All Forum Posts by: Pete Ludlam

Be very careful with STRs in California. Even a city or muni that doesn't have any rules limiting STRs today could easily put in place rules tomorrow - if the only way you can cashflow is with an STR, you are putting a lot of eggs in one basket.

0 Votes

Quote from @Anna Marcotte:

Good afternoon investors, I need a bit of assistance!

Quick backstory - I want to get involved in real estate investing and I also need a primary residence (currently renting). I decided that a BRRRR property would be the best of both worlds since I can utilize my cash out refi for more properties (multi family is hard to come by in my area so house hacking is not a reliable option)

ANYWHO I found a BRRRR property I really like. It is in a favorable neighborhood (I live in the Jersey Shore area). It is currently listed at 285k. It was foreclosed on in 2019 for 120k, I am unable to find liens on the property with public records. From the photos, it looks pretty beat up and dirty. Honestly I'm not sure if it's even habitable at this current time. It's 1200 sq ft and 3 bed 2 bath. In the surrounding market, houses for this size are selling around 400k (on average). The house next door to it is a flip, bought for 160k in 2022 and now listed at 330k (of course will sell much higher in this spicy market). I think this property has a ton of potential, however 285 is pretty steep for something not even habitable. How did the next house over sell for 160k and how do I lower this list price of 285.
thanks in advance :)

You could definitely try and negotiate directly with the seller - but I think in this day and age, you're going to run across a lot of unreasonable sellers who believe their uninhabitable hoarder home is worth whatever Zillow says it is... don't get hung up on any one property. It's a numbers game.

1 Vote

Jersey City, New Jersey

Quote from @Taylor Dasch:

Hi Brady, I have never bought a foreclosure, however I do not believe you are actually able to tour the home prior. From what I have learned, you can stop by and peek in or if the property is occupied you could speak to whoever is living there and ask for a tour. I would expect to be responsible for the eviction of the current tenants.

Careful with this! Some states (WA) prohibit potential foreclosure buyers from contacting occupants of a property.

0 Votes

Quote from @Bruce Alston:

Never go shopping for Groceries without money

1. Find out when the local auction is by the Sheriff..Go with copies of deal sheet pass out to Investors

2. Find out hard money and private lenders in the area, ask them to send you buyer referrals

3. Call real estate attorneys they close deals .there clients is great base

Amen to that. Thanks for the recommendations.

0 Votes

San Francisco, California

Hi BP!

I'm an investor in the Bay Area and I need your collective advice. I found a motivated seller, negotiated a purchase price, got a contract, popped the champagne, etc., but am now having difficulty finding actual cash buyers. The people I've talked to have obscene repair estimates (one potential buyer mentioned that he estimated 500k repair costs without even knowing the property address!). I feel like I've gotten 90% of the way there, but that last 10%, which I would have thought would be easy, is now holding up the show. :( Where on earth do you find people who are actually looking to fix and flip? I'm pricing at .75 ARV, which I know is low for the area - I just feel like I'm wading through a lot of non-serious people. :( Where else should I be looking other than Facebook groups?

Thoughts?

0 Votes

San Francisco, California

All Forum Posts by: Pete Ludlam

Pete Ludlam has started 1 posts and replied 5 times.

Post: Should we do a short term or long term rental in CA?

Post: I found a BRRRR, need help with an offer!

Post: Buying a Foreclosure

Post: Having difficulty finding buyers! Yes, really!

Post: Having difficulty finding buyers! Yes, really!