All Forum Posts by: Mike Flora

Seth Thompson I am active in riverside county and city of San Bernardino. Everyone please stay out of riverside county and the city of San Bernardino. DEALS ARE TOUGH TO COME BY LATELY. I’m just kidding about everyone stay out, but i can dream of being the only investor in my area! Some of those smaller cities could be a decent play for the future. I’m not familiar with the high desert/desert cities market but if your just starting out I would try and stay close to home for your first deal.

Great points all the way around. I am doing flips and rentals all together here in california where appreciation is good and I have some properties on 15 year loans and 30 year. I also work as a firefighter and make good money as well and I split profits with a co owner who is also a firefighter. So we have back up I come instead of just relying on real estate at this time. So many goals and variables involved with our scenario and our plan with the 15 year loans works for us. It’s all about goals and numbers and what kind of market your in where you live. Run numbers, think about a plan and why you would want the 15 year and maybe not the 30 year.

Martin Ruiz shoot me a message, I’m active in the inland empire. Rehabs and rentals

Derek Dombeck brings up a very good point and I’ll second that educating them on the process of the plan you want to use is the most important part of the deal when trying to convince a seller to use seller financing. Sellers who don’t understand the process fully will have the fear of the unknown and it will be hard to get them to agree, not because they don’t want to but because they don’t feel comfortable doing so. Explaining the process and security they have if things go south is whats gonna get them to sign.

Brandie Lyons how much underwater is the property, is there only one loan out on the property and how far behind and balance due to bring current? If other numbers look alright and property is in a good area then someone might take title subject to existing financing.

You and the seller can agree on anything for terms. Just have it all in writing in your Purchase Agreement. Each property will be different in many ways so just look at all the options that will work for you and your seller. I went back and forth with a seller for a while on down payment, interest, balloon payment time etc etc. The best deals are seller financed deals in my opinion. Saves the seller on some taxes as well. Have the terms written in your purchase agreement in simple words you and your seller can understand and then title/Escrow will write up the Note/deed in legal language and you both sign off on it. Very easy to do.

Jay Hinrichs yes Bruce was a little skeptical on the multi family market but all in all the aspect of real estate actually helping the turn around of the next recession actually made sense in the SFR area. With of course putting all the information together that was provided by these guys. I only really focus on SFR at this time and I’m just trying to grow my portfolio but to respond to the OP an overall crash of everything in the real estate world just isn’t adding up to me and most other experienced investors at this time. There are some markets out here in riverside county that are still undervalued and are trying to get out of the hole the 2008 crash put them in. So many foreclosures and auction purchases in lower income areas have really slowed down the market recovery in those areas. Tons were obviously made into rentals after auction purchase and just flat out not being taken care of by landlords. Hemet CA has a great article on how this has affected their city. I believe over 50% of the city is rented in the multi/SFR. I just picked up a property for 100K and wanted to rent in Hemet but HOA put a stop to that real quick and we just flipped it for 170K. They are making it hard for people to buy and rent in certain cities out here in Riverside county. Do you see that up by you in lower income areas?? Struggling still to catch up to other markets??

Like Jay Hinrichs stated above, there are good signs that real estate will most likely not take a big hit during the next recession. Whenever that may be. And one other thing to look at that is a big indicator of safety for home owners is the amount of equity people have now compared to when the housing market crashed a decade ago. This will help people out of there crisis and the recession in the fact that people won’t go under water and have some equity if they have to sell. Other charts, graphs and information from some big real estate players makes sense that real estate will not take a big hit during the next recession. Bruce Norris, Sean O Toole and John Burns have some great info and facts on this stuff. Like Jay said above, I think interest rates will be the biggest slow down at this time right now in certain markets.

I would like to hear more about this as well. Please send me a message. I’m located in Menifee.

The above posts are right. I HATE THIS STUPID RULE. Hurts both buyers and sellers. They need to catch up with technology and figure out a way to check for the fraud this rule was put into place a long time ago.