can do what YOU want to do for the rest of your life" 

When I was a young boy my family live well on the right side of the tracks in Huntington Beach, CA.  I have always remembered this girl I went to school with she and her parents lived in some apartments close to my grade school.  As the years went by my father did some business with her father and I learned that over the 40 years since then he has become the owner of hundreds of units throughout  Huntington Beach typical rent in the area for 2/2 apartment is $2000.00, as I write this I remember thinking less of the daughter because she lived in those apartments.... what a fool I was.  Don't make the same mistake.  Sacrafice and build your portfolio.

Post: What makes a great investment market?

Jim KellerPosted
  • Investor
  • Riverside, CA
  • Posts 351
  • Votes 220
Originally posted by @Mindy Jensen:

There is a lot of debate about staying local vs. investing out of town. What factors do you consider when deciding what market to invest in? What do you think makes a great market?

 I'm a simple man....... I just focus on buying any home in any city or market for the RIGHT PRICE and pow.... I have a profitable deal. 

Kinda being a snarkie I know but I'm really not.  It's what I love about this "special knowledge" we all share.  Buy the investment right and the rest is so much easier.

Jim

Post: Pre forclosure door knocking

Jim KellerPosted
  • Investor
  • Riverside, CA
  • Posts 351
  • Votes 220

This is the best way to get properties.  I use a method that gets me in front of homeowners and it's fun to see all the mail and know it's me there talking to.  The secret is most of the distressed homeowners want to stay in there home.  The trick is to listen well enough to know what it's going to take to have them sell to you.  You will burn 20 or 30 contacts but as you get better the $15,000 your being offered will seem like chump change.  

It's hard work you will be cussed at and in some cases even threatened, it all adds up to you figuring out how to do the deals on your own.  I started out year's ago and the success of our hard work was given "sold" to hedge funds and international buyers.  2 years ago I saw the light and haven't looked back.  Go for your dreams

Jim

Originally posted by @Nathan Duncan:
Seeing that most college graduates leave school with a mountain of debt versus their income from their employment I was wondering if anybody has had any luck securing traditional financing with a high student debt to income ratio? I have this situation and fortunately have creative financing options for my properties but wanted to know if anybody been able to purchase going to the bank

When I was an real estate agent "2 yrs ago" I sold many homes to clients with student loans. You can defer the loans for 12 months, this will remove them from your DTI calculation. This is on FHA loans, you would have to get your own lender to answer about any conventional approval.

I don't know if this deferral will work but make sure you arrange it through your loan officer if it can be. The deferral is typically for 12 months and I believe this 12 month payment relief loop hole allows you not count the payment on your DTI. I had anxious clients that on there own got the deferral and then by the time we were ready to get the loan the deferral was only for the remaining 10 months so the debt had to be counted on there DTI.

Remember he who has the gold makes the rules, so consult them and close on your deal.