All Forum Posts by: Osazee Edebiri

Quote from @Brigitte McAuliff:

Hi everyone! Looking for some insight on how to estimate the ARV of an ADU in Tulsa, Oklahoma.

The main house is easy to comp, but ADU's are uncommon in the area. I'm in the process of creating the scope and rehab budget, which I'm hung up on because of the uncertainty with the ARV. Thus, looking for a rough estimate for ADU's?

Talk to the investor agents in the area they should have an idea. What I would do is look for flips and see homes that didn't have ADU's and then see how much value was added if one was added on to the flip. If their are not many, one thing you can do is tell the appraiser how much you spent on your ADU, that would typically work to get the value over at least what you spent.

Quote from @Becca F.:

I've been following Elliott@Invest with Ace for a while now and Sam Primm on Instagram recently. Invest with Ace's spreadsheets look really clean. He offers his spreadsheets and information in a la carte form.  I attended Sam Primm's webinar and was on a call with one of his reps. He talked about using private lenders to help fund rental property purchases and using the BRRRS (Buy, Rehab, Rent, Refinance, Scale) method. With the mentorship program, the private lender (Sam in this case) would lend me the money to buy a distressed property, then the rehabbed property would be appraised and then the lender/bank would give a loan based on 75% to 85% of the appraised value. Someone would hand hold me with buying properties with the mentorship program.

I've heard a lot about using Other People's Money such as private lenders and hard money loans. I currently own 2 rental properties with one that is cash flowing and one that I just recently renovated - I'll have a renter in there soon but will need more tenants so that I can see a good amount of cash flow. I'd like to expand my portfolio but finding properties is difficult and I don't know if a bank would approve me for anymore loans and right now I don't have the cash to put 25% down on more investment property. I own property in the San Francisco Bay Area and my current rental that's cash flowing is in the Midwest - definitely think that the Midwest is great for being a landlord whereas California is more friendly to tenants. 

Is it worth the money to go through a mentorship program? What the the pros and cons of using private lenders? What's the difference of hard money loans and private lender money? Has anyone gone through the Faster Freedom mentorship? 

 Hey Becca,

Congrats on having two rental properties already. Depending on the cost of the program, I would say that's money you can use to your investments. Have you looked into pulling out money from your properties already? 

What I would do is work with a lending team that can get you creative financing and an agent that knows how to find solid investment properties. 

Quote from @Trinity Cross:

Hello, 

. I am renting out 4 rooms in my home in west oakland.  I currently am living in the home parttime and come to Oakland 1 or 2 x's per month for work.  I am having issues with the "borders" not paying rent on time and not communicating when they are going to be late.  The house is extremely messy and I was bit up by bugs when sleeping last time I stayed there so I haven't been sleeping there when I come to town.  

I am considering selling my home due to the stress it causes me not knowing if I will get rent from my tenants and the state of the home is really depressing.  After trying to enforce late payments (we signed a written stating this) I was told my one of them it is unlawful to charge late payments.  I am currently looking for someone to advise me on what to do and what I can do to not break any laws.  I have called every landlord related lawyer I can find on google over the last 2 weeks and have not gotten askingle call back.  Can someone help advise me or recommend me to someone who can?  
Thanks so much for any assistance.  

 Hi Trinity sorry for all the issues you are having.

So I had 5 years experience in property management prior to becoming a real estate agent. I have also been House Hacking for several years. The challenge you are facing is an establishment/precedent issue.  

When renting, especially to people in your home, typically the main thing is make sure they have solid jobs/work that they would be scared to loose if their employer found out they were the type of person that doesn't pay rent or not timely. Screening tenants is very important. Did you look at their credit reports before moving each individual in? You want tenants who be scared to have their good credit scores negatively affected as well.

Since there is a moratorium in effect the best thing you can try to do is see if you can pay them to leave. You would want to go into the lawyers offices rather than call them, they are probably extremely busy. As them to create you cash for keys agreements. Talk to your tenants about terms, pay them after they move out, not in advance. You must have documentation they signed that says the agreed to leave so they don't say you wrongfully evicted them later.

The other option is to wait for the moratorium to end, but that is an unknown.

Quote from @Brigitte Bugayong:

Hi, I'm wanting to do my due diligence so i can choose a turnkey company. Looking at Norada and Rent to retirement to facilitate my first purchase out of state. (I live in California) But I'm pretty unclear on how to evaluate them. My artistic brain freezes up  Lol  Any suggested reading would be greatly appreciated. I've been doing the multifamily bootcamp but realized turnkey is the avenue for me 

Thank you in advance 

 I have never used a turnkey company, but in my experience many of them hold free meetups all over the country even here in California for where we live. I would do a Google search for the turn key companies who are in the states or areas you want to invest in. Then go on meetup.com and see if that company has any local meetups that are close enough for you to attend.

You can go get a feel of the company and ask numerous questions. Also, see how many repeat clients they have and how many of them are happy with the service. 

I know Marshall Reddick is one I have gone to several of their events pre pandemic. Scott Pastel one of the owners is a pretty solid guy, again I haven't used their service, but if I went the turn key route they would be someone I would definitely consider.

Quote from @Jimmy L.:

Quote from @Osazee Edebiri:

Hey @Jimmy L. Congratz on the new duplex for your family.

I own property and rent multifamily in the Oakland area. 

I would say Oakland is one of the best learning experiences as investor. 

Normally in Oakland leases automatically become Month to Month once they end. You can require them to sign a new lease that is of similar terms and a rent increase if the last rent increase was over a year. However, the current moratorium has put a change to the norm. They don't really have to do anything at the moment.

Rentals property owners are hoping the moratorium will get lifted asap. 

I would say if you tenants are paying and not causing issues provided them a new lease that all the tenants sign. Keep in mind you can't increase the rent right now unless they are under Section 8. After they sign, let them know that you must approve any new tenants or changes in who lives in the home and only those on the lease are allowed to be residents. 

Then hope they are not familiar with the current climate of the law of renting. 

One the main things you want to do is establish a relationship with your tenants which doesn't have to be you bending over backwards, but just showing human quality. Most tenants resonate to that and generally will be responsive even if they are not perfect.

Hope that helps and I am available to connect.

Osazee

This is exactly what I was looking for so thank you for that. So, it sounds like my options are limited in terms of offering a new contract with local and state moratoriums in effect. Do you know if owners are allowed to approve roommate substitutions on MTM leases or can point me to the appropriate resource?

Would love to connect with a fellow Bay Area/Oakland LL - I'll message you.

Under normal circumstances yes, but I don’t know if you can currently fight someone who swaps roommates. There are actually some people who are in homes that are protected with a master lease policy. There would definitely be less ability to choose who moves in with those.

The moratorium is being reviewed tomorrow and hopefully they will start the process of removing it. 

Hey @Jimmy L. Congratz on the new duplex for your family.

I own property and rent multifamily in the Oakland area. 

I would say Oakland is one of the best learning experiences as investor. 

Normally in Oakland leases automatically become Month to Month once they end. You can require them to sign a new lease that is of similar terms and a rent increase if the last rent increase was over a year. However, the current moratorium has put a change to the norm. They don't really have to do anything at the moment.

Rentals property owners are hoping the moratorium will get lifted asap. 

I would say if you tenants are paying and not causing issues provided them a new lease that all the tenants sign. Keep in mind you can't increase the rent right now unless they are under Section 8. After they sign, let them know that you must approve any new tenants or changes in who lives in the home and only those on the lease are allowed to be residents. 

Then hope they are not familiar with the current climate of the law of renting. 

One the main things you want to do is establish a relationship with your tenants which doesn't have to be you bending over backwards, but just showing human quality. Most tenants resonate to that and generally will be responsive even if they are not perfect.

Hope that helps and I am available to connect.

Osazee

Quote from @Bruce Woodruff:

Quote from @Osazee Edebiri:

Quote from @Bruce Woodruff:

Quote from @Osazee Edebiri:

Lastly electric is hands down better than gas cars

That is still a matter of opinion in many circles, my friend. Too many variables to get into here, it would hijack the topic.

I agree with you, it will take time. Gas price is one example of moving towards that direction.

Purposely raising gas prices to force people into EVs is not going to work, it will backfire bigtime. We have the world's largest energy supply and should use it. EVs are decades away from being practical, they need to figure out how to 1)  not rape the environment both during the building and recycling stages, 2) get the costs down and 3) provide a serious power supply for them that does not rely on fossil fuels. Currently, they are the biggest example of hypocrisy on the planet.

I don’t know about the correlation with purposely raising gas and forcing people to purchase EV’s.  There definitely needs to major improvement in regards to the grid, but people are going to want these cars regardless of the planet (however sad that may be). Plus gas cars aren’t great for the environment. 

More so the specs and capabilities. For example electric cars are faster than gas cars on average and offer improved driving experience. Or something as simple as not being able to lock your keys in the car. There are benefits that most individuals will find appeal to them over time and imo will lead them to be less favorable to gas cars.

As of right now only gas cars I would be interested are sports cars and I can’t wait till the best ones are replaced by ev’s. 

Quote from @Kathleen McDowell:

@Osazee Edebiri reach out if you want to explore opportunities here on North side with STRs. I can provide my experience on which areas give you the best revenue potential. There is a big difference in areas such as at the lake Kings Beach/Tahoe City and further afield such as Tahoe Donner. If you're open to doing a little bit of work, I have a few on my street that need love. Challenge is, you with the new STR laws in Placer Co, there are no guarantees there will be a permit for you once you buy as they have a cap now and they are reviewing new applications starting this month, up til they reach the cap. South Lake may be different, so worth exploring.

Thanks, yes I definitely will reach out when I attack this investment strategy, appreciate that.

There are always roadblocks popping up like these permits we have to stay on top of in order to keep our investments on point.

I had heard about the permits, we actually have clients dealing with similar in places like Joshua Tree. Do you know if the permits transfer with the property? That could become valuable. 

Quote from @Bruce Woodruff:

Quote from @Osazee Edebiri:

Lastly electric is hands down better than gas cars

That is still a matter of opinion in many circles, my friend. Too many variables to get into here, it would hijack the topic.

 I agree with you, it will take time. Gas price is one example of moving towards that direction.

@Kathleen McDowell

I should add love that you have an STR in Tahoe, I definitely want to get at least one for my portfolio. It doesn't;t matter whether it's the North or South Side, the bulk of accommodations suck. Plus the prices of everything are up and the consumers know that, many of my conversations when it comes to that area are about renting an Airbnb over a hotel.

You have got a good one.