All Forum Posts by: Robert Chuang

Hiring a bad contractor can make or break a deal! Even as GC, we still encounter our subs started being very very good, then after 2-3 jobs they gotten comfortable, they started not showing or not having enough men power to do the job on time. The best strategy is to keep building connections and once a contractor is not performing, being responsive and responsible. We will rotate them out, no job from us for a while then come back to them. It's almost like doing timeouts to babies haha.

Best of luck on your adventure would love to see the end result!!! 

@Ella Mai 
Like what @Nabil Suleiman said! However, maybe something to look into if he has insurance or bond under his license (if he has any type of license at all!?)
Furthermore, if you signed contract corporation to corporation, you may not able to go through small claim court yourself. You will need an attorney's presentation. Like what Nabil mentioned, you may not able to recoup your losses if he has no assets or trail of any assets.

If you signed the contract as an individual, you can get help from the city attorney when you file a lawsuit and present the case without attorney representation.

I hope that helps, good luck.

@Rafael Uriarte BP is the best place to learn and absorbs information!! And dont forget to go to local meet ups, it would be very beneficial having face to face with fellow investors or other people just like you starting off! Build your network!

@Jeremiah Vancans 
You will be able to find better cashflow in the D-C class neighborhood if you dont mind the drive and headache of dealing with tenants (proper screening can mitigate alot of risk on tenants). 

Multifamily in good area definitely has higher GRM and lower cap rate. I would suggest to look into more value/creative play where more work required but returns are better.

@Janelle Carlson what @Will Barnard mentioned is the best way possible. Side notes, I know a lot of people are doing TIC conversion and they would cash for keys and paying average of $25000 per unit

@Kristine Hernandez This is one loaded question because there are so many variable. I think the best way for you to approach it, would be finding out local cost to build per sqft for a developer. Then separate the architecture, permits cost and land. Then Find out your totally cost to build, rental ready. 

Then figure out rental rate for each unit you are building to find out your IRR.

A lot of significant details you will need to find out as well...like units count, utilities, does it require environmental study or not, or even How long will take you to get plans approve would be part of major factors on timeline.

I hope this helps! 

@Myles Taccini Hey Miles, I believe there are FIBI long beach. They are usually great. I go to the pasadena one. If you go to meetup.com I think there are also few others in your area

@Shelley W. I think these programs may help homeowners who want to get into the "door" of ADU investing who has less experience and wanted hands-off. It's great for them. But if you pick apart each "incentives" may not work great for experienced investors.

@Erik Joseph If you owned the 1st property awhile and now tell the lender that you are locating, I don't see any problem using 5% down to occupied it as "primary". 

The second choice is to refi the first property to 25% equity and consider it as an investment property. Make the next purchase "primary resident".

You should speak with a few mortgage brokers and see who can workaround for you!

@Ben Chow Hey Ben, the state law that passed gives you a baseline. My suggestion would be following the city planner's advice. Each city has its own ordinances and their interpretation of the state law. 

The City of LA only allows 1 ADU for any zone that's r2. No JADU.

R3 is the same with one Adu (also depends). However, if can increase density by 25% if you have multiple units...or garages