I have an update on our project in Healdsburg as well as a business update and what we’re doing to find our next project.
Today is Aug 8, 2020 and we are finally moving along at a good clip with the rehab. We had a rough start, particularly in the amount of time it took to get to our permits being issued. Like everyone else, we were effected by the challenges facing our nation almost immediately after closing. Within weeks, businesses were shut down and government offices closed. Finally, things did come back online and we were able to get our permits approved.
Naturally, we have started with the demo. The decision was made to remove all the old sheet rock and open the whole place up. While there are a few reasons for this choice, eliminating any potential for a lingering smell was among the top reasons. Also, this should allow for the electrician to speed up his delivery and better yet, help him get his job done easier, I think this will also help with inspections. Because of the amount of this remodel, we have to add a fire sprinkler system.
Also, we had some corrections that were needed on the drawings, and those needed to be addressed quickly. Of concern, was a structural wall that was not aligned in the drawings, so it was important that we corrected that before we started putting in a large, unnecessary footing that would slow us down and be a huge waste of money. The good news is, this will help us save on our rehab costs.
As for the current state of business, we are currently cold calling absentee and pre forclosure home owners. Our market is in Northern CA. We are also driving for dollars and sending letters to homes we would like to purchase for rehab.
I am not getting the ROI I would like to see from the marketing efforts, but I have been working with a VA, so at least I’m getting my ROIT.
I am cautious at this time, as buying right (especially in this NorCal market) is critical. I think we could see deflationary pressures if employment doesn’t reopen. The news is already suggesting that a large percentage of rents and mortgages cannot be made at this time. I think it’s probably too late, as we see the potential for many foreclosures and/or short sales, but we shall see. If that is the case, it would be prudent to ride this down unless you get the right price. While, on the other hand, inflation in housing and other assets may continue to lead the charge as the money printing presses are red hot from use. A rising tide lifts all ships. Many investors are sitting on the sidelines and holding cash to take advantage of an ebbing tide.
Comment below, what do you think? Is this a good time to buy or wait?
I’d enjoy reading your comments.
Peace and love everyone, and don’t forget, lift people up in your words and be a light to their soul.
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