All Forum Posts by: Raul Pelcastre

@Matt M.in California, me as a realtor can assist buyers with seller financing but you are right but it is always a good idea to talk to a competent attorney. 

https://www.youtube.com/user/rpelcastre

Hello @Peter Mckernan is the question about state withholdings from the rental income aka passive income or from a sale proceeds?   

Raul Pelcastre Fresno CA Income Properties 

https://www.youtube.com/user/rpelcastre

@Hannah Jones,

Is this your first rental?

Living 3 hours away to manage yourself is a challenge

Can you move into one the units?

A duplex is nice, but try to get 4 units, unless you don't have that option

If its about $10 ahead and you don't have other capital or a crew to help you run it, you might be in trouble later

If you know how to do small repairs it helps you, but if you don't even know how to hold a hammer, you might be in trouble later

What is your debt coverage ratio?

https://www.youtube.com/user/rpelcastre

 @Hannah Jones,

• Is this your first rental?
• Living 3 hours away to manage yourself is a challenge 
• Can you move into one the units?
• A duplex is nice, but try to get 4 units, unless you don't have that option
• If its about $10 ahead and you don't have other capital or a crew to help you run it, you might be in trouble later 
• If you know how to do small repairs it helps you, but if you don't even know how to hold a hammer, you might be in trouble later
• What is your debt coverage ratio? 

David,

Here's what I do for my multi-family buyers:

• Yes it is hard to estimate for maintenance because of a lot of variables
• But I know its expense is less for more units, for things like 16+ unit buildings, onsite maintenance room for storage materials, onsite employees use less hours to do work orders
• Some entities even volunteer their residents to pick up grounds, hence minimizing your maintenance costs
• If hdsupply.com accepts your account they specialize in multi-family buildings and you don't have to use man power for delivery or pickups 
• And yes, you can do analysis paralysis but it might help you the bank's formula DCR
• The 1031 buyers look at expenses differently 
• Yes there's a number per door, e.g. if the units have been neglected you will spend at least one month's rent in turn ready unit expense    
• An organized well lubricated team should turn ready units in 2-3 days
• Pay close attention to the human factor, i.e. low self-esteem employees who will take longer to turn ready units or do work orders with poorly workmanship, theft, etc 
• In capital expenses, concentrate in a few and more expensive to start with, AC, plumbing, electrical

 Michael,

There's some homework to do:

• There are hundreds probably thousands of brokers in Fresno county
• Brokers with bigger marketing budgets, e.g. Guarantee welcome anyone who's willing to pay for training, desk fees, etc but getting your money's worth its a different story
• Marketing is marketing but brokers, NAR, CAR, FAR do not make great agents, one makes a great agent
• You must have a business plan to succeed in this business
• Other than MLS access, NAR contracts, there's no difference between a realtor or just a salesperson, the realtor name is only politics

@Nathan Worden most utility departments can assist you with cost, asking the seller is a better option so you can analyze the performance of the property and not just utilities but all the expenses.

https://www.youtube.com/user/rpelcastre

@Nicholas Lohr there is a lot of questions you can ask prior to send an offer but most sellers or seller's agents won't talk to you until they have accepted your offer.

• First secured the property with an accepted offer
• The due diligence will create more questions than before the offer 

https://www.youtube.com/user/rpelcastre

@Vijay Jain Rent to own deals are hard to put together in CA.

Your homework:

• Besides SAFE and Dodd Frank, how about the type of note you have? Most notes in CA have  a due on sale clause 
• Where is the house? 100k? is seen in small cities like Fresno, Visalia
• For rent to own transactions you are best hiring a real estate attorney for contracts, real estate transactions are not cookie cut
• Sometimes its easier to do owner financing  
• When screening a potential buyer, you should pull credit and ask for tax returns 

https://www.youtube.com/user/rpelcastre 

@Amit Arora investment partners are hard to find but sometimes you have no choice and it will depend on what you want to accomplish.

What do you have in mind?

https://www.youtube.com/user/rpelcastre