All Forum Posts by: Sunday Nguyen

Anthony,

Sound like you are well equip to venture into RE investing. As a Oaklander, I’ve done a few project in the East Bay, and North Bay(Richmond , Berkeley). Myself and a couple of partners are on Phase 1 of doing a new construction in East Oakland for 7 units. If you free let’s plan to link up, give me a chance to pick your brain on entitlement process. Let me know, if there something that I can help you to answer some question about Oakland’s Market if that is where you’re interested.
Best,

Sunday N

@Gina Orlandi

I believe there is an express service from Cozy that can get your money much sooner 1-2 days ( $3 fee)

@Charlotte Chew

Yw, I just give them the name of my Bank, WF, and the account#, they can go to any WF and make the deposit directly into my account each month.

@Charlotte Chew

Congrats on your first rental and good job on taking initiative on managing the rental unit yourself.

I can share a few tips on what’s work for me. During your lease agreement signing with tenants, be sure to have a dedicated section in the lease agreement that spell out clearly how the rent to be collected and emphasis on Late Fee, rent is due on the 1st of the month, 10% late fee apply on the 2nd ( no grace period), 5th day send out pay or quit notice, 9th day file eviction, you get the idea and you can revise it accordingly..

It best to asked the tenant what is their preferred methods of paying rent, and giving them 3 options. Don’t accept cash, it’s for your safety and also trained them to not to expect you show up to pick up the rent.

1. Pay online using Cozy.com seem to be the best effective way collect rent. Let them know that the convenient and how easy to do payment through online. You can help them with initial registration and encourage to use online system to pay rent.

2. Provided them an ABA# to your bank so they can make a deposit directly.

3. Option to mail the cashier check ( not personal check), remind them to obtain the certify stamp receipt as proof of payment.

On new tenants, I usually send out the Courtesy of Late Rent Notice on the 15th of the month for a few months, just a friendly reminder and a quick recap of all the option for rent payment method that is available at their convenient.

Good luck,

Sunday N.

@Cameron Philgreen

I’d say go for it. I experience it first hand, with the exact idea like your and I bought a 2019 Tesla Model 3, rent it out on Turo ( Bay Area, Ca ) it’s have been working out good so far for the last 4 months. I’ll share with you my number and the pro’s & con

Here’s my number:

$61k purchase ( got some adjustment for paint color -$2500 off)

1.99%

Monthly service debt: $719 + $122 ( insurance) = $841

Rented for the last 4 months ( had 3 weeks vacations, therefor it was not listed for rent during those weeks) $4790/ 4months = $1,197.50. Which mean I’m net profit at $356/month on average.

The downside is occasionally renter would nick the rims, scratched the paint, return the vehicle dirty. Those are things that will happen and how you choose to handle it, would make you a better host on Turo than other.

For instance, I charge $50 for car wash and cleaning if it return dirty, you can request directly from the guest and if they are refuse to pay, Turo would step up and always pay you. Wear and tear items, like scrape wheels, or paint chip, I’ve advise to pick the premium insurance ( they will cover 3inch or smaller) Turo offer, which in return you only get 65% of earning, but it’s worth it. Damage wheel ( my favorite), my cost to fix $75-$90, Turo reimburse $225 😉. Pet hairs ( happened once ) $75- my cost to get it clean up, Turo reimburse $250.

Someone smoke in the car ( not my Tesla, I have 6 cars, rent out 3 on Turo) $500 reimburse and my cost to get it done is $150. There are ways that you can create extra margin in addition to daily rent.

I’m have a busy schedule, I’m a full time investor working on 3 flips at the same time. When renter want to pick up at my house it’s free, if I deliver within 25 miles from my home I charge $120.

Car rental isn’t for everyone, it take strong communication with guest and resilient when dealing with Turo staff to get your reimbursement. I do think that it worth it, I love my Model 3, it’s a super fun car to drive and when I don’t drive it I make it available on a Turo.

The only downside that I see about buying the Tesla is that it will reflect on my credit report, that would raise the Debt to ratio when I tried to refinance one of my rental. That’s only if you use a loan to buy, but if you lease it, Tesla Finance don’t report it to the credit Bureaus( wish I knew about this when I bought it using a loan)

Hope it help you with your the questions you had.

Best,

Sunday N.

@Jana Cain Count me in, I'll try to make it. See everyone there. 

I live in Oakland and Interested.

I know a spot in Pleasanton called PICK 6 sport bar, the owner is very accommodating. 

@Katie Huynh Base on my recent experience with making an offer for foreclosure property..

Asset manager will review offers and usually will only discount $10k-$15k at a time and pick the highest offer that are closet to list price. Did you submit your offer yet ?

@Michael Guydish , Depending on which investment type you leaning toward doing. 

I assume you're talking about REI. If so, finding a property that allow you can do 10-20% down payment would be a good starter to get your feet wet in the game. Keep in mind of all fees and holding cost related to the transaction.

 Great Post @Drew Y. pay yourself first is a good concept to wealth building, I'd been practicing it for the past few years. I'd first discover that idea from a book "The richest man in Babylon." 

 When you started R.E.I, do you leverage debt to fund your deal or using your own cash? I'm currently holding a W-2 and working on 2 flips with planning for another flip project on the way next month. I can appreciate your effort and thanks for sharing.