All Forum Posts by: Account Closed

Hey everyone. So I'm a Wholesaler and I mainly work out of Los Angeles. Today a deal showed up on my desk for a duplex property in bakersfield CA and I need advice. 

Should I turn the deal away due to the location? How much does location matter?

 I just don't know if it would be worth it since I only really work out of Los Angeles. I know there are people who buy/wholesale/rehab virtually but I've never done that. 

Any advice would be wonderful :) 

Hey Jim! We're you ever able to get this resolved?

@Anthony Wick You’re right. I’m very new to this and I’ll take it as a lesson learned. On to the next.

@Jerry Rien hahaha yeah I think you’re right. It’s been a headache and a half. It might be time to just walk away.

So here is the situation.

I'm working with an owner who lives out of state. His family (sister and her family) lives in this Duplex in Highland park CA. The owner wants to sell the property and called me today saying he'll lower his asking price significantly if the buyer is willing to buy the property with the tenants inside. Does that make this deal more profitable? 

I presented this option to one of my potential buyers and he was NOT at all willing. 

The property is rent controlled and RSO rules are pretty strict. The buyer doesn't want to try to evict them himself. I've told the buyer that the Tenants rarely pay on time/have unauthorized pets, etc. It would be an easy eviction. 

(the owner doesn't want to evict himself probably for personal reasons seeing as how its his family. He would rather a stranger do it)

I've been working on this deal for about a month now and I am truly just lost. Cash for keys seems to be out of the question. The Tenants down want the money. No one seems to be willing to just take the time and evict them. NOT TO MENTION the moratorium on eviction wouldn't apply if the new owner were to evict based on pets (unlawful detainer). There are definitely options available. And the owner has dropped the price so low, i'm truly just shocked that the buyer I presented it to doesn't seem to care. 

Should I find other buyers? 

Is this something that I should keep pursuing? 

Thanks in advance for the help/advice. 

@Wyatt Franta you know... I didn’t even think of that. I’ll look into it and see what I find. Thanks for the tip!

So I have this property in Inglewood Ca thats on 4,914 sqft lot and zoned R2 (duplex). The property has a beat up tiny house on it 360 sqft.

The seller is asking for 400k I'm having trouble connecting the dots with my buyers as far as profitability goes though.

My thoughts were that someone could rehab the tiny house and build a second tiny house on the lot (front house back house situation) and then either sell them or cash flow them.

Here's how I crunched the numbers.

Asking price: 400k

Rehab tiny house ($75 per sqft x 360 sqft): $27,000

Build of new slightly bigger second house ($138 x 900sqft): $124,200

Misc blanket cost: $20,000

Total Invested: $571,200

Then I ran comps for what the new property would go for and I found

ARV: 720k

If the buyer were to sell, then it would be a $148,800 profit.

(also buyer could cash flow it for a few years and then sell it for a potential higher profit

Also NOT TO MENTION... inglewood property value is increasing due to the new building of the stadium.)

Does any of this matter to an investor? Are my numbers correct? Why would an investor say that this deal is priced "too high"?

Thanks in advance for your thoughts and opinions!

So I have this property in Inglewood Ca thats on 4,914 sqft lot and zoned R2 (duplex). The property has a beat up tiny house on it 360 sqft.

The seller is asking for 400k I'm having trouble connecting the dots with my buyers as far as profitability goes though. 

My thoughts were that someone could rehab the tiny house and build a second tiny house on the lot (front house back house situation) and then either sell them or cash flow them. 

Here's how I crunched the numbers. 

Asking price: 400k 

Rehab tiny house ($75 per sqft x 360 sqft): $27,000

Build of new slightly bigger second house ($138 x 900sqft): $124,200

Misc blanket cost: $20,000

Total Invested: $571,200 

Then I ran comps for what the new property would go for and I found 

ARV: 720k

If the buyer were to sell, then it would be a $148,800 profit. 

(also buyer could cash flow it for a few years and then sell it for a potential higher profit 

Also NOT TO MENTION... inglewood property value is increasing due to the new building of the stadium.)

Does any of this matter to an investor? Are my numbers correct? Why would an investor say that this deal is priced "too high"? 

Thanks in advance for your thoughts and opinions! 

Right now I'm working with an out of state landlord who wants to retire. 

He has a Duplex (front house and back house) that both have tenants in them. The Duplex apparently falls under the RSO. He doesn't know what to do because he never registered the rent with the HDICLA and there is no written lease agreement. The tenants basically have just been living there for anywhere from 500-700 dollars a month depending on what they can afford. 

Now he wants to sell the house to an investor but he needs to get it vacant. 

What are his options? 

I told him about a Cash for keys offer but he's tried to give the tenants money to leave before with no success. The tenants in the back house were/are willing to leave but the tenants in the front house aren't budging.

I'll also add that the tenants in the front house are his relatives (his sister and sisters family etc). From the what I can gather, the owner doesn't have a strong enough relationship with his sister (front house tenant) to play the "family card" or appeal to the humanity in her. 

What are his options? He lives in Colorado with his family and needs to get rid of the house in Los Angeles. He has a buyer but the buyer wants the house vacant. 

What are his options? There's no written lease, never registered with the HDICLA, i'm actually quite lost in this situation. 

@Isaac S. Thank you! I’ll try posting that :)