My next step in real estate

That's because you are a passive investor in resi realestate, if you develop your returns are, let's just say A LOT more than that.

 

 

yeah, i used to develop back before i moved to QLD, but a divorce and a few other personal hicups have left me unable to fund any projects.

 

I have a DA in place on one of my sites at the moment, but there's not enough $$ in the deal to wear the risk, so I'll keep looking

Thanks guys! Im in the land of OZ. That's Kansas, not Australia ;-)

 

Small world, I was @ Fort Hays in Kansas for a few years. Please develop the shit out of that place. The bison fields were terrible!

 

 

Small world, I was @ Fort Hays in Kansas for a few years. Please develop the shit out of that place. The bison fields were terrible!

 

That is in the middle of nowhere! Last time I was there was when I came back from colorado. I remember it well. We ate pizza there by the railroad tracks and then my 1.5 year old screamed the next 3 hours going home :-)

I think my primary goal will be to develop plots of land and rent the homes on them until they are ready. I am meeting with my banker on Tuesday and he said he is happy to help.

 

I guess the big question is how to structure the next deals. Does I use my equity as down payment? Should I try to get a loan for properties Im holding for 1-5 years and then have a line of credit I can flip with?

 

 

I think my primary goal will be to develop plots of land and rent the homes on them until they are ready. I am meeting with my banker on Tuesday and he said he is happy to help.

 

I guess the big question is how to structure the next deals. Does I use my equity as down payment? Should I try to get a loan for properties Im holding for 1-5 years and then have a line of credit I can flip with?

 

Your banker will be able to answer that, he will know your financial abilities and responsibilities.

 

Good luck!

Met with my banker and he wants to do a large line of credit that I can quickly purchase with. After improvements and getting rented, I can then finance on a 15 year note and move on to the next property.

 

I got a call from the property I really want bad. They have other rentals and they wife says that they are just looking for a renter and is pretty sure her husband will say no to selling.

 

According to tax records, they didnt pay more than $100k for the property. They have other rentals and claim they think it would be "cute" for their kids to live there someday. The reality is that the corner it is on will sell for $500k in the next 5 years.

 

I told her I would make it worth their time and offer them $30k more than they paid. She thought he would still not want to sell it. At this point, I do not know if I should just let it be and move onto the next property. I was looking for a property that I could rent with nothing out of pocket and cover payments on until it went commercial, as the profit will be $400k. It currently gets $1200/month rent. Hmm...

Met with my banker and he wants to do a large line of credit that I can quickly purchase with. After improvements and getting rented, I can then finance on a 15 year note and move on to the next property.

 

I got a call from the property I really want bad. They have other rentals and they wife says that they are just looking for a renter and is pretty sure her husband will say no to selling.

 

According to tax records, they didnt pay more than $100k for the property. They have other rentals and claim they think it would be "cute" for their kids to live there someday. The reality is that the corner it is on will sell for $500k in the next 5 years.

 

I told her I would make it worth their time and offer them $30k more than they paid. She thought he would still not want to sell it. At this point, I do not know if I should just let it be and move onto the next property. I was looking for a property that I could rent with nothing out of pocket and cover payments on until it went commercial, as the profit will be $400k. It currently gets $1200/month rent. Hmm...

 

Great news on the bank offer, if you really like the property don't give them an offer ask them to put on paper what they want then you can work them down from that point, whatever you will give them they will want more, work it the other way around. Good luck.

 

Great news on the bank offer, if you really like the property don't give them an offer ask them to put on paper what they want then you can work them down from that point, whatever you will give them they will want more, work it the other way around. Good luck.

 

That is a great idea. I will try that!

Keep this thread updated I love it!

 

 

That is a great idea. I will try that!

 

Yes, keep it updated! I am in the process of doing that same thing where I live (I need all the advice I can get).

As much as I love cars, this is by far the most interesting thread on here so far, so please keep it up. My brother and I have just started flipping houses in Maryland. We have hopes to one day be able to own a few exotics. If anyone has any advice we are all ears.

Kind of off topic, my 12 year old daughter said she will take my business over, my 10 year old daughter said she wants to work in the same industry. I said ok, no problems so I gave them a task, they have to find a house for sale and bring me the house with the most upside/potential, the winner gets $50

 

The competition runs biweekly, they want it to run weekly, more prize money

 

I am dying to see what they come up with, they are talking power point presentations, etc. it will be interesting LOL

Awesome! By the time they are 20 they will be able to do it in their sleep!

Awesome! By the time they are 20 they will be able to do it in their sleep!

 

That's the idea but I only want them to do it if they enjoy it.

That's the idea but I only want them to do it if they enjoy it.

 

When they see the alternatives life has to offer, they better enjoy it.

 

 

Kind of off topic, my 12 year old daughter said she will take my business over, my 10 year old daughter said she wants to work in the same industry. I said ok, no problems so I gave them a task, they have to find a house for sale and bring me the house with the most upside/potential, the winner gets $50

 

The competition runs biweekly, they want it to run weekly, more prize money

 

I am dying to see what they come up with, they are talking power point presentations, etc. it will be interesting LOL

 

Very cute, haha!

 

 

That's the idea but I only want them to do it if they enjoy it.

 

Yeah, tread lightly.

 

My father wanted me and my brother to follow in his footsteps. So he made us join him in the OR a lot from when we were young. Only problem was that by the time we were 20 we were so tired of it that none of us wanted to become surgeons.

Yeah, tread lightly.

 

My father wanted me and my brother to follow in his footsteps. So he made us join him in the OR a lot from when we were young. Only problem was that by the time we were 20 we were so tired of it that none of us wanted to become surgeons.

 

My mom wanted me to become a doctor, I am not even in the same galaxy as she is with that

When they see the alternatives life has to offer, they better enjoy it.

 

So far they show a lot of interest but that can change.

 

I normally nurture whatever interests they have if they move on, they often do, I give them my opinion on what I think about the past interest then I move on with them and start supporting them again.

 

My youngest started with wanting to work in the supermarket at the cash register specifically until we told that the money taken in won't be hers to keep, as soon as she learned that she quit that idea LOL

 

I hated being pushed and I am trying my hardest not to do it myself, it's NOT easy

So far they show a lot of interest but that can change.

 

I normally nurture whatever interests they have if they move on, they often do, I give them my opinion on what I think about the past interest then I move on with them and start supporting them again.

 

My youngest started with wanting to work in the supermarket at the cash register specifically until we told that the money taken in won't be hers to keep, as soon as she learned that she quit that idea LOL

 

I hated being pushed and I am trying my hardest not to do it myself, it's NOT easy

 

If they have interests in the broader scope of the industry like architecture, engineering, construction management, then that would work out fine and maybe preferable to gain expertise in those areas to complement yours. They wouldn't know about that until they're in high school or college.

 

That's what's so appealing about development, how diverse it is and all of the specialties involved....even on the real estate side.

 

 

There is a lot of scope within that industry, one has interest in architecture but not so sure how profitable that section is.

Im getting more responses from people. Some were just not interested, and hard headed.

 

What is interesting is that there are people out there going for the same exact properties. Im not surprised, but I can tell it will be frustrating. Im going to have to figure out how to stay ahead of the game. In fact, one of the people I contacted bought the vacant land I asked about, to making money. It is 10 acres he bought for $100k, and he is asking $1.4 million now. Its not there yet, but when the city moves a little more in 5-10 years, I am guessing he will get at least 3 million for it. I tried to get him to split it up at his asking price, but he wont. I figured if I secured it, I would be in the way of a commercial project later.

 

There is one property with 3 acres that has huge commercial potential in 5 years. The property has been boarded up. The home owner doesnt live there and doesnt know the potential. She just went through a divorce and has 2 house payments alone now. The property was rented and the renter caught part on fire. She paid $175k for it and got $80k from insurance for the damage. It will be another property in the hundreds of thousands. It is a corner lot on a commercial road. She doesnt want to sell but I can tell that she is distressed. She wants to sell her house and move to this property, but I dont think she can afford to rehab the house. I think she would sell if I gave her more than $175k, but rent revenue might not be enough to make the payments on it.

 

My best bet right now is a home literally 1 block from $1.4 million property above. It is a smaller lot. The home is $150k in value. Should be $400k of land value rezoned. It is on the frontage of our largest commercial street. But, on the edge of town. He called me and said they thought about moving in the past year and were interested. They were wondering if I minded if they needed more time to move. I said I had some time, and that I could pay them a little more to move sooner. I may go look at it in a couple days after he talks to his wife. He said he just wanted fair price for it.

 

Hopefully Ill have a deal soon and I can show my plans!

There is one property with 3 acres that has huge commercial potential in 5 years. The property has been boarded up. The home owner doesnt live there and doesnt know the potential. She just went through a divorce and has 2 house payments alone now. The property was rented and the renter caught part on fire. She paid $175k for it and got $80k from insurance for the damage. It will be another property in the hundreds of thousands. It is a corner lot on a commercial road. She doesnt want to sell but I can tell that she is distressed. She wants to sell her house and move to this property, but I dont think she can afford to rehab the house. I think she would sell if I gave her more than $175k, but rent revenue might not be enough to make the payments on it.

 

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If this has potential give her over market, 10% to 15%, start with 5% over tell her you've got contracts on few others and you WILL buy something soon after you do that you will be out of the market.

 

See if there are other sweetners you can entice her with, free rent, pay for moving expenses, closing costs, etc. I don't know the entire situation to give you any other ideas.

 

Do not lose a property with big upside for the sake of few extra dollars, the low returns wouldn't worry me, you are banking on capital gains after rezoning not yields in its current state.

 

Good luck.

My best bet right now is a home literally 1 block from $1.4 million property above. It is a smaller lot. The home is $150k in value. Should be $400k of land value rezoned. It is on the frontage of our largest commercial street. But, on the edge of town. He called me and said they thought about moving in the past year and were interested. They were wondering if I minded if they needed more time to move. I said I had some time, and that I could pay them a little more to move sooner. I may go look at it in a couple days after he talks to his wife. He said he just wanted fair price for it.

 

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This deal, my personal opinion, if you want longevity in this business always pay fair market value for what you buy, be extremely fair to the vendor, curtious and non agressive in your approach and negotiations, treat them like royalty, your purchasing will get easier and easier particularly in a small town where word of mouth is key.

 

One question, can't you have them living in while rezoning the property? If you can agree on price, sign a contract, give them a deposit, ask for a long settlement (to line up with rezoning completion) have them move out just before or after rezoning is completed, that way your outlays are low and you are satisfying one of their conditions, win, win.

 

Good luck.