All Forum Posts by: Ben Tilbury

Hey @Christina L. were you able to close on the deal yet? Whats the status? I'm also looking for some multi-families there for a group of investors. Is this the first property in Tucson you are trying to acquire or do you have others? What are your thoughts on the current market there after your research?

Thanks to everyone contributing to this post it really will come in handy if we need to lock down some local lending. 

Hey Andrew, 

Nice to see your post and I'll give you my input and if you want to message me with more details I can help you run some more numbers on this property you're interested in. So first off if you are planning on renting this property out then you won't be able to use either VA or FHA loans since they only lend on Owner Occupied properties, this is assuming you aren't planning on living in the property? But that doesn't mean you can't go get a conventional mortgage on it and put 5%-7% down, and still have some cash for closing or repairs, although they generally want to see you living in the property as well if you'll be putting a low down payment. But that all depends on the lender you use, if the property is in SLO County I can put you in touch with my preferred lender whom I would recommend and can help you figure out the best option for your specific goal. If you are planning on moving into this property then that changes everything I just wrote. Let me know some more details! Congrats on getting into your first property that's exciting.

We use C.A.R (California Association of Realtors) form BRE "Buyer Representation Agreement- Exclusive" here in California to get our buyers to commit to working solely with us so we aren't wasting our time on buyers who aren't serious or those who have no loyalty. Also we have them sign the C.A.R. form AD "Disclosure Regarding Real Estate Agency Relationship" This gives us "A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings with the Buyer." Then the agent knows we are really WORKING FOR THEM and not just wasting their time either or just signing them up for some automated email for properties. Also as an investor you need to prove yourself to show you're a real qualified buyer and are able to close, meaning you should either be pre-qualified or be able to show your proof of funds or have some properties under your belt already, because many people go around calling themselves "investors" but really haven't invested in a damn thing and won't even invest in a loyal relationship with a realtor or broker whom they want to bring them deals. I can see from some peoples prospective that they don't want to commit to working with one agent and want to go with any agent who finds them a deal, well I think you will find that the most successful real estate investors out there are trustworthy, loyal and have integrity as well and they work closely with their broker/agent with each of their transactions. A real estate agent should be one of your main assets, they should know your market, know exactly what you're looking for, be your boots on the ground, know your strengths and weaknesses, be able to consult with you on each property you're interested in, and most importantly be a part of your team. So find a great agent in your area with investment experience and he will save you time, money and a lot of headaches! 

@Charles Elmer Thanks for the input, always love connecting with those in the building or development industry. Do you have a website? Is there a lot of new builds going on in Tucson at the moment? 

@Greg Scully Thats awesome! What price ranges are you looking in? What other types of property do you own? I think you're right, it seems like there's a lot to offer in Tucson and room for growth and affordable housing. The thing that does worry me a little is I've heard some big players have been offloading a lot of their properties there which makes me wonder if they foresee something the average investor or home buyer does not...

@Chris Smith this post was from 10 years ago and a lot has happened since then......so I'm curious if your portfolio is as large as your book course collection now??? Or if you're even still active on BP? 

@Henry Perez Thanks for the comment. I may be able to assist you if you're looking for stuff in California and I'm working with a few other investors who have similar real estate goals of building 500-1000+ Unit portfolios. Thanks for adding me as a connection, I'll reach out in PM to get to find out more about what you are searching for as well. 

@Aaron Gaffney Thank you for your input on the market, I would have to concur and I've heard similar things with those who are in the apartment and multi sector. Millennials in CA can't afford or don't care to live by themselves at the moment and also apartments are more recession proof than SFH because when people start getting their homes foreclosed on or losing their jobs they have to find an affordable place to rent and usually turn to apartments and smaller units. Maybe @AnthonyChara will be nice enough to chime in if he sees this post :)

California Realtor and investor looking for properties in AZ from Phoenix to Tucson area and looking for some local knowledge. What is the Tucson market doing lately? Mainly looking for mid to large Multi-family properties...so how is the rental market doing out there lately? Average rents? Occupancy? Local job market? I would have to assume University of Arizona helps the rental market surrounding the campus area? Any insights and advice would be appreciated from my fellow BPers, Haven't seen much on this site regarding Tucson Pros & Cons so please share :)  

Well I'll try to make this a short answer while being completely honest. There are tons of disclosures in California since we are a highly litigious state. With that said all of our disclosures are in place because at one time or another there has been a lawsuit involving them. I would recommend reading this to get a better sense of the disclosures that we have CA Disclosure Chart

Certain transactions, including new home, subdivision, and common interest development sales, are subject to separate disclosure requirements. So it really depends on what type of property you are selling and where it is located. Obviously I'd recommend hiring an realtor to handle the transaction properly, especially if you're an out of town investor and that will also take the stress off your shoulders.

There are always mixed reviews on this section 8 topic. I have a question though for anyone with section 8 experience, we are looking at purchasing a triplex which is not section 8 but does have 1 long term tenant who is section 8. We were told the "section 8 runs with the tenant not this property" and he is on a month to month lease. We plan on renovating the units and eventually will need this tenant out in order to do so, and then will be raising the rents to current market. Are their different laws for getting a section 8 tenant out? Not trying to evict cuz I'm sure he's a good guy but just need to vacate the property to get the work done and the rent up. I've heard 60 day notice is standard procedure? Your insights are greatly appreciated :)

@Jon Wesner This is a great example of exactly what we would be dealing with on this triplex. I see lots of potential especially with the lower than market rents, which is a huge upside, there will always be a few issues that arise with any purchase but these would definitely be doable. CA tenant leases continue with the new ownership as well but that's not necessarily bad if we renovated the exterior and one vacant unit while the other 2 tenants are still paying rent which reduces the holding costs. Other possibilities are paying cash for keys and getting the tenants to walk on their own with a little incentive, or getting them to move into one of the units that has been renovated in order to renovate theirs. Lots of great comments in this post! Thanks for the tips guys! Endless options, that's what keeps this game so interesting!