All Forum Posts by: Jeff Zamora

@Matt Sauls Glad to see another IE resident joining BP! I have been looking around the IE area for a while now, especially in Redlands. It is a challenging area but things come along every now and then. I'd love to hear what you think about various areas in the IE.

@Bryan L. - Thanks for the info. What % would you say is a large earnest deposit? My agent / brief research on BP said 3% was normal. Do you typically go higher?

Interesting tip on the inspection period even though no contingencies. I will check into that one.

Thanks for the feedback.

I am already looking at other properties and hope to put in another offer shortly. I don't think I am that emotionally involved in this property other than I finally managed to get moving and make offers, which feels like I've cleared a hurdle in the process - can't get a property if you don't ever offer.

I'll see where the property ends up and use that info for bidding on the next one.

Hey Cornelius,

Welcome to BP. As ppl have mentioned there is a load of great info on BP covering all sorts of RE specific niches, including many I had no idea about when I started several months ago.

I personally really love the podcasts. They are great to listen to while commuting or running/working out. I imagine if you are working and living in Oxnard area you probably don't have that big of a commute though.

You should PM me. I love the Oxnard / Ventura area and would be interested in discussing opportunities there with you.

Jeff

Hi fellow BPers!

After months of looking in So Cal, networking and reading/learning and encouragement from BP I finally took action and made an offer! An investor-friendly agent found a repo posted to market at $90K, probably requires $20-35K in rehab depending on how far I want to go. Cheapest house in area is selling for $200K. This house ARV is probably conservative $220K. Spending a little more on windows to replicate charming cottage look will likely yield a little more on ARV.

Here's the details of the transaction so far:

1. day 1: property hits MLS at 1PM

2. day 1: drive by property at 2PM, schedule viewing at 3PM. 3PM-5PM review property, put in offer of $103K by 9PM. Cash offer, contingent on inspection. My first ever cash offer too!

3. day 2: agent cannot reach listing agent until 4PM. Listing agent says multiple offers in, several higher than mine. Also states that bank is not going to do final 'best and highest offer' round and will just stop taking offers 5PM day 2.

4. day 2: 4:55 PM, submit updated offer of $125K. Given that I want to buy and hold this property conservative rents, rehab etc, this is the max comfortable amount to bid. I am not really wanting to bid/value on possible appreciation in this case, so based the max offer on rents.

I will likely not get this property as there are probably some contractor types that have a) put in cash offers with no contingencies (not even inspection) b) are willing to pay more because they can flip and are willing to take less profit. If a contractor paid 140K, did the updates for 20K, they could still make 30-40K on the deal.

I also learned that I can do a cash out refi pretty easily for amount paid according to my direct lender.

So, my questions for BP:

1. Based on the above was I too conservative?

2. For so cal offers should I always just start with best offer?

3. Does the idea of just having my contractor view property with me or working some deal with a home inspector make sense so that I can offer with no inspection contingency?

Thanks for any feedback!

Jeff

@Ali Boone, @John Moore and @Brandon Turner - thanks for the welcome! I find it amazing that busy people take the time to do this on such a big site. I think it makes biggerpockets.com special.

@Ali Boone - Yeah, I am getting a bit discouraged at this point. I went and looked at a couple places in Redlands yesterday. The first place was probably the worst place I have seen yet in that it would need major remodeling to be a proper 4-plex. The second place seemed to be much better but then while I was walking around looking my wife saw two instances of drug activity in the area.

I would really love to purchase out of state if I could reduce the risk as much as possible up front. How did you manage to find your first property? Did you work with someone in the out-of-state area? Did you go visit the area yourself and find the property, contractors and property management?

Hey BP! I've been reading posts and listening to podcasts for a while now and finally am getting around to saying hello to you all!

I've had a rental property in the past but sold that during the boom in the mid-2000's. I really regret selling and have wanted to get another property ever since. My current goal is to pick up 5 or so properties, preferably MFR, in the next 5 years. I have a very time-consuming day job so will be looking for minimal rehab or turnkey. I do have a team of trustworthy contractors I've worked with on my primary SFR, so am not too worried about rehab as long as it isn't extensive. I've been looking at 650K or less (with 25% down) in the Inland Empire area - Redlands, Rancho Cucamonga - but find very few deals that cash flow - seems like most are actually negative. I am reluctant to do my first deal out of state given what I have read on this site and the additional risks involved.

Anyway, looking forward to getting more involved on the site. And thanks again Josh for starting this great community!