【Investment Property】Haydens Crossing

I first met Jason at his restaurant, j.liu Restaurant & Bar on Oct. 17, 2012 when we were there to celebrate birthdays of October borns from our office:) My colleague, Don Bush, introduced him to me and explained what I do for investors. Jason seemed to like the concept and gave me his cellphone number.

When I tried to call Jason at 9 am on Oct. 30, he did not answer the phone. (You will find out why in a while… lol) So I left a message.  I told him that I got a 3 year lease to a house in Dublin and that I’d like to meet him at the property.  Later from a golf course, Jason called back and we met at the property that afternoon.

He liked the property and signed an offer there.  It was lower than the market price offer.  However, there was a similar property in the same subdivision listed about $10K lower for sale and we knew that the sellers were expecting a new baby.  A good counter offer came back, but Jason had his bottom line for his investment.  So we put that number in our counter offer and presented it.  After exchanging two more counter offers, we went into a contract at his original bottom line on Nov. 5 : )

Next evening at his Dublin restaurant, I introduced Jason to his soon-to-be tenant, Yamada-san.  He has eaten at this j. liu’s before and couldn’t imagine the owner of the restaurant would become his landlord!  Jason presented a lease agreement and got to know each other over nice seafood.

We ordered an inspection, negotiated for remedy, and the repair work was completed.  Yamada-san’s company’s attorney and Jason worked out the details of lease agreement and it was signed.  All got done before closing on Nov. 28.  Yamada-san moved in two days later.
Jason has owned and operated restaurants for a while, but this is his first time becoming a landlord.  He is very happy about that!

【4 Bed/2.5 Bath/2 Car Garage Single Family Home in Dublin】
10 year forecast of the investment
net operating income around $13,000/year
cap rate/year (NOI) 7%
pay off comes in the 4th year

【Comment from Akiko】
Some buyers try to save money by not hiring an inspector.  The cost is around $300-400.  There are no houses which has nothing wrong.  With a little expenditure, in this transaction Jason found over $1,000 worth of repair and Sellers took care of them.  I always recommend you to hire an inspector.