All Forum Posts by: Clifford Adikuono

@Theresa Ortez-That's an awesome idea. Thank you so much. Let's connect and keep in touch. I'd like to hear your story of becoming a CPA and then a real estate agent. I hope so too :) 

@Ola Dantis-Thank you :) Glad to be part of BP. I asked him over the phone why he's even considering a partnership and I think he gave a good reason. I risk losing my DP and having to pay any outstanding balance on the LOC and he risks losing all the profits as the house would be under my name. Should I ask again why he's considering a partnership but in a different way when we meet each other? Or can you think of another question that I could ask? Sorry I don't understand your reply to question #2. Do you have a referral for a lawyer who can set up the LLC and operating agreement? And it's definitely on my mind to have a cash flow instead of a cash windfall out of REI but I think it's still a good opportunity to at least learn the long distance rehab part of this project and get a cash windfall out of it. Thank you very much Ola. I really appreciate your answers.

@Theresa Ortez-Regarding giving the funds to the GC, do you recommend asking him to do some part of the work first out of his own pocket and then releasing the funds? I plan to put together a scope of work, a budget and a schedule. He typically plans to finish the rehab in 3-4 weeks but he really pushes for 2 weeks for it to be complete. It's interesting to hear about your idea of getting a realtor or an attorney to visit the site and take photos. Do you have a referral for a realtor or an attorney in GA? And how much would it cost to hire someone to do that and why would someone like a realtor or an attorney be interested in making money that way? Thank you very much Theresa. I really appreciate your answers.

@Greg Dickerson-I asked him for references and I'll be sure to ask one who's current. I also asked him for his license. His license is based in Tennessee. He hasn't used it in a while because last year he was a subcontractor and the Georgia area that he currently works in doesn't require a license if you live outside the limits. Have you heard something like this? He'll send pictures/videos of the job site for cleanliness, organization and quality. What's the best way to verify that his pictures/videos are legit? Do you have a referral for a lawyer who can set up the LLC and partnership agreement? Is a partnership agreement different than an operating agreement? Thank you very much Greg. I really appreciate your answers.

@Luis DeLaRosa-Hard money would be too much cash upfront. Good point on the references of past jobs done. Thanks :)

I'd ask for pictures and/or video walkthroughs every other day. I can see the transactions going thru the LOC. I'd also ask for invoices to be attached to those transactions and call up the vendors on those invoices for confirmation.

I definitely asked myself why he even needs my money. So that's a question I plan on asking him. My initial thought is that my money instead of his money would allow me, not him, to bear the risk of the DP and the mortgage.

Hi. I plan to meet a general contractor (GC) for a few days in Georgia. The GC, recommended to me by a trustworthy source, does rehabs and flips of single family residences (SFRs) on a regular basis. He's made some handsome profits off of these rehabs and flips. He'd like to meet me so he feels comfortable doing business with me and I'd like to meet him so he can show me what he does with the rehabs and flips and how he does them. I plan to buy a fixer-upper SFR with a conventional mortgage and a 20% down payment (DP). An FHA loan does not seem like an option as this SFR would be pretty run-down. I also plan to open up a line of credit (LOC) so the GC can draw money from it in order to pay for his rehab crew and materials and I can see how the LOC is being used for transparency and accountability. Then, he plans to find the SFR, provide the rehab crew, manage the rehab, and sell the SFR. Once the SFR is sold, then the sales proceeds would be used to pay off the closing costs, the selling costs, the mortgage, the DP, the outstanding balance of the LOC and all other costs. Then the remaining sales proceeds would be split 50/50 between me and him.

So if someone could please help answer some of my questions, I'd really appreciate your input. So thank you in advance. 

1. In the few days that I have with him, what questions should I ask him?

2. When he shows me his current rehab project, what should I watch for and what should I note down? 

3. How could I prove myself to be the right business partner for him?

4. If we decide to do business together, how should we formalize the partnership? 

5. Do you have any other tips/suggestions?

I myself am new to real estate investing so this would be my first real estate investing experience. I originally wanted a GC who could help rehab and rent an SFR from afar. However, he recommended that I do a rehab and flip since the area he specializes in is best for a rehab and flip rather than a rehab and rent. So I decided to go forward with a rehab and flip because I thought this would be an awesome opportunity to learn how to rehab from afar, make a profit in the process and use that profit for more real estate investing.

I'm 80% done with reading David Greene's Long Distance Real Estate Investing. I've read that book on and off. And I started reading J Scott's The Book on Flipping Houses. Thanks again for your input.

@Jason D., thanks for reminding me of that perspective. Sorry for the late reply. I monitored my post for the 1st couple of days but didn't see any reply so I kind of gave up on it. Out of curiosity, how much more in $ amount or as a percentage of your offer price do you put in to make the deal more comfortable for you? Off the top of my head, I'm guessing it just depends on a lot of things. 

@Ron Hall, thanks Ron for affirming that. 

Hi @Logan Allec, haha likewise. I never would've thought I'd see you here in BP. I'm happy to see that you're crushing it with Allec CPA and Money Done Right. 

No I haven't considered that option yet. I'll definitely look into it by checking out BP articles I come across. Would you happen to have any other resource I can look into? 

May I also ask what your monthly cash flow, cash on cash and cap rate were? If not, I totally understand. 

Hi everyone, my name is Clifford Adikuono :) I'm a brand new real estate investor who plans to buy and hold single-family homes and small multifamily properties for the middle-class in Southern California. I realize that the Southern California market is a bit tough so I'm open to investing outside of California. I have zero experience in real estate investing. My only real estate experience is in tax compliance for a few residential property investors and mortgage backed securities funds. I'm a CPA licensed in California since 2011 and I currently live in Highland, CA, which is a part of Southern California. 

I'm currently a Financial Analyst nearby Highland and I have almost 10 years of tax and accounting experience. I still perform tax and accounting work on the side. I wish I have more tax experience in real estate but I suppose I'll be gaining more as I invest myself and become more involved in the BP community :) 

My goal is to acquire 70 rental units in 7 years. My mission is to provide safe and healthy homes and achieve financial independence. 

I found out about BP through a Mad Fientist podcast where @Joshua Dorkin was a guest. Ever since then, I became hungry and thirsty for real estate knowledge. I signed up as a pro member of BP, joined a webinar by @Brandon Turner, analyzed a potential deal, have been listening to 1 podcast per day for 6 days a week, have been reading BP articles, started reading BP's The Ultimate Beginner’s Guide to Real Estate Investing and Building Wealth One House at a Time, bought 4 BP books, created my BP profile, talked with a California real estate agent, talked with an Indiana real estate agent in referral, talked with a friend who's a real estate investor, asked friends for real estate agent referrals (even out of state like Nevada, Chicago and Tennessee), etc.

Bottom line is I'm super pumped about real estate investing :) Just in case anyone is curious, I'm looking for a team of mentors, real estate markets outside of California markets, real estate agents, mortgage brokers/loan officers, real estate attorneys, property managers, contractors, insurance agents and handymen. I understand that this team will grow organically with time, diligence, perseverance and creative thinking :) 

Thanks everyone for reaching the end of this post!