All Forum Posts by: Raj Pat

Hello BP Family, 

We're interviewing seasoned CPA's who work year around and focus on Real Estate both on the brokrage side and investmenting. If anyone can recomend a firm in the Bay Area or California that would be great. 

Thank you all for your support. 

-Raj

Hello BP Family, 

Our newest venture in RE is now offering lending for distressed SFR, Multi Family flips. We're only lending in The Bay Area, Sacramento, Central Valley, Orange County, San Diego & LA markets.

Please DM us for informative lending terms and process. 

In a nutshell: 

- Properties have to be purchased at .70cents after the cost of repairs

- 6mo to 1 yr balloons

- Properties must be in desirable locations 

- The project cannot be close to a tear down or have more than $100k in renovation cost (Depending on value or square footage) 

- Past Experience & Track record of the investor is helpful but not required

- Our firm will list the property once its ready for the market at 3.5% (2.5% goes to buyers agent) - This is helpful if the investor or investor group is not a CA lic RE agent

- We need a full plan on exit strategies 

- Mortgage payments are due on 5 days in the start of every month, you have the option of deferring the payments out till the property closes but there will be a 15% profit sharing for the private money lender 

Example: 

- Purchase Price: $450k to $475k 

- Renovation: $75k 

- Resale $750k 

We will finance 90% to 100% of $450k 

- 90% LTP = 3pts, 12.5% plus $950 processing fee, $450.00 Appraisal fee and $250 doc prep

- 95% LTP = 3.5pts, 13% plus $950 processing fee, $450.00 Appraisal fee and $250 doc prep 

- 100% LTP = 4pts, 13.5% plus $950 processing fee, $450.00 Appraisal fee and $250 doc prep 

- 110% LTP = 5pts, 14% plus $950 processing fee, $450.00 Appraisal fee and $250 doc prep

(Construction loans are available on all 3 tiers, they're a separate loan) 

Note: To reduce points or interest rate we can cross collateralization the loan with another property the investor or investment company has in their portfolio.

What is ARV? We buy at 70 to 80 cents on the dollar

@Michael Morrongiello  @Michael S. 

@Jay Hinrichs That's very true Jay 650 area is crazy. I was just talking to a buddy in San Carlos, he told me a 1450sq ft home on a 7500sqft lot renovated just sold for $1,9mm ALL CASH. That does not make sense to me. We're more concerned about city's like Berkeley, Albany, both low and high end properties in these cities have skyrocketed. 

@Brent Coombs We're on the same page. However do you really think by time next year the market in the Bay Area will drop 5 to 10 percent? I am referring to strictly fix and flip on the lower end and high end? 

Hello BP Family, 

Thank you for opening this post. I'd like to start an intelligent and informative discussion on our predictions for the Bay Area (South-Bay, SF, East-Bay and Peninsula) in 2017. 

Understanding prices have increased in 2016 yet again over the last few years, prices have surpassed 2006 times by very far. With elections around the corner there is a lot of talk around the Bay Area markets will either stabilize, values will decrease and or see barley any growth in future prices. I am referring to the residential markets in these areas. If we look at the low end, middle and high end market it's very difficult to gauge if we will have a correction in 2017. However check out these articles below the first one talks about the values dropping and the other shows prices will go up. 

Question becomes: Is it time to put the breaks on the flipping game? My say is it's all about capital structure and be ready to have multiple exit strategies. 

http://www.bloomberg.com/news/articles/2015-06-01/...

http://www.forbes.com/sites/billconerly/2015/12/10...

Hello BP Family, 

Does anyone know of an outfit who would be willing to lend on an investment property? There is a good amount of equity on some of our assets after the first loan. We're based out of Northen California. Looking for max interest rate of 4.75% properties also CASH FLOW and are in excellent conditon.

DM me more info and call me.

How are the schools?