Advice Needed On Property Purchase

3 Replies

Hello all,

Myself and two of my friends and soon to be business partners are on the hunt to buy a building, possibly some land.  We are each bringing $75K to the table and each of us has 10+ yrs in RE experience.  I'm a commercial leasing agent, one of my friends is an architect, and the other owns his own construction management company.  

We've thought about doing one of the following...

*Buy a distressed property, likely somewhere in the Midwest (Des Moines, Saint Louis, KC) and rehab to flip.

*Buy an older multi family unit/s, rehab and either flip or re-lease at higher rents.

*Buy a few acres and break ground on multi family units.

But none of us have been able to settle on which we should go after and we're not making much progress.  Any thoughts?

@Dustin Rand if you guys can't agree on the first step, your off to a rocky start. I don't think there's a perfect option in the list you provided, and all three will require quite a bit of work. Have you guys looked into more passive investments where you can sit back and collect a check?

I would suggest that you settle on a city where one of the partner's live.

It's tough (from my own experience), to manage a flip/remodel when you don't have boots on the ground.

@Dustin Rand , at the risk of oversimplifying it, only one of those options takes advantage of all three skill sets equally.  Architecture is a commodity easily outsourced and the other two skills value erodes with every mile your project distances from your presence.

The question is passive or are you wanting to do something together?  If the latter only one of those options uses all three.

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