All Forum Posts by: Anthony Katsonis

@Account Closed

Yeah it is, and we invest mostly for cashflow. If we can sell and roll equity into something else that cash flows more, then we would sell.

Mostly MLS to be honest. I'm a realtor so we watch it like a hawk. Deals are very few and far between. At some point, I plan on doing some direct mail to a selected farm, but I've been so busy with my real estate sales side of things that I haven't gotten to it.

@Jake Roland

That is awesome. Great work! Tired landlords are a great source for deals. Were your clients able to get funding for the rehab as well, or are they coming out of pocket?

@Jake Roland

Thank you sir! Very much appreciated. What are the rents like on that 41 unit for 450K??? Blows me away how cheap properties are in other states.

@Account Closed

Thank you sir! We are thinking about it for sure... But it's finally stabilized and we haven't found anything that we like better at this point... 

@Michael Ealy

Thank you sir! 

Yeah it was definitely a learning experience, our first creative financing deal. 

Investment Info:

Large multi-family (5+ units) commercial investment investment in Pacific House.

Purchase price: $500,000
Cash invested: $112,000

Mixed use commercial property with 3 offices and 4 residential units.

What made you interested in investing in this type of deal?

Definitely the 4 residential units... Not the Office units, as that was a bit out of our comfort zone at the time, as we see a lot of vacant office/retail space around town. This property happens to be one of the only office space properties on this side of town though and has good frontage on a main road in town, so it has always had a good track record of staying rented. One of the offices has also been a real estate office for 40 yrs, and I plan on moving my real estate office there some day.

How did you find this deal and how did you negotiate it?

We had known the seller and had been bugging him for years, that if he ever decided to sell to give us first right of refusal. As he got older he eventually decided he was sick of being a landlord and gave us a call. We asked him if he was willing to do some creative financing, and we decided on an AITD.

How did you finance this deal?

AITD or All Inclusive Trust Deed (Wraparound Mortgage).

How did you add value to the deal?

Remodeled one out of four of the residential units so far, and we are raising rents as we go along.

What was the outcome?

So far so good, though it's only been a few months. Our plan is to roll all of the cash flow toward the principal and pay it off in ~4-5 years.

Lessons learned? Challenges?

It pays to develop relationships with invetors in your area, and to let them know that if they ever get tired of being a landlord, that you'll be happy to take the property off their hands :)

Snow removal costs and headaches can really add up in a bad winter. Make sure there are reliable snow plow companies in the area that you are planning on investing if you are buying in a snow prone area and are providing snow removal for the tenants. I am now the not-so-proud owner of a snowblower :|

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Thank you BiggerPockets for the education and motivation necessary to inspire me to invest!

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Pollock Pines.

Purchase price: $266,500
Cash invested: $90,000

Triplex that we bought on the MLS and house hacked. One 3/2 house that we gutted and remodeled, and a 1/1 duplex. We have since remodeled one of the duplex units as well and have raised the rent to just a smidge under market rent (to minimize vacancies). The property is doing pretty well.

What made you interested in investing in this type of deal?

The smaller entry price of small multi family vs. large multi family.

How did you find this deal and how did you negotiate it?

MLS

How did you finance this deal?

Conventional 20% down

How did you add value to the deal?

Remodeled two of the three units and raised the rent across the board.

What was the outcome?

A nice cashflowing property that we could sell for ~100k more than we paid for it.

Lessons learned? Challenges?

Always plan on your budget and timeline doubling :)

Hey @Bonifacio Capuyan,

It's a great area IMHO. But of course I'm a bit biased because I was born and raised here, and I sell real estate and invest here. Besides that though, I have watched the area grow and grow since I was a kid. A bit like everywhere else in California I suppose. A lot of people from the Bay area and LA move up this direction to capitalize on the lower prices, which has built up a pretty nice little real estate market. 

I don't have any specific strategies to sell, my wife and I invest in small multi family properties mostly. It has been good to us, but with prices and rates the way they are nowadays, it generally requires a decent amount of money down to make any given deal cash flow.

As far as buying vacant land, I'm not exactly sure... It depends on what you are trying to do. I would not suggest building a spec home, as prices of permits, labor, and materials are such that you can hardly build a new house for much less than you can just buy one for.... As crazy as that sounds... You would be better off buying a distressed property and doing a heavy remodel and BRRR strategy IMHO.

Anyways, I hope this helps. I'm happy to answer any more questions if you'd like to reach out, and if you're ever in the area, I'd be happy to meet up and we could trade thoughts and strategys. 

• Do you live in California? Yes, my entire life, besides my time in the Army.
• Have you lived in California in the past 5 years? Yes.
• If so, where? El Dorado County.
• Will you be staying or leaving? Staying, though if I didn't have family roots here.... I would possibly move.
• Why? Weather, RE Market appreciation, family roots
• What is your full time income producing job? RE Agent, RE Investor

California is a pretty awesome place, which is why the population has steadily grown despite people leaving in droves. 

All that being said, there is a few drawbacks to calling Dumbf*ckistan home:

• Gas prices
• Taxes
• Gun laws
• Taxes
• And taxes
• And more taxes

Essentially if it wasn't for the government, California would be absolutely heaven on earth. But that's just like... My opinion maaannnn...

Thank you. That makes sense.