All Forum Posts by: Ryder Meehan

NorCal represent!

Hi BP'ers! I've found a great looking deal in the classified ads that is off the MLS and includes a bundle of 3 houses listed at about 70% the price of comps though I haven't seen it in person yet.

Seller claims to be selling "due to health" but that's all I know at this point. I'm planning to give her a call in the morning and would appreciate a list of questions to ask in a FSBO screening. Could someone refer me to a list online or give me some of your favorites? At the price I could easily make a cash offer but obviously want the best deal possible. I don't expect to make an offer until I see it in person but any FSBO specific negotiation tactics would also be appreciated.

For starters I would go into:

Tell me the story of each property.  

Why are you selling?

How long have you been trying to sell it?  Do you need to sell it quickly?

What kind of condition is it in?  Does it need any major repairs that you know of?  How old is the roof?

How long has it been rented/vacant?

Would you be willing to be flexible on the price if I made you a cash offer?

THANK YOU!

Ryder

Originally posted by @Cal C.:

Originally posted by @Ryder Meehan:

Regarding San Francisco, it's not going anywhere, it's definitely different this time since let's face it - the tech revolution is still only in it's infancy and SF is the Athens of innovation for our time.  Being a 7x7 mile peninsula with difficult building restrictions is going to further drive up demand for the foreseeable future.

I'm absolutely certain that RE agents were telling their buyers exactly the same thing just before the last bubble burst.  I wonder what the buyers from 2004-2006 think now that they are still underwater (or nearly) after ten years? Presuming of course they were able to hold on and didn't have to sell at a huge loss or have a foreclosure.   

Not to say bubbles don't ever burst but in SF it's a different animal.  Even if a homeowner had purchased at the peak of the market they would still be looking a $300K+ median increase in less than 10 years.  I guess that realtors were right after all.

http://www.trulia.com/real_estate/San_Francisco-California/market-trends/

Regarding San Francisco, it's not going anywhere, it's definitely different this time since let's face it - the tech revolution is still only in it's infancy and SF is the Athens of innovation for our time.  Being a 7x7 mile peninsula with difficult building restrictions is going to further drive up demand for the foreseeable future.

Nationally, it's market by market. The Dallas market is a serious seller's market now while Tampa is a buyer's paradise imo. If you're willing to buy remotely then your pool of deals expands greatly. I still like to look at markets where I have at least a competent cousin or ex-college roommate living there to stop by the property now and again if needed. The real estate technology era where I can use Google Maps, accept online rent payment, get info from Zillow/MLS/Trulia/BP and others all online really open up REI geo range if you have the nerve to do it.

Based on your numbers here I would take that deal all day. Your lender really treated you as well. You should take him/her to lunch! Good luck

Hi Chungsoon, that sound like a pretty good but not great cap rate but depends on way the avg for your market is. Being remote, if you need a property manager taking another 10% it's even less enticing. On the outside it looks fine, I would at least power wash the brick which is no more than $200 for the washer rental. At most you could paint it from what I can see in the pic. Good luck!

Hi Chungsoon, real estate investing is definitely not for those with a weak stomach and not advised unless you have at least some financial cushion.  I had more than enough saved before I made my deals (granted I was probably 6-7 years old than you are now) which gave me the confidence to close as well as not sweat every little repair or cost that was needed.  I would definitely say I'm more conservative than a lot of investors though.

My better deals have come when I was picky and not in a rush.  My lowest returning properties were the ones where I was anxious to add a new property and there weren't many options on the market.  It's better to miss a great deal than to buy a bad deal.  If you've done your homework and looked at comps in your market, have the capital for the down payment plus some cushion for vacancy, unforeseen repair and other costs then it's really just a matter of pulling the trigger.  Good luck!

Hi Chungsoon, that sound like a pretty good but not great cap rate but depends on way the avg for your market is. Being remote, if you need a property manager taking another 10% it's even less enticing. On the outside it looks fine, I would at least power wash the brick which is no more than $200 for the washer rental. At most you could paint it from what I can see in the pic. Good luck!

Started at 29 with my own home then 2 years later had saved enough for my triplex down payment in Dallas then another 2 years I had enough for a another fourplex. I'm glad to keep raising my salary as my day job career progresses as well as pulling now $20k in net rental income so can comfortably keep buying 1-2 multifamily properties every year. I'd love to get up to 15+ and make it a full time gig. It's a very fun and exciting way to invest but I never could have done it the traditional route without my day job salary

AirBNB could be a game-changer for real estate investors.  Next time a tenant moves out of one my Dallas multi-family properties I'm going to try posting it on AirBnB for a month.

One of my 1BR/1BA goes for $700/mo ($23/nt) in the desirable Lower Greenville neighborhood so if I can get just $75/nt and rent it 15 nights of the month I'm pulling $1125/mo.  That's $425 more yall.  I'm not necessarily expecting this but it will be a fun little experiment.  Anyone else tried switching from tenant to AirBnB?  My guess is it works better in SF than in Topeka, KS.