All Forum Posts by: Nathan Diones

Rafael - Congrats on your deal!  I know that area very well as I have owned a couple buildings a couple blocks east of you (Post & Lombard St's) in the past and I have brokered many more.   

I like that fact that your building is brand new and you can have your own selection of tenants.  I would try to achieve $1,350 min - $1,495 max per unit.  Rentometer . com is pretty cool if you want additional rent comps. 

If I recall correctly your building has two water meters?  With that being the case you can truly past that bill onto to each tenant.  Redlands unlike Yucaipa and other surrounding cities, bills for water, sewer and trash together.  So you could pass on the water bill to each tenant and only responsible for taxes, insurance, mortgage (if any) and repairs.    

I would suggest using one for a year or two if you are unfamiliar with up to date landlord & tenant laws.   If you need a referral for a property management company, please send me a PM, I live in Redlands and have a couple great management companies that I have used in the past when I was to busy to properly handle my units. 

Hi Lisa, 

You are seeking someone to fund the purchase or the rehab?  Can you explain a bit more?  Or can you PM me the details about property? 

Hi Pauline - PM me and I can send you a title company I use in the area.

Mike,

Can you provide more details on the deal? LTV? Terms? Length, Etc?

I may have someone for you. PM me if it's easier.  

@Mark Whittlesey - I am seeing caps within certain areas within San Bernardino and Riverside Counties 6%-7%, with good upside on the right deals.  San Bernardino City, cap rates are about the same, population is high but majority of the tenant demographic is low income with housing vouchers, very high crime rates and shenanigans. 

There some good areas that have multifamily opportunities within both counties that have good long term (5-15 year) upside, stable tenants and a good employment base.

Working with the right people is merely having the right network of brokers, agents and landlords who are feeding the deal pipeline.  I am a commercial broker with a focus on multifamily deals throughout San Bernardino and Riverside Counties, I also buy apartments within these areas. 

San Bernardino/ Palm Springs areas have some really good deals right now if you are working with the right people.  We have two in escrow and looking for a third very soon. All have some great upside and value add positions that can withstand a declining market. 

Could be challenging for a HELOC loan since you have no verifiable income. You have a great down payment and great equity which kind of opens you up for a hard money loan or perhaps small partner. I assume this is a single family residence or is it multi family?

What is the total amount needed for the plumbing repairs and anything else you need?

I may have one or two folks that would do a private loan for you and they actually live in Palm Springs and Palm Desert.

Hi David - Very well stated and put together. 

F)  Heres an idea, with your parents being your parents and not some random person who doesn't know you, why not split up title say 99% to you, 1% to them and do it via a title change for about (notary + recording fees) $40 bucks. Keep the loan in place and move forward with the investment.  Of course the transfer of title from 100% to 99/1% may trigger a due on sale clause, I really wouldn't worry about it to much since they are still on title and lenders typically don't police their title structures as long as they are getting their payments every month.

I recently (2 years ago) did the same deal structure on a nice cash flowing triplex with a client of ours who was just simply tired of driving 2 hours to visit and manage the property.  The best part of the deal was the fact the loan was 10 years into a 30 year loan. Lots of principal paymon every month now, almost $800 a month and growing! Plus the units cash flow about $500 per month now that I have modernized the units and got the rents up to market rates. 

You could set your deal up with your parents as easy as a title transfer or as elaborate as setting up a new entity such as an LLC and divvy up ownership and responsibilities that way with an operating agreement.

If you could do this with effectively almost zero or a few hundred dollars out of pocket, I would say you got a great long-term retirement vehicle on your hands!

Nathan Diones 

Its very unfortunate that the city of PS is trying to adopt this.  Nothing but a bad move from my perspective.  

Hi @Ann Bellamy I will PM you a great referral for an attorney.