All Forum Posts by: Jan H.

What does your lease say about Abandonment’? All my leases have a specific clause about this, basically saying that if they abandon the property, the lease is void and landlord can take possession. Not sure about OH law , but I would follow the lease terms and make sure you understand the local laws which -as others stated- your PM should know well.

@Michael Simmonds, congrats! 

Check out NARPM.org and IREM.org. These two organizations certify PMs and usually these PMs are better as they are held to a higher standard. 

Just curious: have you flown out there to look at areas? I am also in the process of doing OOS investing but I would like to line up PMs before I get a deal.

Also, @James Wise is very experienced in Cleveland and has a large PM company.

My parter and I will be in Columbus and Cleveland on June 7-9. We're looking to network with RE professionals: Agents, both RE and Mortgage brokers, PMs, contractors etc.

Our primary goal is to start with a few 2-4 unit properties and get into larger multi-family units shortly after.

If you are in Cleveland or Columbus and would like to do business with us from CA then let's connect.

We have never been to OH, but looking forward to get to know the area. We started to work with a local RE agent in the Columbus area but open to meet others as well.

Thanks!

@Account Closed

Thanks @Arlen Chou for the explanation! I was thinking the same thing and questioned the collateral. One of the partners in the deal is a very experienced developer actually, which is a major plus. They wanted to go with a JV as -apparently- the tax implications are different vs. a loan. I haven't done enough DD to confirm this. Anyhow, decided not to partner as it's more risk than I am wanted to take, would have done it with a 1st lean position. Thanks a lot for the responses!

@Arlen Chou thanks for the feedback! You are absolutely right: I would not do this without a sizable collateral. I am just curious: what kind of collateral did you get when you did it? Were you in 1st lien position?

I would appreciate any insight or advice any experienced flipper can give me on this.

My mortgage broker friend called me today with a potential opportunity to get in on a flip. 

Property is in Berkeley Hills, two story with the bottom part of the house if not a permitted conversion.

It's currently a 2/1.5, Purchase price is $1M, est. rehab is $250-$300k, ARV is $1.6M. Part of the play is to legalize the bottom part of the house, adding one bed + 1 bath hence increasing sqf. He is raising enough money to buy the property for cash and rehab it.

I do not have the full details yet but wanted to get some insight how these deals are done as there will be multiple cash investors in it.

He wants $150k in the deal from me for 3 months for a 10% return. After the 3rd month, the plan is to refi the house with private money (?) and pay me back. I have never heard of doing this and not sure if this is something that can be done? The project would take 6-8 months to finish I'm thinking.

What struck me was that this could be purchased with PM for a 10-12% annual rate instead of paying someone 10% for 3 months? 

I do not have millions yet and $150k is a lot of cash so want to understand my exposure which seems great. I will get some more info tomorrow but wanted to see if anyone can point me how these deals are usually done?
Thanks!

Check out IREM.org, you can search by specific areas. Organizations certified by IREM tend to be better. Be careful with any of them though, ALWAYS ask for references. I would also talk to tenants in units that they manage.

You have to go by the agreement both parties have signed. If you have them 30 days and the time isn’t up yet, you have to wait. Just because they said they might not need the 30 days, doesn’t meant they won’t. If they do not leave after 30 days you can serve them with a 3-day Notice to move out and you can file for eviction. If they paid a deposit you have to be careful how and what you deduct as there are very specific rules for that.

@Matt Hardy- I am curious: how do you get to those 65%-150% Annualized Total Return figures in Years 1 and 2? Are you taking 10%+ annual rate of appreciation into account?