All Forum Posts by: Alan Grobmeier

The 'Socialist Republic of California' is a very difficult place to do business.  The fact it is tenant friendly makes it almost a nogo for smaller and inexperienced noobies.  :-(

As a 'refugee' from Cali, I have found AZ to be much kinder. Plus the buy in costs are less, LLC rules are much different.

AG

I not only say no, but hell no!  Lol.  They rented the property as it sits.  If things have not significantly changed, then tell them to do it themselves and save.  My tenants are responsible for the upkeep of the grounds.  ;-). AG

Bonnie Lloyd, you are welcome.  Owner finance or owner carry is almost a 'subset' of real estate with its own rules.  The prices are usually 0-10% higher than cash/financed offers.  They are also 1-2% higher mortgage rate than a 'regular' mortgage.  If they are coming in with 20% cash down or more, where is the risk?  I'd probably do it.  I'd give a hard look at the buyers credit history and past.  At 300k down its a no brainier.  I'd do it.  ;-)

AG

I would not do it if I had newer carpet.  All my properties are 100% ceramic tile.  I take pets.  $250 non-refundable pet deposit and a fee per month per dog.

As far as the 2 month fee:  that's outrageous.  Try craigslist and a sign in the yard.  If it doesn't rent, drop the price.  But I am anti property management.  No one will manage it like I do.  :-(

AG

I live in Arizona. All my properties are 'desertscape'.  Although you are in NorCal, you could probably get away with it.

I have owned nicer SFRs and a fourplex in a not so nice neighborhood with a partner.  I still buy SFRs, but I don't buy fourplexes AND sold the one we did have at a slight profit.  My take:  if it doesn't fit you successful business model, RUN.  ;-)

Now you will hear from the 'shiny object type' that will tell you to buy it for less.   Lol

AG

Hi Krista:

I could probably write a small book on the different meet ups I have attended.  Some were really worthwhile.  Others were worth what I paid ($0).  It really depends on your focus and the focus of the presenters. 

IMHO, buying with leverage is not a good idea at this point in time.  I have a unique and successful business model with a positive (but not 'sexy' like flippers) track record.  My entry point is usually a 5-6% cap rate, but will rise significantly over time.  I am patient, but I am a buy and hold type.

I was a member of AZREIA for a year, but found more 'pretenders' than 'doers'. It's also hard to weed thru a couple of thousand ppl to figure out which is which. As a result, I dropped my membership. I did attend a number of AZREIA buy and hold meetings, which were good. But a number of them felt my business model was 'unprofitable' in their eyes. A big focus in the group is mobile homes, which I feel are loaded with a lot of involvement, hassles and risk. I am a SFR only type of person. And I don't chase 'shiny' objects. Lol.

A recently started looking at alternative investments and have started to research tax liens and deeds.  I'm not doing it, but more in an information gathering mode.  Same thing with notes.  

Part of the problem is who do you trust.  There is a person that is offering good interest rates on deeds of trust.  But a little research has shown that the person was part of a fraud investigation where they were forced to relinquish their real estate license.  Not exactly the type that would make feel safe.

Although I do believe prices are high, I am writing a business plan to raise funds for a SFR that meets my successful business model. The property will be paid 100% cash, no leverage. I have had preliminary discussions with former co-workers and supervisors that were positive, so I am going to move forward on my plan.

But I have also purchased owc (owner will carry) and self directed Ira properties in addition to properties my wife and I own.

I know this was really LONG.  And I apologize.  Just go to meetup.com and search real estate and see what interests you.  Different strokes for different folks.

AG

I am in Phoenix, ground zero of the 2008 meltdown.  I can honestly say I am not concerned.  I fully anticipate home values to drop, but rents will probably not drop.  And chances are they will probably rise.  My DTIs are low, I have cash to weather the storm. It is really hard for me to buy what I want to expand as I go for A and A- minus properties.  I won't settle.  

Do it on a wrap and make some money. It will tie up your credit, but you should net enuf per month to get a brand new car.  I'd also raise the price to cover my risks. ;-)

Ouch.  I have NEVER had anyone pay after the 10th unless it was agreed upon PRIOR to the 1st of the month.  Even then, I have ALWAYS received around 50% prior to that date.  But that is me and I do business different than most landlords.  :-)  Your property manager appears to be worthless and not worth the money you are paying them.  Harsh reality, but true.  THIS is the basic reason I manage all my places myself AND buy most of my properties local.  If you wanna sell, let me know.  LOL.  ;-)  AG