All Forum Posts by: Justin Gottuso

@Matt Devincenzo ok that answers my question. In SD they try to incentivize affordable housing by letting you build two on the lot. Wish LA had that!

@Matt Devincenzo are you sure? Is this in San Diego county? Can you site the building code/ordinance that allows two ADU's on one lot?

@Derrick Dill I thought you could only have one ADU. OR JADU on the property. If you can have both great house hacking option for those who can do it. But beware of the poor resale values. Not enough comps yet in LA. Better value to rent them out than try to sell in my experience.

I’m going to be shopping for a hard money loan for an upcoming duplex acquisition and rehab.

1. What are red flags that would signal ‘this is a terrible deal/rate/terms/they are crooks’? What should I avoid?

2. What are signs of a good deal/rate/terms that I should seriously consider? What’s acceptable?

3. What would tell me ‘this is an amazing deal/rate/terms and I should sign right now?’ What would be a slam dunk no brainer?

Examples of deals you’ve done are much appreciated for case study 📚 comparisons. Thanks!

@Joshua Bailey

Have you seen the property? Do your numbers factor in any rehab costs in case inspection finds something major?

I came across a deal with similar numbers last summer. Seven units almost 4000 gross per month, for $130,000 in Dayton Ohio.  Part of my brain thought, this is too good to be true, something major must be wrong or will be trashy and need 60 grand in rehab cost to make it habitable. 

I was completely wrong. All the exterior had some rough patches, inside all mechanicals have been updated. The owner really takes care of the place and the people. Plus there were value add opportunities I would not have known if I did not investigate and trust my gut that this might be an amazing opportunity. It was. 

We have owned it since January and this one property pays almost as much as my W-2 salary per month!!  so yes, do the numbers and be skeptical. Ask the hard questions like “why has this not sold yet? Is there anything I should know before we do the inspection?” but also, trust your gut and see the opportunity for what it might be: life changing.



@Nicole Collins

I recommend checking to see if you can have a Tiny House On Wheels as an ADU. You can in LA county.

@Sean McCarty hey Sean! Welcome to the Columbus market! It's a great city! I was born and raised in Los Angeles and moved to Columbus a year ago for better quality of life and lower cost of living so we can invest more and be closer to my wife's family. Took the cash we netted from our house in LA we bought in 2016 and invested in great cash flowing small multi family properties in Dayton (Thanks @Remington Lyman). I've still got my eye on Columbus for flips and BRRRRR opportunities and will invest here one day, but for now focusing on better cash flowing areas in smaller markets within 1-2 hours of Columbus. Getting connected to locals who can help you acquire and manage is key of course!

@J Scott thank you!

So... I have access to a steady stream of profitable house flip opportunities, as well as local contractors and labor that is fairly priced. I’m thinking about raising private capital to acquire and rehab these properties quickly, reinvesting the profits and eventually putting thr profits into larger multi family complexes. Ideally the investors would invest in the “debt fund“ for an agreed upon interest return, like 10-12%, providing me flexibility to function as the general partner who can acquire multiple properties without the liability of joint ownership issues like if I had equity investors. For example, I’ve had two great deals come my way the last two weeks with 20 to 30% cash on cash return, but by the time I have pitched the property to equity investor and gone back-and-forth, the deal is gone. The debt investors are hands off and get regular checks. I continue to reinvest their money and earn good returns for myself. Thoughts? Feedback? Thanks so much! 

So... I have access to a steady stream of profitable house flip opportunities, as well as local contractors and labor that is fairly priced. I'm thinking about raising private capital to acquire and rehab these properties quickly, reinvesting the profits and eventually putting thr profits into high cash flowing SFH's or larger multi family complexes. Ideally the investors would invest in a "debt fund" for an agreed upon interest return, like 10-12%, providing me flexibility to function as the general partner who can acquire multiple properties without the liability of joint ownership issues like if I had equity investors. For example, I've had two great deals come my way the last two weeks with 20 to 30% cash on cash return, but by the time I have pitched the property to equity investor and gone back-and-forth, the deal is gone. The debt investors are hands off and get regular checks. I continue to reinvest their money and earn good returns for myself. Thoughts? Feedback? Thanks so much!