All Forum Posts by: Josh Justiniano

@Joe Fairless Super excited to be learning to scale the multifamily side of our business, gaining traction in a heated market, better deal making / profit splitting strategies, and of course meeting everyone that will be there.

See you there!

Seeing a slowdown in Oildale area... Weaker appraisals. But overall doesn't seem like it's a hot market... Just steady and slow upwards trend. In some of the C areas it's steady with little appreciation 2-3% as I track the valuation of my rentals.

Anything over 250k+ seems to sit longer than the lower priced inventory.

Sweet spot seems to be 150k-190k.

Other than that I couldn't tell you too much more. If there was a recession I don't think prices would be hurt too much in Bakersfield. I think a recession would have little effect because of the safe loans being issued and the lower price point, and resource based jobs. As long as I buy with equity I feel very safe.

@Bryan Hancock - What do you think about this email here? Would that grab your attention?

Thanks for the input everyone! Really helpful.

To whom it may concern,

I’m an aspiring RE developer with experience in residential flips, rentals and multifamily holds. As someone who is looking to learn more about the development process, I’m offering up some of my time to help complete various development related tasks.

I’m able to offer you or your firm the following:

• I have access to capital for projects from myself and other friends and family members so long as the project makes financial sense.
• I have some basic underwriting skills - Have completed CCIM financial modeling courses and REFM financial modeling courses.
• I am able to donate some of my time to complete tasks for you or your firm so long as they are related to the development process.

I am not new to real estate. I have been a full time investor for the last 3 years and have completed over 70 transactions in that time, so I am able to add substantial value so long as it’s mutually beneficial for all parties involved.

I am not asking for an hourly wage or salary; I am simply looking to add value to learn.

If you’d like to speak more in depth, I am available anytime via cell phone, email or text message.

My cell number is {My Cell Number}.

Looking forward to hearing from you.

Sincerely,

Joshua Justiniano

{My Mailing Address}

{My Cell Number}

@Jason Hsiao Ah! How did you find that one? 

If I find one I can partner, but I'm having an extremely hard time finding anything that pencils, and I've been looking for about 6-8 months... So I'm trying to take a different approach.

@Jason Hsiao When you say offered equity, did you bring a deal to him? Or you offered to JV on a project?
I bought a ULI textbook a while back. Very detailed and full of great information! 

@Bryan Hancock How did they approach you in regards to the coaching? Email, in person, a phone call?

I have a very limited understanding of underwriting, so maybe enough to go by a quick analysis to see if it's worth looking at deeper. I did a few CCIM and REFM courses which really helped, but that's all theory, no real life experience yet.

@David Miller I'd agree with that. I am not really looking to take on a project myself at this point. 

@J Scott How would you exactly would you approach them? I was thinking of either sending handwritten letters to local dev firms, cold calling or emailing. What would be the gist of what you'd say? Something like "I'm looking to learn development trade and have access to capital and some time, and basic underwriting skills. How can I help you out to learn?"

@Bryan Hancock I've no plans of doing anything else with my life besides R.E., so sticking with it wouldn't be an issue, but I am wondering what exactly you mean by "worth coaching." What exact things were you looking for when you helped these two individuals? And how did they approach you about mentoring or coaching? What exactly did they bring to the table for you? Capital? 

What's the best way to break into RE development? I'm looking to develop some multifamily properties and hold onto them for the long term. 

What's the best way to get started? 

I've been mailing land in my area consistently, but not getting a lot of traction. It seems people are paying high prices in expectation that soon prices will have appreciated enough to justify construction.

I cannot consider working for a dev firm as I'm already a full time investor and cannot take a bunch of time away from my biz. 

Any other suggestions?

100k a unit in bakersfield is pretty high. I'd shoot more for around the 50 to 75k range, especially for B to C areas. 

Judging by the appraised value you're probably in a better area than a C. 

I'd shoot for more around 1.1% to 1.3% rent to purchase price ratio in Bakersfield. To find those you have to go off market. 

Say, rent is 950 and you're getting the units at 85k or something. I'd feel much better. And judging by the fact that it appraised at the value of the contract makes me nervous. No room for error. I'd proceed with caution. See if there are any value adds like storage space you can put up, or maybe something like in unit laundry. Something like that to get that NOI up so you have more of a margin.

Best of luck. 

75 a sqft? Wow. I'm in ventura county and here's it's closer to $200 a foot.

What drastic differences even in the same state.