All Forum Posts by: Bruce Olsen

This is the kind of project that deserves a lot more publicity.

@Micki M. Maybe BP can set up an area to post these kind of success stories (unless there's one already)?

Thanks, @Account Closed 

One lot is suitable for a SFR and we'd partner with an established contractor if we go ahead, so they'd handle the entitlements and we'd provide capital. We just need to have an idea whether we can afford it and for how long.

There are also a couple of R-3 lots that we'd likely wholesale to a builder specializing in multi-family. Our big question is understanding how many units can be built per SF of lot, so we know whether it's worth pursuing even as a wholesale. If you have any guidance on that (class B or maybe C area) we'd appreciate it!

@Account Closed Any news you can share from the East LA builders?

We're looking at a few lots and are trying to decide what (if anything) to do with them.

Since REI is a team sport, you need to attend as many different meetings as you can so you can start finding the service providers you need to be successful (in addition to learning more before you start spending real money, as other posters have suggested). They're all eager to help educate you in the hope that you'll be successful and give them some business, so they're usually willing to offer some guidance.

I started with just free meetups and quickly weeded out the ones that were all take and no give. You can tell because there's no time provided for networking. I also asked attendees about other clubs, including those not listed on MeetUp.

Don't be afraid to speak with other attendees and ask what they advise. By speaking with a couple of private lenders (for example) consistently over the course of several months (a great point Scott C makes) they're beginning to believe I might be a good risk for future projects. One has looked at a couple of potential projects and pointed out the risks that I didn't see, and which would have caused him to turn down the deal.  So now he knows I'm serious, and I know what kind of deals I can finance through him. I'll probably borrow from him for our next flip.

Just keep the old rule in mind: you have 2 ears and 1 mouth... use them proportionally.

@Joshua D. 

Congratulations! That's a big step you just took.

Hardest thing I had to do on our first investment rehab was to keep my fingers off of it. I'm not a pro but there isn't much I haven't done on the homes we've owned over the years. 

So I stayed away. 

Then the contractor screwed up the bathroom subfloor. He fixed some dry rot around the toilet, but didn't check the underside carefully enough (from the crawl space) and left a small spot of mold. Nothing serious, but you know the very word strikes fear in the hearts of most retail buyers.

We didn't discover it until too late, so all we could do was disclose it. Took a little off the price.

Fired the contractor.

We're now working with a contractor who has skin in the game now, so I'm not as worried.

But when I start to work with someone new I'll be bringing donuts/coffee or lunch a few times a week. 

@Mike Jones 

Where? We sold our long-time SFR in Redwood Shores about a year ago and still count ourselves as Bay Area people.

I assume you're talking about a spec house, not your residence.

@Eyal B.  

I'm not letting my wife see these photos.

This is really outstanding work.

Also a lesson not to be afraid of foundation problems. Can you share who you used?

We've been happy with Alpha Structural. They inspected a condo unit in escrow with serious looking cracks in the slab. No mitigation needed except to install gutters on our unit (paid by the association). Even underpinning would have been under 10k, which we may do when we sell just to put the buyer at ease. Also used them on a SFR, where a contractor cut through a floor joist (!) but again, they pointed out a simple effective fix.

@Ned Carey 

Thanks. The concept seems a little bizarre. 

I'd sure hate to learn that the hard way. 

@J Scott 

Isn't there some creative way to keep the property occupied? 

I don't fully understand the legal status during the waiting period, but if you can access the property to secure it you must have some rights.

If so, perhaps you could offer it (say) as a studio space for artists. Zoning issues would need to be considered, but I've visited a couple of artist galleries in the SF Bay Area that were in residential areas. 

Chris, I agree with Aaron. Build yourself a real estate business on top of it.

I've worked on software products that people actually paid for and I'll offer some advice.

>> Find out what your customers will actually pay for. There's a lot of literature on the topic, start with Steve Blank's Customer Development. Never assume your're a typical customer.

>> Don't view your software as a competitive advantage. It's not. Based on what you describe a determined competitor could build it in under a month, except (perhaps) for your training content. Figure out what your advantage really is and keep widening your competitive moat. 

>> Look for business partners/investors who know something about software as well as real estate. If they're willing to invest to get your product/service off the ground, not only will you have validation that it's a good idea but you'll gain some great business advisors who are motivated to help you succeed. If you're the only one in love with your idea, it's time to pivot. 

Best of luck to you Chris.