All Forum Posts by: Bryan Pham

@Jeff B. That is a very good point. Thank for for this feedback, Jeff!

@Kiersten Vance The seller seems really stern on not using a real estate agent and in a rush to close as soon as possible with cash. I discussed the topic of using a conventional loan but that seems to make him even more reluctant. 

@Curtis Harvey I am definitely going to check the title of the property to see if has a clean title. If we were to do a conventional loan, I would do a full 20% down payment, the interest would be 4.6% and the paperwork is drawn up by the seller's brother. Yes I have analyzed the property would make more sense as a rental than a flip. I considered both options. Thank you for all the feedback, Curtis!

 Hello BP,

I need some advice, I am trying to make an offer for a 4BR, 2BA 1834sq (730K ARV) home in a suburbs of Los Angeles. It's a for sale by owner with no agents involved, the owners told me that the their previous offer was from another investor for a shade under 700K which my guess could be about 680-690K but the offer might not fall through. They are looking for someone to step in and become the back up offer. I am wondering what the next logical steps should be? I am thinking about getting a hard money loan to close out the deal much quicker but it doesn't seem too wise if the owners are willing to take a mortgage offer. Has anyone been in this situation before that can offer some advice?

Thank you @Edmund Ricker, @Carl Fischer and @Joe Homs for all your advice. Was there a specific Self directed IRA company that any of you guys can recommend?

Hello BP,

I am interested in switching my 401K over to a self-directed IRA. Does anyone on BP know how this process works?

Hi @Diane G. Yes, I do agree with you that generally prices in Santa Clara do fall in between 800k-1.2. But I was on the MLS researching recent properties sold 3-6 houses away from this property it was recently sold for 1.4-5m, granted that some of the houses are located on the more quiet parts of the neighbor. The property still falls under the 'Cupertino' school district which is why I am strongly considering it.

Thanks for your quick tip @Christian Wathne! Oh boy, that's pretty scary. 

Hello BP!

My agent has contacted me about an off market deal in Santa Clara and it falls under the 'Cupertino school district' and located 5-10 minutes away from Apple's new campus. The cons of the property is that its located on a busy highway. 

Basic information:

ARV: 1.4 million

Comps in the area run from 1.4-1.5 million 

Owner Asking Price: 1.2 million

Very minor rehab, the cabinets and kitchen are a bit old and worn out. But keep in mind that I did not have a formal inspection yet. 

Estimated rehab cost: $50k

I have some basic questions on how to finance this deal and make it work. I am also going to call hard money leaders tomorrow as well. This is going to be my first flip if I could successfully lock down the property. I am wondering if people on biggerpockets can help me structure a deal that would work for this situation. 

I understand that for first time flippers, hard money leaders in the Bay Area will only lend on 70% of the ARV. Which means that I will have to come up with about 300K for the down payment and rehab cost. Is it possible to secure another loan for the other 30% of the deal? If so, how? I am not sure how creative I can get with this financing.

Hi @Andrew Wong, that is a good point. I will also look down into SJ as well. My prime focus has been on Fremont, Cupertino and Mountain View but out of the 3. Fremont seem to be the only area within range. Have you had first hand experience with purchasing mulit families homes in SJ? Could you briefly share an overview on how it cash flows? 

Hi BP,

Has anyone in BP ever used private or hard money lending on their first deal to secure a property (let's say that the owners are looking to close quick and will take cash buyers only). Let's say that I use hard money to purchase this deal and I want to live in the property to do some house hacking. I would definitely need to refinance the property into a conventional loan. Has anyone implemented this strategy in BP? Please help me understand your thought/risk process. 

Hello BP,

I been pondering the idea of doing a FHA loan for a house hack. Like most people, multifamily homes in the Bay Area are very much out of my price range. I was thinking about starting with a single family home using a FHA Loan, rent out the other room (I was looking at 2 BD, 2 BA properties in Fremont, CA around the 700-850k range). Hopefully secure a property with enough equity to use a home equality line of credit and buy a 2nd property in the area. Work the numbers to have the next tenants essentially pay for the mortgage. I been reading on a number of forums that this strategy in the Bay Area does not produce any cash flow. I am hoping if there's anyone on BP that can improve my vision and plan before I start to execute this idea.

Thanks so much, BP!