All Forum Posts by: Steve Meyers

@Lily Scherman any feedback on this program? Is it worthwhile?  I have a call setup with them on Monday

@David Minaya when did the condos that have sold between $1.2m-$1.3m sell?  Was this recent or over 6 months ago?  How long ago did the comps your agent provided you close? 

The difficult part right now is money is expensive to borrow, a lot of buyers are on the sidelines waiting for borrowing to get cheaper.  I would recommend giving the buyer a 2-1 buydown credit to help offset the high rates.  Your agent can market this in the public remarks so buyers see this.  

Yes property values are still appreciating but buyers look at the bottom line of how much is this property going to cost me on monthly basis and with rates in the high 6s the monthly payment is not attractive to a lot of buyers. Good luck

@Anita Z. if your end goal is to eventually move to San Diego then I think this would be a smart plan. If I was in your position I would look to air bnb or VRBO the property you purchase in San Diego this way you will have less negative cash flow than if you were to rent it out to a long term tenant. You will need to get a STR license but they are not hard to get and over 800 are still available. The market here in SD continues to appreciate 10-11% year over year and with a shortage of inventory it's not showing signs of letting up so waiting 5-10 years to just sit on a 3% interest rate on your Merced rental when your goal is to move to SD makes sense to do it sooner rather than later.

@Account Closed a lot to unpack here.  Nick has a good point in getting quotes done for the work needed based on the inspection report, that would really give you an idea of the cost associated.  Since you got an appraisal done about a year ago you can add about 10% to that value they provided to get an idea of where fair market value stands today as a ballpark.

No appraiser I know is going to look at the HOA financials and factor that in, because they are only concerned with the asset for appraisal although we all know the health of the HOA and financials still play a factor in the sale of a condo.

I'm dealing with a similar HOA right now for one of my listings where the reserve is at only 7% funded for what's needed for the budget and there is an upcoming special assessment for each unit. No buyer is going to come in and be willing to pay an assessment unless they are getting a deal on the unit. So that will more than likely fall on you to have to pay.

If I were you I would get quotes for all the items on the inspection report from a few different companies and get a new updated appraisal to show the judge what the true value is.  If you need some vendor recommendations for work, shoot me a message and I can send you my vendor list.

@Gaurav Banka would be happy to help with your short term rental seach here in San Diego.  I don't service Palm Springs but have someone who can help in that area for short term rentals if you wanted to explore there as well.

My team and I also do short term rental property management, here's our site below for reference too https://www.31beaches.com/

@Ruben Banuelos assumables are not all they're cracked up to be, they can take 4-6 months and the lender doesn't get paid on it hence why it takes so long.  Your client will need to come in with the difference between existing loan amount and contract amount so a hefty amount down.  There is a site called assumable.io that has all the assumable loans available on there. Hope that helps

@Alex U. are you looking at commercial comps since this would be classified as a commercial property.  What zip code is this in?

@Adoney Reid are you planning to buy this as a primary residence and house hack or buy as an investment property? 2 different things.  If buying as a primary then the lender will be looking at your personal credit.  If buying as an investment and not planning to live there, different story.

As far as taking out a LOC I would make sure you take it out in the LLC or entity you plan to use to purchase the property with so you have some business credit seasoning under your belt. Although business cc don't report against your personal credit you still want to make sure your personal DTI is good, they're going to look at that too unless you're planning to do like a DSCR loan in which case they usually won't. You'll have to put down 20-25%

Getting the vehicle off your DTI will definitely help, see if your family member's credit is good enough for them to refi you off the loan.

@Jessica Carcamo I would recommend going to meetups and meeting investors and others doing what you want to do and offer to bring in some capital and find the deal and partner with a seasoned investor on your first few.  Unfortunately in SD $55K won't get you into a flip, you'll need at min 20% down for a hard money loan and then reserves as well.  

A lot of CA investors go out of state to start because it's more cost effective and lower price points, look into markets like Detroit, Kansas City, St. Louis, Cleveland where your money will go further than in SD.

If I were just starting out again I would take the money you have to buy some niche data and wholesale some deals get another $50K and then you will be in a better position to find something here to flip.

Consult with your accountant