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All Forum Posts by: Greg Lieberman

Greg Lieberman has started 0 posts and replied 19 times.

Post: Looking to invest in Sacramento Duplex - Beginner Tips

Greg LiebermanPosted
  • Real Estate Agent
  • Roseville, CA
  • Posts 21
  • Votes 12

Hey Brian! I am an agent in Sacramento and have worked with many investors such as yourself. Some costs to account for at acquisition: down payment, closing costs and moving costs (if needed). Down payments are typically about 3% for an FHA loan, or as low as 5% down for a conventional loan.

Closing costs are generally 2-3% of the purchase price.  There are a lot of variables to calculate this.  One of the big ones is the front loading of property taxes.  The title/escrow companies have tools to help calculate it, but 2-3% is a fair rule of thumb in our market.

So if you bought a home that was $500k... 5% down conventional loan is $25,000.  3% for closing costs is an additional $15,000.  For a total of $40,000 cash needed to acquire the property.

Sacramento is a very aggressive market where we commonly see multiple offers, homes getting in contract in less than a week and they end up selling for roughly 10% over the list price.  So to win the bidding war, you need a strong offer.

Ways to write a strong offer: (1.) Use a conventional loan vs. FHA loan. (2.) The faster you can close, the stronger you look (the lender I use closes conventional loans 15 days and it is a super smooth process). (3.) Shorten the contingency periods (inspection, appraisal and loan). (4.) Increase your earnest money deposit (EMD) (5.) Offer an appraisal gap

Appraisal gap: This is where you pay cash to offset a low appraisal.  If you write an offer for $500k, but the appraisal comes back at $480k, then you have to pay $20k cash to bridge the gap between what the lender will let you borrow and the offered purchase price.  This is essentially an extra $20k you would need to buy the property in this scenario.  Having limited funds will certainly prevent you from offering an appraisal gap, which will make buying in this already aggressive market more difficult.  However, there are strategies to bypass a lot of those headaches in this market.  

The very short version of one of the strategies is to target properties that have higher days on market (DOM).  If a Seller has been sitting on the market for 25 days, they have realized that there will not be a bidding war for their home, which moves some leverage to you as the buyer.  Which in this market if very hard to come by!

Post: HOUSE HACKING IN SACRAMENTO

Greg LiebermanPosted
  • Real Estate Agent
  • Roseville, CA
  • Posts 21
  • Votes 12

@Mitchell Jacobs

It’s going to be awesome! I love learning from these guys! I’ll be there!

Post: Property manager in Rocklin, California

Greg LiebermanPosted
  • Real Estate Agent
  • Roseville, CA
  • Posts 21
  • Votes 12

I haven't personally used these guys, but I ran them through a 3 page interview and I liked what they had to say.

https://www.viennapm.com 

Post: House Hack Multi-Family in LA or NJ?

Greg LiebermanPosted
  • Real Estate Agent
  • Roseville, CA
  • Posts 21
  • Votes 12

@Hengky Lim

You mentioned Roseville (Sacramento suburb). I can’t comment much on the other areas, but I have lived in Rosevile for 25 years. The market has been pretty crazy this quarter. The whole Sacramento region has sold more homes this quarter in 2020 then the same quarter last year in 2019. However, there had been less than half the inventory. Inventory is as low as 20 days in some areas.

Anyway, I’m local in Roseville and have a fair amount of insight. I was a police officer here before I got into real estate and my wife also worked for the city and did work on the different Mello-Roos districts.

Happy to help if anybody has questions!

Post: Rent or sell? Roseville California

Greg LiebermanPosted
  • Real Estate Agent
  • Roseville, CA
  • Posts 21
  • Votes 12

Hi Kristine!  I agree with Dan.  The rent to value ratio is too low for my liking and the return on equity is almost the same at 0.8%  Another option would be to try and refi some cash out, but then you would have negative returns.  I think you're better off selling, keeping some cash for your next home (where you can house hack again) and deploying the rest to another property (most likely in a different market).

If you want to stay in Roseville, I am working on a seller carry 4-plex deal near old town.  If you guys are looking to house hack again, let me know.

Post: Seeking motivated friends!

Greg LiebermanPosted
  • Real Estate Agent
  • Roseville, CA
  • Posts 21
  • Votes 12

Hi Kylee!  I am a realtor here in Roseville/Rocklin.  I am actually chasing down a lead for a guy who owns 6 pretty beat up rental properties in Roseville and I have flipped one house with my buddy in East Sacramento.  If you guys are interested in networking or working on a project together, just say the word!

Post: What is your favorite quote??

Greg LiebermanPosted
  • Real Estate Agent
  • Roseville, CA
  • Posts 21
  • Votes 12

“Any man is educated who knows where to get knowledge when he needs it. And how to organize that knowledge into definite plans of action.”

-Napoleon Hill

Think and Grow Rich

Chapter five

“Our actions define our legacy.”

Star Wars: The Clone Wars

S4:E10

Post: My Story of being scammed by Morris Invest and Oceanpointe

Greg LiebermanPosted
  • Real Estate Agent
  • Roseville, CA
  • Posts 21
  • Votes 12

Thank you for sharing.  We appreciate you (and others) for giving the rest of us a heads up!

@Mel Hignell

I'm glad "the initial shock has worn off a bit."  Regarding any potential legal action, I come from a law enforcement background, so I am trying to look at it from a criminal and civil law issue.  

For criminal, you would need someone to be the "victim" (like your neighbor).  I'm thinking something along the lines of indecent exposure, etc.  He would need to be the one to file with the local law enforcement agency.

For civil law, I am not as well versed.  But I imagine there would need to be some sort of violation of agreement.  Maybe reach out to an entertainment attorney and see what they think?