All Forum Posts by: Janelle K. Eagle

BRIEFLY Introduce yourself as a neighbor and share a bit about why you chose to enter real estate. Then focus on all the ways that you can help that are NOT just buying/selling houses. You can advise them on setting up a trust, hiring a handyman or contractor, the best ways to add value to their home, how they get rebates on appliance upgrades, and many more! You should position yourself as a CATCH ALL resource and expert in Real Estate that is right in their neighborhood! 

Hi @Jaudon Smith - I have had a huge increase in seller leads using a startup company that posts ads for folks looking for custom home valuations. They have their own CRM, smart number, and an entire accountability and training program. It's been worth every penny! PM me if you want more info. This is not my company, so it's honestly just coming from personal experience. 

Hi @Joseph - I have been working with a client in foreclosure myself and very regularly am on the call with his lender/servicing company. If your client has added you as an authorized user, I suggest CALLING the servicing company and asking them for options. Explain the situation and what attempts he is making to reinstate the balance and/or get it sold. I was able to get my client an extension as he had an offer in hand to sell. He also got an extension due to recent weather events here in California and another due to COVID hardships. Best of luck! 

When I saw Jonathan's post in the Bigger Pockets forums, I was compelled to reach out. He had met a neighbor at an open house who teased the opportunity to purchase his home off market - THE DREAM! Jonathan was looking for someone guidance on how to potentially structure a seller-financed purchase of a large home (5+) bedrooms near San Luis Obispo's prestigious Cal Poly University - a great house hacking opportunity! The property featured a large amount of deferred maintenance and unfortunately... an owner who drastically overvalued the home. Together, Jonathan and I exhausted ourselves attempting to navigate a potential deal with this seller. When it became clear it was never going to happen under terms that were even remotely realistic - WE MOVED ON. 

Having subsequently built a strong rapport (the best part of the Bigger Pockets community!!), I was honored to have the opportunity to represent Jonathan as he continued his pursuit of another investment property. We were pleased to see a duplex in SLO's historic district that had recently had a massive ($75K+) price reduction. Perfectly located within walking distance of the popular local Amtrak station and well-designed as two mirrored 1bedroom units, it seemed to be the perfect HOUSE HACK. It had been on the market for a while and every investor or investor-friendly agent in the area had had their eye on it. It had  been sitting for a while because it came with some major problems:

1. Large amounts of deferred maintenance

2. Two BRAND NEW leases that locked in the tenants for a full year at BELOW market rates

We nonetheless saw the potential, especially given the reduced asking price. Ultimately, we were able to get the property under contract. The escrow was a bit tumultuous as the due diligence period revealed quite a bit of big ticket items that needed repair (Roof! Foundation!) and the lending journey was complicated by a fun thing called BIT COIN. Free advice: If you're going to purchase a property using any crypto currency, liquidate it at least TWO months before applying for a loan! 

It seemed this duplex simply did not WANT to get sold. When the appraisal come back at well above the purchase price, we had assurance that this indeed the great investment that we envisioned and also worth all the hassle. Thankfully, we were ultimately able to make the math work by requesting a LARGE credit at closing. We made the case by producing the invoices and bids from multiple contractors and were also fortunate that the sellers were themselves in another escrow and were extremely motivated to get the deal done. 

The large credit at closing also afforded Jonathan the opportunity to have extra cash on hand to cover some of the much-needed repairs and also offer CASH FOR KEYS to the existing tenants to incentivize them to leave early.

This is what I love about real estate and about investing. I got to work with a savvy buyer and a rockstar investor-friendly lender to get the deal done and I couldn't be happier for my client and fellow BP'er!  

Hey 👋 @Ryan Cousins! There is a lot of relocation happening here to SLO from the Bay and SoCal. My family and I got here about three years ago (moved closer to family), and I have since worked with many couples who have found their way here for either a primary or investment property.

SLO is a great place to buy because prices (comparatively) are lower, quality of life is much higher- and yes as someone else noted- slower, but there is high demand for LTR, MTR, and STR year round because of the weather, colleges, three hospitals, and tourism.

If I can be of any assistance to you in getting a clear “buy box,” please let me know. I would be happy to help!

Hi @Jonathan Olcott - I’m a local investor And Realtor here in SLO. I own a rental near Poly and understand the potential value of a deal like this. Congrats on finding a great lead. 

I am curious why owner wants to sell off market. If he feels market value is $1.2MM, why would he sell for $200K under this? Even if he was trying to avoid paying a commission, that's a big gap. Also - I have a hard time believing anyone who is naming their own price when selling an investment property. Getting a strong CMA is highly recommended.

Does he just want the mortgage out of his name? Not want to be a landlord? Carry the risk? It’s just a little fishy that he would be willing to hand over a deal like this if he basically will net the same amount each month.

Does he want to stay living in it after sale? looking for a new opportunity? Any sense of his motivation?

Also - if I can be of help locally, please don’t hesitate to reach out. 

Hi @Laurin Wilson (and shout out to @Jill DeWit above as well) for being fellow LADY INVESTORS! I love love love to hear your ambition and commitment. You will hear (and clearly have already in this chain) all the reasons NOT to invest and all the ways it is HARD. And those with hesitation are not wrong. 

What I want to gift to you is that your ambition and passion matter A LOT. Your journey becomes about getting educated and confident - because in good news you already have the means. $100K is a lot more than many others have started with. 

Love the house-hacking suggestion. You could also become a hard money lender. You could buy securities in a 1031 exchange. Or put money into an REIT. You could certainly buy outside of San Diego and do remote investing. There are LOTS of options that can take you step by step closer to your goal.

If you haven't already checked out the Bigger Pockets Rookie podcast, that is a great place to start to build your understanding of the various option and trust your gut on which way it's pushing you. 

Best of luck! I'm always here if you need a cheerleader!!

So incredibly proud of and happy for you to reach this milestone. You certainly have worked harder and longer than most could ever fathom, and have sacrificed so much to achieve this dream! Bravo, friend!!!

Hi Amanda! Love the brainstorm you are doing and congrats on getting connected to a spouse that is willing to support that vision with you!

In my opinion, as a fellow realtor/investor, it all comes down to the "cost of money." For every month that you have borrowed funds in use, you are obviously paying interest. I would do your best guess budget of what it would cost to do BOTH the ADU and the Main Home upgrades - and then add 20% contingency, and then ALSO calculate your carrying costs on the loan(s) over the period of time you think it's going to take. Factor in a 3month+ cushion as things always take longer than expected during construction and/or getting paying tenants placed.

In my personal opinion, I wouldn't do the cash out refi until you have ALL updated repairs and upgrades completed to maximize the valuation of the home and to pay yourselves back for as much as possible that you've already spent.

Keep records of the amount of income that is generated by the ADU (or the main home), and /or get your hands on similar listings in the area that can help quantify the potential income. All of that will be crucial for the valuation.

Hope this helps! 

Just PM'd you - I went through (and am going through) BRRRR'ing a property in SLO. Would be happy to share some of the things I learned about financing, reno, and structuring the deals along the way!