All Forum Posts by: Jay Shindledecker

Quote from @Allan C.:

@Jay Shindledecker I see this happening more in socal than other markets. I presume you're looking mostly at SFH? The MFH listings seem to have higher close rates.

I agree with the sentiment that many folks are bargain shopping and dropping the contract if sellers remain stubborn with list price.

Spoke to a few Real Estate Agents today.
They said there are a lot of people shotgunning offers on single family right now that get accepted, and buyers are failing to come up with a deposit. 
Also said that they’re offering over asking and then trying to back into steep discounts back under asking through inspections.
Some of them have been cancelled due to appraisal values coming in low. Some of those have been closed after a little more appraisal work.

So I guess if you’re a single family realtor, you should ask how many offers buyers have made and have the seller perform an appraisal before listing so you know what you can accept and not accept.

Sad I missed the last one! 

I have doing some shopping / research on a few local markets. I’ve been noticing a trend of homes pending or contingent that are relisted a week or two afterwards.

Are that many offers falling through right now? What could be the reason for this?

The only conclusions I can come up with are that the buyers are backing out, or the financing is falling through. But it seems too consistent to be the buyers. Anyone here have any data or insight on this?

Are bank appraisals coming in low, or are rates changing too fast for banks to honor pre-approvals? 

Quote from @Matt Howard - Percussion:

Quote from @Jay Shindledecker:

Love it Matt! Following this thread. 

Want to see what you end up doing with this one. 

Do you have resources & connections currently in place to help your addition, financing, etc? 

Are you debating the addition, versus investing elsewhere?

 Hey Jay, 

I do not have many connections in place for the addition. I have a family friend that is a contractor that has done work on building a home for us before and it turned out great. We just want to add a "basic" primary suite that doesn't break the bank without having to dip into the heloc too much. We are going to save vigorously for a couple years and just use the heloc if we need more money. Since my wife and I are going to want to start a family soon, building this addition might take priority. Any advice?

That's nice to have a close connection for the work on the house!

I think @Najma Osman is spot on with the core 4. That's something I am working on in the LA market right now.

I would make sure to work with a realtor that knows the range of comparable 3/2 properties are worth in your neighborhood, and focus on making sure your addition maximizes the quality of your current investment.

If you're property is worth $1,000/sq foot can you add 400 square feet at the same value/ sq ft?
Can you enhance the floorplan, curb appeal or materials in a cost effective way to increase $/sq ft? Unless you have good comps, you won't know what that end value and the effectiveness of the investment will be. 

If your hoping for cash flow vs. equity and potential cash flow, then take the same approach to long distance. Find a Core 4 in KY , @Abbey Humphreys might be able to help you there.

Quote from @Bob Stevens:

Quote from @Arian Mustafa:

Quote from @Bob Stevens:

Quote from @Carlton B.:

The three rules of real estate are location locations and locations. So if the numbers work of course this is a deal. My mantra is find the worse house in the best neighborhood.  

 Actually its PRICE PRICE PRICE  :) 

I'll take location over price price price.

 Not entirely, If you buy in a " bad area but pay correctly it can be very rewarding. I was told for 10 years to stay away from certain areas, (those that a clueless and just read books told me this) well. On top of the 25- 35% net caps pricing has tripled.  So PRICE is the key 

All the best 

 Definitely makes sense. So Price, just in relation to current value based on location and condition. One of those things we can all go around and around on right? 

Love it Matt! Following this thread. 

Want to see what you end up doing with this one. 

Do you have resources & connections currently in place to help your addition, financing, etc? 

Are you debating the addition, versus investing elsewhere?

Quote from @David A.:

Quote from @Jay Shindledecker:

https://www.realtor.com/reales...

The eyesore of the neighborhood, surrounded by $1M+ homes...

Does anyone here do extensive renovations on properties like this one?

Hey Jay, I do. The cities off the 210 from Glendora to Claremont is my sweet spot. I think this will close above asking and with needing a new roof, mechanical, electrical, plumbing, int/ext paint, termite repairs etc. it wouldn't be worth it for me to flip given the time and capital needed. Rather, I focus on turning these into buy and hold rentals and let appreciation do its thing in the long run. In 5+ years I don't think you would regret owning a 3 bed 2 bath home in a nice safe neighborhood with excellent schools. It's been awhile, but here's the last home like this I bought which needed a few less repairs, had better ADU potential and (barely) qualified for a 30 year mortgage - https://www.redfin.com/CA/La-V...I can share the after photos if there's any interest in this. 

You are on the right track, just keep your search open for something equally dated in great locations, just with a little less deferred maintenance.   

Leave one or two out there for me David! 

DM me. Let’s meet up sometime for coffee if you’re in the area..

Quote from @Carlton B.:

The three rules of real estate are location locations and locations. So if the numbers work of course this is a deal. My mantra is find the worse house in the best neighborhood.  

 Amen to that! Especially in my area.

Quote from @Chris Merchant:

@Jay Shindledecker have you began to try to figure out a rough estimate of the rehab yet?

Not on this one. Offer cut off date was the 12th on this one anyways and I'd probably walk this is one with a GC before making an offer. 

Figured this was a good conversation starter for people in LA area, a good way to connect with people interested in specific types of property. 

There are so many properties like this right now in LA, with decades of differed maintenance, aging neighborhood demographics, or 8+ people/ hoarders living in a house that is the eyesore in an otherwise decent neighborhood. I feel like a lot of these will be popping here soon as things continue to tighten.

Quote from @Alan Asriants:

Usually you want to buy the ugliest house on the nicest block. Just make sure youre paying the right price. Market is crazy and people are putting premiums on even fixer uppers

 Amen to that. That's what I've been looking for. I like ugly, but I don't know how ugly the bigger pocket folks go!