All Forum Posts by: Sanjay Gupta

Escrow company is withholding Cal Firpta Withholding 3.33% Franchise Tax Board. Based on internet Firpta means ( The disposition of a U.S. real property interest by a foreign person ) . We are US citizen. Escrow company is telling that it is due to Investment property.

I have another partner ( we both share 50% each) and this property was not bought under LLC name.

Any idea about this ?

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We have hard money loan and house is fixed , however we don't have buyer yet so would like to refinance from Hard Money Lender to conventional lender.

When we talked to WellsFargo, they said you can't refinance, if it is listed on MLS so what are our options.

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Originally posted by @Joseph M.:

Sanjay Gupta good luck on the next rehab ,
Do you have a partner that has a real estate license ? Looks like commission on the sale at 6 percent would be about $50,000 based on the sale price .

For Oakland, CA, we are paying only 5% commision.

For Dublin,CA, I have real estate broker friend and we agreed on 3.5% commission so hopefully we would save on commission.

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Originally posted by @Joseph M.:

Sanjay Gupta would you mind sharing the numbers on the Dublin deal ? I'm guessing you will be using a different lender and contractor on this one?

yes, I used different Lender but we are using same contractor. I need to build list of reliable contractors who can do all work.Dublin deal is not that high margin, we got kind of wholesale for 675K and it has about 40K rehab, should sell around 825K to 850K or so. It supposed to finish in next 3 to 4 weeks.

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Originally posted by @Gagandeep Singh:

@Sanjay Gupta -

Congratulations on the work done, really impressive! And good luck with the sale.

I would like to know how did you find this property? Was it a foreclosure, distressed or regular sale?

I am in the same flipping business, and just finished a rehab in old Dublin area.

In every project, I have the same challenges (as you mentioned) working with contractors/sub-contractors, and tracking on material. Still working my way through those problems, and I try to just learn from my mistakes and get better project by project.

If you are looking to partner with someone, please get it touch with me!

thanks!!!

Hi Gagan,

Can you send me your contact number, I will get in touch with you. Thanks

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Originally posted by @Antoine Martel:

Congrats on your project.

What do you want to do next.

We are working on one more in Dublin, CA which is minor rehab as compared to this one.

1 Vote

Originally posted by @Joseph M.:

Congrats on completing the flip and good luck on the sale. The difference in price between your rehab estimate and actual cost was big but luckily your margin was high enough.

How did you find the contractor? Did you get multiple bids?

How did you finance the purchase and rehab? Personal funds? Hard or private money?

We found contractor thru Seller agent. Seller agent was the one who recommended.

We took Hard Money loan thru Triump Capital but our experience with them was not good. They took lot of time to close and done lots of paper work and we have tough time to get rehab money out since work was not getting completed as per Land Gorilla inspection. We end of using their 60K rehab money out of 90K. Now we are asking them to deposit remaining rehab money against principal.

1 Vote

Originally posted by @Taylor Ferris:

@Sanjay Gupta - Very nice job, if you don't mind me asking, what accounted for the additional rehab cost (outside of the $20k for city permit, architect and engineer)? Was it because you were able to build a full in-law unit?

Yes, it was because of the secondary unit. Ceiling was only 7 feet high so he needs to dig over 1 feet concrete and to make it to legal height. We have modified kitchen design and added extra cabinets and Insland etc so that drove higher cost.

For us some lesson learned, you want to go much details in contract and this is part where I need to learn and it is not easy to deal with contractors. They always run out of money and always behind on value delivered vs money given.

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We have finished our first major rehab project. This house was link junk, here is link you can see some old phto's which were taken about 5 months ago.

This house has foundation issues and nothing was in working condition , Garage was converted to Legal Secondary Unit and we got two address for this house. Our Initial projected rehab cost was 90K with Secondary being like in-law unit but we got permit from city to build full fledged unit with Full Kitchen and 1 bed and bath. I think our rehab cost went almost to 145K ( City permit & architecture and engg cost were about 20K). Completed project in less than 5 months. We spend about 3 to 4 weeks in waiting to get building plan approved for secondary unit.

Old Photo's

https://www.redfin.com/CA/Oakland/2817-99th-Ave-94...

Here is what it looks now

http://www.boazmeiriphotography.com/99th-oakland

https://my.matterport.com/show/?m=DyEeES61Yaq

https://my.matterport.com/show/?m=Tzwf6DW11tu

3 Votes