All Forum Posts by: Toby Auer

@Joe S. Revere Pewter. I’ve used it on 3 properties. That one the walls and ceilings with white baseboard 👌🏻

@Philip Beckwith

Revere pewter. I’ve used it on all 3 of my properties because I love it and will continue to use it. It’s awesome because you can paint both walls and ceiling the same but yet the wall will look slightly different due to the lights or sunlight.

I currently have 3 properties. I am using a family members line of credit on their house to build an ADU in the back of my 2nd property and I will be in debt to them approx. 100k plus about 8-10% interest. They aren't in a hurry to get paid back as long as I am making their line of credit payment which is 5%.

Since they aren't in a hurry to get paid back, I would rather not refi after my ADU build because the cash flow is too good and should allow me to pay them back within 2 years and quit my W2.

My properties as of January (all are two units):

#1 Income  $2,250 +$1,550 - $2,400 (mortgage) = $1,400
#2 Income  $2,100 + $1,700 - $1,350 (mortgage) = $2,450
#3 Income $2,000 + $1,800 - $1,800 (mortgage) = $2,000
Total cash flow = $5,850 (I know this isn't figuring in cap. ex., vacancy and maintenance/repairs) 

I should be able to pay back the line of credit within two years between the cash flow and my W2. I know I could refi out of property #2 to repay the line of credit off right away but I love having my mortgage of only $1,350. I know some would say refi since I owe 208k and the ARV will be about 475k but my goal is to quit my W2 and go into real estate full time so I want to keep that cash flow up.

Since I am out of capital to buy, I want to start wholesaling. I have a construction background and have the drive to make calls, write letters, meet with sellers, etc. I just want to know how you are getting your wholesale deals closed. How do you find your end buyers? Where do you get most of your leads and what would be the best use of my time, (letters, calling, trying to find people that are behind on taxes?) Should I make a website and hope to get contacted through that? I just feel like since I have never wholesaled a deal I don't have the reputation to be making a website. I basically just don't know where to get started. I know once I find out what works I will get the hang of it but on my days off I am so lost on what my ONE thing should be and at the end of the day I normally feel unproductive as far as wholesaling goes. My goal is to wholesale my first deal by Jan. 13th and hopefully make 5k from the deal. 

Thank you in advance!

@Dylan Vargas thank you so much!

@Dylan Vargas Hey Dylan, are you still having the meetups in Chico?

@Michelle Tucker

I am in the same situation. I took the total average of the prior year, which was 1200 then divided it by the 5 people (2 on one side and 3 on the other). So that 20 per person per month or 40 and 60 for each side. Then I added 5 each person. Its nice for them to know they are paying the same price for water and that 5 each cover you if they go over. I mostly did it that way because I have a nice back lawn and didn’t want them to stop watering the lawn to save money.

At 39:53 on episode 197, Chris said his mailers are short and simple, saying “we are interested in buying your house, please call us at this number.”

I haven’t closed on anything off market deals yet and really like this short and sweet strategy.

My questions are do I just send this letter to the house I want to buy or do I look to make sure that the owner lives there? I don’t want to send it to one of his/her renters (if it happens to be a rental) if that renter is just going to toss my letter. If I make sure I’m sending it to the owners primary residence, then won’t I have to write down the address of the rental I’m talking about on the yellow letter? I have a few hundred addresses in a spreadsheet, I just want to make sure I’m as efficient as possible since I’ll be working 50+ hours at my job.

Thanks in advance!!

@Dan Heuschele

Yeah I need to do more research on the next one. I was going to have this guy be the GC for me and he was going to manage the whole build. He has done quite a few of these but apparently he wasn’t aware of the 750’ because he didn’t say anything when I asked him to make it bigger. At least I sure hope he wasn’t aware of it. Those impact fees were $9,100 for it being over 750’. Tough lesson to learn so early on but I’ll do my best to keep those to a minimum from now on.

@Matthew Crivelli

Okay, ya it’s only my second property but I thought I found a niche that was hard to beat. It will still be very profitable, just expected a lot less fees.

I bought a property in January and have been going through the process of getting an ADU built in the back. I have paid about 7k in fees already and just got my last bill for fees for 21k, for a grand total of over 28k. I was told some of these fees were unavoidable because my ADU is 796 sq ft which is above 750. Also because the existing house is only 1,000 sq ft.

I thought Newsom’s new law was making these ADUs more affordable to build but that’s not the case for me. Is there any way to fight these and get the fees lowered?