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All Forum Posts by: Peter Mckernan

Peter Mckernan has started 61 posts and replied 2232 times.

Post: Looking for a mentor

Peter Mckernan
Posted
  • Residential Real Estate Agent
  • Irvine, CA
  • Posts 2,285
  • Votes 1,143

I would go to some meetups and meet with some people actively flipping in your area.. Those are the people are the best to tap into, but you need to bring in some value. They already have money and the resources since they have been doing it for so long. Your value is finding deals for them, bird-dogging as they call it.. The deals they need more of and at a good price so that they are not paying some wholesaler a huge fee to close the deal.

Post: Hard Money Lenders - Low Credit Score Refi options

Peter Mckernan
Posted
  • Residential Real Estate Agent
  • Irvine, CA
  • Posts 2,285
  • Votes 1,143

I agree with Chris on a lender that might be a scam or make you may so much money interest because of the low credit score that you make $1.00 on the flip or no money.  Also, if this is something that you are looking for in a hard money lender, you might want to look into more of a private money lending model verse anything else. 

Post: How to protect yourself as an owner who pays utilities

Peter Mckernan
Posted
  • Residential Real Estate Agent
  • Irvine, CA
  • Posts 2,285
  • Votes 1,143

1. Best option would be to separately meter the property 

2. The next option is to get the device (you can get on Amazon) that shows the meter for what one unit is pulling versus the other. My electrician sent me an example.

3. I did not want to spend 50K on doing separate meters for where I have my rentals it would cost me this much. So, I talked to the current tenant got her bills (I knew how much they would be roughly since I had a rental up the street I was remodeling to get on the market). But once I got the bills, I increased the rent with the tenant's approval and signed an addendum to the lease stating the rent increase would be X and the owner would take over utilities. So now we cover utilities for both units and the new tenant pays a higher amount too on the back unit to cover all the utilities with a great profit. 

Post: Cash Flow Corrections

Peter Mckernan
Posted
  • Residential Real Estate Agent
  • Irvine, CA
  • Posts 2,285
  • Votes 1,143

I would be looking at this as a market-dependent change. For example, your market is experiencing vacancies at 5% or 7%.. Just talk to your PM or realtor to dig the data up if you do not know it. If the number is in fact 10% I would not change that number in your calculations.

These numbers on vacancies change quarterly, so your numbers should reflect the changes.  

Post: FHA 203(k) vs. Fannie Mae Homestyle Renovation Loan

Peter Mckernan
Posted
  • Residential Real Estate Agent
  • Irvine, CA
  • Posts 2,285
  • Votes 1,143

The other thing that is great for the FHA 203K loan (not sure about the Homestyle loan) is that you can kick the payments out to 6 months of ownership (so close today and make your first payment July 12th 2025) if you are fixing up the home. This money gets added onto the back of the loan kind of like a VA funding fee does. This is great if you are force appreciating the property and then moving in for a year, and after selling or renting it out.

Post: Laminate Sheet Goods

Peter Mckernan
Posted
  • Residential Real Estate Agent
  • Irvine, CA
  • Posts 2,285
  • Votes 1,143

If you are doing high grade laminate that should be good. Since you are not doing super high end finishes as mentioned, doing high end flooring and all other stuff just above builder grade does not warrant tile or full wood flooring. 

I would confirm by seeing the product then going out and checking comparables in that market that have sold. 

Post: Looking to Connect with Real Estate Professionals in the Des Moines Metro Area

Peter Mckernan
Posted
  • Residential Real Estate Agent
  • Irvine, CA
  • Posts 2,285
  • Votes 1,143

For people just starting out to people that have been investing for years.. Going to the events page above and seeing who is hosting meetups along with connecting with people at these meetups is a great way to grow your network of people within a small 25-50 mile radius. The other site that I would be looking at is meetup.com as well, they have a lot of meetups in your area that you can attend to get in front of people doing the stuff you want to be doing. 

Post: First property advice

Peter Mckernan
Posted
  • Residential Real Estate Agent
  • Irvine, CA
  • Posts 2,285
  • Votes 1,143

For the homes, and or properties that you will use as a primary or a rental property one big thing I look for is infrastructure in the area, extrinsic value (I.e. hospitals in the area, schools, and job market), and the last thing is creature comforts for people (I.e. is a store to get groceries 1 hour away or 2 minutes away). These are things at the high level I want to be looking at for all my real estate purchases. 

Post: High End Home Flip

Peter Mckernan
Posted
  • Residential Real Estate Agent
  • Irvine, CA
  • Posts 2,285
  • Votes 1,143

Dig into those comps with a realtor doing business in that market. A realtor doing high volume, you don't have to use one you can poll 3-5 agents see what they do to get you the comps and then pick that person to help you. These agents work for free till they close a deal, so make sure you know that going into it. 

But you need to get the comps from the best data out there, the MLS. You need to make sure that you know what finishes you will be putting in, and what comps are selling with those finishes.. Or what finishes the comps in that area are selling with.. For example you are putting in low grade laminate and all other listings are putting in high grade vinyl. You house/property will not sell for as much due to that.. These are key reviews for you and your team to review prior to out price confirmation.

Post: Painting pricing question

Peter Mckernan
Posted
  • Residential Real Estate Agent
  • Irvine, CA
  • Posts 2,285
  • Votes 1,143

I would get some people out there to quote it.. If you are calling the licensed person off the radio AD a lot of money. If you are calling the licensed guy off the one single van that drives by or was referred to you.. Different pricing.