Posted by paul on December 16, 2002 at 21:06:33:
Kristine-
I’m investing, or trying to altleast, in the Visalia/Tulare area. I’ve got one rental there and I’m looking to do a couple flips then pick up some more rentals. If you have any contacts (mortgage broker or Real Estate agent) that work in that erea, or other investors that you know of that you could get me in contact that would be great!
-paul
Angel Investor - Posted by Marty_CA
Posted by Marty_CA on December 16, 2002 at 14:46:51:
Hi Everyone
Perhaps it’s just the time of year, but a family member has indicated a willingness to lend me the cash necessary to buy and repair a 3/1 in my central valley California town. My idea is this: purchase a house I have located from a motivated seller for $95k, cash/quick close. Put approx $5k in cosmetics back into the property. Refinance the rehabed property for the 100% of appraised value homes like this are selling for in the neighbrohood ie, $118K, deduct the cost of the refi ($3k?), pay back my angel and use the balance, $10K, for my next deal. Also, put a rentor or L/O candidate in the house. The going rents will just about cover the proposed mortgage. Any holes in this scenario? Any better ideas on what to do?
Thanks in advance for the input and good times to all.
Re: Angel Investor - Posted by paul
Posted by paul on December 16, 2002 at 17:58:48:
1st) There is NEVER a bad time to invest in real estate NEVER!! If you do your due diligence and get your price and your terms its NEVER a bad time to buy and sell. People are not gonna stop buying real estate, EVER. If you get a good enough deal you will always be able to sell. If you buy for 40% below market, clean it up and sell if 20% below whatever else is on the market it will sell.
2nd) What part of the central valley? I invest there as well.
-p
Re: Angel Investor - Posted by Al - So Cal
Posted by Al - So Cal on December 16, 2002 at 15:58:22:
One way to look at a deal like this:
Buy $100,000 - $5,000 fix-up but may be 40% more or
$6500 - 2% closing in and out so total of 4% and 6%
commissions - equals over $116,000 then add on carrying
charges and alternate interest on your down and fix-up
money if it was sitting on the sidelines and you get
the picture.
You have to know your market better than anyone else
and go for the great deals or you can just be creating
a job for yourself and making $5.00 an hour.
Now is not the time in the economic cycle to be doing
this. Good Luck.
Re: Angel Investor - Posted by Phong
Posted by Phong on December 16, 2002 at 15:46:26:
For an all cash purchase that requires 5k rehab, you can do better than that. I wouldn’t buy it for 95k!
Re: Angel Investor - Posted by Marty_CA
Posted by Marty_CA on December 16, 2002 at 23:47:46:
I live in Stockton. I did my first and only deal about 2 years ago, following Le Grand’s plan and buying the ugliest house on the block. Unfortunately, due to no experience, I bought one that should have been demo’d and put a new 3/2 on the lot. Oh well, went to boot camp anyway! Now, with a lot more caution and knowledge, I’m looking again. I’m really not too concerned with making a lot of money on this deal, $2-3K would be ok, I just want to prove that this whole idea of CRE works.
Re: Angel Investor - Posted by Kristine-CA
Posted by Kristine-CA on December 16, 2002 at 18:58:48:
I couldn’t agree more about there never being a bad time to invest in real estate. People are always asking me about “what if the economy changes,” etc. A now-retired successful investor friend of mine recently said to me that he would get out of REI if he was still in because he sees the bubble bursting soon. I was so surprised. This is someone who did creative REI from the time he was 18 until this past year when he turned 50. And then he thought for a moment and said: “Well, on second thought, your margins are infinite, so as long as continue that way you will never have a problem.” He was referring to the fact that I do deals without any money.
There is never a bad time to know how to recognize a deal. Every market has them. That is the really learning curve for me, I think. Being open-minded enough to see the possibilities instead of letting myself talk the same lines like everyone else.
Sincerely, Kristine
P.S. Also, where in CA are you? I’m in Bakersfield and surrounding areas.