All Forum Posts by: Gilbert Dominguez

It does not matter what has transpired up to now.  You have the right to cancel his contract pay him for work completed up to now and end of story. 

Just stop the project and get bids from 5 contractors to finish it. If they are all in line then you may consider proceeding with your original contractor but $315K for 800 sq. ft?

I have been contracting for over 30 years in one of the world's most expensive markets and I have never heard of such a high price. 

Snap out of it and open your eyes. You are being charged retail price on a per square foot basis. Something is definitely fishy about your architect and the relationship he has with his suggested contractors. 

I would definitely put the brakes on and check with other contractors , not someone recommended by your Architect that is for sure. 

At least give yourself a chance to verify things on your own before just accepting to be gauged. 

I did mention you could go this way by waiting for appreciation. This is a good thing if in fact you experience the so called appreciation. Its just generally not a good idea to depend on something that may never happen or how about if the market actually drops?

Wishful thinking has generally sunken for folks than I care to think about. 

You know the saying high risks = high rewards

Low risks = low rewards

If you want to be a high roller then roll the dice but for the most part and for most people it is generally more prudent to have a risk management strategy in place. 

You are implying that infant returns are reliable and operating at negative cash flow is just something to ," never mind" what if in your 3rd year of owning this property you loss 30% of your renters, a strong wind blows the roof off of your building? Your carrying cost jumps from  $20K to $300K?

If what you say is reliable we would all be millionaires and real estate investing would be perceived as a risk free investment . Possible? maybe. Reliable ? No. 

There are certain times and certain markets where appreciation happens but do not count on it. Everything looks good on paper. Heck on paper I have become a billionaire and all my deals 100% have been fantastic. 

@Erica Nagle,

Well I would say what you are doing now is one way of knowing how to go about it. Have contact with others in your same situation. A blanket loan has been suggested. Commercial lending, a portfolio lender is another. 

I am trying a new way for me and that is to start a syndication and contract a specialty firm that does the actual solicitation of other investors. Its all new to me but there are ways to accomplish what we want or need. We just have to start asking around. It might take a while but sooner or later we will find what we need. 

The internet is great for digging, keep digging you may just find what fits right up your alley. 

Yes, I have been contacted by several wholesalers by phone and by email. I also only remember providing such information only here on BP. Apparently BP does make such information available to PRO members I believe. Its no biggy I just take it as  part of going along with the BP community. 

"Of course. Would you give me an example of a start up investor? The typical investors with $30k-$50k in savings have no business investing out of state."

@Account Closed

"If you live in the Bay Area/San Jose and you don't have a way to rustle up $50k to pay 5% down to buy a 4 plex... You need to check your pulse. The economy is insane. Receptionists make $50 hr and new college grads are making $165k. Bartenders make 6 figures in SF. There are plenty of people still making money on small multi family properties in the Bay Area. You can make excuses but there are people making it work. "

Its not a matter of making excuses but point out exactly how you can make the San Francisco Bay Area real estate market work for you and Joe, your comments are a little bit more constructive than saying you are the top 1%. 

I just looked at a house in Los Gatos a total fixer upper, almost a complete tear down which costs $1.4M to purchase, repairs are $700K and ARV will be between $4M and $6M depending on the improvements made. This is considered an entry point into a certain level of real estate market but certainly it is not something the average real estate investor around the country can do I would think. This also does not mean I will do this deal but it is there and someone is going to do it.

How could someone with little money make themselves a part of this deal? I will tell you one way. Look around for these types of situations and then see if there is a chance for you to lease a part of such a building. In the example above one person thought to get a lease of a legal apartment on the property within the main building now the person buying it is offering them $120K to buy off their lease and get them out so they can do the rehab. This is an example of how one could make themselves part of the San Francisco Bay Area real estate market with not much money. 

This is what I was after you guys providing others not telling them they have no business here or bragging about you being the at the top of the world. 

Anyway thanks for your comments. I am sure we all appreciate your contribution to our community. 

Completely empty the water lines. At the main install an air gauge. One that comes with a meter. Fill the line with air and observe the gauge. If you are losing air pressure then you have a leak somewhere. If your gauge remains steady then the problem in on the supply side. This will at least establish if the leak is on you or on the city, Before you spend big money. 

@Aaron Crow

Beings that you are in Texas and not California I would be looking for NOI of $1,600.00 X 12 not gross rents. A cap of 4.7% using the 50% rule seem skimpy for Texas but maybe I am wrong. If you were in California I would say are you lucky to get a 4.7% cap but then again I would also expect a much much higher price point.

I guess that is what makes real estate so interesting when comparing one area with another. 

I am not interested Minh. I am into commercial building now . However if you can show start up investors how they can get going in the San Francisco Bay Area that would be of benefit I think.

I will ask again. Are there deals start up investors can do?

Are you buying the house as is? You said you are financing the house. will your lender accept giving your a mortgage on a house with defects or major repair needed? That would be what I would worry about because if its my lender's decision that I too would not be able to accept the house in its present condition.