All Forum Posts by: Jacob Ortiz

Hey Scott,

What leads are you trying to cold call ? ex. FSBO,FRBO,Expired , Circle Prospecting , Absentee Owners ?

I use Vulcan7 to get all my data . They are pricey but they have everything you need if you want to grind on cold calling

@Mike Smith

I really appreciate your advice . Definitely would not want to be making high interest payments on a asset that's not producing income yet . 

I'm really curious with performing the lot split under SB9 . How will my lender take me Splitting off the land? Do they have to be notified ?

If so I wonder what the process looks like to get my first mortgage holder to release the 60% of the land I need to split off.

Knowing now that the bank will count the separate parcel as equity that's good news . 

You are correct about getting an equity partner. Need to look further for the connections out here . 

@Account Closed 

Thank you for the heads up on the Habitat Study and fire Department . Definitely will make that call to the fire department . I'm not sure at this moment if I need a Habitat Study Ill have to ask . 

Hey BP community I need your Help & Input  please . 

       I want to take advantage of the new Senate Bill 9 (SB9) in California . With SB9 Cities must allow up to two lots (and up to four homes total) within single-family residential zones without any discretionary review as long as your property . Every city in California is handling this new legislation differently and have their own procedures . Here is the city of riversides FAQ for anyone who wants general information about SB9. 

 SB9 Riverside FAQ's

SB9 Lot Configurations 

      I am a fairly new investor . I currently own a 2 unit property in Riverside, California . The lot is .53 acres and 60% of the land is vacant and the other 40% already has 2 units on it so this is perfect for a lot split . I have already talked to the city planning department and they were extremely helpful . My property passes their pre-clearance and looks like I will be able to perform the subdivision under SB9  . I figure I already own the land why not build on it if the numbers make sense . The plan is to perform an "Urban Lot Split" , subdivide the property 60%-40% and build a Duplex on the new parcel since I will be able to get another address and separate utilities. I am currently talking to a residential land surveyor to  work on a site survey and Parcel Map proposal for me ,  up to the Tentative Parcel Map Approval. 

Here is where I need help . I really need to get an estimate on what it would cost to build a duplex on my property. I have the funds to perform the urban lot split and pay an architect for plans . To finance building the project Ive talked to a couple Hard Money lenders and thinking about doing a second mortgage on the property . Thoughts ? The property is worth around $570k right now and I owe $415K . My estimated ARV with adding the duplex should be 1.2million. Is leveraging my original property to fund building a duplex on the new separate parcel a smart idea?

What do you guys think of this plan ? Open to all ideas . Also just curious if you guys want to follow me along my project I will keep posting along the way . 

Hey David , 

I own .5 acres in Riverside Ca . Half of the lot is completely empty and can easily have 2 units built on it . Curious what the process is for SB9. My property already has a SFR and detached ADU . Thinking about heading down to city planning department and see if I qualify .

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $490,000
Cash invested: $80,000

First Investment Property in Riverside CA . This is a 2 unit rental that cashflows $1,000 per month . This is a 1/2 acre lot with room to build and grow . This area in riverside has huge potential to grow .

What made you interested in investing in this type of deal?

I invested in this deal because I wasn't happy with my career and was looking for a property I could rent out and cashflow to support my life expenses.

How did you find this deal and how did you negotiate it?

Found this deal on the CRMLS . My realtor showed me the property the day it came on the market. Sellers were asking $460,000 . I bid $490,000 with a 30k above appraisal guarantee if the house didn't appraise at purchase price.

How did you finance this deal?

Financed with 15% down , Conventional Loan . 3.1% Interest Rate

How did you add value to the deal?

Built a fence between the both units so that each renter had their own yard space . Updated all windows in large home for better efficiency .Built a patio and artificial turf for smaller unit so that they feel like they aren't just renting a small unit but also a yard and space to call their own .

What was the outcome?

Have both units fully occupied . Mortgage is $2,333 . Rental Income from both units is $3,400. Tenants pay all bills and utilities . Cash Flow $1,000 an month .

Lessons learned? Challenges?

One big lesson I learned is you can get creative with financing . The market was so hot and the inventory was so low I still found a deal and made it work . Deals are out there you just need to be on top of finding them .

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Worked with a Real Estate professional who brought me into the business .