All Forum Posts by: Nixon Vayupak

@Danny Simard  I say lets have it at Perch LA (5th and Hills) or on the rooftop at the Standard Hotel during a weeknight and have it more like a mixer happy hour style.  Nobody is going to be pitching anything just more social drinking and passing out business cards.  That is what I would call network mixer.

@Daniel Sanchez  I have to agree I think he is very much delusional.  But as for the units, i was thinking if it was to be purchased just rehab the existing units and not tear them down since the new zoning. My understanding existing units can stay since they are grandfather in.  

Few weeks ago, I went driving for dollar in this mid-low class neighborhood in Los Angeles.  I came across an abandon rental property, which has 5 units on them.  I've done my research and found out the following:

1. The owner purchased the property back in 2007 for $200K

2. The owner has been cited by the city and fined every single year in regards the abandon property.

3. All units have been boarded up

4. Graffiti, broken glass, major property damage on all units.

5. Recent zoning is now LAR1 (Residential Only)

The place is a complete dive, but yet I see major opportunity if fixed up correctly.

With that being said, I was able to find the owner and reached out to him and see if he is willing to let it go.  Owner informed me that he was offered $1 million last year and did not take the offer.  He is not sure if he wants to fix it up himself, but willing to wait and see the proper offer. Also, he indicated he is very well off with his other property.  But then he started complaining to me about all of his bad tenants in LA and gave me a life tip "Don't be a land lord in LA".  I really think this person is very unusual.

As of now I really don't understand, why this particular owner is not willing to do anything to it and willing to let money fly by.  As for the comps, you can not really do a comparison, since there is nothing similar to property in a 2 mile radius.  There are apartments which sold for like $3.5 million near by and it can by justify since there are tenants currently there. Few homes sold near by and at most sold in the low 600K. 

Why are there people like this guy willing to sit and wait and wait?  Is it really worth it? If he sells now he make more than what he purchased it for.  Is there some type of strategy to abandon property?

I agree... would love to network and meet like minded individuals.  keep me posted. 

Welcome @Account Closed 

@James Wise Thanks... =)

Can anyone who wholesale in California please confirm if this correct or incorrect.  I was having a conversation with a broker and they informed me that by law in California you are able to assign contracts up to 8 times in a year if you are not a certified Broker or Real Estate agent here in CA.  If this is true what other routes are available if you would like to wholesale additional deals, besides double closing?

@James Wise  you have car magnets on five cars or did you wrap all 5 cars with your info?

@Curt Davis trust I just asked her how much numerous times.  The response is I need to do my research to figure out how much i can sell it for.  Also, I agree with you I can not smother the seller it will just kill the deal completely and make it seems i am very desperate to purchase.  This is such a terrible waiting game.

Hello BP Family, I have a situation here and I want your input. I found this house and I spoke to the owner. Basically, the house is occupied by the owners relative. The current ARV for the house is going for like $550K. I saw the house and did a walk thru. To my amazement I would have to say "hoarder galore". The place is a sham and seems like the owner build additional rooms and bathroom to make room for renters, which are not being used. We are talking about 5 bedrooms and 3 baths in 1800 SF home built in 1969. Central Air and Heating has stopped working for 5 years now, stairs are damaged and about to fall apart. Kitchen is half gone utilizing cabinets from IKEA. Bathroom are old and outdated. The pool in the backyard is cracked all over inside and the surrounding area itself. Everything is so old, which makes it perfect for a good flip.

Basically, when I spoke to the owner again.  She said "Did my house scare you?".  My response is no, but I think it would really need some major work to get it up to where you think you would want to sell the house for.  The owner indicated that homes around the area ranges between 520 to 550K.  Which i can agree. 

Usually, when dealing with a sellers I wait for them til they inform me about how much they are willing to sell.  But this owner indicated they she wants to figure out her value and get back to me.  She is aware that it may cost a lot just fix up.  Now with that being said, we are playing the waiting game and she still has not determined the value of her house.

So, my question is should I gather up some comps with images and show her homes that are priced correctly with amenities up to date so she can be aware how much her home is really worth if it is fixed up. Because automatically I think we would need to spend like 100K just to fix it up. I even want to tell her how much we are willing to offer her for the house. But from my understanding we should always wait. Should I break this rule and just make an offer using the 70% ARV minus repair rule.