All Forum Posts by: Peter K.

As you know, it's not easy to find a lender to lend under $50K.  One option is to get a blanket loan.  Typically though, the blanket minimums are $500K, so you'd need more houses.  :-)  

I agree with @J Benoit your best bet is to start approacing the local banks and credit unions with 1-5 branches.  They typically are less strict, but may require a banking relationship.  Be prepared to open an account if you find the right lender. 

Great info!  Delayed Financing is a great tool.  

For those that don't qualify for delayed financing, or want to cash out more than the original purchase price, we are finding many lenders now that will refinance with less than the traditional 6-12 months of seasoning.  

Rates will depend on many factors, including income from the property (if any), borrowers ability to repay, LTV, etc. A-paper / Bankable borrowers with a great cash flowing property with a 70% LTV can expect near prime rates.

Hi @Tom Bud  

I agree with @Ned Carey , it really depends on each situation, motivation, opportunity costs, etc.

In my experience in most of the S.F. Bay Area, things begin to slow down around Oct/Nov through the holidays and begin to pick up after the New Year.  There are generally far fewer buyers in the Winter/Holiday Season, so it often takes longer and because of supply and demand, less chance of multiple offers driving prices up.  

On the other hand, there is probably a little less inventory, sellers may be out of town and hard to get hold of and the few buyers that are in the market are usually more serious.  These are not enough to balance things out, but transactions do happen in the holiday season. 

When flipping, we add 2-3 months of additional holding costs into the budget, if construction may go into September - December.   We may decide to use this additional budget to lower sales price to move the property sooner.  

One thing to consider when investing in an area that you are not too familiar with is to ask a couple of busy agents/brokers/Realtors.   They will know the local seasonality.  Some parts of the country may have different cycles depending on their weather, resort town or not, snowbirds coming in for the Winter, etc. 

Good luck on the Investing!

Amit, my understanding is that unless otherwise specified, California contracts are assignable (is there a California lawyer in the house?).  

However, that has changed with the newest revision of the C.A.R. Form (California Association of Realtors).  Now, "and/or assigns" must be written in or the contract is not assignable.   

Yasin, I'm glad that it worked out.  BiggerPockets is a great community!  When the dust settles, can you share more details about which route you took? 

Best wishes for a prosperous 2015!

Hi J, 

$250/sf should be a good conservative number to use for your first pass calculations.  New construction in the Bay Area for under $1M homes is $125-200/sf and for $1M-3M homes it's approx $200-350/sf.  That can go up depending on some the things @J. Martin and the others have mentioned, like parking, etc.  

For comparison purposes to your area:  Our projects in the SF Bay Area (but not in the city proper) have been in the low to mid-market $200K-$600K and our rehab budgets have been between $35-65 per s.f.  for gut rehabs, including plans and permits for moving interior walls to reconfigure floor plans, bringing everything up to code, rewiring and piping as needed, new panels, etc.  We use licensed contractors for the gut rehabs.   Bumping that to $100/sf for the city, then doubling for higher end fixtures, still leaves a margin of safety. 

To see the mid-grade fixtures and finishes that we use, you can google 5741 Cottage Ct. in Castro Valley, CA.  You can see the after on Zillow and the before on google maps. 

I'd love to meet you for lunch on Monday, but I have plans.  I'll let you know if my schedule changes. 

Best Wishes for a prosperous 2015, 

Peter

We are broker for a land development project in Los Gatos, CA , one of the most desirable areas in Silicon Valley.   

Opportunity Overview:  30+ Acres to be developed into 8 multi-acre custom estates.   

Because this will be Phase 2 of an adjoining development by the same owner/builder, much of the groundwork to get plans approved and entitled has been laid.  For example, the water tower is already in place, roads have already been graded, utilities are in place at perimeter, etc. 

Needed:  $2M to $8M

Owner /Builder is looking for an equity partner with the financial strength to either bring cash or qualify for a loan with a local bank that is already on board and willing to finance the majority of the project at 5% interest rate. 

Timeframe:  15 months

Within 15 months, we will submit premiminary and final maps, obtain Environmental Impact Report (EIR), get legal descriptions of each lot, pave roads, complete entitlements and infrastructure.  

Numbers:

Current Value of Land:  $8M

Owner/Builder will enter into agreement for $5.5M (putting equity into the deal)

Total needed for entitelments and infrastructure to bring land to shovel-ready lots, ready for construction.  $2.3M

Total cost:  Under $8M

Value of shovel-ready lots:  $20M

-Exit Strategy 1 is to sell these buildable lots to builder/developers or homeowners with their own architect. 

Optionally, the owner/builder is capable of completing the construction of the 8 custom/luxury estates.  Each 10,000+ s.f.  estate will have multi-acreage, room for swimming pools, equestrian, tennis courts, and have panoramic views of Silicon Valley.  Retail value of each estate is approx. $10M+.   $1,000 per square foot sales price with a $300 per s.f. build cost. 

Total Value of 8 Custom Estates:  $80M+

For more information, including a copy of the Executive Summary, Tentative Map, please contact Peter Karasseferian:  408-475-8180  [email protected] or [email protected].  

We can set up a meeting to tour the property with the Owner/Builder for qualified Principals or those directly representing qualifying principals.  Proof of funds or track record of funding recent and similarly sized projects required.  

Earn a $25,000 referral or marketing fee for an introduction leading to a successful transaction. 

Hi Chris

I hope that you found a commercial lender to help.  If not, reach out.   I work with some funds and insurance companies that specialize in non-bankable loans. Some will do low minimums, others will do short seasoning, or overlook credit dings, etc. 

Good luck with the investing!

Have you guys heard about and/or plan on attending this event? It will be a great opportunity to meet and network with lots of local (and not so local) BPer's / investors.

Let me know if you can make it. Let's definitely connect while there.  

Whether you go or not, I would highly recommend connnecting to @J. Martin 

Thanks for putting this event together @J. Martin  and others. 

My business partner Paul Lussier and I will be there to discuss how we can help investors maximize and tune-up their financing. 

HAVES:  

-Experience in SFR buy/hold, flipping/renovating, syndication, Agent/Realtor/MLS related

-Happy to network and share ideas with experienced and newer investors. 

-As a loan consultant, I have developed relationships with private and institutional funding sources that will lend to almost any borrower on almost any kind of Real Estate...residential, commercial or land.  Just need to show ability to repay. 

WANTS:

-Meet Wholesalers, agents, realtors and others with good flip opportunities in the Greater Bay Area with a true net profit of around 10% +.  

-Investors looking for a consultant that can help them with their Real Estate financing.  

-Info or ideas for marketing to find motivated sellers for flip projects. 

GOALS:

2015: 

1. To have multiple sources of passive (or semi-passive) income that more than doubles my expenses.

2. Put together a highly profitable Syndication.  

3. Build a steady stream of opportunities for renovation, holding and wholesaling. 

Forgot to mention that Bruce Norris is going to be giving his economic outlook at @geraldine berry's SJREI event in Sunnyvale on Thursday, tomorrow.  I've heard very good things about Bruce and that his predications are usually pretty accurate.  

I'll be there.  Come find me if you make it out. 

Peter