All Forum Posts by: Jeff Zamora

@Munya B. I haven't really looked in that area or examined the site.  I'd probably just contact the assessor and see what data they have for sale.  I've been doing this for a while specifically for SB county.  I've found that some counties will package this data and sell for a few hundred bucks (or more).  

Great work David!  Thanks for breaking it out like this.  

Also, totally agree, one of the best things to do is to build a team.  I've spent the last couple years now finding great sub for just about every task and try to keep them busy.  It works out great for everyone, and the sub end up having your back when things get tough.  I had a project where the old galvy failed 5 days before the new tenants moved in, the plumber dropped everything and repiped the place in 2 days, was totally ready for new tenants!  

I put in an offer on a property that was on the market for 8 months with no price change.  Of course, listing agent almost immediately states there is another offer.  I bumped up offer price 1000 and submitted a note to owner stating what we planned with the house (to personalize the offer).  Got the property. 

A few years go by, I end up becoming pretty good friends with property seller (he ended up building a custom home in same neighborhood).  Subject of the sale comes up one day, I ask him about the multiple offer issue, and it turns out that he actually did have two offers on that property within a day of each other, after no offers for 8 months.  Offer prices were almost the same so the minor bump made the difference. 

I try to be less cynical now when I hear 'multiple offers', although I still can't help rolling my eyes...

@Russell Ponce

I am interested in your thoughts about mentors.  I have actually never actively worked with a mentor in the true sense of the word.  You mention that as you advance you would definitely seek one out as someone you can lean on.  In what ways do you you think you'd lean on them - what would the mentor role be in your case?  

Since starting in REI I have made new friends, and spend a lot of time talk to them and learning from them. For instance I met another investor that hooked me up with a network of people he uses for transactions, lending etc. That said I don't have a specific go to person for issues, and instead decide on issues based on research using BP/google.

@Leandro Rodriguez

When I started in RE investing I was going to approach an acquaintance that has several hundred units and see if he would be willing to mentor.  However, I decided that I should first do some basic research so I wasn't just asking basic/obvious questions.  I came across BP as part of that research and rest is history!

I started out listening to the podcasts to get a broad overview of the RE field - wholesaling, SFR, MFR, etc. I then got into reading specific forum posts and blogs along with some of the books posted here. I started thinking about investing as a business, and started organizing the parts I needed to make that business successful.

After a few false starts (mostly being too conservative when bidding) I ended up with a few properties.  Now whenever I have an issue my first stop is to do basic research on BP or post a question to get fellow BP'r feedback.  It has been fantastic - instead of one mentor I feel like I have 1000 mentors all ready to help out.

So while this is not an answer on how to vet a specific mentor I just wanted to tell how I feel BP is a community of mentors that you can rely on to get started, give advice, help vet deals and point you to any number of resources you need to be successful!

@Account Closed

Interesting one.  I haven't had a tenant, and am not a CPA, but found this article discussing it:

http://homeguides.sfgate.com/apartment-owners-1099...

From article:

There are no federal tax credits for tenants of rental residences. As a landlord of a rental residence you might encounter a tenant that tries to give you a 1099-MISC for rents paid. Landlord attorney James McKinley, in a 2007 "Inman News" article, says that rental residence tenants insisting on giving their landlords1099s may be trying to intimidate them. Landlords of rental residences should also never give their Social Security numbers to tenants, especially when they claim they need to give their landlords 1099s.

Now they quoted a 2007 article and laws changed in 2010, but I don't see any references to a requirement for tenants to issue to landlords.  Would also love to know if anyone in California knows about this one.

@S Harper

What size property are you renting?  How much is the monthly and security?  Are they able to put down all the security?

My initial reaction is to keep looking.  Large dogs and 4 adults are harder on a property.  Sub 600 credit scores, rent income ratio etc would all pile up to be a pass if it were my property.

@Crystal Chang

I'd keep looking around in So Cal. When I started I got pretty frustrated trying to find SFR/MFR that would cash flow. After several months of looking in areas in SoCal I ended up finding a couple properties. I have 3 deals right now I am evaluating - they all cash flow. You may not find them in your immediate neighborhood but check other areas like the deserts or IE. As mentioned on the podcast, there are probably deals within 1.5 hours of your area!

The nice thing about being somewhat local is you can get to know a neighborhood and can be more involved in your first purchase.  Your first property is going to be challenging enough without having it in a different time zone!

Could you use the proceeds from this sale to make one or more purchases in more cash producing assets?

Do you expect increased appreciation in this area in short term?

When did you move out, and do you still qualify for the IRS 250K exclusion on gain?  IE. if you continue to hold for a while will you lose that exclusion?

@Chris Marvel

Welcome to BP!

While you will definitely need to line up funding I think the harder part is finding reliable contractors that  you are comfortable with.  

1. I spent a lot of time putting a crew together before the first project.  I actually did a huge remodel / poptop on my primary residence and formed up a lot of my initial crew on that project.
2. I actually found a general in my area that I share subs with.  GCs need to keep their crews busy.  If they aren't the crews go elsewhere.  I help fill in work for his crews and have several projects a year for the guys.  I just coordinate my RE purchases so I get the team when I need them.  These guys are used to working with each other so they are more efficient, and since I try to have work for them I am at the top of their list when something goes wrong.  
3. I am ALWAYS interviewing new subs for spots on new projects.  Sometimes a sub will stop working out or not be available, so I always have backups.

On podcasts I have heard ideas like going to Home Depot at 6AM to find out who is there bright and early.  I haven't ever done this.  Instead I will drop in to RE: open houses in my area.  I like to see how things are positioned in my market, and I like to meet agents.  I am always looking for investor friendly agents.  When I find them I ask who they or their clients have worked with for rehabs and they are usually very willing to share info.  Since I know the local subs I can see if our opinions line up then also see if they have recommends for people I don't know.  I found a great new plumber this way recently.

RE: the financing, it seems that money is a lot easier to find once you start doing this kind of thing.  I have had several people approach me about going in on a project together after seeing my previously completed and rented buy and holds.  For your first one, if you have a solid plan and team in place I think it will make getting that initial money a lot easier.