All Forum Posts by: Adam King

Hi @Daniel Zisko.

It is great to meet you! I am a Lifelong San Diegan, and real estate investor here in San Diego. I would love to connect to talk strategy for real estate investing!

Hi @Breanna Green!

My name is Adam King. I am a lifelong San Diegan, and I have taken a methodical approach to my local investing strategy, accumulating condo's, townhomes, and SFR along the way. I have used a mix of creative financing, house hacking, and value add to make my personal portfolio work here.

I will do my best to answer your questions and concerns in order.

I am sorry that your beach property is having the HOA problem, typical HOA's will require all members to view financials: intake, distributions, reserves. This setup seems more like a vague agreement, and the person holding the money is taking advantage of the situation.

- For the 1031, you won't necessarily be able to step all the way down in the form of cash unless you can make up the difference in the form of cash. If your relinquished property had debt, your replacement property must have equal or greater debt, or you must reinvest an equivalent amount of equity from the sale.

- I am personally a huge fan of leverage, and acquiring as many doors as possible. It may be best to get a 4  plex or larger as long as the numbers make sense, and this will help you fulfill that 1031 exchange without the risk of paying any taxes.

- The heloc would depend on whether or not the debt is tied to you, or the property. The heloc being tied to you, may limit your personal buying power in the future, and since most heloc's are "callable" if there is a economic down turn, the lender could force you to pay that money back or refinance to pay them out. If the heloc is tied to the property, same problems, and usually there is less loan capabilities (max 70-75% LTV)

- Me personally, I would sell the property, and go for something around 40% down payment into a awesome 4plex, or commercial building in a ~B neighborhood. This allows me to take advantage of some leverage, without being to risk on. Also this allows for an easier exit in the future.

I will do my best to answer the more detailed questions as well.

- I am a realtor with multifamily experience, and I work closely with a commercial realtor with decades of experience as well. I have mentored multiple people this year, mostly in the multifamily, and fix and flip space.

- I work closely with a very experienced Loan officer, who has funded the majority of my loans, and loans for clients/mentees. 

- As a realtor, i have represented myself on the majority of my deals, and when I don't (for various reasons) I have a colleague act as my representation, usually for free. For clients I like to work with them based on volume, i typically do not give up part or any of my income, but I work diligently to make sure they get the best deal to more than make up for what I am earning.

- You always have the option to sell your home without a license it would be considered For Sale By Owner, FSBO. Getting your license for the sake of completing 1 transaction is not ideal. It is not free, and depending on state regulations, can be very time consuming. The difference between a discount agent (1-2%), and using a very qualified agent(2.5-3.5%), can be the difference of $20,000 in commission, but you are risking a lot more by going with the discount agent. Top producing agents can typically get 6% more than novice/budget agents, and 16% more than FSBO.

- The easiest way that I have found is to vet multiple contractors, compare quotes, and check reviews. When dealing with contractors there are 3 things to look for, and you will likely have to choose 2. Speed, Quality, and Price. I am always a fan of speed and quality, I will happily pay more to have the job done quickly and correctly.

- I use a general home inspector, and use that and my personal expertise, to figure out what other inspections I need: foundation, roof, plumbing, sewer, hvac, etc)

- Pitfalls I would avoid: Don't get attached to any properties, they are an asset to be bought, held and sold. Avoid assigning personal beliefs to the properties, the market dictates rental prices and value, not feelings.

- Success's I have helped multiple people in the past year buy a cash flowing multifamily, that also had the ability to value add. One client is about to break ground on 9 units at the back part of his triplex lot. Once finished, the gross revenue will be ~33,000, and his monthly payment will be $17,000

I hope this all made sense, and wasn't to lengthy. I would love to connect if you have any questions. Otherwise Good Luck!!!

Hi @Allen Ramirez,

My name is Adam King, I have a decent amount of experience with out of state BRRR, and have also had a lot of success with my investments here in San Diego as well.

You may want to consider a mixed approach when it comes to investing here. 

A good example of this would be using an FHA 203k loan to buy a rehab needed home. This will usually be a home that needs more work than many homeowners are comfortable with, but not enough spread for a traditional flipper. I am not a mortgage professional, but the FHA 203k loan has options to let you continue to rent while the work is being done to the new home, and even the possibility of deferring the mortgage for up to 1 year.

The best plan would be to find a property that qualifies, and then do a serious value add in the form of ADU, JADU, and garage conversion.

There are some costs/considerations involved there, but long term that is likely going to be the best path if you wanted to invest in San Diego.

I have done something similar in multiple homes that I have lived in. If you have any questions, lets connect and talk through some options!

 I will send you a connection request and we can chat there!

Hi @Seth Masters.

Welcome to the BP community. I am a San Diego native, realtor, and investor. I primarily invest in town, but do have several out of state properties.

I would love to connect and discuss strategy when it comes to investing out of state!

Hi @Andres F. 

My name is Adam King, and I am local realtor and investor. I specialize in helping newer buyers to get great deals while explaining and walking them through the process. 

I am a lifelong San Diegan, and have been investing here since 2006. From professional experience, the best deals are going to be made, not found.

When using traditional mortgage products it can be nearly impossible to win a pre-foreclosure, distressed, or similar properties in this current market. 

I would love to connect and figure out some options and help you make the best deal possible for yourself

Hi @Marquis Soto.

My name is Adam King. I am a lifelong San Diego resident, and I have been a real estate investor here since 2006. 

I help people find multifamily, fix-n-flips, and primary residence. My focus is on long term goals and growth. 

I would love to connect and talk through your goals, and see where I can help!

Hi @Alexa Jurak, What is the intended use for the property?

GC and similarly zoned properties aren't too uncommon, depending on your needs.

I would love to connect so I can help you out. 

Hi @Keith Mintz.

My name is Adam King, I am also a realtor here in San Diego. Congrats on submitting that offer and perusing Senior living, either for you or your client.

I have been involved in the purchasing process for several senior living facilities, and work closely with a few people who operate RCFE, sober living, and similar types of properties.

From what I have learned, the most important thing to keep in mind when purchasing RCFE properties, is that you are also purchasing a business. The new owners will have need to start the process of becoming administrators as fast as possible.

There are requirements set forth by the state dictated by the amount of beds, 6 beds and under is fairly simple and straightforward. Once you go to 7 beds or more there are much stricter facility requirements, including but not limited to, fire suppression systems, added points of egress, Individual Response System, and much stricter staffing ratios. 

Reach out if you have any other questions, and good luck!

Hello @Michael Ndjondo makadi. 

Congratulations on braking ground. Interviewing multiple GC's is the best way to operate, but make sure you are communicating to them that you may want to limit their scope of work as you may intend to SUB out some of the work ourself. 

If you are a person who has a full time job, or runs other companies, it is my professional opinion that you will be better served having the GC handle everything and report to you on your schedule.

Once you decided to run the operation yourself, you are now employed by the development. This means taking days off of work to handle business, dealing with the subs and any deficiencies they may have, spending time dealing with the city, for both permits and inspections.

Having GC doing everything won't entirely eliminate your time cost, but it can mitigate it to an extreme degree.

My take is that if you are confident that you can be as fast as the GC in handling everything and there is no negative impact to your other business then by all means do it. If that is not the case and you will have to take time away from your other business, and potentially delay project completion, it seems best to use the GC for everything.