All Forum Posts by: Brian O.

Quote from @Brian O.:

Quote from @Brian Garlington:

If you have your own plans and architectual drawings then you may come across to some GC's as a potentially overbearing client. The good GC's will have their own people and plans and would most likely not put you at the top of the list. 

Why not simply keep the property, gt cash out....and rent it out.......and then use that money as a down payment for another property. That way you have your eggs in multiple baskets. 

This actually doesn’t sound to bad the previous owner had this same idea. He turned an SFR into a duplex. A freaking duplex nestled smack dab in the middle of a suburban neighborhood with no other duplex’s around. 

the neighborhood Petitioned against it but the county pushed it through because of Inventory shortage. The only downside to this plan is Bay Area rental laws reek havoc on investors. So much that it’s breeding predatory tenants who take advantage of these laws to claim stake on your investment. this is happened to almost all of my friends who are investors and have rental properties. 

even the property I recently acquired now had these predatory tenants in it the investor just couldn’t hold out while these tenants decided not to pay rent anymore and on top of that they demanded a payout to leave! I just so happen to come in at the right time. It sucks but that’s the Bay Area for ya! Another topic another thread but yeah that does sound like a good plan!

This could be good for investors that are seasoned like that but for someone like me just starting out i wouldn’t have the capital to battle with tenants like that.  

Quote from @Brian Garlington:

If you have your own plans and architectual drawings then you may come across to some GC's as a potentially overbearing client. The good GC's will have their own people and plans and would most likely not put you at the top of the list. 

Why not simply keep the property, gt cash out....and rent it out.......and then use that money as a down payment for another property. That way you have your eggs in multiple baskets. 

This actually doesn’t sound to bad the previous owner had this same idea. He turned an SFR into a duplex. A freaking duplex nestled smack dab in the middle of a suburban neighborhood with no other duplex’s around. 

the neighborhood Petitioned against it but the county pushed it through because of Inventory shortage. The only downside to this plan is Bay Area rental laws reek havoc on investors. So much that it’s breeding predatory tenants who take advantage of these laws to claim stake on your investment. this is happened to almost all of my friends who are investors and have rental properties. 

even the property I recently acquired now had these predatory tenants in it the investor just couldn’t hold out while these tenants decided not to pay rent anymore and on top of that they demanded a payout to leave! I just so happen to come in at the right time. It sucks but that’s the Bay Area for ya! Another topic another thread but yeah that does sound like a good plan!

Quote from @Matt K.:

Feel like the people that want a flip don't want to wait or spend deal with a big project like this. They're paying a premium for the finished product, move in ready.

The people that want to do the flips themselves probably have their own vision for the project and likely don't value the plans too much.

Doubt it'd hurt anything, but highly doubtful you'd see much return on the money spent to get them

Yes I feel it that’s what I was thinking but given the housing shortage in the Bay Area people are doing things out of the ordinary. I was just trying to see if anyone has creatively been able to do a deal like this. Thank you for your input I take everyone’s input and criticism seriously no matter if it’s from an experience investor or beginning investor shoot even a 12-year-old kid I can take advice from I’m always learning! 

Quote from @Marshall Magnus:

Hi @Brian O.

I don’t quite understand, do you have the house already? It sounds like you have some architectural drawings for a rehab that could be done on the house, is that correct? And now you are wondering if you should do the rehab that you already have plans for or if you should sell the house without doing the rehab but include the plans in the sale of the house?

Yup that is right kind of like selling land with plans.
 

Hey Debra I’m actually new myself I feel the best thing you can do is activity look for properties like you have the money already. The knowledge I gained by doing this is priceless. 

After I found my first deal I shopped it around to investors I started with people I know like family and friends and friends of friends. I finally stumbled upon an investor who seen my potential and tenacity too become an investor. 

This person also is my mentor and that’s all it takes is that one person to see that you got the drive and the motivation to do this. Technically you were actually doing that now by starting this thread! Add me as your friend on here we can share our trails and tribulations!! 

Good luck! 

Hey everyone can anyone give me some advice as to how I can structure this deal? 

I’m thinking of selling a rehab flip with the architectural plans and an option to build with us how would I price this out? 

Has anyone done this before? 

I’ve seen land for sale with plans but not a rehab with plans any input would help

thanks

Hey everyone thank you for the input just some closure on this thread I did shop around and I did find another lender that would fund such a project. 

I come to the determination that my previous lender just plain and simple did not want to fund the deal. My whole gripe is just tell me that straight up! Don’t give me this BS that you can’t lend on rehabs that require permits. 

Anyone wanting to know which lender this was I am open to sharing but not on this public thread because  know matter what I go through with a company or individual I will never slander them on a public thread like that IDK I guess I’m not that type. Thanks again I will definitely be back with another thread if I need some advice! 

I’ve already spoke to the planning department and they say that its not a problem it’s all a matter of paperwork as long as there are no tenants in the building that are on section 8 or any kind of government assistance. 

It is kind of an odd situation because the neighborhood is not known to have apartment buildings or duplexes in the area it's as if someone decided to split their SFH into 2. The neighborhood petitioned against it and the previous owner decided to convert it anyway and Marin county approved it because of the housing shortage.

According to the neighbors it has brought nothing but trouble and nuisance to the neighborhood with different renters every few years. The property has so many violation complaints that they would be more than happy to turn it back into a SFH.

Quote from @Matt K.:

Quote from @Brian O.:

Quote from @Jay Hinrichs:

something not right there ..  never ever heard a lender say they would not lend if permits were required usually the opposite.. is this Marin as in Marin north of San Francisco ?

if so there are many HML s available to you in the bay area.

Yes this is Marin county and yes I have explained to my partner that bringing the house up to speed with some light cosmetics can still command high purchase price given its location even if it was a duplex. I acquired the property way under value with problematic tenants inside the tenants been putting up a fight for the past year or so I just so happen to come in right as they were leaving. I feel I would even get more if I resold it with no cosmetics and no Tenants. 

 Wouldn't you still be able to do that now since it's vacant but keep it a duplex?

In other parts of the country selling half duplex is a thing, wonder if it can be done in Marin? I'd imagine you probably have a good chunk of people not wanting a condo/townhouse but would settle for a duplex just to be in Marin. You could likely see a good volume of competition due to being lower price point (at asking) and have up to 2 units to sell.

This is a great idea I will check with the county city if I can do that. I also ran the numbers as a duplex and they commend the same if not more in Marin. I figure someone already bought it for 869k with problematic tenants and the house looking like a hoarder house. If I just cleaned it up and lightly remodel it to be livable I feel someone would buy it for way more.the fact it has no problem tenants in it I feel I can sell it for mid 900k even in the hoarder state that it’s in just based off its location🤔. It’s nestled in a highly desirable residential community the property is not in a rental area like a Main Street or a blvd. 

thank you for that idea I will look into it asap 

Quote from @Jay Hinrichs:

something not right there ..  never ever heard a lender say they would not lend if permits were required usually the opposite.. is this Marin as in Marin north of San Francisco ?

if so there are many HML s available to you in the bay area.

Yes this is Marin county and yes I have explained to my partner that bringing the house up to speed with some light cosmetics can still command high purchase price given its location even if it was a duplex. I acquired the property way under value with problematic tenants inside the tenants been putting up a fight for the past year or so I just so happen to come in right as they were leaving. I feel I would even get more if I resold it with no cosmetics and no Tenants.