All Forum Posts by: Michael Carter

Its on crawl space. I don't know ho to find what kind of soil we have. I did see while looking under the crawl space that some has already raised a couple beams or joists (don't know the correct terminology.

Thanks

I looked at a house that had major foundation issues. House sloped about 6 inches from front to back 1660sf one story on a not so level lot. The house was sitting on a raised foundation of cinder blocks. Was wondering just as an estimate of what the total costs would be to have someone level the house and also how long it would take. I read in a couple forums that it would take weeks because you do it a bit at a time to avoid serious cracking and damages. I saw quotes from 2K up to 30k. I am following this deal to see what it eventually sells for bcs if the right person buys it ( experience with foundations) its a very good deal. Thanks

I like back splashes in CA for all my kitchens. Not that I've done too many houses but my last one was out of necessity and I used the 1 inch tiles on the net. Don't know the formal lingo for that. But it turned out really well to off set the ugly granite countertops that we didn't want to replace. Used the wrong color grout and just learned today while watching sweat equity that I should've sealed first before grouting. Oh well next time. This was a low end condo so I know some of the colors were a little off but we made due. When HD and Lowes are low on a certain style they will deeply discount them and you can get a great deal. We got these for 2.99 a sheet.. Just my 2 cents. Here is a couple picks in this link.
http://www.flickr.com/photos/26139843@N08/4799705747/in/photostream/

Originally posted by J Scott:

Originally posted by Mitch Kronowit:

What is the advantage of forming an LLC and having it taxed as an S-Corp vice simply forming a regular S-Corp?

Corporations have a lot of management requirements that LLCs don't have, such as shareholder meeting requirements (that an LLC can waive), additional filings, etc.

If you want the entity protection without the management overhead, LLC is probably going to be easier...

Thanks J Scott, we will look into this. Happy investing

Originally posted by Steve Babiak:

Originally posted by Ryan Bilby:

...
Objective: LLC purchases single family residences, duplexes, and four-plexes in the Greater Sacramento and San Diego regions. ...

Interesting that you do not also include triplexes. Is there some reason, or was this an oversight?

Originally posted by Ryan Bilby:

...
... The properties we purchase will need light to medium renovations not to exceed 20% of the acquisition cost (case by case basis if more than 20%) in order to meet or exceed comparable condition of homes in the area.
... We will also go to local auctions as another way of securing discounted properties. ...

Hard to do that 20% limit with auction properties if you haven't been inside the property beforehand.

Originally posted by Ryan Bilby:

... We also contact people who are in default and are looking to short-sale their home.
In the event that this takes place and the property fits our criteria, we will then act as the selling and buying agent to purchase the property in order to net a higher profit be eliminating paid out commissions. ...

Typo in the above: the word "be" after the word "profit" should be changed to the word "by" - correct? Otherwise, I have a bit of difficulty making sense of this statement.

Also, for clarity, I would specify that this particular statement only applies to short sale transactions; otherwise, you risk alienating agents who would think you are looking to eliminate ALL commissions.

Some of the concerns within the other posts on this thread should also be seriously considered, since my guess is that you are creating this business plan for the purpose of creating a favorable impression upon those with whom you seek to do business - and those business savvy folks might wonder about the geographic separation of your two target markets, for example.

I don't know how to answer to your seperate points except to bunch it all in one so sorry in advance.

Yes tri plexes included

Most of our deals come from direct marketing, and we email blast agents to throw us deals with the incentive of them being able to double end

And yes we will separate markets. Starting in Sacramento because of my experience and the cheaper deals.

Definately considering all the previous posts as far as how to structure etc.

Thank you

Originally posted by Tom Wilhelm:

Originally posted by Mitch Kronowit:

Not going to happen in San Diego, CA. A $170k SFR or condo is probably going to rent in the low $1,000's in any kind of decent area. Property is purchased here nowadays for the appreciation potential, not the cash flow.

Isn't this sort of speculation what got us into the current mess in the first place?

Ryan is my partner, I just finished a condo in Escondido sold it for 180K and the rents in that area go for 1500-1700 for that size. it was 1600 sf. Also in CA I think the cash flow for rentals are a little different. Yes properties are a bit more expensive and the 50% rule is hard to come by but there are alot of $ people here who want rentals in their own backyard and will sacrifice paying for cash for a rental in their own backyard as opposed to somewhere like the midwest or the south where cash flow properties are more abundant or favorable. I had 6 all cash offers above my asking price and 4 were from investors. As far as Sacramento goes, I know that area well and in the market area's I invest in or look to invest in, I can get a property in the 60-70k range rehab sell for 120-130 to cash investors who simply want a rental in a good rental community. Rents in those areas are 900-1400 depending on size. We have a market supply of 3.3 months which is probably that high because of shortsales staying active cont until they are approved, but the demand for the lower in for investors and first timers is enormous. Bay area $ is flying up there. Sorry for the rambling.

http://www.flickr.com/photos/26139843@N08/sets/72157624392262575/

Ok its in my photo gallery

Ok, I uploaded about 10 pics of before and afters. I'll try and get a pic link tonight as well as my flip calculator. Thanks

My partner and I bought this condo for $131K got 100% funding short term funding with closing costs paids, and just closed today for 180K. Had a couple hiccups. When we purchased the HOA was in arrears and escrow sent the check to the HOA attorney trust account instead of the corp office, and by their guidelines had to sit their for 28 days. We rehabbed in 7 days and had a buyer before we even funded. This was extremely annoying for obvious reasons but hey I learned on my first condo dealing with HOA's. We did net the 6% for real estate commissions whic netted us an extra 8K. Our rehab costs were 10,500. All the right things were wrong with the property. The ugly (imo) countertops were already in so we didnt touch. We had a good bckplash with bad grout color. shouldve gone dark. We painted everything including the popcorn ceilings, which looked pretty good. Better than I thought it would.

We did new lights, stained the bathroom cabinets, basebords, tile in kitchen and living room. It was a basic cosmetic flip. Their was some bad wiring and plumbing we had to take care of. All in all it went pretty smooth. We took in a cash buyer at a conservative sale price to close quickly. The first one with no agent fell out so we put on market and got cash buyer same day. I'll try and upload the flip calculater that we used to give a breakdown of all costs.

I dont know how to post pics, can someone show me and I will post before and after pics.
its a 3/3 bath condo 1621 sf.