All Forum Posts by: Jason Pritchard

Hey @Scott Bliatout

I've recently done a few BRRRR deals in the Fresno area (2 in Tower and 1 on the Westside) Here are some of the things that you need to keep in mind. I would start reaching out to lenders now and figure out what their seasoning requirements and LTV criteria are. I've used Cash Call Mortgage for my last 2 refi's and they had a 6-month seasoning requirement before I could pull cash out (above what I paid for the property) and 75% LTV.

You have to be confident that the property is going to appraise at a number that will allow you to pull all or most of your cash back out while still being at or below that 75% LTV threshold. If you feel like you are in a bad location run your numbers a little more conservatively and go into it knowing that you are going to have your money tied up for a minimum of 6 months and that there's also a chance that you may not be able to get 100% of your purchase price and rehab costs back out when you go to refi.

Regarding the fire damaged property that you are looking at make sure that you do a thorough inspection with someone who is familiar with rehabbing those types of properties.  I just recently lent some rehab funds to another investor who is flipping a fire damaged property that I also sold to him and if you end up having to get plans approved by the city of Fresno you can expect an 8 week waiting period. I've also been told that if more than 50% of the property has sustained fire damage the city will require you to install a sprinkler system which can cost upwards of $5000k.  

Hopefully, that information helps.  I live in Clovis so if you ever want to get together to talk some more in person let me know.  Good luck

I've had a lot of experience with Zinc Financial in Clovis, they've funded 7 or 8 deals for me over the last year and are pretty easy to work with. As you do more deals with them they will start to offer you better terms. Central California Funding and Mid Valley Financial are some other HML out here but I've never used them before.

Hey Joe,

I just sent you a colleague request with my information.  Give me a call when you have a chance, I'd be happy to look into possible solutions for your friend and her siblings.   

Hey Sean I'm also in Fresno and have some experience working with lists from the city/county. Your best bet is to take whatever they will provide you and see if you can decipher the information that's on there. Worst case scenario you can pay a VA to scrub the list and convert it into spreadsheet or CSV that you can mail directly from. Let me know if you have any question or if you want to get together to share thoughts/ideas etc. Good luck

I Have a specific question about this topic as well and I am hoping someone with experience can chime in. I just sat down with my CPA and it looks like I've made approximately $160k in gross income through my LLC this year, pretty much all of this income has come from flips. Is it possible for my LLC to be taxed as an S Corp to mitigate my California Gross Receipts Tax ($6000) and self-employment tax ($22,000)? Here are a couple caveats:

1. This is my second year in business, last year I did not generate any income via the LLC and did not see the need to elect to be taxed as an S Corp

2. I own 2 rental properties one of which is in my name the other is in the LLC's name but will be transferred back to my name once I secure long-term financing in 5 more months.

3. I asked my CPA about this specifically and he said that he has not seen it done before which seemed a little weird to me. He's recommending that I pay the taxes as an LLC this year and form a separate S Corp for my flipping business moving forward.

Any advice or feedback would be much appreciated.  Thanks

Great chance to own a practically turnkey rental property in Fresno, CA for under $100,000. With about $3,000-5,000 in repairs this 2 bed 1 bath home can rent for $900-$950. It's a great rental location, 5 minutes away from the Tower District and Fresno City College. It has dual pane windows, new evaporative cooler, newer cabinets, tile floor in the kitchen and bath, good roof, large yard with detached single car garage etc. Asking $88,000, property is currently in escrow and contract is ready to assign. Escrow is set to close on 12/19/16, property is occupied so please schedule all showings directly with me. Cash buyers only, will need $2,000 EMD and proof of funds to secure property.

Call Jason at 559-549-7352 with any questions. Click on the link below for a walkthrough video of the property.

https://youtu.be/CytmIGnaaXA

I'd also be interested in hearing other investor's opinions on what's worked for them when using bird dogs to source leads.  I've never been able to get anyone to stay on board consistently and I've invested a lot of my personal time training them to better evaluate deals and encouraging them to be successful and branch off on their own .  I'd be willing to pay up front per lead or even an hourly rate if I could find someone who would stick with it.  Any suggestions from other investors who have been able to utilize bird dogs successfully would be great.  

@Mark Freeman and @Jay Orlauski I appreciate both of you guys, thanks for all the help, support, and advice over the last year and half.  

@Alberto Izarraraz I've lived in the Fresno/Clovis area since I was about 5 years old so I am very familiar with the area.  Being from here helped to give me a sense of what neighborhoods I wanted to invest in but I still had to spend time learning how to accurately value property.  

@Account Closed The house was in pretty bad condition when I first bought it so I had to get a hard money loan. As soon as we closed escrow I contacted the mortgage company that refinanced my primary residence and started the refi on the rental. I originally purchased the property for $90,000 on 5/3/16, finished the rehab on 5/24/16, my tenant moved in on 5/28/16, and the refi funded on 5/31/16. I currently have a 15 year mortgage with a balance of about $76,000, with the rehab and closing costs I'm all in on the property for about $106,000. It appraised for $147,000 so I will probably refinance again into a 30 year loan and pull some cash out in 4 months when the seasoning period is up to utilize the BRRRR process on another property.

@Chris Williams Thanks for the feedback, I know that you're one of the few investors out here that are actively doing a high volume of deals of a regular basis.  My goal is to scale up to that level, I'm sure that your free time is in short supply but if anything opens up for you I'd love to have the chance to touch base again to see how our business can potentially overlap in the future.

@Shanequa J. I appreciate that....I'm on track to exceed those numbers with what I have in my pipeline so I'm hoping to raise the bar in the near future.