All Forum Posts by: Chris Meadors

This thread is super informative. I was just argueing with my CPA about this today. Do you operate in a way that is "technically correct" for the CPA's liking, or do you operate in a way that works for your business? I feel like lenders can read through an P&L that might not be technically correct, because you can explain that "project ABC is underway, I'm down $100k on it, but it's set to hit the market in June and we're going to sell it for XYZ."   What do most FLIPPERS in this group opt for?  

and @Mauricio Duarte - how's it all working out for you 3 years later (if you're still around?)

Sorry, thanks for the clarification. My local lenders have put a freeze on any NEW HELOC's. Thanks! Hope this helps...

@Trenton Petersen the risk? Losing it all. But if you’re careful and make good flip decisions you won’t do that. How much do you have in your 401k? I did this to buy my first home back when I was allowed to with my employee 401k. I paid it back in 3 years (much smaller amount) and it worked out amazing. I’m strongly considering taking advantage of this short window of a loophole to do the same again.

Keep in mind you have to treat it like income, and pay taxes on it, so whatever your tax bracket, that $100k could be more like $70k after taxes.

@Renee Lee

Im in Napa and most of my lenders have frozen HELOCs. First Republic can do them but at 65% LTV with tight requirements. I heard Wells Fargo might be a good bet right now. Act fast. Things are tightening every day (per my lender partners).

@Lynne Marquez I work with Napa Tax they’re great. https://www.napatax.net/.

I have realtor friends in Santa Rosa if you want someone super local DM me.

@Joe Aamidor We are advising our clients in Napa that there is a short window right now to get a great deal, if you find the right seller.

You have to find the right seller.

IF you find that right seller, the truly motivated seller, you can buy at a discount right now. I would find an agent willing to make a lot of phone calls and ask “how motivated are your sellers” and eventually you’ll find one who is. Or just make a ton of offers and hope to gain traction.

It might be worse in 8 weeks, but on the hand it might go back to normal(ish).

Best of luck to you. The East Bay real estate pricing is on a different planet. I feel for you!

I’ve just learned about the existence of wholesaler franchises, such as HomeVestors (the Yellow “We Buy Ugly Houses” guys). The numbers presented to me seem too good to be true, especially when using an already trained buyers agent. Any feedback or personal experience owning or representing one of these types of franchises? Any feedback on buying homes FROM them?

Thanks very much

@Joe Kim Great question. My understanding is that there are a limited number of STR licenses (in the 40-50 range) in Napa. Outside of that there isn't really a "ban" but more so a 30 day minimum rental period, for non-license holders, which in effect is supposed to serve as the ban. City tries to monitor with 3rd party services, fines are issued. Fines start small though and some folks just pay them and consider them cost of doing business. Neighbor watch is part of it too. Sonoma is more lenient, especially in Sonoma County (not sonoma town) so we typically direct investors focused on STR to Sonoma.

@Dustin Allen yes thank you for the clarification.

@Robin Searle Napa, CA has a 30 day minimum. I understand South Lake Tahoe just banned any further licenses for Short term rentals as well. That’s my random market update:)