All Forum Posts by: Alissa S.

One of the family members of the owner of a property I am looking at buying committed suicide. It has to be disclosed for 3 years after the fact. Has anyone here ever experienced that when buying or selling a house and what happened? I’ve bought an sold a ton along with properties that have had elderly pass but never a suicide. Number work out and the deal looks great at our price but questioning the resale.

I am looking at some properties in San Diego. I am wondering what all you ADU property investors are doing to evaluate adding the unit in an area that has no comps with an ADU or comparable sq footage. I have learned that San Diego values can fluctuate street by street in some locations. Help??

@Jerryll Noorden don’t know your personality so I am going to assume you are just being sarcastic for fun. If it’s a big deal to chat, I’m cool. I was interested in chatting with you but I am not looking for handouts so if you are interested, message me so we can connect. If not, then no harm done and I will move on. ☺️

@Jerryll Noorden can we chat? I have been playing around with web things but would love these results for my business.

avisionaryllc at gmail.com

Awesome! Thanks for the reply! Do you set them up on a 5 year plan or are they structured that way when you purchase them?

Looking to find out how many investors out there are buying notes. I have been working with notes for 5 years now and am interested in seeing the strategy that others use to buy them. 

Do you buy 1st position or 2nd position? Why is that your choice?

Do you stay local or buy all over the US?

What is your formula for note acquisition? In rehabbing, people use the MAO formula. Have you formulated something similar for Notes?

Originally posted by @Dylan Vargas:

@Alissa S. I like your outlook and positive approach. If you have found deals off market in the past I am sure you will do the same in San Diego. You appear as a no obstacle get it done person. You only go around once, right? You will love San Diego! Enjoy and keep us posted.

 Thanks Dylan! I came into real estate in the worst time (the recession before it hit) I have watched the market and know that people are making money. Landlords who bought in 2010 (why didn't I smh...I was more interested in bigger rehab checks then long term gains) are killing it now. I watched one house get snatched up as a foreclosure for 55k (short sale had an offer at 163,000) and they put 15k in to get it rent ready, have rented it for years and just recently sold for 215,000. People were scared to invest at that time but if you were saavi and had some financing, you would have killed it!

I am a get er' done kinda girl, I am just looking for focus on what strategy to choose based on current market conditions.

Originally posted by @Michael Swan:

Hi @Alissa K.

Just my opinion. I have sold all my pricey San Diego RE, except personal residence. I had 10 rental condos here in the San Diego area and purchased at very low prices comparatively to now values. I purchased them in 2011-2012. The people that have purchased these condos that I sold for double the price I purchased them for bought FHA 3.5 % down, with credit scores in the low 600's and with not much money in the bank. I would not have purchased these condos for this price in 2011-2012, due to not being able to cash flow at these current prices with 25% down like I purchased them originally.

Now they will cash flow if you put 50% down.  If that is your plan, then that would be good leveraged debt and add more safety in case we do see this rerun occur again and prices go down 25-50% again.  I have lived here in San Diego since 1978 and don't believe my little 3br/1ba 1040 sf house  in Mira Mesa in the San Diego area will continue to rise and go to $1,000,000.00 someday.  Right now it is at the all time peaks currently about $520,000.00.  The only way this could happen would be many more high paying jobs, vastly increasing pay for employees etc...  The other way it could happen would be to repeal Dodd Frank and ease the lending standards further.  That would be a recipe for disaster.

Swanny

 Hey Swanny! Thank you so much for sharing your story! It is definitely something to consider. I only hope I can figure it out and be successful there. I am ready for a change and want to invest in my back yard instead of a thousand miles away so I will have to work it out :)

What do you do now if you don't have rentals?

Originally posted by @Jack Martin:

I was in Minneapolis last year and couldn't believe how cheap housing is, prepare for a shock when you enter San Diego! Living in Orange County, I recently went to a realtor meeting and they were crying about the lack of flip opportunities, all this to say, the "Pros" have been flipping for ten years now and with essentially no foreclosures in San Diego, where are you going to find opportunities? Cap rates are 4-6%; SD is at the top of the market (post recession highs), virtually no vacancy factor in SF, OC, and SD. Trust me, unless you have a ton of money, you can't compete! Some of the most sophisticated investors are in Southern California. Not to mention Chinese money is flowing into the San Gabriel Valley (LA) where they are buying whole blocks sight unseen. I would keep your money parked until the next recession.

Hi Jack, Thanks for replying. I have been investing for a long time. There are many many ways to find opportunities without foreclosures. I have not purchased a foreclosure since 2013 here in MN. All of my deals have been non-mls, non-REO properties and with the demographic of the area, I am sure there are plenty of opportunities there as well. I was more concerned with the high home prices and rental rates and what people were accepting for cap rates and making money with. Strategies in a more expensive location are critical and I want to connect with people who are working the system there and making stuff happen.

Prices of homes are all relative. You are on the ocean and people pay bigger money for that. No one wants to pay a ton to live here...the summers are beautiful, but the winters are horrible. Income rates are a little lower here, but there are many fortune 500s here that bring in the buyers. I believe pricing is all relative and if the economy supports the pricing then it is what it is. The housing supply here is low just like most desirable cities and we are still working out deals. I don't believe there will ever be a recession like the one we had (at least not in my active lifetime), but the market always corrects some and then continues on the upward trajectory. It is typically slower than what we have seen in recent years, but there is definitely a trend.