All Forum Posts by: Rachael Collins

Hello @Ryan Randalls.

I would exercise extreme caution as a new investor regarding adding on to a house. Converting existing space  is much less costly, stressful, time consuming, etc. I have done additions (added a full second story), but we did all the work ourselves (in construction for 30 years), and it really takes some patience and time, not to mention funds - especially on those old houses up here. Also, be very diligent about finding a contractor if you are going to use one, and as @Sanjeev Advani indicates above, make sure you add in overages and do your homework. Also, I would find out the process required by the Kern County Building Department before you even look at taking the project on. Sometimes you find that there are special circumstances (zoning/previous work done, etc) for additions , or these rural areas - Frazier has properties that have some questionable construction-lots of illegal conversions and additions that you will be accountable for bringing up to code once you own it. It would be a hard knock to find out half way through. All that said, because the Mountain Communities have properties at reasonable prices, there is certainly money to be made once you get in the flow!

Best of luck!

Hello @Ryan Randalls

I don't have any experience with lease options, but you should make sure you really do your homework regarding the subject, unless you have experience in the past with LO's. Frazier Park may offer some unique challenges since the pool of renters/buyers is so limited. With that said, there are definitely people looking to rent or buy in FP that are moving from more affluent areas (Ventura/LA/Santa Clarita), and willing to commute so they can enjoy the benefits of the mountain (fresh air/natural surroundings/affordable housing).

Glad you could join us  Walter! Tons to learn at BP. The meetup mentioned by @Gene Hacker is a good one. Plenty of like minded people with resources, information, opportunities, and goodwill to share. Look forward to meeting you and best of fortune on your current deal!

@Gene Hacker   Lower square footage could also factor in. I think most occupant buyers are wary of getting out of their comfort zone -existing or new construction - and builders may well be building to suit this need for those that are looking to buy new. 

@Ashton Sharp I just realized that not knowing where your property is located, you may need to speak to the City of Bakersfield Building Dept rather than Kern County Building Dept. I just wanted to be sure you weren't misdirected. :-) 

@Ashton Sharp - I agree wholeheartedly with @Jim Adrian! Your best bet is to make a trip to the Public Services Building downtown and speak to the Building Department Counter. The permit techs over here should be able to give you the low down on what they will require and help you avoid wasting a ton of time, effort, and money. That's what they are there for!! You may find that there are less requirements in some areas and more in others than you thought. The international building code makes the rules, so I would certainly find out what they are before I started.  Best of Luck!!

@Chris Mason Wow! I just checked out your link to overlays - no joke - I guess they can really do whatever they want to try and make sure the loan will be repaid. You have responded previously to my inquiries regarding this property and I really appreciate it.  We certainly have our hands full with a refi on this type of property.  Thanks again!!

@Chris Mason Thanks for that tip!!  I am not familiar with overlays - I will check out your link to get more info. Lending has so many facets.

@Shaun Weekes - Great advice- I will look into having WF order a payoff to verify our timely payments.

@Stephanie Medellin - I am not sure how they are interpreting the payment due date. We had the title company create the promissory note and they put the date of closing as the due date on the loan. It closed on the 26th, so that's what they input. I guess this is a lesson for me - first of the month should always be the due date so as to keep in line with the rules of conventional lending. I said the same thing - how can you say I was 30 days late when I was not. The loan officer simply said "that is how they are going to interpret it" - crazy!

@Derek Carroll Yes, that's exactly what they are doing - questioning approval because we missed the date. I will check to see if there is a written grace period with our private lender. Thank you!!

I am working on a  refi for my primary residence. It's a rural property (20acres) and we bought it with private money. In providing mortgage payment verification to Wells Fargo they are telling me that checks dated one day after the due date is considered the same as 30 days late. The payment is due on the 26th,  so I wondered if the few checks dated the first or second of the next month made them think it was thirty days based on a due date of the first of the previous month.  However, as indicated above they said one day is the same as 30 days late.  Is this normal, or legal? I know loan requirements are strict, but this seems excessive.  Thanks-

Hello @Ashton Sharp,

It sounds like you certainly have the REI bug! I understand the desire to be working daily in a field related to RE rather than whatever field you currently work in. As a 9-5 er, I have the same thoughts myself. However, as I have told myself countless times, it is counterproductive and a wasted redirection of energy to concentrate on changing your source of daily income to meet your desire to be involved in the RE community. Truthfully, most RE jobs, don't have much to do with investing, (I think only about 20% of RE agents invest). I am thinking of getting my RE licencse again (had it in AZ when I lived there), but would not want to be an agent this time, I would use it solely to enhance investing. Also, once you start a new job, you will have quite a bit to learn. That will be another drain of your time and energy that will hijack your REI efforts. A much more productive path, I believe, is to be the best employee you can while you are at your current job and keep that W-2 income flowing while you use BP and local networking opportunities to meet those that are already out there doing it and to get your first deal happening. The W-2 income is insurance to increase your chances of acquiring lending, I have not found a better source of information to be had ANYWHERE than BP, and local networking is priceless. There is a meetup the third Thursday of each month here in Bako hosted by Gene Hacker. You can find it on the community tab, networking events for Bakersfield.

Good luck!!