All Forum Posts by: Drew Pak

Hello BP community, I just completed my second flip and it's been listed and we already have several offers above asking. 

I have been looking through the MLS and trying to find wholesaler that can provide deals. However the MLS is pretty much dry and the wholesaler I have been able to find are only giving deals that they don't want to flip themselves. Low margin left on the ARV (after repair value).

I was hoping if people could recommend where to find good wholesalers , or alternatives to MLS deals as I build out my flipping business.

@Andrew Johnson @Carrianne Mucho @Branden Smith @Joseph Hennis  @Steven Walford   Thanks all for the helpful comments and advice. 

The majority of my properties are actually paid off in my sacramento portfolio, so interest rates are not a huge factor, and obviously cash flow positive at this point. I aggressively paid down debt as I still have my 9-5 and wanted to have ability to tap this properties for lines later on down the line. 

My thought was to 1031 up to larger properties (multi-plex or mix used commerical) as these properties if sold would give me 2-3X on my initial investments not including rental incomes. Take some money off the table to say as my investments are 70% invested in real estate 20% in stocks and 10%  in cash. 

Personally California multi-plex yields are much lower than I would require to make the move given the step up in taxes and lower yields. I had considered out of state properties, but a not fully experienced in managing an out of state foot print. I have moved to flips versus buy and holds because of the low yields in CA. 

Hello all wondering if anyone has purchased a property that has been subject to asset forfeiture laws .  I am considering buying a property that might have been used to sell drugs out of and the owners are being forced to sell. What risk do I run if buying such a property and how can I search to see if there are any issues on this

Hello all, I was wondering if anyone has thoughts on the status of the Sacramento Real Estate market. I have several single family homes bought between 2009-2013 and and wondering if the market is topping and if it would be time to exit the properties and wait for the next cycle or if we believe that this is just the start of the continued growth as the Bay area becomes out of reach for the average worker. 

@Diane G. Expansion happens in 1,5,10,30,60 mile radius. 

So as San Francisco expanded and people became priced out they moved (5 miles ) away to Oakland, Hayward, Redwood etc. As those cities became more expense people moved to Vallejo and even to Sacramento. As San Francisco pulls back then other cities will pull back. Similar to the ocean, as the tide rise, it rises all boats, when it recedes all boats sink again. 

@Diane G. There is a glut of high end rental properties in the market currently. Our rents have come down significantly as well and areas in the traditional well to do areas have seen rental prices come down as the SOMA , dog patch and  3rd street condo projects have been completed. High end condo sales have cooled significantly as well and developers are loosing up restrictions on the own to rental mix. This is causing a lot of the softness that you are see. 

Along with the VC & other capital starting to become more costly we should see a stabilization and softening in the rental markets over the next few years. 

Thanks all for the very helpful insight on where to invest. We have made small investments in Charlotte NC since then that are yielding solid, but not great returns. 

Hello, a business partner and I are looking to start a real estate investment club that focuses on bringing undervalued properties up to par and then either renting them out or flipping them. We would like this to eventually replace our 9-5 income within 3 years. So we will need to ramp up quickly in order for this to be accomplished. 

We have committed 50K each to this project, but being from San Francisco, that doesn't go very far. We are looking for CAP Rates of between 8-12 , and would love some advice on what areas people are looking at to find yield like that? Or projects that might be available to rehabs.

Cheers

I have leased up properties where I have inherited tenants. 

I take a two staged approach normally depending on the landlord you want to be. 

1) Determine the "quality" of your tenants.  Are they paying on time, not causing issues and overall taking care of the unit. 

2) Determine the updates that need to be done to the units or the exterior. (ask the tenants what would make their living conditions better) This would be stated that we are going to be making improvements to the units and that once they are completed then we will be raising the rents slightly to adjust for the changes. 

3) Communicate to tenants and show them their alternatives (normally if you are at or close to market then the hassle of them moving will not will not be worth the 50-100 dollars extra that you are planning to charge) 

Thanks guys that's awesome advice I will check them out. I didn't think about craigslist for materials. I have bought fridges and ranges on their for my rentals but not materials.