All Forum Posts by: Alice K.

Hello there,

Fellow investor living in the Bay Area and looking for a brokerage to hang my license on.
Was hoping to get some thoughts from other experienced agents / brokers out there in the trenches.
I'm trying to decide if I want to be in San Francisco (working) or down in the Peninsula (living around the Daly City / Burlingame / San Mateo area).

Ideally:

• Some level of support 
• No need for desk space
• Team / Ability to shadow
• Ability to work part time (some have been very against it but based on my own experience as a client, I've seen it's more about the competency of the agent and less about their hours!) 
• Non-outrageous fees

Many thanks in advance for any advice / referrals.

Cheers,

Alice

Hello there!

So, this is my dilemna: I, like you, am very very into real estate. Perhaps, to a fault. 
Here is what has been on my mind at 2AM:

• You just submitted an offer. Upon reviewing your bank account, you would have very limited liquidity left post-purchase.
• You have another multi as well. 
• You want to be conservative after hearing '08 horror stories, but you also want to buy because this is one of the few that looks decent in your area.

You have some friends who might be able to come in and partner, but you also tend to be a lone wolf.

Would you do this? (Or, how much do you like to have in your reserves?)

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Facts (this question is more about your mentality, but in case you're curious)

• Triplex. 70's. Appears well-kept. Class B-/C+ 
• 190k -->~35k down  (includes closing cost)
• Tenants are there, 625 each unit (allegedly, still need to see leases and payments)... 
• $300 cash flow post 5% vacancy, 10% capex included, PMI deduction, water, tax, and insurance.
• Rehab: ??? (Still needs an inspection, so that could throw numbers, but let's pretend it is ok for now)
• Work / time: ??? (I try to remind myself "Is it worth the time/energy?") 

************

Thank you in advance for your thoughts! 

Best,

~Alice

@Amy E. & @Mike Evans This is very similar to my own question! 

I have a few doors already and I just submitted an offer for another multi (late 1970's)... Cash flow is looking like $300 max due to financing arrangements. And, it will completely tap my reserves... Still pondering if it makes sense.

If I had to rehab the sucker too, I just wouldn't do it for $300 cash flow/mo. 

I would definitely bump up capex to at least 7% assuming when you're done rehabing it will be SUPER solid. Usually I use 10%. Especially since it's from the 1960s.

What are other properties in that area like as far as returns??

Hey there!! I grew up around campgrounds my parents ran for 15+ years. Here are my thoughts when I go campground shopping, apologies if you know any of this already, but thought it could be handy for you (or anyone investigating RV parks, resort places, etc.). 

It's less about money and more about the business in general. :)

1. Will you be there ALWAYS?? This is a cash business. You have to walk around 2x each day or have a very trusted property manager. 
2. Do you enjoy yelling at people? Campers are crazy. Most of the time, my family just runs around telling people NO NO NO. Now there are plenty of happy, wonderful times, but sometimes you'll feel like a cop. If you don't do this, things could get a bit crazy.
3. Seasons & tourism trends: @George C. nailed it. Just make sure you can actually get people going there. You'll want to have a good marketing budget. And, be sure that when Good Sam, etc hit you up, the place is in good condition. 
4. Have you calculated maintenance needs and staff? You'll want to factor that in when pipes break / etc. It can happen at any time (literally, we've been waken up at 1AM due to frozen /  pipes that have burst)

I only mention that so you know, which you probably do-- overall, if you love the outdoors and people, and don't mind regulating and being there all the time, you should really enjoy it (assuming it makes you enough money to live) and meet some great characters! Never a dull moment. Haha

Cheers!

~Alice

@Kathleen R. mentioned.)

Next steps: REVIEW those leases! I hope they are ironclad & tenants are good! NOW, review all the laws of Florida. :))

As some mentioned, I would also greet all tenants and hand them a print out with info for payments and contact in case of emergency. I would also be super friendly, as these are your new clients :)

Good luck!! 

Maybe I'm a sucker, but forget that property. Who wants to wear a mold suit?! 
You deserve all the money you get if you get that one under contract, rehabbed, and flipped. haha

If it were my first flip, I might try something a little easier. But, maybe that's because I can't even pick up a hammer. 

Greetings!

As one of the cheapest, most depressing career people I know, here are a few things I do.

1) Live in a cheap place -- all your friends will mock you. Ignore them. @Elizabeth Colegrove, one of my RE blog heros lives on a boat atm to save money. As a past boat-dweller, kudos to her.
2) Eat cheap food (as you mentioned) I don't follow this because I'm 50% yuppy, but I have in the past. You don't even need to cook. There are a good amount of affordable pre-made options.
3) Value your time -- uber / lyft could be a time sink. What other things could make you more money in the long run? Educating yourself more? 

4) Never feel limited, always think of the alternatives. I sometimes fall into the trap of thinking there is only one way to solve a problem, but money is not always the answer. Think of bartering via talking to everyone you know. Maybe you can trade your services for someone else's.
5) Instead of simply a mindset of saving, consider a mindset of making more money (as some above mentioned). 

If it wasn't almost 3AM, I'd post more, but hopefully something up there resonates. 

Best,

~Alice

@Ben Phillips I knew I should have driven back asap. I was 70 miles away at a friend's place checking out his latest flip project and in awe at his awesome shower feature. Haha

Hello CW!

How is the development process going?
I'm from those parts and would love to connect with you and @Scott Ellis when I'm back in Eastern Washington visiting the family.
Have either of you happened to find good local commercial lenders?

Cheers!

--Alice

@J. Martin: Thanks for the sleepless nights and gathering the best and brightest to the event! Your high energy brings out the best. 

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@All: Was a real treat to meet many of you / listen to your talks. So many characters. Still laughing about some. Ah, good times.

Here are a handful of (low-res) photos from the summit.