All Forum Posts by: Mel Hayes

@Bill Levey

Hey Bill, Is the problem tenant the longest tenured tenant? If so, you can not evict them. You must evict the shortest tenured tenant UNLESS their unit does not fit your needs. Example you have 3 kids and their unit is a 1bd/1ba and the problem tenant has a 2bd/2ba.

Although the tenant refused cash for keys, you will still have to pay them. The city a table for you to follow.

Unless you are getting this property at a killer deal, I would walk. L.A does not favor LL at all in these situations.

When looking at properties that have problem tenants, I ask the current owner to negotiate cash for keys and I put that money in escrow and close with the property vacant.

Good luck.

Hey BP,

So I'm looking into how to lend on deals and fund my own deals with my IRA. Currently my IRA is under JP Morgan. I called them and asked the naive question of how can I fund real estate investments using my IRA. I quickly learned that all SDIRA's are not created equal when they told me that my type of SDIRA can only invest in JP Morgan Funds from their platform. They directed me to another division of JP Morgan and after that phone call I quickly realized that JP Morgan was not the solution I was looking for. After about 30 mins worth of Google research I learned that I needed a IRA Custodian to begin this journey. I called the first google number I could find and started asking questions.

I was able to digest some of the information but I felt like some of the answers were a little rushed.  Does anyone here extensive experience with this? I'm still unclear how I can use the money, the best way to set it, etc.

I appreciate any and all feedback.

Hi all, I'm doing a flip where the original owner converted the 2 garage into a bonus room and added a carport to compensate. The room is 324 sqft so it has the space to be converted into an ADU and no doubt would add a lot of value but I have some concerns about doing this on a flip. ADU's are expensive and from what I'm seeing, properties that have ADU's sit on the market a longer than conventional homes because they are priced higher than other homes in the same market. My idea for this room is to create another bedroom, which also increases the value and will not be nearly as expensive nor take the amount of time that building out an ADU will take. I would love to hear from any agents who work the L.A market about selling or buying homes that have ADUs. Am I correct that they sit on the market longer? Have you had any trouble selling a house with an ADU? If there are any L.A flippers who might read this, have you done any garage conversions to ADU's? I would love to get BP's thoughts on this.

Thanks,

 As far as financing your deals, find a great deal first and the money will find you.  Go to meetups and you will find lots of investors who are looking for deals.  Family and friends will invest with you as well if you have a killer deal.

 Yes, Anson Young's book on finding and funding great deals covers negotiating and making offers.  Their are other great books on negotiating.  The art of the deal by Trump is good, (we talking money not politics). I think J. Scott has a book on negotiating. But if you get to the point where you're negotiating, then you're in a good spot.

You can use list source to find and generate list but just know, mailing has 1% response rate.

 Hey Brandon,

1. Referrals from other investors. I actually had a hard money lender send me a contractor.

2. If you go to Home Depot or Lowes at 12:00pm you find that it is packed with contractors. If you go to Home Depot or Lowes at 6:30am you will find 1 or 2 contractors. The guys up at 6:00am to make sure they have everything and not running back to the store at 12:00pm because they forgot stuff or are just getting started are the guys you want to be connected with.

3. Stop at work sites and talk to people.  I get lots of contractor leads by stopping at job sites asking who is in charge?

4. If you're going to go online, try Thumbtack.  Now, 90% of these "contractors" are big companies that looking for expensive residential work but if you sniff through the reviews and see things like, "Mel was great to work with" over and over again it's more than likely not a huge company. Send them a message and say, "Hi I'm an investor and I'm doing rehabs in the Sac area.  I have a house that I'm closing on soon and I'm looking for a contractor who has experience in flipping properties. Are you interested in talking about the project?" Sometimes these companies will still call you and speak to you as if you did not just write them a message ask you is this your personal residence.

5. Keep your eyes open while driving. I was just driving down the street and I look to my left and I see "Plans, Permits, Construction" on a building. I wrote the number down and 2 weeks later he was giving a bid.

6. Last tip is to visit the building and safety office. All permits and plans have to be submitted there buy contractors. If you looking for contractors go to where the contractors hang out.

Good luck with your search