All Forum Posts by: Peter Mckernan

Hey Dustin,

There are a lot of groups local to myself in Orange County and also Los Angeles; awhile back someone commented about a group in Corona possibly. The closest BP meetup to you that I have heard of is down in Mission Viejo, and I know that is far. I try to get there when I get a chance depending on my work schedule, but it only has worked out once. 

I invest in Redlands and drive out to San Bernardino County for work, so PM me if you want to meet up sometime and chat.

Good luck,

Peter 

@Aaron Mazzrillo about working hard!

If you work hard at something that you love and have the passion coupled with the drive you will be successful. There should not be an ultimate goal set for a certain amount of money that needs to me made, or be motivated externally. A person's motivation should derive from internal needs (i.e. job fulfillment, life satisfaction, or educational accomplishments). Whatever captures one's motivation and passion for a career that's challenging should be what is pursued. 

@Jered Sturm  that is a very inspirational story!! I went through school in the same position as you not being able to read and write; however, I believe it's the drive and percerverance that gets some to acheve their goals! 

Hello everyone,

I recently closed on a second deal with a business partner; it is the second deal that I have down with him and within real estate. The deal is a SFR in the greater Los Angeles area that closed two weeks ago today. We are currently listing it with many different websites as a rental. Both properties we have boughten were in the same area, both buy and hold investments, and have been purchased through the MLS.

The house was listed for $265,000 and we closed at $245,000 within 30 days. It is a 30 year fixed at 4.75%. I have ran the numbers and they are listed below. The best thing about the property is that it is in a nice blue collar neighborhood with great schools, great parks, a safe community, and a very strict code enforcement department to keep the town looking as clean as possible. The house is also a half mile away from a large university that could be helpful if we cannot rent it out to a family; we would be able to rent it out to college students that have good credit and a good rental history.

Cash needed at purchase: $60,929/2= $30,464.5

Monthly Cash Flow: $262.82

Cash on Cash ROI: 5.18%

NOI: $15423.04/245000= 6.3%

All the numbers above have vacancy, taxes, insurance, and maintenance included. Let me know any thoughts.

Thanks,

Peter 

@Frankie Woods 

Isn't a HELOC a loan with a variable rate? I ask because I have read information that says that, and if a person were going to use that and have the loan out while the interest rates are rising, it would make it tougher for them to pay it back with that increasing rate? That could cause a financial strain with an investor that has a more fixed income and is not prepared for the interest rate to jump up?

I have heard that there are some HYBRID HELOCS with a fixed rate.

Peter 

@Karen Margrave 

I'll take a look at it and let you know how it works for me. Thanks for the insight! 

Karen,

Thanks for the insight. I have only tried to use it for smaller projects so far and it's pretty convienant. 

Hello everyone:

I just wanted to see if many people know, or use the Thumbtack App? I just found it while trying to look for some local landscapers in my area to help my with a flip, and it popped up. It is really helpful and I have had a few people get back to me quickly (I have no association with the App/company). I wanted to throw it out there to let people know that it could be a valuable tool to have if you are new to flipping, or just trying to get some fixes done on a rental in an area that is new to you.

Not sure what areas it works best in, but I'm in Southern California and it seems to work really good here.

Peter 

I bought my ticket and now I am ready for the weekend!!! 

@Samantha Billetter 

Welcome to the site! If I were you I would look into getting some knowledge and using that knowledge to bring in other investors on deals. Knowledge is power, and it applies to real estate in every aspect. Investors would be able to lend you money once they trust you and believe you have a good grasp on real estate. These investors can help with funding flips, buy and hold, or any other possibilities you want to jump into involving real estate.

I believe the license is something that shows stick-to-itiveness and shows people you have some real estate knowledge. The license can also help you with the funds that you need, since you can become an agent and get money while gaining experience.

I hope this helps! Good luck!

Peter