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All Forum Posts by: Mark Bommarito

Mark Bommarito has started 8 posts and replied 19 times.

Post: Bloomington/ Normal IL

Mark BommaritoPosted
  • Lakewood, CA
  • Posts 19
  • Votes 93

Thanks guys for the comments.  I have been to Bloomington/ Normal several times as i have family in the area and know this is a steady stable market.  You also can't go wrong with a city that has the world head quarters for State Farm!  

I am thinking that it might be better to buy SF or duplex rental property before trying to tackle a fix and flip project from out of state.   

Post: Bloomington/ Normal IL

Mark BommaritoPosted
  • Lakewood, CA
  • Posts 19
  • Votes 93

Hi,

I live in California but recently have been looking into the possibility of investment opportunities in Bloomington/ Normal IL. I am interested in multi-family residential and residential fix and flips.

Is there any investors on BP that are currently investing in this area and can share their experiences in these areas? What investment strategies work best in this area.

One reason i see this area as a good possibility to start out is that this area is also not far from other large metropolitan areas that could offer other great investment opportunities as I get more experienced.

Thanks for any feedback/ comments.

Post: Bloomington Normal IL - Investing Stat's

Mark BommaritoPosted
  • Lakewood, CA
  • Posts 19
  • Votes 93

Hi,

I live in California but recently have been looking into the possibility of investment opportunities in Bloomington/ Normal IL.    I am interested in multi-family residential and residential fix and flips.  

Is there any investors on BP that are currently investing in this area and can share their experiences in these areas?  What investment strategies work best in this area.

One reason i see this area as a good possibility to start out is that this area is not far from other large metropolitan areas that could offer other great investment opportunities as a get more experienced.   

Thanks for any feedback/ comments.

These are all great suggestions. @Brian Gibbons, that is what i was looking for. Yes, when compared to the 70% rule, it seems a better deal to do a JV. Would the 10% JV Fee be based on ARV or gross profit after rehab costs/ closing costs, it seems this would be probably up for discussion and what would be agreeable to everyone.

This will be something we will be discussing over the next couple months.  

@Bob Bowling, that is a very good point in regards to taxes.

At time we make an agreement and enter into a JV, how would transfer of title work?

Also, does anyone have example of JV contract to use as a guide? Of course we would have an attorney review prior to executing.

We have a situation where my parents & my mom’s three brothers will be inheriting a home in near future.

Knowing that my wife and I are very interested in real estate investing and are trying to get started here in Southern California, they have extended an opportunity for us to provide potential creative options for purchasing the property for a win/win deal situation.

The home is located in a nice area of Orange County, CA. We have not gotten a formal appraisal but guessing the home is valued around the $600-650K price range. The property also needs extensive renovations (approx. $200-250K) to bring the property modern and current to rest of homes in the neighborhood.

My wife and I would love to purchase the home as our new primary residence but are not sure we could pull it off. We currently own our primary residence and have built an equity stake in our property that is of some size but not enough to purchase the property at the above price point with traditional financing and then turn around and invest in the necessary renovations.

Our second option would be then if we cannot purchase the home as our primary residence would be to potentially renovate the property and sell after complete. In this scenario we would propose to them to allow us to renovate the property and sell in 12 months. To fund the renovation we have a HELOC to pull from but it is not enough to cover the entire project. One of my uncles has offered to be flexible with his equity stake in the property, combined with our HELOC this would be enough to renovate the property. Our thoughts would be to work out a deal where we get a portion of the profits from the renovation efforts after the property is sold. Given the potential for high value of the home after sale this could be a sizable profit split. We understand there is a certain risk with this option that would need to be managed carefully.

I have extensive knowledge for home renovation as I work for a general contractor however this would be our first rehab and flip project in quite some time and at this price range.

I am posting this to receive feedback from the BP community as to thoughts for the feasibility of the above plan, suggestion from those that have potentially been through this scenario before, and alternate options that are possible for this type of deal we have not thought of. If more info is needed, I can share.

Appreciate the feedback! 

Hi Nathan, I live in the Lakewood/ Long Beach area and want to get started investing as well.  I bought my primary residence back in 2012 and am trying to save to buy another property, but with the expensive prices here in LA/OC, i have been giving a lot of thought to either investing out of state or trying to start some type of side business to help save for another property down payment.  

Ultimately, i would like to be an active investor here in Socal where I could fix and flip properties and use the profits from that to buy multifamily or commercial rental property.  

I have been listening to many of the podcasts and learning about the various investing strategies but am trying to narrow down to a single niche that i can focus on and get started with.  

I have a strong construction background and would really like to get into fix and flipping SF homes but here in Los Angeles and Long Beach (where I'm located) properties are so expensive, so coming up with the upfront cash to fund the project is the tough part. I recently re-financed my home and was able to pull a HELOC to possibly partner on a deal but still do not have enough to cash to fund entire deal.

Here in Los Angeles how have people been finding the good deals for fix and flipping?  I have thought about doing direct mail to get leads and possibly a better deal, does anyone have experience with this strategy in east Los Angeles County / Long Beach Area?  

My thought would be to find a local Hard Money Lender along with partnering to fund the construction/ holding costs of the project to get my first project completed. But I have also been hearing that even with a HML, this is still not competitive enough to get the best deals.

If there are any successful fix and flip investors in these areas that could share some insight and whats working for them, that would be great.  

Post: Looking to get started from Long Beach, CA

Mark BommaritoPosted
  • Lakewood, CA
  • Posts 19
  • Votes 93

thanks guys for all of the encouragement and advice. I will start getting more involved and asking for questions.

Post: Looking to get started from Long Beach, CA

Mark BommaritoPosted
  • Lakewood, CA
  • Posts 19
  • Votes 93

Hi there BPer's!

Back in March I found the Bigger Pockets podcast on itunes and have been addicted to listening to them on my way home from work each day ever since. I really like how down to earth and honest people are here on BP.

I have been interested in real estate investing for several years now but constantly find myself stuck in the analysis paralysis phase.

My struggle is my J.O.B. as an engineer keeps me very busy and leaves me with little time during the week. I'm also really not sure which area of real estate investing to start out with. I have a great deal of experience in construction & remodeling and would like to fix and flip homes but do not have enough cash to plunge into a deal at the moment. However, I am determined learn how to get started some how.

I also recently listened to Podcast #67 with Tim Gordon on real estate wholesaling and find this very intriguing and a possible way to get into real estate without a lot of money upfront. I have never been in a sales position but am willing to learn if that is what it takes to start out.

Anyways, I look forward to meeting BPer's in SoCal here and appreciate any comments or suggestions people have for getting started out!