All Forum Posts by: Jeff Kobernus

Find a mortgage broker.  Maybe speak with a bank after to compare rates.  At least talk to two mortgage brokers.  When you have your credit pulled it should be once.  IF somebody else pulls your credit with permission if its within a certain time frame it should not effect your credit.

Get a property manager and get a statement so you don't have to worry about the tax portion. CPA handles from there.

The last two properties I purchased I wrote offers sight unseen.

Property comes on the market I think its a great deal.  Immediately write my offer slightly over asking and then reach out directly to the listing agent letting them know I am sending them an offer but need to know one way or another in the next few hours as I have another property I am interested in.  Typically I will give a portion of my commission to the listing agent to also influence him to put a rush on getting the property in contract.

I always have an inspection contingency usually a week.  If for some reason I change my mind, or when I see it its way worse than I thought, I cancel, my deposit is refunded before I even start paying for inspections.  Better too lock something up in contract and then cancel verse waiting to see it then having 5 offers come in and competing Doesn't always work depends on listing agent.  A "GOOD" listing agent will want to know you've seen the property but my experience is very few are actually good at their jobs.

The reality is not everyone has their license.  But if its a good deal put in an over asking offer (depending on price).  Going up $5-10k on a loan is nothing.  Not worth it if your a long term investor to lose it for $5k and if its a short term play if your margin of $5k makes the deal not worth it then it wasn't a good deal to begin with.

Hardwood no question about it!

4 buy and holds, 3 flips/BRRRR/s sell $40,000,000 in real estate in 2020

My best advice is always plan for the worst case scenario.  Very generic I know.  When I am running numbers for rentals I am always looking at the worst case scenario (within reason.) What I mean by this is if a property is a duplex and I think they can rent for $1200 each side, I am then looking at what would happen if I could only get $1050 a side and a month went by with a vacancy am I still okay with this purchase?  Most of there time it is still a yes for me.  Don't go into a deal needing to make the higher end of the rental prices work to make the deal solid.  Simple, but keeps me out of trouble for the most part.

I will take 6-7% all day in the right market/location.

Thank you for the reply! I will definitely continue to pursue every property that makes just incredible to me how many people are out there that are willing to even make a smaller margin than mine.

In regards to return it is absolutely risky and a small return BUT at $485k after renovations if I can make $30k in 12-14 weeks it comes out to 18-25% return depending how quickly I can get it sold.  My main focus is residential real estate.  This is a side hobby that I would be doing while trying to maximize a return on my money that is sitting around not making any money.   

Good afternoon!

Can you explain what you mean by a map showing where they are in relation to the one I'm offering on?  All the properties are trustees who own the property so the only thing they care about is the highest price and quickest close. The property at $389k had 19 offers the other property had 17.  The previous one before that had 48.  I'll close as fast as anyone and give the seller whatever terms, deposit ect they want but the reality is most other people are as well but at a higher price.  What is amazing to me is how they are making the numbers work.  I would have been overpaying in a sense on both properties but willing to do so to make a smaller return partly because I want the experience of it. Thanks for the insight!

Good morning Bigger Pockets,

I currently am a full time real estate agent in the greater Sacramento Area and was just wondering if any members would active investors in the region?

I have made offers on the last 5 properties for myself and lost out on all 5.  I am not here to complain but rather to shed some details on the situations and hear if anyone else was investing in the area finding "decent deals" and how they were doing it?

The last two offers I made were on properties that were "fixers."  The first property was priced at $389k.  I made an offer of $414k all cash, 7 day close NO contingencies 50k deposit.  I ultimately tried to get a quick response from the seller who delayed all reviewing of offers until the 27th.  Over the next few days they ended up with 20 offers and I ended up not getting it.

The next day another property came on listed dat $275k and immediately put in an all cash offer of $305k same terms quick close no contingencies ect in the hopes of getting a quick response.  Seller delayed his response and eventually lost out on that one.

Both deals had the possibility of flipping and making in my estimation making 30-40k top with 8-10 week turn around time to get it listed.  Obviously my offers were not high enough but I assume people are willing to make less on the return side?  I have a solid contractor with prices that are tough to beat so I feel good with him just curious if there was anyone out there doing it.

Thanks!