All Forum Posts by: Christopher Telles

It's in nowhere so you might start there! Sorry, just joking. Blythe is a very small city. You might try the county tax assessors office where Blythe is located. FYI, the rental market there is very shallow. I looked at a four plex in Blythe years ago and I remember two of the units had been vacant for 5-6 months. The property was in pretty darn good shape and the sellers couldn't rent the units. Updated kitchens and baths and new appliances and forced air units. If memory serves me correctly they only wanted 20k per unit, but with a constant vacancy of 25% plugged in we didn't want the headaches of having to manage the property from Orange County. All the best

0 Votes

Originally posted by @Brett Hoover:

Okay, wow thanks @Joel Owens yes I think you hit it on the head, and thats what I was thinking. I am like man these prices are so high and the numbers just don't work I gotta throw in like 30% to make it a safe conservative investment. I didn't know if it was just me being new to this game or if in fact it truly is a frothy market. Yeah I think a lot of people are buying with the hopes of appreciation and rents to continue to go up. Atlanta has a lot of cool live, work, play developments among other cool developments going up around the city. I think those structures are driving up prices as well. I'm just looking to by a good conservative 1st investment property, one where I won't get hurt. I feel like its a little bit dangerous out here at times. Thanks @Frank Iglesias for the encoragment and confirmation. So I should be patient, stick to my guns and let prices come back down? Like I'm thinking in a few years if people are overpaying for these properties then they should go back on the market at a more reasonable price b/c people bought bad deals.

Brett,

"So I should be patient, stick to my guns and let prices come back down?" No!

What you may want to do instead is learn as much as you can about how to buy 'deals' that do make sense in any market, and of course how to find them. There are many places where you can look and find deals. You will notice is said "you" can look and find deals. As an investor who wants to take control of their financial future you can't solely rely on others to bring you deals. You need to figure out how to find these deals in your market. This will take time and energy, some patience, and a whole lot of looking, but its very well worth the effort.

Two other answer in this thread gave you great advise. Look to access pre foreclosures and or look at other asset types. MF is outrageously priced almost anywhere around the country at this stage in the cycle. However, there are opportunities still to be found in commercial deals. You just need to open your mind to these alternatives and if you don't know anything about the alternatives then find a way to learn about them.

I really like the story i read about Elon Musk founder of both Tesla and Space X. After he left PayPal, where he was a co-founder, he was determined to spend time learning something new. He decided he wanted to learn how rockets where made and launched, although he knew nothing about them at all. He asked an engineering friend who had a Phd in aeronautical engineering if he could borrow all of his textbooks on aeronautical engineering. Starting from introductory books he taught himself aerospace engineering and then went on to start Space X which has already launched spaceships into orbit. Obviously he applied this same precept to electricity and electric cars.

If this man can create societal changing companies by sitting down and reading books, and yes he too received much help from those that knew more (like those that do here in BP concerning real estate) I find it hard to believe a new investor should be able to figure out how to find, analyze, and fund a real estate deal.

All the best!

1 Vote

Business success is all about the marketing. Since you are in a new area I would think you would want to meet new people to build your network as you know the results you can get from referrals within your network. Consider producing a flyer or brochure and starting in logical fashion walking around the neighborhood in which you live. Walk door to door and let people know you are an experience contractor that recently moved into the the area whose looking for new jobs. Some of these folks might have some work they've been thinking about or if they don't if you make an impression on them perhaps they will refer you to people they know who do need work (remember to ask them to refer you otherwise they may not think about it later). Craigslist is also a place you can advertise (I think for free). A Wordpress website is les than $25 to put up and can inform people of what you do who you can also insert into you flyer brochure so people can got to your website for more information. If you do set up a website you can run a Google ad campaign targeting specific areas. That could lead to many new leads from people searching for contracting work. Direct mail to your target area will also expand the area you can reach into (you can only walk so many houses in an day, probably less because of the Miami humidity).

1 Vote

Steve McGovern nailed it. You make money in real estate when you buy it. Even if you plan on refurbishing/renovating/redeveloping the property the thesis of you investment plan always starts with the purchase price. Thus your earnings whether cash flow or capital gains begins at the closing table. You mentioned buying one property and then rolling the earnings into more properties. Rolling up real estate in that manner is a solid strategy. I got a chuckle out of your opening "explain it to me like I was a 5 year old". So hear goes, no one, not even the smartest rich guy on the planet got rich by not studying and becoming an expert in the things that got them rich. And the majority of those rich made a high percentage of their wealth through real estate investments. Not all of course, but the vast majority of high net worth individuals owe much of their wealth to real estate. To your comment of living like a hobo, I think many who take on the mindset that living frugal, maybe not necessarily like a hobo, will be more successful than those that don't. My wife lived in that manner for many years to get to the point of buying our first investment property. We did buy a big property, but it took sacrifice and discipline to be able to do so. Turned out to be the catalyst to change our lives. Work on your mindset. Keep in mind very wealthy individuals today are happy to earn 5% on discretionary capital when there is reduced risk. Anything you can do to earn higher on a risk adjusted basis is something you should feel good about. That said, we target value add deals with a minimum IRR of 18% over our hold periods. More risk, but adjusted for the risk the returns are still better than 5%. Now if what I just said sounds like it's Greek then just know you can learn what it all means by reading. Read the books here on BP. Read books about investing in stocks. Read the Wall Street Journal everyday (the online version is great) and learn about investments of all kinds.

2 Votes

Quite honestly there are some good things that can be found on Craigslist but looking for a mentor in real estate is probably not one of them. You might join a real estate club in your area and start attending those meeting to network which might lead to a more fruitful relationship with someone who maybe willing to offer guidance and perhaps some mentoring support. Mentoring someone isn't a paid profession it usually is a byproduct of ones advocation and passion for real estate (not to mention their desire to expand their own network). A mentor knows the more they give the more they will receive back. There are many books, podcasts, and webinars here in BP that can serve as a mentorship program. They cover almost all topics, situations, and investment styles you encounter in real estate investing. There's really no secrets that can't be found in all of the above mentioned. Listen, watch, and learn. Then, go, do. If you have questions as you're doing then come back to these threads and pose a question. You will surely get your question answered are directed to a place to uncover the answer.

0 Votes

When you say you are looking to partner with someone and that you have experience with the financial side of real estate and project management experience are you implying you want the partner to put up the capital for a project?

0 Votes

Originally posted by @Tee Riddle:

Originally posted by @Christopher Telles:

Originally posted by @Mike Osterman:

For anyone looking for deals....maybe...just maybe you should reread this and see what his problem is. ( Me Included ) I did it twice. He even says it.

First, to the OP, my condolences for your losses.

Maybe my view is skewed, but I see a non relative home occupant who wants to have as much free "time" in a property he doesn't own before its foreclosed on so he can live rent free while he finishes the work on his own home. He states so twice in this thread that I can recall.

The questions for the asker that would be helpful to those trying to analyze the situation (and maybe help one another should the OP and an investor collaborate) are:

1. What's the house worth (ARV)

2. What are any physical issues with the property, besides the foreclosure.

3. How much debt is on the property now

4. What are the arrears mortgage payments, property taxes, hoa, etc

The answers to these questions might prompt some investors to have some interest in looking into this property as an opportunity, or not. In any event, the answers would certainly allow this analysis 'exercise' to pay dividends.

Hi Christopher Telles,

Thank you for the condolences, much appreciated.

Your view is appreciated, and in the eyes of the law I am considered a non-blood relative. Getting a bit too personal here perhaps, but the guy was my step-father for over 26 years and was in my life much more than my birth father.

I'm not looking for a free ride here. I purchased a home and began renovating it while I stayed with my step-father. I helped him keep up with his bills (while also paying my own) after the loss of my mother's income. He passed away while I was in the middle of the mentioned renovations. Call it bad timing, I guess, but when is there ever a "good" time?

After his passing I was stuck. I couldn't really live in my home due to the fact I basically do not have any running water (or lack of fixtures to facilitate running water). That's awesome for the water bill, terrible for hygiene.

Anyway, to answer your questions about the property the best I can:

1. The house could probably go in the range of $150,000 - $160,000. Great neighborhood, good schools, conveniently located to shopping, schools, military bases, etc.

2. The house is in pretty good shape. Hardwood floors through out (they do need refinishing though) roof about 7 years old, central HVAC about 3 years old, windows about 5 years old, and 2 skylights. It's 3 bdrms, 2 full baths, and about 1485 sq ft sitting on a total of .21 acres according to city records. In my opinion it needs some updating in the kitchen and hallway bath, but that would be me if it was mine. Biggest issues I see with the home from a home inspection standpoint would be the lack of insulation in the crawlspace and the dryer vent blows out into the crawlspace.

3. Last time I spoke with my step-father (late January) about what he owed it was around $85,000 between 2 mortgages.

4. Property taxes are up to date as of June 5, 2015, but arrears on the mortgages are probably somewhere in the neighborhood of $6500 total.

Thank you for your input!

@douglasdowell

Any thoughts on this situation?

0 Votes

Originally posted by @Tee Riddle:

Originally posted by @Christopher Telles:

Originally posted by @Mike Osterman:

For anyone looking for deals....maybe...just maybe you should reread this and see what his problem is. ( Me Included ) I did it twice. He even says it.

First, to the OP, my condolences for your losses.

The questions for the asker that would be helpful to those trying to analyze the situation (and maybe help one another should the OP and an investor collaborate) are:

1. What's the house worth (ARV)

2. What are any physical issues with the property, besides the foreclosure.

3. How much debt is on the property now

4. What are the arrears mortgage payments, property taxes, hoa, etc

Hi Christopher Telles,

Thank you for the condolences, much appreciated.

Anyway, to answer your questions about the property the best I can:

1. The house could probably go in the range of $150,000 - $160,000. Great neighborhood, good schools, conveniently located to shopping, schools, military bases, etc.

3. Last time I spoke with my step-father (late January) about what he owed it was around $85,000 between 2 mortgages.

4. Property taxes are up to date as of June 5, 2015, but arrears on the mortgages are probably somewhere in the neighborhood of $6500 total.

Thank you for your input!

Yeah, sometimes I'm to direct to the point. Sorry if that came off as insensitive.

I personally don't have any experience with the bankruptcy courts, but as @k.mariepoe points out in one of her replies any opportunity may be subject to bk process and then approval. Are you wanting to try to retain the property as an investment? You might be able in a better position than many others to either buy it from the estate or assist the estate in finding a viable way out of the foreclosure by a) buying it from the estate or b) arranging its sale to an investor (and hence earning something for the efforts).

There seems to be some equity there to work with initially, assuming there aren't any other creditors with claims in the bk petition.

0 Votes

Nice!

This building and its end use would fit nicely in any of todays urban core renaissance areas.

0 Votes

Originally posted by @Jay Hinrichs:

@Christopher Telles

Whoa I got ahead of my self.. my lending is VERY niche I am not an open market lender. we choose who we lend to very selectively.. Sorry .. I would not be the one for Socal.

I would talk to Norris group.. or one of the other established players down there

But my wife is a Duck, that should count for something!

I here you loud and clear, Thanks for the quick reply. Lets connect as colleagues, I'll send you a request.

0 Votes

All Forum Posts by: Christopher Telles

Christopher Telles has started 4 posts and replied 357 times.

Post: Blythe, CA Market

Post: Should I fire my Real Estate Agent based on suspect advice?

Post: How to restart

Post: Explain it to me like I'm 5: How do you get rich in real estate? Seems like it takes many many years to get positive cash flow.

Post: I'm looking for a mentor- does this look like a legit job offer?

Post: Partner in North County San Diego

Post: Unusual Foreclosure Situation

Post: Unusual Foreclosure Situation

Post: Our first restaurant build out - before and after!

Post: Analyzing this deal: $53K for $750 rent