All Forum Posts by: Don Alder-LaRue

@Gio Fuentes I'min the PS area. I don't need to know the exact address but PM me if you would like to discuss areas/neighborhoods. I've been in the desert since 97 and know it well. The area can make or break you.

@Gio Fuentes I don't see an expense for insurance.

@Gene Davis  What are you finding in Houston?   Investor friends of mine there are saying that capital gains returns are minimal if at all, and most are considering themselves lucky if they find 5% cash-on-cash return.

@Hamilton Chen if you're looking for appreciation, don't look at Duplexes, Triplexes, or Quadplexes in SoCal. Stick will SFR homes priced around 70% of the market median or less in better areas. Finding these under $300K is gonna be VERY difficult though, especially if it cash flows appropriately. If you can find one, it's probably your best bet.

In San Bernardino there are only 2 duplex units on the market under $300K.  I have not run numbers on either of them and only took a quick look to find those.  Banning/Beaumont adds two more..again I have not looked further than just the list price.

Hamilton,

Your price range is very limited in the Coachella Valley.  Here's what I have found:

Palm Springs:  0 Duplexes on the market, 4 Triplexes ranging from $495,000 to $900,000

Cathedral City:  3 Duplexes on the market ranging from $359,900 to $459,000.  3 Triplexes ranging from $399,000 to $450,000

Rancho Mirage:  No multifamily currently on the market (not surprising)

Palm Desert: No actual duplexes or triplexes currently on the market. There's an SFR with a garage that an agent is trying to market as a potential duplex after the garage is converted, and there's a 2 unit property that needs to be torn down and the agent says a 7 unit property could be built in its place.

Indian Wells:  zero on the market (not surprising)

La Quinta: 1 triplex listed at $949,000.  Zoned for business and residential, located in old town La Quinta. 

Indio:  2 duplex on the market at $230,000 to $265,000 and 2 triplex ranging from $300,000 to $419,900.

Most of these properties DO NOT MAKE SENSE, and many have no information on current rents.  I have run numbers on some of these properties and have found a few that make sense.  They are out there, but are not easy to find.  

You're more than welcome, Gabrielle.  Let me know if I can do anything to help.

@Gabrielle Simmons  It seems you may have some confusion between the difference between a manufactured home, a mobile home, and a modular home.

A manufactured home is a "mobile home" built after June 15, 2976. It has a chassis, more than 320 square feet of living space and is built to federal HUD guidelines. If the home is built prior to June 15, 1976, has a chassis and more than 320 square feet of living space it's a mobile home. These mobile homes only had to meet state standards and each state got to decide what those standards were.

A modular home is built in a controlled factory environment in sections which are then transported to, and erected upon a foundation at the build site.

Palm Canyon Mobile Club is a mobile/manufactured community.  It is possible, though doubtful, that there is a modular home there simply because the homeowner does not own the land, and pays space rent.  Homes in these parks are typically required to be "mobile" so they can be removed from the community should the need arise.

Contrary to popular belief there is a market for mobile/manufactured homes, and this market appreciates and depreciated like any other market.  Mobile/manufactured homes are typically the last to appreciate in value when compared to "stick-built" housing and condos, and they are also the first to see depreciation when the market switches to a buyer's market.  At this time in the Coachella Valley, we are still seeing the appreciation of mobile/manufactured homes.

Now, back to your initial post.  There's no issue with selling a home for sale by owner, but if you want to help her by representing her, you will need at least a Mobile Home Salesperson's license issued by the California Department of Housing and Community Development or a Real Estate Salesperson's license issued by the California Department of Real Estate.  Either license will suffice in allowing you to represent your friend in the sale.  If you are only gathering information for her this becomes a moot point.

Next, If she wants at least $100,000 for the home and it needs approximately $5,000 in repairs, it is highly unlikely an investor will purchase the home.  There's just not enough meat on the bone, especially after considering carrying costs  Depending on the square footage of the home, she may not get the desired $100,000 as there have only been 3 resales of older mobile/manufactured homes in the Palm Canyon Mobile Club over the past year with sales prices of $76,000, $81,500, and $130,00 with the $130,000 home being "highly upgraded".  A proper market analysis would need to be done in order to price the home better.

Lastly, the rent estimate of $1,500 per month needs to be dropped from the conversation completely.  The home is in a mobile/manufactured home park and the new owner would be paying space rent.  The park will not allow the home to be leased or rented as it is considered sub-leasing and is against the park rules and regulations.

Sorry to sound like a pooper, only trying to help.  PM me if I can be of assistance.

@Jason Clark

If your agent is using CAR forms, he/she will want to issue a notice for buyer for perform which gives the buyer 48 hours to put up or shut up.  Then  you can cancel the agreement.  Always read your purchase contract, it will usually answer all your questions.

@Michelle Gallien It is possible to join the MLS and not be a Realtor. They are actually two separate entities. Check with your local Realtor Association about the fees and joining separately. However, if the broker you choose to hang your license with is a Realtor, then you will need to join the local Realtor Association as well and have no choice in the matter.

I've worked with large companies (Re/MAX, Keller Williams) and personally I hated it. I started working with a local broker who owned his own company back in the 90's and have always preferred them. I'm just not a corporate kind of guy. I have also found the local brokers easier to get along with when it comes to investing. The company I currently have my license with does not charge me ANYTHING for properties I purchase for myself. How sweet is that?! I've also found that I can get a higher commission split with a local broker. The nationwide firms will start off new agents usually at 50/50 or 60/40, then they'll also hit you with fees so it's more like a 40/60 or 50/50 when it all works out. The first company I worked with gave me 75/25 with no additional fees (other than E&O insurance) until I reached $50K in income then it went up to 80/20. I would consider a local broker first. One who has an office of 20 or 30 agents is about the right size I think.