All Forum Posts by: Patrick Fraire

@Kath Marie

🔥🔥🔥

@Joan-Marie Pagan

I think you will have to go with private money if the house is 10k. A bank or conventional lender won’t fun properties at that price.

@Daniel Brown

I think most beginners don't consider the down payment needed to get the initial hard money loan. BRRRR is always preached as a way to get started. It takes a while to have 15%-20% down ,at least in my market. You aren't going to be able to save that in a year. So that's my answer. The down payment for the hard money loan.

@Hooman Ghaffari

I'm typically listening to a horror story when I hear about an investment that included this much rehab. You killed it on this. How many partners did you have on this deal? When and how did you realize this property was in the expanded patrol zone? Were you already analyzing the deal when you gained this knowledge? Did you involve the architects/contractors before you made your offer? If so how did you pay them to do a preliminary design/cost proposal? If not how did you make it worth their time?

Did you get the added bedrooms approved by the city of LA? Did the city send an inspector out to check the contractors work? Did you have any issues during the construction? Sorry for the slew of questions. This is the type of post that makes me crack open a modelo and start looking for deals on the mls. 

Since college, I always felt there was opportunities in student housing. I have struggled to find a partner that is not afraid of students destroying the property, throwing parties, etc. Returns like this are exactly how the higher risk of student housing (if there even is one) can yield a higher return. Thank you for posting. I needed this. 

@Travis Moe

Can you send a link to the url you are using? I am not able to do this on my zoning map I'm looking at. I'm using the pdf below.

https://www.riversideca.gov/fire/SOCDocs/68.%20Zoning%20Map.pdf

@Nick Elg

I don't trust humans to be objective about markets. Trust the data (with a little human interpretation)! 

@James Wise gotcha. Wasn’t sure if he put more down to get better cash flow. Just wanted to get a feel for his cash on cash return.

that’s awesome! I hope he ends up buying it. That saves time having a retail buyer come through with an inspector and try to negotiate repairs. This guy buIlt it so at the very least you will avoid that headache!