All Forum Posts by: Matt Welch

As of right now, one of my crews from San Diego might end up making the trek up north and handle it, not ideal. I would love a local referral if you have one.

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Sacramento, California

Hello all,

I am a full time rehabber/flipper in San Diego, I have a solid deal come across my desk that is located in Sacramento. I lived in Sacramento for a bit while growing up and have been eager to to a deal up there as I feel I know the market/area fairly well for living in San Diego. I have the property under contract and will be closing on it next week, I got a line item bid back from a local GC and it is across the board higher then what I am accustomed to paying for my flips in San Diego. For example- this is a 1223 square foot house and he quoted me $15k for a new roof. That is almost double what I am paying for a new roof of the same size in San Diego. Would love a referral or recommendation from a local in the trenches.

Thanks

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Sacramento, California

I am a very skeptical person, but to consider the money lost is foolish. My experience with Nav is he was a straight shooter, I think they just having a hard time competing against the other players in the market and the insitutional guys are not rushing to give these operators capital right now as they were two years ago.

The performance of the underlying assets is what I would be worried about, not the operations team at Realty Shares capturing your funds...

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why did the renovation take 4 months? Is that normal for a 43k reno in your area?

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I am always looking for a good GC, do about 25-30 flips a year in San Diego. Looking for contractors that can stay on time and do not try and change order you to death. $1000 a day is minimum rate we are looking for, so $45,000 renovation should take 45 days or less.

Please PM any referrals.

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San Diego, California

Originally posted by @Bruce May:

I've bought out-of-state (Atlanta) when I thought there were no deals to get in San Diego. One was suppose to be a flip; it took nine years to sell. Yes, you heard that right. We bought it sight unseen, fixed it and couldn't sell it. This happened because I relied on someone else's advice.

Luckily, we were able to rent it for nine years until the market turned in Atlanta. We just sold it last year only to break even. In the future I won't be buying out-of-state unless I can drive there in a few hours and be actively engaged with the property if necessary. And consider this as an out-of-state owner... each time you need to see your rental, what will it cost you, $500-1,000? Do that once or twice a year and there goes your passive income.

What are you going to do as the owner that someone can't do locally that will be a $100 service call at the most? This "you need to see the rental" concept is pure nonsense. If you are buying out of state or even out of your immediate area rentals you need to do your due diligence on the buy and have good contacts for local professionals that can handle the responsibilities of being a landlord.

I live in San Diego, if I had a property in Riverside it might as well be in Afghanistan. I am not going there to fix anything, my time is too valuable. If you are a serious real estate investor your time should be more valuable also.

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Originally posted by @Jeff Kehl:

@Account Closed Interesting that you mention low down-payment loans. I have sold 4 houses over the last year. Every single buyer has used a 3.5% down mortgage and asked me to pay their closing costs. That kind of sums up for me where things are... I still see a lot of structural problems in the economy that haven't really gotten better.

That says nothing about the market. If you are selling 1000 homes and they are all above the medium price point in your area then this would be a worthwhile anecdote. I'm guessing you are selling lower end homes and this is what the majority of buyers are going to do in any market condition at that price point.

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I'm not buying the land...

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Reno, Nevada

Interesting. It would be a small residential subdivision. Do you have a ballpark about what local guys are building at per square foot?

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Reno, Nevada

All Forum Posts by: Matt Welch

Matt Welch has started 13 posts and replied 73 times.

Post: Review of Plans - San Diego New Dwelling unit and ADU build

Post: Need a contractor recommendation for a flip in Sacramento

Post: Need a contractor recommendation for a flip in Sacramento

Post: What's going on with Realty Shares

Post: First BRRRR success; on to the next one!

Post: Can Anyone Recommend Contractors In San Diego

Post: Flying out to see the property

Post: How high can property values go?

Post: Anyone building in Reno area?

Post: Anyone building in Reno area?