All Forum Posts by: Ramsin Jacob

@Justin O'Malley

Baltimore has been on my radar for the past five years. Very intriguing what’s happening there. If anyone with Baltimore experience/knowledge would like to chime in on what they think about particular neighborhoods, that would be great.

@John Andrews

Here in the Bay Area, I have success with both ends of the spectrum.

@Mike Cumbie

Exactly. No commissions from seller? Let the buyer know and ask for compensation.

I laugh when people try to persuade me into believing that we will experience another 07 collapse.  That will not happen again, at least not in the Bay Area.  As mentioned by others here, the driving forces and developments will not allow that to happen.  Supply and demand.  Simple as that.  We are cornered in the Bay Area, with a growing population.  Yes, the market may take a dip here and there, but it will not be anything significant.  We have already experienced that, with 2018 having crazy over-bids, this year not so much.  People want to use 2018 vs 2019 as a sign of a major decline approach.  Wrong.  That's simply because 2018 was outrageous.  All that has happened is the market has normalized.  In 10-15 years, people will look back at this time now and wish to have these prices again.  It's inevitable.  

@Ron Mussatto Solid question, there's a lot of variance in answers here, majority of them are incorrect.  I can assure you that, as I do lots of deals that are fixer properties being purchased in "AS-IS" conditions.  For your reference, I will point out the correct answers here:

@Brian Garrett - Correct answer.  

@Christopher Phillips - Correct but not fully explained.  

@Mike McCarthy - Correct. 

@Andrew Syrios - Nailed it, correct.

@Wayne Brooks - Correct. 

@Frank Wong - Correct.

@Ron Mussatto

@Ron Mussatto - When a buyer has "AS-IS" on the contract, that is basically letting the seller know that they will not be obligated to actually fix anything themselves. If you submit a non-contingent offer with an "AS-IS" clause, you have no "out" in the deal regardless of what you find. You will lose your EMD if you chose to back out. Now, if you had a property contingency on your "AS-IS" offer and after a licensed inspector discovered something that the seller did not disclose or was unaware of, you have two options: 1) You can back out and recoup your EMD or 2) You can let the seller know that due to the findings, it will cost you X amount of dollars, which were not apart of your original numbers, therefore, since it is an
"AS-IS" contract, the seller would need to accept a decreased price from the original purchase price on the contract. If the seller does not wish to decrease, then you back out from the deal with your EMD, if you believe it is a significant discovery and cost to the rehab. Like I said, I do these deals all the time in the Bay Area. Last summer, a client was under contract for a SFR fixer in Downtown San Jose, we had a "AS-IS" offer on the table with a property contingency, after inspections, my client told me he is not going to purchase the house under the current offer price. So I ended up negotiating $110,000 off from the original contract price and we had a done deal. My recommendation is to always have a property contingency, unless it is a complete re-build/gut rehab and you are basically buying for land value.

Good luck to you and your business endeavors.  

@Puri Indah

Definitely do not reduce the bedroom count from 3 to 2.  That's working backwards.  99% of people are looking for ways to add a bedroom, not remove one.  If anything, if you have common areas that are large which you feel is excessive, I would suggest adding a 2nd bathroom.  Of course I have no clue about the house as I write this, just making a general suggestion.  I work with hundreds of investors and close lots of fix/flip deals per year.  Have done a deal myself as well.  If you would like any specific advice to your property, a in-depth analysis of the value or just a general discussion, feel free to send me an email and we can set up a time to chat.  Thanks. 

Gentlemen, I sold a deal from one investor to another last summer in Oakland off 81st and Bancroft, not far from Oracle Arena.  The current investor demolished the existing property and reconstructed a new 3 bed / 2 bath 1,200 SF home.  She's currently seeking a buyer who would like to purchase as a rental investment.  If any of you have interest and would like further information, please feel free to send me an email.  Thank you. 

Awesome