All Forum Posts by: Albert Bui

 Pitfalls were:

- lower appraisals when it came to exiting a BRRRR (take out refi or cash out refinance after the 3rd "R" in BRRR)

- Rents were lower than anticipated

- ARV values not coming in similar to above except it was when I was trying to sell

in western markets there may be different challenges but in knoxville im sure the RV ratios are a lot better even when it comes to MLS deals however in WA state the RV ratio is .4-.6% of the price when looking at it from a monthly gross rent to price perspective so the cash flow typically has to be forced to even get any at all.

 FIBI has multiple chapters near irvine, CA we have one down here as well as long beach and manhattan beach and pasadena. so depending on where you're at in so cal theres probably one near you. 

 Mortgage lending was initially the side hustle  to learn real estate investing and eventually I enjoyed how much I was learning and making so I quit the corporate sales job and went full speed in lending. 

The Advantage was not just a way to earn money for more real estate investing but also the people you meet by specializing in real estate investors. It seems we're talking deals and strategy 24/7 so the learning speed allows for time compression so you dont have to spend 10+ years to learn something you might get to experience in 1-2  years as an example.

@Matthew Kwan

@Carlos Valencia

 Hi Michelle,

It depends on the private lender you're going with some local outfits will not require appraisal as they have their internal metrics, they know the area, and may only do a drive by. Some other private lenders will want an appraisal done to satisfy their guidelines because those products might be sold after origination/funding so you use whatever product you need for the given time frame and project you have and speed you need to get the deal closed.

Typically its 10-30% based on purchase price up to 70% of ARV or after repair value. The lower down payment or higher LTV/leverage/loan to value options are based on folks with "experience."

Typically experience is deemed as 5-10 exits (sales/solds or refinance out of private/hard money) in the last 3 years. Its a very common question, many will ask what is deemed as "experience," to a private lender?

To get that 10% down up to 70% of ARV and the most favorable rates you'll want to be 10+ exits in the last 3 and have typically 6+ months of liquidity or reserves to service all your mortgage payments. This is like having 800+ fico and very low DTI or debt to income ratios for a regular conventional lender with 12 + months of reserves. As a prime lender or A paper or conventional lender, we'd consider this borrower to be prime A+ and the same would be for most private lenders on fix/flip programs.

Each type of lender has different criteria for what they consider to be a prime A+ borrower.

Hope that helps, let me know if any other questions arise on that topic.

@Matthew Kwan

@Carlos Valencia

 me too Ashley but I am a bit biased

Id say to find a location that your heart and head can agree upon as one day it may no longer be your primary residence. The potential in west seattle is higher than shoreline because of seattle proper which gives you pre-approved development plans (ADU's, LR, NR, RSL zonings) and value from a real estate play and appreciation is more directly correlated with the employment markets in the proper city area however rainer valley has great location but it has its stigma. If you were to look at rainier valley and its proximity to the water and lake washington you'd think they value would be higher but its traditionally not. In the long term I think there is merit to rainer valley but short term its tougher.

Shoreline has some ADU allowance but only for owner occupied I believe but you can also get a bit more for your money over there in terms of bedrooms for the $$$.

The folks I've worked with tend to like split level homes that can be separated to create that attached ADU or AADU unit below and sufficiently add a DADU or detached ADU in the back (min lot required 3200 sqft in city of seattle). This doesnt mean they go into it day 1 with that intent but atleast you know you have potential gold lining up on your runway if you so chose to take that plan of action.

The reality is these folks will buy the split level homes and house hack them, rent out rooms, separate lower level for separate rental unit, add bedrooms where feasible, and implement the first stage of the buying and house hacking journey.

The stage 2 will be that DADU in the back which takes a bit more capital and planning to execute.

Hope that helps 

@Matthew Kwan

@Carlos Valencia

Hey Ed,

Im a so cal investor and started out of state from so cal and now im up in seattle and PNW area. Originally it was mainly cashflow investing. Today its arguably an appreciation market only but you can create cashflow by doing forced value adds with heavy lifts, value add's to force cashflow out of it. Even so, its no easy feat.

We have a local real estate social hour in anaheim, CA area monthly. The next one is April 2nd @Carlos Valencia has more details on the event if you'd like to cruise over and network.

@Matthew Kwan

 HI Jonathan,

Im a so cal investor and started out of state from so cal and now im up in seattle and PNW area. Originally it was mainly cashflow investing. Today its arguably an appreciation market only but you can create cashflow by doing forced value adds with heavy lifts, value add's to force cashflow out of it. Even so, its no easy feat.

We have a local real estate social hour in anaheim, CA area monthly. The next one is April 2nd @Carlos Valencia has more details on the event if you'd like to cruise over and network.

@Matthew Kwan

 FIBI is a great meetup love the event they put up and have been going for 10+ years.

 HI Jonthan,

Im local in south OC and invest for cashflow and appreciation (hybrid) however im in an appreciation market (seattle).

We have a local meetup in anaheim area if you're looking to network, meet other investors, and discussion topics, and strategy.

@Matthew Kwan

@Carlos Valencia