All Forum Posts by: Tuan Tran

This is a seriously bad idea, @Tuan Tran. It's not the LTV that protects you from a bad borrower. A low LTV only makes it easier to recover your assets in a foreclosure or other troubles.

What protects you is lending to others with integrity who know what they are doing. This means lending to those with experience and with whom you’ve developed a relationship. It can only really happen if you lend locally, meet your borrowers, and look at their deals. Local real estate clubs are your best resource for finding potential borrowers.

Alternately, fractionalized loans are legal in CA and there are many brokers who arrange these. They allow you to participate with relatively small amounts of money, lending alongside others using first position loans to local rehabbers. Here too, you’ll get to meet them and see their properties.

The bottom line, Tuan, is that if you don’t have enough money to lend locally, you don’t have enough money to lend safely.

Be careful, and best of luck to you.

I'm really glad you brought this point up. I do go to my local real estate clubs. One organizer in particular asked me to look into their ventures but I can only be the second lien position. I'm not very confident with this position. I'm confident with their ability to do the work as they've showcased many of their transactions. The worst case scenario is that we hit a recession that lasts longer than the term of the note. I have no control on how the secured property will be dealt with. It starts with the flippers and then the primary position. I could very well lose all my money being in the second or deal with extra litigation fees that I can't really price now. At least, if I was in the primary position, I would have a property to fall back on. How would you further protect yourself when not in the primary position?

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I would like to start private lending to out of state areas, where properties are within my LTV % for first position. What is a good processing in reaching reputable real estate flippers/buyers to do so?

Thanks!

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I have a small 8 unit apartment with a common area between the two four-unit buildings. One of my tenants is illegally parking a motorcycle in the common area and leaving bikes in another part of the area. Can I legally remove these items before serving them with a three day notice? Or do I have to serve the three day notice and evict them before I can touch the personal items. At the moment, I deem them as hazardous to my other tenants, especially the motorcycle.

This is in California.

Thanks

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1031ex.com

Curious if anyone tried them? And what their experience was. They're based in Utah.

Thanks!

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Would you happen to know where I can get a copy of that form?

Thx

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Specifically who pays for this fee?

The buyer or the seller?

Thanks

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Thanks everyone!

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Sacramento, California

I do not have a local real estate agent because I'm not based in Sacramento.

I was hoping for people with experience in Sacramento to help with this as this is in the Sacramental Real Estate Forum... :)

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Sacramento, California

Originally posted by @Anthony Dooley:

@Tuan Tran Total gross rent per year minus expenses (not debt service) equals Net Operating Income (NOI). NOI divided by the rate of return on a similar property in the area (Cap Rate) equals the value. Depending on the condition and location of the property, the cap rate in your area may be 5% or 6%, but ask a local realtor that does commercial deals. If you have no idea what I am talking about, you should probably learn a lot more before buying anything. Good luck Sir.

Yes, I understand that.

Thanks

I'm asking for comparables

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Sacramento, California

95815 area. I believe this area is called Hagginwood? The income is expected to be around 1000 each unit.

Thanks

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Sacramento, California

All Forum Posts by: Tuan Tran

Tuan Tran has started 14 posts and replied 36 times.

Post: How to market private lending to out of state areas?

Post: How to market private lending to out of state areas?

Post: Tenant leaving personal items on common area.

Post: Any one dealt with 1031ex.com?

Post: Anyone familiar with the new Affordable Housing Recording Fee?

Post: Anyone familiar with the new Affordable Housing Recording Fee?

Post: 8 unit apartment pricing

Post: 8 unit apartment pricing

Post: 8 unit apartment pricing

Post: 8 unit apartment pricing