All Forum Posts by: Sanjay Sharma

@pauldashevsky, just talked to your partner, John

@nabilsuleiman, good to connect with you.

Hi,

I'm closing on a triplex (3/2, 1/1, studio) in the next two weeks in Long Beach, CA.  

I'm converting the permitted studio into a 2/1 ADU as it is attached to the garage. The 3/2 needs updating such as floors, bathrooms, kitchen and paint. The 1/1 needs minimal work such as touchup paint.

Thus far, I have one GC bid but have talked to several who haven't shown interest.  Does anyone have a reference for other GC's?

Thanks,

I’m going to play devils advocate here. My assertion is to keep the LA property and find a way to cover the $7k in losses. In 10 years, the appreciation of that property will make you wealthy. 

You are moving to Columbus close to family. You will have plenty of support. Once a family leaves So Cal, they will never financially justify coming back. Recognize how fortunate it is to own property here. 

I’m a busy physician. I do passive. But I see some in my family, non physician, who have done really well being active. They tried to encourage me 15 years ago to jump in and buy multi families in So Cal. On the weekends, when I was exhausted, they were running around dealing with tenant issues. 

Now, they have PM, minimal real estate work, and lots of equity. 

In retrospect, especially when I was younger, I probably could have put some time into real estate.  

Back then, I was used to resident/fellowship hours. 

I’m hoping to invest and buy and holds with partners

I agree with the pro-stay-in-California crew.  Once you leave southern California, it is hard to regain the money lost.  If it is possible, to flip out of state with lower cost properties and then bring the money back to Cali, you might be okay.

However, like others say, we do not know your entire financial picture nor goals.  

good luck.

John, try opus, banc of Calif, or first republic. I can pm contacts to you

I have two friends who were unsuccessful in big bear. The first sold his property because finding repair services was too difficult and expensive. Contractors and subs were driving from LA. They were not too motivated to drive their trucks up the steep mountains. When he could find one, they charged a premium

My second friend couldn't get financing. The appraisal came well below the selling price. 

If you can make it work, the price point is relatively low to enter the market. Secondly, if big bear grows into a resort year round destination (like mammoth),you hopefully will do well

I think I need an llc so my llc can make the offer on the property. Then my partners can join. Is that correct?

how do you decide what to do with the property in the future, i.e. Refinance, sell, etc.  what if someone wants out after a few years, do you buy their 25% shares?  What if someone needs money for their kids college or other expenses?

Thanks

three colleagues and myself are going to form a real estate partnership. Our goals are to put money into our partnership on a yearly basis and purchase real estate on a yearly basis. We started looking at mfh. We put a brake on aquiring property because we wanted to creat rules for the group. These are some of the rules we thought of:  

1.  Majority, i.e., 3/4 partners make a voting decision

2. We wanted to put a timeline when we cannot touch the money, maybe five years

We are work colleagues and around the same age. Therefore, we have similar income and similar life timelines such as college for the kids, retirement, etc. 

What rules have others made?  Any thoughts?

Thanks