All Forum Posts by: Kim Stofan

I'm working on getting a HELOC on my primary residence in Granite Bay so that I can have some cash to start investing in real estate. The drive-by appraisal came back low (630 K) but I was able to convince them to do a complete interior appraisal. We bought our home for 650K two years ago and the market in our area has increased in value, our realtor told me he'd list the house for 725K. Our realtor also offered to be present during the appraisal to "help out", provide comps, etc. Do you think having my realtor here during the appraisal would be a good idea? Could it possibly help to have the appraisal come back at a higher value? Could it possibly work against me? I'm not sure what to do. Anyone have any input in this matter?

Thank you @Justin Silverio, that helps a lot!

We own a home and have some equity. I'm currently working on getting a HELOC which would provide me enough money for a down payment. I am also considering taking a loan from my 401 K for the down payment. I have been searching the MLS but the deals are very hard to find. I would have to offer an average of 50-60 K below asking price to have any decent cash flow. I'm starting to feel like the only other way I'll be able to find my first deal would be from DM.

I really appreciate you taking the time to respond to my question.  I was not planning on wholesaling.  I'm interested in buy and hold.  So it sounds like you need to have the cash to buy the property outright or find hard money or private investors to fund it.  You can't find a deal through DM and get a loan from a bank to finance it...

Again, please excuse my lack of knowledge... I'm spending every bit of my free time learning (listening to podcasts, watching webinars, reading books.)  This is just a question that I haven't found a straight answer to.  

I was wondering if someone could answer a question that I have about direct mail marketing.  I'm definitely a newbie trying to figure out how I can get started in the competitive market of Northern California.  Forgive me if I sound naive or uneducated...  I'm spending all my free time learning as much as I can.  It sounds like most investors who use DM state in their letters/postcards that they can pay in cash.  Is this required for finding deals with DM?  I have some cash, but not enough to pay for a property outright (esp. in my market).  Can you finance a deal that you find using DM?  

Nice to meet you @Sergey Tkachev.  Thanks for the encouragement.  I've been researching so many properties in Roseville, Citrus Heights, Folsom, and Orangevale and I have found that for sfhs, I'd have to offer an average of 60K below asking to get a deal that would meet my criteria and provide cash flow right off the bat.  Duplexes are starting to sound better to me.  Less competition and more potential to make some money right off the bat.  I'm trying to steer clear of HOAs right now, thanks for the advice!

Hi @Shannon Mendez nice to meet you too!  I plan on going to a meeting of the Roseville investment group.  I'm working at the hospital next Tuesday when they are having their meeting but hopefully I can make the next one.  Let me know how everything is going for you!

HI @Chris Sumerlin.  Good luck to you too on your endeavors.  Let me know how it's going for you.  What kind of RE are you interested in?

@Derek Jones, @Kenneth Reimer, @Pat McGrath, and @Steven Davis. Thank you for reaching out to me to share your knowledge and insight! I'm so happy I found BP. I started out 2 weeks ago knowing next to nothing about RE Investing. After watching loads of Webinars, Podcasts, and reading a couple books I feel like I'm getting a working knowledge of the basics. It helps to have the support of those who are already involved. I want to purchase my first property pretty close to where I live (Roseville, Folsom, Citrus Heights) so I can keep a close eye on things. I'd like to start out managing it myself and see how that goes. I will budget property management into the equation in case I change my mind on that. I know the market is difficult right now but I don't give up very easily. I want to find my first property this year but I won't pull the trigger unless I'm sure it's a good deal. I'm close to having my financing squared away (either a cash out refinance or HELOC). I've started branching out to looking a duplexes as well as sfr's. I've been using the MLS mostly. I know the best deals are done off-market though. I've also been looking into other options such as direct mail marketing and finding preforclosures.

Could you clarify for me what the 1% rule is?  I know the market is tough right now.  I'm up for the challenge.  I know it might take a while to find the right property but I'm willing to keep working until I find it.  I'm okay with something that needs a little work.  I think I might start out with my realtor I used for our primary residences and see how it work out.