All Forum Posts by: Sebastian Marroquin

what do you mean by cash lender deal? hard money? 

A lot of buyers want to cancel the transaction as soon as they see something wrong bc they believe there will be no room for negotiations.... and the only way to gain leverage in negotiations is by moving forward with investigations and showing the seller and seller's agent your findings and then negotiating a price reduction and or RR (request for repair). 

Buyers are often scared that they will "waste" money on inspections: $300 to $500 for a physical inspection maybe another $200 for a foundation inspection.. etc 

but that is the cost of doing business... I would suggest for you to do inspections first (see what you are working with) with an inspector or a contractor (a GC may do it for free or for $100 for 2 hours of his time...) This way, if you see heavy repairs to be made, you won't spend the money on the appraisal. 

I have gone into escrow multiple times (with an "as is" clause) and have negotiated $7, 10k and even 30k credits by negotiating afterwards. 

@Quito B. sounds good! Likewise! 

For everyone else: the meet up will be Saturday starting at 11am (be there on time as we are leaving the office and seeing some homes!) 

we will have coffee there! See you all there. 

Agree with Will on this one: Our investors have bought multiple homes with illegal structures, un-permitted additions, bathrooms, sun-rooms that were converted into a bedroom or living room... etc 

These all can be legalized (key word is "could") 

The key here is to assess the home and see if the items were done up to code? 

1. foundation 

2. framing 

3. electrical and plumbing if it applies 

4. Roof etc 

That could be done during escrow in your inspection period: number 2 - there will be a cost associated with this: you will likely need building plans for extra sq footage or any walls that were taken down or put up. Building plans costs between $3k and $10k depending on what you need and who does it. We have people for that if you need them. Then you will have to pay for the permits: the good thing is that if the items are done up to code, the timing will be a lot less! 

But depending on the city inspector: you will have to show that items mentioned above are up to code or they will make you re-do those portions (for example; they had us open up drywall to see structural beams in framing, headers for doors and windows, pluming for bathrooms etc 

The permits should not be a big deal: maybe between $2k and $5k for the home and individual permits i.e. electrical for example are fairly inexpensive ($150 ) for example + - 

For the garage: again things need to be up to code: most likely they still have a garage door which will tell you a lot: no permits is the obvious one: and that that your will need to close out that side completely, frame it, put a formal entry door, fire egress windows, insulation, structural framing, foundation in-front (where you have a garage door) and if the garage is just a slab: then all around also. You will need building plans for the garage also: which you can do together with the main home so that you only pay once for the drafting and also for building and plan check fees... 

The extra storage space has to abide by property set backs, sq footage allowances etc 

The garage may be a bit more expensive than you think... but not 70k for permits.. at all... permits for a garage are usually between $3500 to $10k depending on city (pasadena used to be about $32k with the impact fee) but fees I believe went down in 2020. 

There are a lot of moving parts and any key person can mess it up for you (key people: Realtor, Contractor, drafter/ architect) 

Let me know: I have a lot of experience with things like this and have the full team of all the key professionals to help. (I am strictly a realtor that brings the team together). Reach out if you want to have a conversation!  Good luck 

Investors are in it to make money and zillow is just a big investor. We help investors buy homes for cash all the time and the investors are always pitch that the seller will make more money with them bc there are no realtor fees, but then offer them the price minus commissions and closing costs.... :) 

home is worth 700k as is: so they offer $700k minus 6% bc there are no realtors involved... or minus $42k and each pays its own fees. 

I love working with investors because the transaction could be faster, smoother, and a business decision with out a lot of emotion, but the notion that you, as a home owner can get more money tends to be wrong... 

Zillow, FSBO, Open Door...etc will never beat great marketing, great negotiations and exposure to all the buyers and realtors in the market.

Its always tempting to see what an offer could be, or what new trends are coming in with new companies, but at the end of the day, as of right now, selling with a good realtor that is honest, ethical, and wants to build a long lasting relationship with you is the way to go. Stop wasting your time, money and effort and work with professionals in their given industries. 

Let me know if you want to sell your home in any US state. :) 

Hello Everyone: bc of parking restrictions this event will be moved down the street to a free parking location: 

70 s lake ave suite 1040, Pasadena Ca 91101 (drive in park in the structure). please put this in your notes and see you there! 

Level 10 in elevator! :) 

Hello Everyone: bc of parking restrictions this event will be moved down the street to a free parking location: 

70 s lake ave suite 1040, Pasadena Ca 91101 (drive in park in the structure). please put this in your notes and see you there! 

First HOME CRAWL event of 2020! Do you want to buy your first home, investment property, or want to buy additional rental homes!? 

Come and learn what it really takes to buy a home that cash flows in California (pasadena and surrounding cities). 

We will talk about: 

1. ADU conversions

2. Traditional tenants 

3. Air B&B strategies 

We will meet in my office and discuss the process, the market, the BRRRR method, the stacking method, and then we will go visit a couple of the properties on the market to get a hands on experience and see what you can and cannot do with actual homes on the market! Invite friends and create a financially independent future!

Saturday the 25th of January! 

talk to your agent: and be creative. 

Think about maybe doing a hard money loan: and offering "cash" at $240k (assuming that is a good deal). then refinancing into a regular loan: assuming you have loan commitment from your bank. (do your numbers before committing to this). 

Also, look at your market: it may make more sense to market for your own off market home (tell your realtor to get you a list of properties you would like to go after). 

Red flag number 1: property on the market for a year.... over priced for sure  100%  and or some major problems 

Offer $200k or 250k and take them down after inspections. 

Don't be afraid to insult people... or negotiate etc 

OMG sorry everyone: the Event is on Saturday the 22nd coming up: 11am in Pasadena (check details above)