All Forum Posts by: Logan Vierstra

@Jeshua Patrick

I'm looking at them as flips. I sent the guy a response letter asking a few questions regarding the properties and if he responds I will make an offer.

@jason medhurst

My relationships with other investors are fairly weak at this point. I've kind of been waiting to have something to bring to the table before I started doing a lot of networking just because I feel every experienced investor gets bombarded with newbies wanting something for free. 

So connecting and developing relationships is something I am working on now that I can bring leads to the table. I have met a couple different investors that I've sent messages to and am awaiting a response. 

Yeah, financing and cash available are my main road blocks. I have about 100k available to me, which me and my partner are intending to do a flip with. To my knowledge that's probably not enough to take on 9 houses with. 

Owner financing could be an option. Almost all of them are free and clear, or at least extremely close to it. 

I wonder if I could make an owner carry offer to close on the properties, and then sell them piecemeal to other investors? 

I have a marketing campaign going out to absentee owner in certain area's of Sacramento. 

I got a response letter from a guy who owns 9 houses. 

He wants to sell all 9 as a combo pack. 

Frankly, I don't have the capacity to buy that many properties at once, so I'm looking to see if any of the more experienced investors on here who would be interested in working with me to provide this guy an offer and make a deal happen.

I realize that without help there's no deal here for me, so I'm happy to practically give this one away for the knowledge I can gain. 

@Liz Jackson

Roseville RE Investing This Tues Mar 5th 630pm... "Surplus Funds" $10k to $50k per deal. Incredible REI Strategy. Details and RSVP RosevilleMeetup.com

I noticed that in the BRRR calculator that the holding costs aren't added into the 'total cash invested' section.

Isn't that a problem?

I've used the calculator to analyze a lot of properties and I just noticed when I was using the BRRR calculator, that the only places holding costs show up are under the 'rehab period' tab, and in the 'analysis over time' section, it shows that you loose the holding costs in your first year of cash flow.

But it isn't accounted for in the refinance section, and it isn't accounted for in the total cash invested. That has thrown off my potential profit numbers by the amount of the holding costs on almost every property I've analyzed. 

Is this my mistake?

Or is it a problem with the calculator? 

I have a direct mail marketing campaign going out to absentee owners of duplexes and SFR's in Sacramento Ca. I've had homeowners call and give me the line "I don't want to sell, but I'm interested in knowing what my unit is worth if I did want to sell", a few times. My suspicion is that most often these people do want to sell, but just don't want to admit it.

I'm wondering if anyone has some good tips for digging a little deeper into these leads to see if they're actually motivated? 

Thank you Anthony. I will definitely take these recommendations to him and go from there. 

Thank you Sean for taking the time to reply! 

I definitely wouldn't say his work is shoddy, his work looks very clean to the untrained eye, but he is a DIY guy, and my fear is that a lot of his work while probably structurally safe most likely won't be up to the fine details involved in code. I have some limited experience working with my father in carpentry and dealing with inspectors, and I feel that if a nit-picky one came to his house, it might open up a can of worms. That's also his concern at this point, that if he does bring in an inspector they might tell him to tear it down before he can sell it. 

What I'm trying to accomplish is to find out whether or not he is just digging himself deeper into a hole. 

• What risk would he be taking if he brought in a code inspector?
  • Can they force him to tear down?

I got a friend trying to sell a house in El Dorado county that he has built a rather large addition onto. He has none of the addition permitted. Hes told me that when he bought it, it was roughly 1000 sq ft, and that he's added about 1400. When I've researched the property it says that it's 1800 square feet on Realtor and property radar, and 2400 on Zillow. So I figure in reality he has somewhere between 600-1400 sq ft non-permitted addition. It's still a long way from finished, but his plan is to keep working on it till he gets it nice enough to sell to a cash buyer that doesn't care about it being permitted. I told him I believe he's hoping to find a unicorn. He's under the impression that he can get 400-450k on it considering that comps to his property are selling in the 600-700 range(2400 sq ft permitted, and in ARV condition). Comps on his property ,assuming that 1600 sq ft are permitted, are falling closer to the 400 range. I think he's more likely to get 250 for it.

My questions are:

• Can he even sell the property without tearing down the addition?
• if so, what could he realistically expect to get?

ok. So it's backup funds separate from the investment itself?