All Forum Posts by: Sam M.

Thanks Jon. I am with you. Whenever I have taken a loan in the past, the bank records a note on the property and the grant deed is in their name (I think). Is this similar to what I need to do? The lender is just a friend of mine; has experience with obtaining loans but no experience as a lender. I need to secure his loan, but I am not sure how to do that. Is there a note "form" I can use? Any posts on BP that I can review?

This is a short sale. The deal was approved at $133K and the ARV is around $300K. The repairs will cost around $20k (I already walked it with my construction guy). I do not have the cash to close but I found someone willing to be the investor. How do I proceed? I have to create a note and an agreement of some sort. Any guidance would be greatly appreciated.

Hello BP members...

I am in the market for a HELOC on my Tucson Property. However I asked my banks and they say they will not give me a HELOC on an investment property.

Any suggestions?

Thanks...

Hi Mike,

It has been a couple of years since this post and I was wondering how things went. Did you find a good property manager in Tucson? I have a property in Tucson and I live in CA. I will be seeking a property manager in a few months.

Thanks, Sam

I have a 50/50 partner on a buy-and-hold deal (a 3-plex in Riverside). From my experience I would give the following advice. Write a partnership agreement and have it notarized. Consider how you will run the business, will you have a separate bank account? Who will collect rent? Who will the tenants call when there's a problem? Who will find contractors when there's work to be done? Document everything. Will you keep a certain level of money in the bank account? What happens if one of you wants out? What happens if one of you dies? How will you make spending decisions or design decisions? How will you split responsibilities? Will you be friends (or at least be able to tolerate each other) for a really long time? Document everything.

By the way, in our 3-plex, we paid $150K and rents are around $2300. We have spent around $25-30K in repairs over the time we have owned it (purchased in mid 2011). Did I mention document everything?

Hi Wendy, I am in Diamond Bar. Nice to meet you.

Sam

Hello again. I didn't get a response but I would like to ask a follow up...How much do you think I should budget for concrete work based on sq-ft (assuming nothing out of the ordinary).

Thanks, Sam

BTW, this is in Riverside county Calif.

Hello, I need to add a small (~12'X12') concrete pad in Rubidoux, CA. Can anyone recommend a reasonably priced contractor?

I hope my numbers are correct but if they aren't we have a little room. And we can always hold the property until the numbers work :-). Rents could bring in $1800 easily. Value are climbing in the area (La Puente, CA). It's a rough area but a good location for many lower to lower-middle-class people centralized between LA, Inland Empire and OC.

Hello,

I am an investor in So Cal. I am looking at the following deal...

Assume After Repair Value (ARV) = $280K
Purchase Price = $190K
Repairs = $25K
Selling Costs = $28K (10% of ARV)
Profit = $37K total (17% ROI)

I have heard people in the podcasts say their ROI target is 20% and I have also heard that the purchase price should be 70% of the ARV minus repairs. I do not meet either of those scenarios but it's Southern California. Can I expect to do better than this?

By the way, I calculated ROI as follows: (profit) / (Purchase price + repairs). I didn't include the selling costs because they come out of escrow (not my cash)...is that correct?

Sam