All Forum Posts by: Jason Meissner

Hey Michael,

I use 70% there to estimate how much a bank will loan on that rental properties rental earnings. If you have $10,000 in monthly rental gross income established and rolling and you're in a 5 unit property or more (this qualifies the property for commercial loan consideration).  Which I believe is ideal. Normally banks will look at giving you a loan at 70% of the gross rent so here it is $7,000. Then I go look at how much money a $7,000 monthly mortgage payment will get me in cash. With the bigger pockets tools it shows more than $800,000 (20years 5%..). The remaining $3,000 in rental income is for improvements, management, savings, bills...is what the bank is thinking. 

 Rick,

I totally agree! There is no room for poor craftsmanship in getting top dollar for a property. Quality and craftsmenship are never a game or optional. Everywhere you see poor quality work it is an IMMEDIATE and justified RED FLAG. Cheap faucets, doors, knobs, lights and flooring show your intent.  I know what good design looks like and I can't do that. So I make sure I get the right people involved who can. We pay for staging. Design and Quality matter in getting the highest profits. 

Hey Louis,

You are looking for the best deals to take advantage of. You will want to be working with any source of property. Talk to everyone and look at every property you can that meets your criteria. Don't make commitments, do good work, pay fast and they will of course come back and ask you to buy the next time, if you have money.

This location is amazing and you can easily add the square footage to get over 2 million at the sale after the remodel. The home next door just went $300,000 over asking. This is a good example of getting in and out in 8 months with more than $200,000 in profit. If your permitting is straight forward Pasadena is a good place to work.

Building for value add rental prospects could be even better. It is a location where you can get very long term high rents. Design your own value add project. Rent it out standard or to short term to tourists, hospitals near the property and an area where people go to retire. Walk to down town Pasadena and the Rose Bowl. 

I'm uninvolved in any way. This is my area and I like it. 

https://www.zillow.com/homedetails/149-California-Ter-Pasade...

The remodeled house next door went off market in 10 days and sold at $2.7mil and $300,000 over asking price: https://www.zillow.com/homedetails/161-California-Ter-Pasade...

I agree, but I think a lower percentage than 5% would know what to do investing and remodeling. That is the point. Now you have a criteria for a realtor that CAN help you. One who is doing more investing and remodeling than you (2-4 per year). If you are in business only hire the best. 

If you have a nice house and you are in a busy real estate market you can let a relative or friend list your house without loosing too much, if they are good workers. But if it's your business, only go with a realtor who is richer than you and better at investing  in real estate than you. Don't use out of area if there are local heavy hitters and you need top dollar. 

Nothing ever applies to everything. I think there are locations where you won't find anyone dominating the area, or kicking *** remodeling homes. But if you do find that area ... why are you there? Who is your buyer?

I love working with people who I can learn from.

Hey Alma,

We will look at any opportunity in the area. My bosses are very Pasadena, South Pasadena and Altadena Specific. We have purchased in Mt Washington and Glendale but our sales did not go as fast as our main areas. Condition does not matter. SFR is probably the best bet for this group of buyers. They normally buy between $750k and $1.3 to sell at $1.3 to $2mil+. I look forward to hearing from you.

I am a big vote for a realtor who is a very good active flipper. They should be doing at least 2-4 full remodels on their own per year on the high end. If you can come in and do your job buy, remodel and sell well (=fast) they are making very good money on you. It becomes a serious toss up for them to purchase, invest and do all the work or to make money on you with the commissions on the buy and the sell. If you can act fast, build quality remodels on time that sell you become a good choice for them. You will start to get first choice of what is available from their significant network. Of course the price point will be a motivating factor because you are talking commissions. You will also get their contractors and connections eventually because they will be VERY interested in you completing the work on time. 

Hey Zachary,

Thank you so much for the expertise! This is super helpful.

Hey Jordan,

Have you moved one way or another? Have you looked at any home manufacturers like Dvele or ....? Are you finding what you want in that market. I think you have to find an alignment with a manufacturer for manufactured to be your choice.

If this build is for yourself and not for the purpose of repeating the action for profit, you are limiting yourself with manufactured. With standard construction you can do anything and everything you could imagine. If you go to a factory that builds houses you are buying a building where some of the choices have been made.

Good luck! I would love to hear how it goes if you do choose a manufactued home. Please keep us informed.