All Forum Posts by: Anthony Dray

Interesting that it's 7 days because I've seen quite a few bookings that were in the 7-10 day range, especially around the holidays. 

@Michael Plaks Your assumptions are correct. 

Is the threshold for "annual average stay" across the year 14 days in order to maintain STR classification? I believe I read that on the IRS site but may be wrong on that.

Thank you for your response. It was helpful in clearing up my understanding of how that particular situation is viewed from a tax perspective. 

I've owned a vacation rental for about a year and a half now and it has been operating full time as a vacation rental but I want to maintain a steady income stream by renting it out for medium terms stays (3-4 months out of the year) in order to compensate for seasonality. Does anyone know if your home's tax classification would change or if any of the tax benefits that STR's receive would be diminished or negated if the home did earn another type of rental income throughout the year in addition to income as a STR?

@Justin R. thanks for your reply! This information is extremely insightful and helpful. I really like your point #2 regarding the purchase option. That's likely the route I'm going to take especially given the fact that I don't really know any developers I trust in addition to the fact that I don't have any experience in development projects. I'm going to chew on this information for a while but I'll be sure to reach out to you if I do have any other questions. Thanks! 

Hi @Dave Foster, thanks for the reply. 

If I did decide to hold on to the property and partner with the developer who has also made a bid on the property, I would not be supporting the funding of the development via 1031.

I am, although, considering selling the raw land to the developer with the strategy of maintaining a minority stake in the development after it's sold and then purchasing another value-add or semi-stabilized multifamily property out of state via 1031. 

Right now I'm mainly evaluating the risk associated with partnering with a developer in this area of San Diego and risk is obviously a function of control, especially given where we're at in the market. I'll be evaluating profit/risk projections alongside my other options out of state. 

Thanks again for your input! 

Hey Everyone,

I'm an investor out of San Diego, CA and I own a few small commercial properties (rental offices) and a couple of single family homes here. I also have one piece of raw land (there used to a residential home on the property decades ago so there is at least water on the property) in the south bay in a low socio-economic area that is drawing a lot of interest from developers.

I own the land free and clear through my LLC and I realize this is a vacant lot but development sites near public transit are hard to come by these days and properties in the area are selling for around $40/SF. The lot has been appraised at around $850K. The property is about 21,380 SF and the zoning designation allows one dwelling unit per 1,500 SF which means this site could hold up to 14 apartment units as well as additional affordable housing units.

My plan all along has been to sell this property and invest in a 10-20 unit or multiple 10-20 units via 1031 exchange in Texas or Nevada and I've already identified several candidate properties in those areas and have started the team building process but I'm starting to think I may want to take the leap and partner with a developer here in San Diego to leverage that property.

Development is expensive in San Diego but I could make it work if I really wanted to. I just don't want to overpay for developing something at a high-leg in the market with an election coming up and worrying about other outside factors that could derail the project thereby having me take on more and/or unnecessary risk.

My appetite for risk isn't low but I do not want to be overly aggressive given where we are in the market cycle and given the fact that this is California. I plan to be in multifamily very soon it's just a matter of whether or not it's in San Diego or elsewhere.

Input/observations from anyone who has had experience developing multifamily in terms of the challenges and upsides they may see in this situation would be most appreciated.

Thanks In Advance!

Tony

Hey Everyone,

I'm an investor out of San Diego, CA and I own a few small commercial properties (rental offices) and a couple of single family homes here. I also have one piece of raw land (there used to a residential home on the property decades ago so there is at least water on the property) in the south bay in a low socio-economic area that is drawing a lot of interest from developers.

I own the land free and clear through my LLC and I realize this is a vacant lot but development sites near public transit are hard to come by these days and properties in the area are selling for around $40/SF. The lot has been appraised at around $850K. The property is about 21,380 SF and the zoning designation allows one dwelling unit per 1,500 SF which means this site could hold up to 14 apartment units as well as additional affordable housing units.

My plan all along has been to sell this property and invest in a 10-20 unit or multiple 10-20 units via 1031 exchange in Texas or Nevada and I've already identified several candidate properties in those areas and have started the team building process but I'm starting to think I may want to take the leap and partner with a developer here in San Diego to leverage that property. 

Development is expensive in San Diego but I could make it work if I really wanted to. I just don't want to overpay for developing something at a high-leg in the market with an election coming up and worrying about other outside factors that could derail the project thereby having me take on more and/or unnecessary risk. 

My appetite for risk isn't low but I do not want to be overly aggressive given where we are in the market cycle and given the fact that this is California. I plan to be in multifamily very soon it's just a matter of whether or not it's in San Diego or elsewhere. 

Input/observations from anyone who has had experience developing multifamily in San Diego in terms of the challenges and upsides they may see in this situation would be most appreciated. 

Thanks In Advance!

Tony

Hi everyone. I am new to the wholesaling side of the real estate industry but have some basic knowledge of commercial real estate as my family owns several commercial properties in the San Diego area and does pretty well. However, I am looking to augment my current income as a software sales rep (S.A.A.S). I make decent money but am interested in Real Estate and want to gradually make it my full time occupation (not sure if this will be in wholesaling on residential side or commercial but feel as though wholesaling would be a good way to get my first taste of the real estate industry). 

That being said, I am trying to get straightforward, reputable & honest information when it comes to the facts about getting started in wholesaling and what it takes to be successful and am finding so much contradictory information that I don't know what to make of it. 

I have put in a lot of time and effort into learning what it takes to accurately and ethically quote buyers and sellers on properties for assignments of contracts from seller to buyer (I know a lot of real estate agents feel that this walking a very thin line & many believe it's even illegal-also not sure what to make of that). This includes putting in the time to learn how to run accurate comps for ARV, MAO, rehab costs, closing costs, flipper's profit, wholesaler's profit etc. but time and again I find that a lot of the information I am getting from various "gurus" isn't as helpful or clear as I would like it to be or their pie in the sky promises are just so ridiculous that I can't take them seriously.

I'm well educated, professional and know I can be successful in real estate but it just seems that there's so much misinformation out there that makes it an absolute headache to weed out the fakes from the pros. 

Any kind of guidance or information would be most appreciated. 

Best, 

Tony 

@Corey Vines  Thank you for the feedback. I'll be sure not to misconstrue your comments as legal advice but it really does help to have professionals in the industry give some reassurance to what I'm trying to accomplish. I'll certainly have a few more hurdles to overcome not being licensed but I want to be sure that I'm going about things the right way. 

Hey everyone. I'm fairly new to real estate, especially Wholesaling and I'm looking for any tips/advice you'd be willing to share. I'm from San Diego, CA and live in San Diego County and want to explore the option of Wholesaling in the area. I have a full time job at a tech company that offers SaaS but am looking to augment my income by becoming involved in Real Estate, in particular wholesaling. 

I am doing my research and am ensuring that I have all of the proper reports/forms/legal literature, valuation tools, etc and have several friends who are RE Agents & Loan officers whom I ask questions, BUT I am still lacking information in certain areas. My goal is to be as professional, efficient, helpful and reputable as possible when it comes to wholesaling. I don't want to be unprepared when it comes to responsibly/ethically connecting sellers and cash buyers on an all around "win-win" investment. 

Dilemma: I don't have a broker's license or Real Estate License. How much can/will this hurt me even if my processes are sound and I operate honestly with my sellers/buyers? Are there state/local legal factors in place that could preclude me from successfully practicing wholesaling in the area? 

Does anyone have any guidance for a first time wholesaler getting their feet wet in the industry in general? 

I have a decent grasp on the process of completing a wholesale deal from start to finish but need to start changing my theoretical knowledge into real world experience. 

Thank you in advance for any feedback/advice that you provide. 

-Tony