All Forum Posts by: Nicholas Leone

This may be a naive question but I'm going to ask it because I don't know the answer. Can I reduce closing costs as a buyer if I use seller financing in lieu of conventional financing? Can I offer a bit more on the property if we use seller financing?

I'm looking at a property and the seller is willing to sell for $X. If my closing costs would be reduced if the seller agrees to carry a note in lieu of a traditional mortgage, can I offer a bit extra on the purchase price? It would be a win/win as my total costs could be reduced while more money goes to the seller (instead of a bank).

Any insights on this, please let me know. Thank you!

It should not be a complicated process. He'll give you a proposal and should outline all of his services, milestones, and deliverables. Try to break-up the fee by phase. Your architect should be able to share progress plans and sketches with you. There likely won't be much on a $20k rehab. I'd be happy to review your proposal offline and share my thoughts.

I don't know your city but every city is different with permitting. You may be able to pull a permit over the counter (OTC) but it will take longer if it involves zoning or planning dept issues. I typically charge an hourly rate for permitting work because I do not know how long visits will take or what comments the City will develop.

Go to your city's building department and download the list of plan requirements. i.e. # of copies, plan size, what needs to be shown on floor plans, elevations, etc. Share w. your architect and ensure that he has this on his plans. It should save some time on the permitting effort. Best of luck!

I got my MBA while working fulltime. It was brutal. I went to Cal Berkeley and tried to focus as much as possible on Real Estate. I still had to take a ton of "general ed" MBA courses such as econ, marketing, etc. These were tough to translate into the RE world. In the end, I paid $125k and got a lot out of the program. To be honest, I don't think that my investment has paid-off yet. You may want to consider some real estate programs. USC has a Masters in Real Estate. A closer school may have something comprable.

Review your homeowner's policy about claims that occur during construction if you're going to occupy during work. Don't rely on your GC's coverage for losses. You may be able to write a project requirement that the GC carry builder's risk but you'll get some pushback on this. If I were going to have Builder's Risk on a project, I'd want the policy in my name so that I could manage the claim if it arose. Best of luck!

I'm going to agree with Nik on this one. It's going to be more difficult than you expect and I'd anticipate that your neighbors won't like it. Familiar yourself with any residential design guidelines for your area and the zoning ordinance. You'll likely need a variance which will likely not come easy. It's worth a few hours of research to see what you can pull off. Good luck!

I would review the local building department records and ask around a bit down there. Not only do you want to renovate to create a 3000 SF home, but you want to argue that the 3,000 SF always existed in order to minimize your property tax increase. Low probability of this but see if it can be done.

It seems that the basement is unfinished so this may be a challenge. Chances are that you'll need to pull a permit and will be subjected to the increased property taxes. Worth familiarizing yourself with that work does not require a building permit in that area. If you want to do anything beyond that list, pull the permit and keep it when you are done with construction. Otherwise, an appraiser will call the basement "unwarranted" and the space won't count in the appraisal.

$220k for 600sf sounds very high. I’d suggest getting a few more bids. In all sectors construction is expensive right now. I’m trying to turn a number of units this summer and am on the verge of acting as my own GC. I question the $15k for shed demo. Perhaps this can be done on a Saturday with a $500 dumpster and $500 in day laborers? Only you know if the project is worth it. Adding SF would add value. You can apply for a HELOC through First Republic and get a free appraisal.

Justin - I may be able to help you. Can you please send me a message with any other information that you can share?

Based on what you shared, $50k for deferred maintenance on a 100 yo building would be super optimistic. Like others, I say pass.

Cynthia. I’ve done CM work where I consult owners with construction issues like bidding, pay app review, or progress walks. I’ve typically worked on an hourly fee. I know that many other circumstances have a PM/CM who takes Equity or a Promote. If your PM/CM is deeply involved, it’s not a bad idea. Best idea is that the PM/CM should make money only if the project is profitable.