All Forum Posts by: John McCombs

CA may have dropped out of first place in foreclosures according to our local paper. The Homeowner Bill of Rights, which took effect on january 1, may be partially responsible. BP investors are out on the cutting edge of purchasing, so I thought that I would ask CA investors about the extent to which you anticipate that this law will impact your purchasing in 2013? I'll try to post the link... http://blog.pe.com/real-estate/2013/02/15/real-estate-will-the-big-drop-in-foreclosure-ricochet/

My friend, Jose Antonio Sanchez, manages the rehabs of flips for an investor. He has a crew of guys ready to work. [REMOVED]. I have persoannaly been to his projects - he can control costs and keep the project on schedule. As a realtor also, he can list for sale as needed.

Armando, it sounds like you are planning to transition back into a career that you have prepared yourself well for and in which you have a great foundation to achieve your dreams. I'm in Riverside also, and will look forward to our paths crossing some day. Cheers!

If you have experience with or the interest in managing a rehab, then instead of flipping, buy, rehab and hold. Based on what you have shared it would seem like the best of both options that you are considering. If you are willing to take on a rehab and can control the costs, you are more likely to find a house that you "buy right" which, in the long run, is where you will make money since you are not planning to use leverage.

My Realtor gets my out of state properties leased and then backs out. He is a RE investor too with his own properties and always can give referrals for local trades. It sounds to me like with all the frustration you feel with with him, you might as well look for a realtor, manage the property yourself, and kiss the full mailbox goodbye!

Everyone knows a dozen realtors, and the all want business, right?! I recently visited a flip in progress in Corona that my friend, Jose Antonio Sancez, Prudential Realty, is managing. His strategy is to scour the listings, cruch the numbers, present his "finds" to his investor, manage the rehab, and the market the property for sale. He basically makes a commission on the front and back but manages the rehab w/o a fee, keeping his crew of workers as busy as possible. His strategy may not be what you are looking for, but he is smart, works hard and can show you a proven track record of his flips.

There are a lot of banks that have a variety of programs and parameters. Make a lot of calls and ask a lot of questions. You may want to consider looking for a loan on one building to pay for the design, then you can get bids and pull permits. Next look for the loan on the second property to fund the construction on the new building.

Niki,
I have SFRs in Fort Worth and the numbers look good to me, but I would ask more questions: Is there an inspection report? Are there foundation problems? I have had foundation repairs on my properties that cause plumbing issues that cause structural issues, etc. I would say that the finder's fee may not be the biggest cost- but if your going to have a middle man, make him work for it. Have him get a foundation repair estimate and take enough picture that will leave no doubt about the condition before you go any farther. MBR foundation repair- Lance Boyer, is the best foundation guy in FW, IMHO. Rents look good (not great)to me but I wouldn't budge until you see an inspection report and a foundation bid.

Based on your research in your market, with your goals and your criterion, it makes sense, right? Yes, you may be able to negotiate the price down, but you can also consider what value you can add to the property- all tenants are on MtM? If the units can be improved, increase rents and/or look for longer term leases, you may increase gross rent. If you manage them yourself, will this decrease costs? Also consider the value of your customer service that could be a factor in increasing monthly casflow. You have researched your area for a long time, so trust your research.

My experiences in two different college towns have been that the towns make good places for REI, but college students do not usually make great tenants. My recommendation is to be close to good job markets in college towns, but don't invest in RE that would likely attract college students for tenants unless you want turnover, trash left behind, and calls from the neighbors. Just my opinion...