All Forum Posts by: Walter Roby jr

Have you contacted the seller and started the actual due diligence process? If not send them an offer contingent on inspection and start verifying the expenses once accepted. (maintenance, inspections, termites, taxes, utilities, etc) If anything comes up that you aren't comfortable with then rescind your offer.

@Matt R.  @Jay Hinrichs Lyft/Uber tip: Best time to drive in an MSA (atleast in LA) are Sunday mornings to afternoon. I pick locations between nightlife and upscale neighborhoods (Belair, West Hollywood). You catch a lot of traffic from people who went out the night before and are trying to make it to brunch or left the car somewhere. You skip the drunkness and benefit from light traffic so you are able to complete a lot of trips in a very short amount of time.

@Bart H. I was purely speculating empty land. Do you have experience with solar farms?

wholesale take 70% of ARV less repairs less wholesale fee. I would get an engineer to confirm the extent of the damage and get several contractor estimates. This could be a small amount of repair or it could be very BIG.

Use the same formula to flip and you will pat yourself on the back.

@Sean Carroll

I just thought of it but I am sure it has been discussed before

check this out

http://www.sbcounty.gov/uploads/lus/renewable/Sola...

http://cms.sbcounty.gov/lus/Planning/RenewableEnergy.aspx

Just read some actual real life publications of this happening in the San Bernadino County California so this type of project is definitely possible. One thing to consider would be the president's repeal of Obama's environmental efforts.

Also, if a steady cash flow yielded similar to the above $3,001, could that be a $450,000 valuation at an 8 Cap?

I've been reading about land and its use for solar farms. The main drivers are proximity to substation (power grid), flatness, and exposure to the sun. So I started looking at some land and solar websites and came up with a very basic analysis and am curious to see some thoughts. This criteria would imply that this land is near the grid, flat, and underneath the sun.

LandWatch

San Bernandino Desert Land 80 acres

Price: $58.8k seller finance at 320/month

Taxes $120/year = 12/month

Total Monthly Payments 332/month

Web Browsing

Rental income from Renewable sites roughly $750-500/acre annual (62-42 monthly)

80 acres at $500 annual = 40,000 annual 3,333 monthly

Total Monthly Income 3,333/month

Total Monthly Payments 332/month

Total Preliminary CashFlow 3,001/month

Annualized ROI 63%

The land posting does not mention a down payment so I assumed 30yr financing at 5.25% to get roughly $320. Also does not take into consideration setups costs if not paid by the solar company.

What is the extent of the fire damage? Any pics?

It all depends on what your budget is. Find some Real Estate professionals familiar with your neighborhood and pick their brain. Go to open houses around there to get a feel for what finishes/layouts are yielding top dollar. Get some contractors to give you estimates on how to get from point A to point B etc. I would try working in tandem with an RE expert and contractor and have them connect at benchmarks of the process to make sure the additions are on track to yield your top dollar.

@David Faulkner What has your experience been with the rentals in those areas?