All Forum Posts by: Carrie K.

It seems like most of the deals I read about are from direct marketing, and are purchased without an agent. I'm ready and willing to start marketing (have my letter written and everything), but how do the logistics of the sale come together? Does a title company put together that massive packet of documents? Is it the lender? How can I get more info about everything that happens after the seller and I agree upon a price (should I be so fortunate) and an inspector checks the place out for me? 

Are most of the people sharing these deal stories about buying outside of the MLS (with or without a wholesaler) also agents themselves?

Also, yesterday an agent said that he wouldn't recommend us (even me *with* an agent!) pursuing FSBOs because those aren't protected by the same disclosure requirements, so I might end up with an undisclosed problem. Does this seem like a realistic concern to heed?

Thanks!

Thanks, David! I'm zoned for up to 4 units on one property I'm evaluating, so that one is straightforward to convert to a triplex. (I don't think I have the parking space to go higher than 3. Maybe...?) The other is zoned for up to a duplex, but in January, a new city ordinance allows for auxillary units, basically giving every property a "plus one," as long as that unit is under 1200 square feet. Planning still has to approve the plans, but I don't have to request a variance or go through hearings or anything. 

Thanks for the tip! Now if you have any tips on how to deal with holding the property for 6-8 weeks while the planning and building review is underway, that's my next problem. Does anyone submit plans while the property is still in escrow or is that a terrible idea?

Well, good news -- sounds like the zoning and parking and setback requirements (everything that the Planning Counter could tell me) are all a-okay. The only question marks are the height and egress -- the Building Counter just assumes that you'll be working with someone who knows the Building Code so they weren't able to give me all the answers in the same way. Seems like my next step is to walk the properties with a design-build contractor type. Thanks again for the advice!

I'd love to hear more about what the lot-split process is looking like for you. 

I agree with Greg (run the numbers). Did you look into splitting it into, say, 4-8 lots? I've seen people take a single Oakland lot, put a driveway up the center, put in 4-8 townhomes (each generally 2 story on top of a garage) on it, and sell off each home. That might be a bit too dense for Hayward, though, I don't know.

That valuation sounds a little low to me for two homes in that location, if I'm understanding you right. A few BP podcasts talk about how to politely question an appraisal -- you might search the archives. Then again, if you're still rehabbing yours, the value might be pretty close. 

Thanks, Frank! I think I'm going to go to the planning counter next week and just discuss hypothetically what it would take to convert the basement and/or garage into an accessory unit (not mentioning that it's functioning as one currently). I'll keep you all posted!

I'm looking to move into a duplex or triplex. In my price range, I keep seeing "single-family homes" with basements or garages that just so happen to have kitchens, bathrooms, and separate entrances.

My first inclination is to see opportunity. If I could get those legalized as second units, that would add value. On the other hand, how do I get a decent level of confidence that I'll be able to legalize it? I don't yet know all the requirements (parking, ceiling height, egress...), and adding a window is one thing, but digging the floor down twelve inches is another. I wouldn't want to buy on the assumption that I could legalize the unit and then find out I couldn't.

But how do I assess this? I doubt the seller would want to give me an option while I kicked over a hornets nest up at Building & Planning. Could I ask the permit counter for general advice without getting into the property specifics? Should I address this during the inspection contingency and pull in an architect or engineer to get their opinion? Should I just assume that if the unit could be legalized, that would have already happened? (I'm not sure I think that -- having met one owner of a place like this, I can say that playing by the rules doesn't seem to be his focus, so I'm not sure he tried.)

Thanks for any advice you have!

Sounds like the house is down now. If you're only a couple hundred dollars out of the money, maybe you could close the gap. Build a large duplex with a bunch of bedrooms in there -- rent them out individually, maybe furnished (e.g., AirBnB or to traveling nurses)? Also, I don't know what your lot size is, but another option might be to split it (front facing and alley facing?) or build two condos instead of a duplex. Good luck!

In Oakland, CA, both Sincere Hardware and Granite Expo are (or at least were) cheaper than Home Depot and Ikea. 

You probably saw the whole description of this in David Greene's book, no? I thought that was helpful. Personally, I get a lot out of walking the property with someone. I also think checking references is crucial. Last, having dealt with a few less-than-ethical / -competent types, I'd say be really on guard for any hint of impropriety. You want the people who are insured, who pull permits, who have workers' comp on their staff, etc. etc. "I haven't gotten my license, but I have a lot of experience, and here's how we get around that" is a good signal to run away. Good luck!