All Forum Posts by: Brian Karr

Hi! I'm looking for an attorney that can help with developing contracts for transactional funding. If you know of a good attorney out there that you've had a good experience with, I'd really appreciate the referral. 

Thanks. 

@Nathan Emmert @Simon Campbell ... Or anyone else that reads this.

Nathan, in your example above (very well communicated by the way) you have a scenario where the property makes 8.5% CoC at about $1,900 per year.

I haven't yet purchased a buy & hold, but I've been interested for a while now. My concern with buy & holds has always been expenses down the road that will inevitably occur. For example, a pipe or roof leak, HVAC issue, etc.

Even if you're holding out a percentage every month for this scenario, it's likely not to cover the full repair cost and you'd have to eat into your profit (depending on the issue it could eat all of your profit plus future profits). 

With this in mind, I've always felt that I'd be more comfortable in only purchasing multi-units / apartment buildings as buy & holds. This way I'm getting multiple door cash flows that can help offset these potential costs. 

Have any of you ever run into this issue with SFRs? Is there anyone out there that only buys SFRs, or only buys multi units for B&H? Just curious to hear from those more versed than myself in this area. 

And Happy New Year everyone!

@Sebastia H. Thanks!

@Sebastia H. @Jamie Garcia @Patrick C. Hey guys. Did any of you end up finding someone you'd recommend?

Hi all. I'm looking for a contractor in LA that I can work with on fix and flips. I plan on doing multiple flips this year, so I'm looking to build a relationship with someone who I can use for everything. I've met with a few folks and haven't yet found someone I'm comfortable with. Your help is appreciated!

@Ashley LeBoeuf

For me, the actual dollar amount (and not the percentage) is the important thing. In California (where I am) everything is expensive, so percentages tend to drive up the actual dollar amount pretty quickly. It's the dollar amount that determines my comfort level at any given time. My goal is always to give no EMD.

For the point that people are making about using a high EMD as a way to weed out wholesalers posing as cash buyers, or getting skin in the game, etc... This is may answer when a seller (who knows I'm an investor) says that to me.

"I'm an investor. I have EMDs out on multiple properties, not just yours. So I can't just put a bunch of money down on yours. It adds up quick, and doing so may end up keeping me from another deal. If you want to work with me and get this done, I'd love to buy your property. And if not, that's okay too." 

Money is valuable, and just because you're a "cash buyer" doesn't mean you can throw it around with no regard. Also, I personally never put a deposit down without a contingency period where I can get it back if need be. 

Best of luck!

Just curious... Those of you who invest in the Greater Los Angeles area, on what sub-markets (neighborhoods) do you focus your attention, and why? 

@Norma Barcelo Welcome! There are plenty of opportunities in CA where you could leverage those funds and get a good deal. Are you looking to flip, buy & hold, or buy & hold while living in one unit of the building you purchase? 

Hi all,

Recently I had a REO property under contract and was going to double close it, in order to wholesale to another buyer. In double closing, there were 2 sets of closing costs to pay. The first on my deal with the bank (3% of purchase price), and the second on my deal with the end buyer (3% of sale price). Additionally, there were agent commissions that I would have had to pay on the initial sale between me and the bank, which in a normal wholesale gets passed on to the end buyer. And I also needed transactional funding (1.75% of purchase price) to make the deal work.

If I was doing the flip it was a fantastic deal. However, these costs added almost $50k in additional fees that would not have been in place if the property was not a REO. These fees drove up the price of what I could wholesale it for, and I ended up having to pull out of the deal because I couldn't move it.

I'm wondering if there is any advise out there on what I could have done to avoid some of these fees, or if this is just standard for REOs and simply need to be accounted for in my numbers?

@kyle atans 

I was given your name my @Jon Huber about an REI club in LA. Is there more information on the meetings you could provide me? Thx.