All Forum Posts by: Wilson Lau

Like John mentioned, new constructions or large rehab usually involve the city inspectors, and many assume that if there is a stamp from the city, it must be done correctly. However, it is not uncommon to find major defects in these city approved projects.

With regards to hiring your own inspector, it will only work if the builder is willing to work with you and your inspector, and you will probably have to pay your inspector at each visit. On top of that, this is a huge liability, some inspectors may not be willing to take on this risk. Normally with my clients who are purchasing a new construction, I always ask them to consider hiring their own inspector to do a final inspection, and I have a great inspector that I can recommend should you need one.

Hi @Akash Kakumani. One of my colleagues invests near Yosemite and Lake Tahoe and seems to be doing quite well. Happy to connect you guys if you are interested in those areas.

Hey Mayank. Generally speaking it is somewhat true in the Bay Area (unfortunately). However, contingencies are there to protect you, and it should be your agent's job to vet the property and your specific situation to see whether a contingency is needed. In my most recent 2 deals, both had contingencies and we still won the offer. In one case, we had contingency, and we weren't even the top offer, although very close. It all depends on how your agent is able to convey the reason of the contingency and negotiate with the listing agent (As listing agents, they want to mitigate risks for their clients as well).

For Condos in the Bay Area, you could be exposed to higher risk because of the new SB326 Balcony Law. Your agent should check whether the HOA is compliant. Is the HOA sufficiently insured? How does the financials of the HOA look? etc...Hope this helps.

Hi @Mayank Jain, great question! Honestly, I wish more consumers asked this because there are far too many agents who believe their job is simply to show homes, write contracts, and collect a commission. I am not here to convince you to use a realtor, but I like to share some of my thoughts. 

Hiring a licensed professional is many times optional - you don’t always need to see a doctor when you’re sick, and you can DIY a home remodel if you have the right tools and knowledge. When you hire a licensed professional, you’re looking for two things - expertise and legal protection.

You mentioned researching the market, finding comps, reviewing disclosures, etc...Each of these steps comes with nuances and, in my opinion, takes a ton of experience to master. Unfortunately, every transaction is different, and oftentimes some transactions are more tricky to deal with than others. If things go wrong, you have no protection.

At the end of the day, my question back to you is - what is it that you are looking for in a real estate agent? Because even the top agents have different areas of focuses and expertise. If you’re confident in handling the entire process from start to finish and know how to mitigate risks when things go wrong, then you probably don't need an agent.

In my opinion, if you can go conventional, most of the time it is a better choice due to the better interest rate and terms. In your case of a fourplex, option 2 should get you a better deal.

I would also agree with Bill on how the number of units may not correlate with the value of the property unless it is a large multifamily complex, and sometimes a fourplex or several single family houses would give you better returns.

Hi @Diana DiMatteo, which city is the property located? San Francisco? I have a few architects and contractors who maybe able to help.

@Carolyn McBride what's your opinion on the Foothill and nearby neighborhoods (close to Fruitvale Ave)? I haven't been to that neighborhood for a while and have heard mixed reviews.

Hi @Nageswar Nara, if the property is at a true loss, what is the purpose of doing a 1031 exchange instead of taking the loss directly?

For your questions, I will need more context to give you better guidance, but I'll attempt to answer some of them here:

- For a 1031 exchange, you need a great realtor as well as a great 1031 exchange QI, and I am happy to refer one to you.
- For the duration of the contract: that depends on the specific location of your condo. The median days on market for a condo in SF is about 58 days. If that applies to you, a 30 days contract may not make sense. Real Estate contracts are cancellable, so I would focus more on the cancellation clause than the duration of the contract.
- To look for investor-friendly agents, you can simply ask for their experience (are they investors themselves or what were some previous deals they were involved in)
- To find the right realtors, I would recommend interviewing a few of them. Even the best realtors have different working styles and areas of expertise. Ask for their strategies given your specific situation.

Hope this helps and feel free to reach out if you like to discuss further.

Mine also broke recently in my rental unit. My property manager recommended either Whirlpool (stackable) or Hotpoint (separate units).

Not for commercial. It will impact underwriting if you are doing conventional loans. I second @Erik Estrada Chase offers great programs for business, multifamily, and conventional loans for commercial properties. The last 3 clients I worked with all ended up with Chase.