All Forum Posts by: Joey Dwyer

Hey Jason, if you can give me some details I would love to check it out. Thanks 

@Destiny Holmes For some reason investors seem to be really hesitant to refer contractors. 

 Whether it’s because they want to keep them for themselves or just afraid to refer you someone who might not perform well or could gouge you on price.

 We interviewed a ton of contractors on our projects even with ones that were referred. We gave each one a detailed scope of work so they could be as accurate as possible. You’ll get that number down if they know you are interviewing others. But the scope of work is the most helpful.   

 I can send you a few we’ve worked with in the Gardena area but I’d recommend hiring sub contractors out separately and you can narrow it down even more for each job. 

Good luck

Hey Richard, 

 Good advice. I’m just not sure how brokers will react knowing it’s not a binding offer. I think it’s a faster way to throw offers out without wasting anybody’s time. I figured that if we were close they would respond and work on an agreement from there. If not we can move on. 

Thanks for the response! 

I’m taking the Brandon Turners approach on making offers. 

My goal is to acquire 2 multi unit properties within a years time. I’ll evaluate at least one deal per day and make offers on everything that meets my criteria. 

 If I can make 365 offers per year I feel confident I will reach my goal. 

Does anyone have thoughts on sending a letter of intent to agents or buyers instead of the formal contract? 

Thanks for any input. 

Hi Yugi! 

Welcome to BP!

 I think out out of state investments are a great idea for a beginner. With a low down payment you can get into a property that cash flows very easily.  I do recommend starting with a duplex or triplex though to offset any vacancy. If you have one unit vacant you’ll still have the other two to help out with your mortgage payment. 

Good luck

@Matthew Forrest From what I understand it depends on where in Torrance. They are trying to keep West and South Torrance low density. I heard South of PCH and west of Palos Verdes Blvd are not permitted for ADU. If I'm wrong I'd like to be educated if someone else has done the research.

@Clayton Cook What a great position you've put yourself in. You're the "Real Estate Guy" on the team! You've got a ready made database of high income earners! You can learn the Real Estate game and build your business around all the contacts you make on the way up. You have the potential to make some nice commission checks by just helping your friends buy and sell their homes. Just don't learn from Lenny Dykstra ,lol.

 In terms of investing you can start where everyone else is trying to end up. That's buy and hold. You need to find a property type that fits your risk tolerance and hit it hard. Just buy something and let the tenants pay it off. You can easily do that from the road with a good property manager.

 Syndication is a great idea like the others have mentioned if you wanted to go big. Even a small joint venture with teammates could be very lucrative as the cash buyers usually get the best deals. Any road you choose you have to get good people around you. 

 Good Luck!

Hey Gary,

 If you are looking for cash flow in these areas it will really depend on how much money you are prepared to put down. It is still possible to cash flow if you can find a MF that are getting lower than market rents. I see it often in Gardena with long term tenants at very low rents. The rents have shot up so fast in these areas where it is now more realistic to get a duplex ,triplex, or even a bigger complex with cash flow potential.

 I agree with Jennifer Stutland that South Gardena, and Torrance would be more desirable and more appreciation, but when I'm looking for multi family , then cash flow is #1 priority. Remember, multi units are valued at what your net income you are bringing in. With that said if you can get an under performing property, add value ,raise rents to market value then you've just made your own appreciation.

  South Gardena can bring  1500 to 2000 per month for a 2 bed 1 bath apartment. 2 bed 1 bath duplex can get 2500 each side per month. Just stay away from just east of Vermont if you don't want to deal with rent control. That includes Torrance, Harbor City, Wilmington, and San Pedro. Rent control area  runs down the L.A. strip all the way to the port of L.A.

 Good Luck!

Hi Tony,

I'm not a GC but I know those numbers are too high. I hope that 400K quote was a bid to build a brand new house. You should make sure you prepare a scope of work before you get a a contractor to give you a bid. I think you can realistically expect to pay around $50 to $70 per square foot for the full rehab. 

I'm sure there will be rehabbers who would disagree with my numbers because they can probably come in way under $50 per square foot. Of course I haven't seen your property but those are just rough estimates.

 Good luck.