All Forum Posts by: Joseph M.

@Ely Kavon , thanks for sharing. How did you finance the purchase of the property? When you refinanced did the property appraise for more than you invested after the cost of the ADU? How long did the ADU take to build? What are the rents for each units? cost of the mortgage and your other expenses ?

Any lessons learned? Would you do this type of deal again (buy a SFH and add an ADU for buy and hold)

@Chen Zhou , thanks for your post. Rents sound to be pretty decent if can be bought around that price. I definitely like the idea of investing on the fringe areas that are close to hot areas. 

That is great they are helping you in that way. That makes sense to focus on lighter rehab especially from a distance and starting in a new market. Best of luck and look forward to hearing more about the progress.

Thanks for sharing @Chen Zhou , would you mind sharing the numbers on the deal or perhaps numbers on similar deals?

I know when I looked at the market a while back those downtown neighborhoods (Corktown,etc) were pretty expensive as they were already hip, but nearby areas did seem much cheaper.

Which neighborhood are you buying in?

Will your realtor team be helping you with rehab (if rehab needed) , finding a property manager,etc? 

@Jerry Maggiore

Possibly wholesaling , but it’s not as easy as the gurus claim .

A crowdfunding type side like fundrise etc

Flipping cheaper lots of land

@Parsa Izadpanah

Commissions are negotiable and splits are all over the place .

Some brokerages take 50% for example .. some pay 100% ( 100% commission brokers they call themselves usually ) but then have a transaction fee .

@Parsa Izadpanah

If you google real estate license and your state you will most likely find several schools .

You don’t need a license to invest . Some brokerages actually aren’t too investor friendly so you’ll want to make it clear what you intend to do and see if their policy allows it .

The state might allow something ... but brokerages make their own policy .

@Mike Lock

Yes seems to be usually for rentals over 30 days. I don’t have experience doing it but it seems like it could be a good strategy for markets that are tough to cash flow .

What some in L.A are doing is partnering with landlords rather than buying the units .

Here is an article if you are interested

https://www.latimes.com/business/la-fi-corporate-housing-rent-control-20190610-story.html

@Mike Lock

I’m not too familiar with the Boston market , I just hear it is expensive . How far out are you looking ?

Maybe expand your search 1-2 hours away ?

Perhaps look into turning units into furnished corporate rentals where you can charge considerably more than an average apartment ?

@Corey Samuelson

It’s not too difficult or expensive to get the license.

There are yearly ongoing costs though . Many brokerages have some kind of monthly fee even if they are a “100% commission “ broker , then association dues too you are looking at a couple thousand a year on the low end .

But commission from even one deal in Southern California is likely to pay for several years of fees.

You’ll also want to hang your license with an investor friendly brokerage . Some brokers aren’t too fond of agents that invest and view it as a potential liability.

 I find it funny/ironic in a way that Grant Cardone seems to be really popular in the real estate industry , but he is constantly telling his audience not to buy a home and that it's such a stupid thing to do. I've heard him say that unless you have $5 million you shouldn't think of buying a home to live in. Pretty crazy advice, but part of his thing is to be controversial I guess. His idea is that if you are young you should be moving around the country every couple years for the best opportunity , some people do that but most don't. 

He owns or syndicates a lot of multi family so of course it's in his interest for younger people to be renters...and of course take advantage of putting their savings into his syndication fund!  

I think he has some good things to say about thinking bigger , but some things he says are just ridiculous. Robert Kiyosaki is like that also. I heard him say on a recent interview the next financial crisis will be like "auschwitz"  I was like really??

Both super successful and rich guys but they say some crazy stuff.