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All Forum Posts by: Grey Stone

Grey Stone has started 5 posts and replied 108 times.

This isn't just a Biden thing. They are doing it all over. Look at Prop 19 in California, it's complete 🐂💩. Look at all the money they are printing, unemployment, PPP, EIDL, etc. They have to get the money from somewhere and people that are not investors are not as sympathetic to heirs receiving tax benefits for assets they did not "earn". I'm especially concerned because I live in California and have been investing solely in California for my children to inherit from my hard work....and now, not as much. Will people still get inheritance yes, but Uncle Sam is making sure they get a cut.

Post: Are there any math impaired RE investors here? :)

Grey StonePosted
  • Investor
  • Palmdale
  • Posts 112
  • Votes 80
Originally posted by @Julie Hill:

@Tushar P. I didn't say I couldn't DO math...  I have a Masters Degree. Of course I can do math.  It doesn't mean I ever UNDERSTOOD math concepts though.  RE math is mostly simple and I can do it on paper just fine.  But I can't THINK that way. I can't quickly "see" good deals until I sit down with a pen and paper to figure them out.  And I can't visualize ratios.  I read a ton of RE books, and listen to a ton on audible and when they get to the math part, I struggle to "see" it.  I have to reread it and figure it out myself to understand.  I definitely can't do quick surface level analysis in my head.  (I mean the 1% rule sure...)   When I tell you... "Film in S-log 10-bit 422 at 3200 Kelvin" can you visualize it?  I can.  Obviously this is my career and not everyone knows film production but this is also a visual concept.  I can "see" it in my head.  I know what it will look like. My point of posting this was out of frustration because I would love to get into note investing and more complicated things but that might make my head explode.  I also have a couple of partners who will send me deals sometimes... "look at this!" it will be a sheet of numbers and I'm like... "um walk me through this".  It sucks.  Be very lucky this comes easy to you!!   Knowing how to do math and being able to conceptualize math concepts are two different things.

If you cannot quickly identify good deals, it is because you do not understand your local market and you need to practice more deals. I studied my market, borderline obsessive, because it is FUN to me for approx two months and could know within a few minutes whether it was a good deal. Now it is almost immediate. I can sometimes know if I like the neighborhood just by hearing the address. Just start going through redfin and looking at the map to see where properties are located, do your own rent comps, see how many saves they get and how long different properties sit on the market and notice if you see a trend with the types of properties certain agents list. I drive to different neighborhoods to also get a feel for how easy it would be to rent. You will get so much better by practising more and in particular focusing on a specific area.

Post: Renting to a violent felon?

Grey StonePosted
  • Investor
  • Palmdale
  • Posts 112
  • Votes 80
Originally posted by @Francois G.:

I'm shocked by these comments and I'm surprised so many people claim they would be ok with this. Most of us are open to 2nd chances (im open to even more) but this is a different ballgame especially when other families will be living in close proximity.

The answer is a hard no for SO many reasons. Potential tenants who fall in love with the property and become friends with your family should never be the criteria used to fill a vacancy. I will promise you one thing... they will NOT be this friendly to you and your family when they're 60 days behind on rent. 

You said you're house hacking, are you comfortable sleeping in the same house as a convicted murderer? When they're blasting music at 2am, are you comfortable knocking on the door to tell them to lower the music? How do you plan to deal with the situation if they fall behind on rent? Living in California (a well known landlord-friendly state) is even more of a reason why this should be a hard no. In the middle of a pandemic when we have a federal eviction moratorium for at least 8 more months? I'm literally shaking my head just typing this out.

This is going to sound harsh and I'm not trying to be rude/mean/disrespectful but I'm telling you this for your own safety and well being. Don't rent this unit to them because you seem too naive to be involved with these kind of tenants. The landlords who are able to handle these kinds of risks have specific systems in place. If you're asking a public forum for the answer to this, I don't think you're prepared to handle these kind of tenants in real life. Again, I'm not trying to be rude or disrespect you. I'm telling you this for your own good. There are plenty of potential tenants (especially now) out there who will be less headache and less risk.

Good luck to you.

 I completely agree with him. And regarding the prospective tenants being kind to you and your family....whenever tenants try too hard to connect with me or keep affirming that they are Christians (I am too) and "good people", my BS meter goes up because oftentimes they are hiding something. Also, think to yourself why are so many landlords choosing to not rent to them when most landlords main objective is to fill a unit. Just my two cents.

Post: Renting to a violent felon?

Grey StonePosted
  • Investor
  • Palmdale
  • Posts 112
  • Votes 80

Sounds nice to say everyone deserves a second chance, however that is not my truth. The tenants we choose are essentially our business partners....and I'm NOT going into business with criminals. You'll find when renting units people want safe areas away, far away from rapists, murderers, pedos, etc. So when it comes to renting the other unit, I feel you would need to disclose that and it would heavily impact the desirability of the other unit. I just see too mamy issues. Like another commenter said regarding any future disagreement you may have with this tenant, if you decide to rent to them. He may not be a bad person and he may have learned from the experience, but in absolutely no way am I willing to risk my business for a murderer.

Post: Newbie's second offer in Santa Clarita (Los Angeles), CA

Grey StonePosted
  • Investor
  • Palmdale
  • Posts 112
  • Votes 80
Originally posted by @Brett D.:

2 bed 2 bath, 1020 sq ft, built 1987

$355,000 offer ($365,000 asking)

$30,000 to make rent ready (includes $3500 two months holding costs)

$1141 mortgage (25% down at 3.125% for 30 years)

$381 taxes

$75 insurance

$150 HOA

$141 vacancy (6%)

$265 maintenance and capex (12%)

$2350 rent

$197 cash flow

$400,000 - $405,000 ARV

I think this one is accurate compared to my last attempt.  Thoughts appreciated.

Brett

Why not buy in Lancaster or Palmdale? You can buy multifamily properties and sfh with the same or lower price points and 3-5x your cash flow. If you hate the AV, I would still buy here in hopes of making more money to be able to atleast buy homes in my desired market. I really do not like condos in this market, as a personal preference. Just a thought. 

Originally posted by @Deisy P.:

Thank you all for you comments. This all came about because two things just piled up on me on me at the same time. I don't have a trusted handy man, a go to lawyer, a go to contractor for anything. Any way, a realtor friend referred me to his and he fixed a couple of things in my apartment and then I brought up an issue w/ the coach house roof. He went up there and talked about things that he saw and took a few pics and stupid me I didn't research any of it and took his word for the things that needed to be done. He verbally told me the scope of the work would be about 4 days and possibly might higher someone else for $7,800. I paid him half up front and then the rest later. The time came and texted me that he had got there and to open the side gate. 3 hours later texted he was done. DONE? You said it would take 4 days? "I used the best materials and i have 21 years of experience." He said more things but the work was already done so I paid him the rest. I told my realtor friend and he said, why didn't you tell me sooner? I didn't know he was going to go from 4 days to 3 hours without notifying me!  So basically he charged me $5,095 just for labor. I emailed him about it after I searched the work and the time between coats and he said he used a dry torch for the sealant or whatever it's called and said he performed work that should have cost me $14k. I gave him the opportunity to give me back a portion of the money and he's not budging. He's not on yelp and i can't find him in BBB. So basically, I feel like an idiot and I should have known better and it's a learning experience but I feel very embarrassed for letting that have happened and I am truly doubting myself yeah, in thinking this isn't for me. I called a professional roofer and the man brought his son and I explained what happened, looked at me and asked me where the man of the house was. In complete shock, I exclaimed that I was the "man" of the house. It was very upsetting and with the tenant that's not paying me anything and I can't do anything about it right now...it's just overwhelming.

I am a woman. And I am a black woman, lol. I'm married, but I take the lead when it comes to REI because I am borderline obsessed and I love it. I have people on my team and close to me that are other races and male, one because I like everybody and importantly, it limits things like this from happening. A few things I see:

1. YOU WERE TAKEN ADVANTAGE OF 
2. The "contractor" was a douche. 

Both problems could have been avoided by having a better system in place. Do NOT stop the beautiful business of real estate because of these two bad experiences. They have already happened and you have learned from them. The con artist would have probably done this to a man also. Having more people on your team helps because there will be more eyes on things that happen and it forces you to have a good way of doing things in your absence. Always get multiple quotes and trust your instincts. Men and women can both do very well in real estate, but you can't break down after a few bad experiences. Sulk and cry if you must, but do not give up. Do not let your story end here! I recently hired a guy, that was referred to me by an investor I wanted to build a relationship with. This guy showed up 15 minutes late, fought with my other contractors that were working at the same time, he told my other contractors to leave and he then took a 3 hour lunch. I literally cried. I was under a crazy amount of stress trying to get everything done well and quickly and he ruined it. I overlooked my instincts, and hired someone I never should have....it happens, this is real estate. Men and women investors both complain about the quality and professionalism of contractors. It happens. Maybe take up running or a hobby to release negative energy. This will not be the last time you will get frustrated. But in the grand scheme of things, it really isn't a big deal and you may laugh about it later.

Post: I need advice with my wholesaling business please!!

Grey StonePosted
  • Investor
  • Palmdale
  • Posts 112
  • Votes 80

You need to study your market. That takes time and effort. I would suggest going on redfin.com. This site is like the mls in that they remove homes that are pending or sold, quickly off the site. Focusing on a specific part of the city is the most efficient way of learning prices. Pay attention to which properties sell the fastest and for what price. Also, you might want to network with RE agents and if you ever come across a seller that wants to sell on the open market, refer it back to them in exchange for them offering a price opinion. Most importantly study your market. Look every day. I focus on 3 zip codes in my area and if someone were to tell me the sq ft, lot size, bed count and address I will know the arv within a couple minutes. Eventually you will get to the point where it becomes effortless. 

Post: What do you do with your cash flow?

Grey StonePosted
  • Investor
  • Palmdale
  • Posts 112
  • Votes 80

It depends. If you have an older property or one you did not recently gut and rebuild, I would recommend keeping a larger reserve vs having a newer build. But realistically it seems like you are asking what you should do with your monthly cash flow. For me, I keep approximately ten thousand in the bank and the rest I put in the stock market. I only buy things I feel comfortable with and if they drop I am confident they will recover and will NOT have a burning desire to sell. Every month I take my cash flow and buy VOO, QQQ, MSFT, AMZN, AAPL, NVDA, SQ or TSLA. That's it, nothing fancy. If you aren't comfortable choosing a company, an ETF could be great. I feel taking cash flow and putting it into the stock market will help you see even more growth. Stocks are very liquid, and will help you grow your money quicker and when you see a deal, buy it. PSA always talk to your CPA and let them know your plan. Also, the gain you make on quick sales or trades will be taxed at a higher rate.

Post: Help - sellers memory is poor. Should I give up?

Grey StonePosted
  • Investor
  • Palmdale
  • Posts 112
  • Votes 80
Originally posted by @Heather Carrow:

Hi all! 

I have a solid lead that came in...

Seller is an older landlord. She is tired of renting out to bad tenants and has two properties that she wants to offload. She was ok with my offer and is interested in seller financing - she owns both properties free and clear. I found her on Reiapro and it says that she is the only one on the deed. 

Here's my problem: She can't remember anything. She keeps asking me the same questions over and over. She doesn't even have a key to the property right now and doesn't know anyone with a key because the previous tenants left without returning it (not sure why she doesn't have multiples). Should I just give up on this lead and move to the next? I don't know how to make it work with her memory. 

What would you do?

Thanks!! 

 She is older with memory problems. My dad had dementia and owned real estate. He would get calls from wholesalers and RE agents all the time. If any of them would have been successful doing a deal with him, I would have lit them up with a lawsuit. They would have been taking advantage of a man I love very much, while also stealing assets that may be needed to cover healthcare expenses and eventually inheritance. I would stay completely away from doing a deal with someone like this, because it just isn't right. If she has a diagnosis of dementia or someone took you to court and it was clear she was not competent, all of your time would have been wasted anyway. In situations where it may make sense is if you speak with her power of attorney and inform her family. I would stay far away from this. You should advertise and network more,  this should not be your only lead.

Post: Old Wood floors - Replace - refinish ? Keep ?

Grey StonePosted
  • Investor
  • Palmdale
  • Posts 112
  • Votes 80
Originally posted by @Jim K.:

I'm going to amplify my answer, because you're getting some spotty advice here, @Kenneth Hynes.

This is nice wood flooring. You would think that hardwood flooring, back in the days, would have been more expensive the wider the planks were. It wasn't (even though it is now). Narrow-planked floors like this showed off the skill of the installer better, and were more expensive. The industry standard remains at 2 1/4 inches. This looks significantly narrower.

The hardest of North American hardwoods is hickory, which is what this floor is made of. So, you are in the possession of a very nice, desirable floor, one that someone who knows something about quality vintage flooring would likely want someday. In order to remove this floor's planks, some very careful prying operations would have to be done. It would be best if as much of the original floor remained when you did that, that is, if the floor were not refinished at the time you sold the floor to a specialty vintage dealer.

Blind-nailed hardwood strip flooring like this is always shaped into a tongue-and-groove configuration. Refinishing this floor will remove quite a bit of the surface. Let's say you decide, years from now, that the floor is best kept where it is. If you refinish this floor well now and put tenants in, they will beat up the floor a bit, not matter how much polyurethane you put on it, and when you sell this place, you will have to refinish the floor again to get top dollar for it. That second refinishing will (A) cost a lot and (B) further compromise the thickness of the top third layer of the floor.

And here's the final point: a good refinishing job like this is going to require a good refinisher. You don't have experience with this. You don't know if the guy you pick for this is the right guy. This is not the floor to experiment on. Find some 2 1/4 strip beat-to-hell old oak floor for that. Floors like that are a dime a dozen where you are. This is hickory. This is money to the right vintage guy.

Therefore, the wiser course now, for the BRRRR you want. would be to cover it, with carpet, padded laminate flooring, or luxury vinyl plank flooring.

I strongly agree. I saw videos all over youtube on diy hardwood projects. I decided not to do it myself because I was tired from painting and cleaning...my house was filthy. I always recommend doing things that you want to do if you can do them well. I knew I didn't feel confident, so I hired it out. Watching the process, ESPECIALLY the sanding was not something I felt comfortable with. Even watching the lady do it, only showed if they are really beat up it's probably not easy. OP try asking people on Facebook or RE agents that work with investors, or BP for referrals. I received a few referrals from an agent that works with investors that wants my business.