All Forum Posts by: Richard Goore

Love the idea!  Count me in.  I’m a relative newbie to investing.  I have a couple properties but always want to learn more. Have a small amount of capital to use for the next investment but not sure what that should be.  

As an owner occupant there are great low money down programs - 10%, 5% or even as low as 3%. I'd recommend speaking with a few lenders as a mortgage company, large bank and credit union could all have differing programs.  I'm sure you'll get a few mortgage lenders who will chime in as well. 

I'd start speaking with lenders first to find the right one for you.  From there you can start the shopping process.  I am born and raised in Sacramento. Happy to field questions about various areas.  Full disclosure, I am an agent, but still happy to answer questions regardless of using me or not.  Just here to help.  

Hi Bing!  There are A number of Airbnb's in the Sacramento area, predominantly downtown and midtown. This seems to be where a higher density of Airbnb's are due to the state government, numerous Downtown employers and people just coming to Sacramento for various reasons. All that being said I would suggest doing research, as I'm sure you do, to verify The current and predicted future rental potential there would be. There are many government agencies that are not going back to an office environment. There are also other companies with larger offices that are either going back at a different level or not at all after COVID-19 restrictions subside.

For disclosure, I am an agent in the area (born and raised). I have worked with clients looking for rental properties of all kinds. I have had clients who work for the government and or companies downtown so the comment about companies not going back to normal is firsthand.  It may be a little bit of a wait and see as we continue to learn how COVID-19 is reshaping the downtown core and neighboring communities. A good time to do your research. I do feel Sacramento will continue to be a strong market as we are a somewhat large city it's still affordable in comparison to other major Peleton areas in the state. Happy to answer any further questions about the area  

@Joe Splitrock I thought that may be the case.  Do you have a suggestion as to whom I start asking to speak with?  I am trying to shorten the time on the phone & getting passed around.  My friends actually added me to their account so I could dig in to the mess on their behalf.  Now I just need to find the decision maker to speak with.  Thoughts? 

I have been helping out a family friend who is in a very challenging situation.  My goal at first was to see if they can avoid a foreclosure and stay in their home.  The second option was to sell it for them to get out from the foreclosure and not have it affect their financial situation so negatively.  After a lot of phone calls and research I have discovered their financial situation is too far gone to save the home or even sell it to avoid the foreclosure.  It is scheduled to be sold in Jan at the courthouse steps (Northern CA).  It may get postponed due to a planned personal bankruptcy but they won't have the means to save it.  

That being said, friend suggested I try to buy it before it goes to the courthouse steps for a sale.  If that is a possibility, I would love to allow the current owner/family friend to have a longer time to stay in the home or simply become a tenant versus being evicted at some point by a new owner.  If you have any experience with that I would love to be educated.  I have the contact info for the mortgage company but I don't know who to ask for or how to navigate the process.  Any/all insights are appreciated.  

@Adam Mayberry

@Brian Larson

Msg me with your email and I will make the intros.  

@Bob Johnson If you are still pursuing and want a contact of mine who I have had discussions about building ADU's on existing properties I am happy to share. His company builds all over Nor Cal and he already has a number of plans for ADU's - 2+1, 1+1, garage conversion, etc. I don't know if he has built this in SF but he further along in the process than anyone else I have spoken to. He's familiar with ADU laws (at least in Sacramento) and is looking to expand that part of his companies business. Trying to think out of the box for some investor clients here in Sacramento (I am an agent) so I am looking for SFH with large enough properties and will plan to use him to build ADU's to make them duplexes, in theory. Happy to make an introduction if interested.

Just read the progress on this 2nd flip.  Great job.  It really looks like you have your systems down and tweaked your processes from your first flip.  Any insight you can share (+ or -) that you've encountered along the way in this 2nd flip that will benefit you even more on the next one?  

Again, looks great.  Have you factored in your personal time commitment to this project?  Would you subtract that from the actual return in the end of chock it up to experience?  Just curious.  Thanks in advance.

OK, back to it after the holidays.  Thank you all for your input - @Pete Schmidt, @Nick Rutkowski, @Sean Tarpenning.  I have reached out to the potential buyer and will update as things progress.  

I wanted to reach out to the BP community and lean on you for advice and to learn. I have a client (I'm a licensed RE agent) who's home I am selling. I was just approached from a neighbor who is interested purchasing with seller financing. I always want to provide my clients with detailed explanations of options when buying or selling so they (with my guidance) can make informed decisions that will be the best option for the results they are seeking.

I have never done a RE transaction with seller financing. I understand the general concept but I am not comfortable enough yet with the details to accurately explain the positives and potential negatives to my client. I've researched the topic on BP, but I am not finding the best explanation based on my clients situation. I would love you input!

Let me explain the situation with regards to the property. My client inherited this property from her mother when she passed away a few years ago. It is a single family home on a property that is zoned commercial. The official zoning is C-RS (commercial rural service) but as the home was built is 1919 so it is existing, non-conforming and can be used as a SFH or commercial business. It is surrounded by a cabinet shop on the left side, a couple commercial buildings in the back alley that are used primarily as storage for various businesses and a bar on the right side. It is in a very small town (about a block long) and sits directly on a major thoroughfare through the area. There have been tenants that were finally evicted a month ago. My client has cleaned up all the trash/crap the tenants left and is planning to clean inside and paint a little to make it more presentable. It most likely needs a some rehab work for someone to make it a good SFH again. There are years of deferred maintenance.

My client is tired of owning it and simply wants to sell it. She is comfortable with my valuation. Knowing this will be a tough property to sell and possibly tough for someone to get a loan on, I was very conservative. There is no mortgage on the property. She owns it outright. There was an appraisal done in 2015 for $140K. I have conservatively valued and suggested a sale price of $160K-$165K based on increased values the past 3 years coupled with the challenging location and current condition.

One of the neighboring businesses is interested and threw out the possibility of seller financing. I had shared the value range with them. They proposed the following with seller financing:

• Purchase price of $165K
• $25K down payment
• Loan at 7%, amortized over 30 years
• Monthly payment of $875 (actual payment amortized with these #'s would be around $935)
• Balloon payment for balance in 5-7 years.

My question to the BP community is what do you think of these numbers? Or, how would you structure differently and WHY? Based on my limited experience of this I was thinking the down payment was a little low and the interest rate was a little low. Again, I want to walk my client through how this would work so she can be fully informed.

Thanks in advance for your input!