All Forum Posts by: Brett Hearn

@Gagan Chawla and the rest of the gang.  I've been investing in the valley south of Fresno were the market is a bit more workable.  Would love to meet up and talk strategy with people.  Keep me in the loop. 

@Kimberly T. Hi.  I know this is an old thread but could you maybe give an example if I was going to rent out a unit for $900.00 a month.  I'm having trouble rapping my head around these numbers for some reason.  I was planning on charging $900.00 for first months rent and $900.00 for deposit.  If they needed a holding agreement I was going to hold $200.00 non-refundable and when them moved in add that to the deposit.  So they would then pay $900.00 for first month and $700.00 toward deposit, because they already paid $200.00 bringing a total of $1800.00.  Does this seem standard and correct.  Again thank you so much for your help in advance. 

@Bobby Montagne thanks for the reply.  I'm not sure that being a newbie with only a small, yet successful, track record is going to cut it when it comes to asking for a line of credit but it's worth a shot.  Any suggestions on how to impress?  Thanks for any help.

Welcome @Micah M.,

I'm somewhat with Boris. I live in HMB but invest in the central valley. Too me the margins are tight up here but that is just my personal newbie opinion, for what it is worth. I think most places in the Bay Area are banking on the appreciation or speculation factors and actually being able to get into a property without much capital is tough so I'm starting out small and going to buy one SFR at a time rent them. Maybe they appreciate maybe not but then plan to offload them at some point and 1031 them into something up here. Perhaps you have the means for down payments up here and if so I'd say just look in the places you mentioned and make sure your numbers are sound and you should be in good shape.

Just know that there are other places in CA that may not be as fancy as the Bay Area but hold good enough margins that you can get a return and still have at lease a little cash-flow.  In the middle of my first project in the hometown I grew up in.  Bought for $77K, with $7K in fix up costs, rehabbing now and comps in the area show I will be able to get about $130K on the refi.  Take 75% of that and cash out the difference, around $95K total.  Going to try and get about $950 in rent in the mean time.  Not a home run but defiantly a solid line drive single!  Always open to chat, and good luck!  My goal is to do the same thing in this area one day with numbers that match the scale.  Go get'm! 

Hey all,

Just looking for some quick advise. Who out there has gone into a local Credit Union or small private bank and actually got a line of credit. I am actually in the middle of a Rehab for a BRRRR strategy and I will be putting a tenant into the property soon and hope to refi out of my short term hard money. My plan was to open an account with the bank in the next week, and perhaps approach them after the 3-6 month mark (seasoning period) and talk to them about refinancing into a long-term loan. Maybe it will be a good number maybe not, but really I want to form a relationship with them and eventually try to workout a line of credit for future deals.

I plan to provide a detailed folder with the current project start to finish, and show them the numbers from the BP calculator and how I worked the entire process.  I already have my eye on some properties in the same area but surprise surprise, I need the money!  Any extra tips on how to really impress the financing officers in banks would be really helpful.  I figure I will wait until this project is done and successful first, this way I will have some creditably.  There was a podcast not that long ago that a guy talked about bringing in some sandwiches to the bank and he ended up with 100k worth of a credit line.  Not a bad idea.

My credit is excellent and my income is high so I have those bases covered.  Any other advice would be great.  Thanks BPers!

@Timothy Herman-Hey man welcome to the neighborhood! I'm a new investor as well, in fact just to about to close on my first deal in Hanford.  I grew up in the area, and my family still lives in Hanford, Laton and Lemoore.  I went to Lemoore High and have all my buddies and resources in the area.  I actually live and work in the bay area as a Trauma Nurse but have decided to invest in the Hanford area because of the price points and the fact that I am very familiar with the area.  I love where I live, Halfmoon Bay, but there is no way I could invest up there at this point, way to expensive and way to much competition.  Plus I like the fact that the base will be having an infusion of enlisted people over the next couple of years which leaves us with some real opportunity for good tenants.  I'm hoping to somehow get some tenants from the base once I get this property rent ready so if you have any ideas or know any people let me know.  Anyway, I'll be in town on and off for the next couple of months as I am going to be doing a flip and hold on the property that will close hopefully by next week.  Instant message me on my page with your number and such and maybe we can grab lunch some time when I am down. I'm brand new as well, but have been putting in a lot of time over the last year and a half or so, preparing myself to make this work.  I decided to jump and start making offers and low and behold I got one under contract.  Anyway, hit me up man and we'll chat.  Never know, we might be able to help each other out in the future.  Cheers

@Will Barnard-hey man, I agree.  Since the seller decided to split the difference on the work I said lets keep moving forward.  I think the pest are a fact of life, but we are going to treat like it's a full on infestation.  Thanks a lot for the help with the confidence.  I guess that is all I was really needing.

@Will Barnard- hey man what happens if you do have "evidence of termites both subterranean and drywood", but no actual termites?  I have a place under contract with these reported in the inspection.  The cost would be soil treatment and tent for about $1350.00, which I am trying to get the seller to split the difference with.  Do you think that signs of termites would kill the deal for you?  I did see dry rot on the outside of the window which I knew I would be replacing, and the foundation is off the ground and looks like a mound of dirt under the floor is the source of the subterranean.  I can easily knock that down and treat the house and move on don't you think.  I am a newbie as well, and this is my first deal.  I don't want to run away from something that is manageable.  Thanks

@Chris Sweeney thanks for the reply.  When you say "wholesale" what do you mean?  And I figured splitting the cost was fair.  I don't mind so much the treatment, just worried about the future treatment.  It is what it is though.  Termites are part of the business I suppose. Thanks again.

I'm dealing with somewhat of the same situation.  They found both subterranean and dry wood termites during inspection, at least evidence of, but no actual termites.  The seller is agreeing to split the cost of the soil treatment and tent.  I dont want to have this kill the deal, but I'm not going to lie.  It scares me to think about the inaccessible structure.