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.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.