All Forum Posts by: Josh Cuthbertson

@Anastasia Orth Welcome from a few hours north of you! ;) There are quite a few people in Sacramento that REI up here in Redding, and especially around all of the lakes. California has opportunity, you just need to search a little more carefully for your deals. But they are out there. Welcome to BP!

The seller isn't the one wanting to build something. If the buyer wants to find out if they can build, and they need a perc test to know for sure, then they should pay that cost.

Have any friends with money? If I were you, I would put some of my deal analysis down on paper as a business plan and show my friends with money. I would try to find a partner that has done this before and is willing to work with you on the next one. That way you start to gain some experience that you can show future lenders / investors.

I think your mentor had a good point though, start building your credit history now. That will look great to future lenders.

What is the current rate of your mortgage? Thinking one option would be a cash-out refinance if it is currently lower than your existing mortgage.

I'm hoping to use my HELOC as a down payment for a construction loan on a spec house up here in northern CA.

Interested to hear other opinions on Jason Wu's situation.

@David Stafford I don't disagree. These types of projects are among my favorites! And in our option, one that exemplifies sustainability. Repurposing some of these old structures like this end up being some of the most desirable projects out there. A lot of these are happening in the Bay area right now. In fact, I think I saw another thread on this exact issue.

Please keep us update with this project. I'm so interested in how this project progresses! All the best.

Condos, noooooo! From the building side of things, insurance companies hate condo projects.

As for other things to look for, speak with the planning department, as well as the building department, as early on in the process as you can. We turned an old warehouse building into an assembly space for a modern church and changing the use triggered a massive amount of structural retrofits that we're about 10 - 15% of the total project budget. It was a big expense.

I'd also be curious to see if you'll need to fire rate the existing structure independently of the housing components. If any architects are reading this thread, they should chime in. You could run into ADA exiting issues too as I'm not sure you can exit a home into another building. But the architect should be able to answer these questions for you with some preliminary investigation.

Redding is 3.5hrs north east of the Bay area. We have a great rental market. :)

One thing to check is if you get any credit for impact fees? If there was a triplex there before, that could be a huge savings. I don't know that area, but out here Impact fees on a project like that can be in the hundreds of thousands of dollars. Call the building department and ask for a fee estimate. That would be a good place to start.

This is good thread to ask the other question as well. So if my folks want to invest with me in building spec houses and gift me some money to start, how is that taxed? 

The two scenarios are: Gift the money so I can use it as a down payment for land. OR, cover the carry costs as their investment with a small interest percentage and/or share in the profits.

I'm still looking for lenders who deal in CA.