All Forum Posts by: Joel Patterson

Yes, its for sale as of yesterday, but they are switching realtors so the listing is down temporarily.

I'll give you contact details.

Thanks so much for that input, I'll check it out

Hello All

A family member is selling their home in Running Springs CA which is in the mountains in Southern California near Big Bear, Crestline and similar.

We are wondering how to tap into the vacation rental investor community to get an idea what this property is worth as a rental unit.

Any suggestions welcome...

Thanks

wow, that's amazing! Good to know and thanks for that information

Hi Chris, Thanks for the inputs. Yes I made the same assumptions as you mentioned as I have run into the same conditions in other markets as well. I passed on a project in Huntsville AL because there just wasn't any local tallent available. I am fine with organizing the the trades and piecing out the job. What about local permitting though? Do they require a general contractors license to pull permits? If so, do you know a GC that would pull the permits and let me run with the rest? Not sure how big of an ask that is...

JP

Looks like BP didn't like the link for Jerry's video so PM me and I'll get it to you one way or another

I like Jerry Nortan's approach on multiple fronts. 

#1 getting deals is about making lots of offers and its a numbers game and offers have contingecies. If you needed meticulously calculated estimates you'ld never get enough offers out to get any deals.

#2 rather than agonize over meticulous bullet proof estimations just educated guess it, get your offer in and et a signed contract 

#3 once you have signed a signed contract then get a professional to do the estimation. If your numbers were way off because of the unkowns then the contigencies in the contract let you off the hook - that's what they are there for.

I have some other inputs but we should discuss over a call - I sent you a connect ...

here is the link to Jerry's video

Can anyone provide a referal to good reliable rehab / remodel contractors in Raleigh Durham NC or Huntsville AL?

Thanks

Joel

Many good points from all parties. One thing to consider is your age, what your total amount of 401k value is, how much your employer matches and what the vesting period is. Then you need to run the numbers. For example, my employer matches my contribution up to 5% of my salary dollar for dollar, and it vests immediately. So then I get a 100% percent gain on my money. I'm also 59 1/2 plus so I can contribute up to 5% of my salary, get a 100% gain and then withdraw the money at my income tax rate whenever I want. I doubt that anyone can match 100% percent gain in REI considering in my case that is an instant gain, I don't have to leave it sit. Moral of the story; everyones situation is different and I would calculate all the veriables. As it is I don't put more money into my 401k than my employer matches as I'd rather get the REI cash flow that beats 401k fund gains all day long.

If you haven't read Brandon's book the Multifamily Millionaire Vol 1 then I recommend you read it. When I read the chapter on Cap Rate x NOI equals the property value (commercial only so 5+ units) and the scenrios he presented my head almost exploded and I really wished I had started REI years ago, now I'm playing catchup... Best of luck!

There is another thread  in the forum referenced below. A bit heated discussion with one member not happy at all after losing his 10% deposit and a rep from RealPro responding at length regarding the entire timeline of the failed transaction.

By the way deposit is 10% NOT $10K, so on a $500,000 listing the deposit is 50 GRAND . If they want to filter out the less than serious then I guess that's a way to do it!

https://www.biggerpockets.com/...