All Forum Posts by: Account Closed

I couldn't agree more with you @Joe Bertolino and @Carrianne Mucho well written and thoughtful responses. 

Even if Blackstone does move some of their inventory, and saw the market swaying they would not continue to list properties for sale. They will sell only when it's a seller's market. They can easily raise funds if they have a new venture they're interested in pursuing.

If Blackstone's listed inventory DOM started increasing they wouldn't continue to list more.  

I worked in corporate finance for years and there is literally a team of analysts that analyze markets everyday. I'm sure they have at least one analyst dedicated solely to watching the Sacramento market if not more. 

@Account Closed Wow, I love that marketing technique! What a perfect example of thinking outside the box. 

I am going to implement a little of this in my marketing strategy as an Agent. I appreciate your openness to share.

HI @Hector Peralta and welcome to the forums.

I live in Sacramento and can tell you that Nurses here make pretty good money. Depending on your background you could potentially get a very nice position. I have a few friends in the field. 

I am a real estate agent, feel free to reach out to me if you'd like to explore possibly buying a multi unit here. I can provide info on areas, costs, expected return, as well as find you something worth investing in.

Hey @Kimberly Renken! It's great to meet you and welcome to the forums. 

I'm a local based out of Rocklin, CA. I'm an agent. I work with a handful of investors mostly from this site alone. 

How long have you been investing? I think it takes doing it a while before you can do it full time, so it sounds like you may have a good amount of experience. I'm sure fellow flippers would love to pick your brain if that's the case! 

The social media part sounds interesting... I'm not sure I've heard of other flippers doing that to source leads. I often hear of snail mail and picket signs. I use social media heavily as an agent too.

@Raad Qumsieh If you are able to, I would view the property as soon as it's listed with your contractor. That way you can get a rough rehab number and submit an offer without that inspection contingency. 

I am seeing more and more investors submit offers with no inspection contingency. 

A contingency is a way out of escrow. From a seller's point of view it's not attractive to accept an offer with a contingency (of any kind) because they could potentially fall out of escrow and have to relist the property, or move on to the next buyer, and start the escrow process all over again (timeline starts all over again). 

Of course the retail market is different and having contingencies is normal and expected. But for fixers is not attractive from a seller's point of view, and in a seller's market they can be selective. 

A large EMD is a sign of a serious buyer too. So if you're certain you want the property offer an EMD of 10% of contract price.

To answer your question it would require local knowledge of current market conditions. 

I can provide feedback based on what I experience here in the Sacramento market. Sacramento is competitive and over saturated with investors. We have a lot of out of town investors and local investors that are looking to flip properties. 

When a fixer upper is listed on the MLS, even with minimal profit margin, multiple offers are received, often times above list price. In this scenario, the seller will accept the most attractive offer, not always based solely on price.

The offer that is the most attractive is one that has zero contingencies - so the buyer cannot walk away from the deal if he wants to without losing his EMD. In order to submit an offer with zero contingencies you need all cash (financing requires an appraisal and lender approval contingency and the property needs to be in a habitable state).

I would recommend calling on those listings that are interesting to get a feel for how many offers are on the table, if any, and track how long listings are active. If they continuously go pending within a matter of days, this is a clear sign you're in a competitive market. 

If you're in a competitive market, you'd be lucky to get one accepted offer out of 50-100 submissions a month. The listing agent will be able to tell how experienced you are, and if you're a serious buyer. If he feels you're not a serious buyer, even if your offer is attractive, he'll move to the next serious buyer he thinks will close on the property. 

Hi @Mark Alex, I can second @Josh Anders on this. I bid on two properties in Reno on auction.com and auction.com bid on the bank's behalf to meet the set reserve requirement. I was not willing to pay the reserve amount on either property. 

I saw the properties continuously go back on the site weeks later, so I am assuming no one else was willing to pay the reserve price either. At least at that time.

There are a few really nice properties up for court house steps auction in Placer county (in nice a area). Check out this link and contact me if you have questions about ARV etc.

https://www.auction.com/residential/ca/rocklin_ct/

I can say that as an agent in the Sacramento area, I get at least one person from inside my network, or a random person that calls on a listing of mine, asking if I know of a rental available. 

I've consistently heard that there is nothing on the market for rent and if there is it is incredibly expensive. 

@Raman Bindlish John Burns. Email me for his contact information. I have used him a few times and he is very reliable and produces quality work. 

Hey @Brandon Colar

Awesome plan! Buy and hold is how the majority of American's build real wealth. I'm a local agent that works with investors. 

My advice to you is more practical. I'd recommend for starters listening to podcasts and reading books that focus on rentals, and buy and hold strategies. 

But I'd also think about what your long term strategy will be. Will you focus on cash flow or appreciation? What type of tenant do you want? There are various strategies that you can implement. You could purchase SFRs with lower property values that cash flow significantly but have lower quality tenants and potentially less appreciation long term (depending on city). 

Or you could focus on buying in nicer areas and maybe not cash flow as much but have a better tenant and greater likelihood of appreciation.. of course this is market specific but are things that will come up depending on when and where you buy.