Rental Property Investor · Clarksville, TN · Member since 2019 · 39 posts · 15 votes
Saved about 100k to get into the business. Sent 2k yellow letters with a few hits. Steadily getting more hits, but here lies the problem. Spent 20k on 9 acres of vacant land in the heart of town. Then, made the knee jerk decision to pay cash for a 62k rental once I learned it would need flood insurance. Otherwise would have financed it.
Go figure, now I've got more opportunities knocking, and most of my cash is gone; in the blink of an eye. Of course, to finance, banks require 20% of sale price, regardless how good the LTV is. What do I do?
Thinking of selling the rental and chalking it up as a lesson learned. Then, pursue buying as originally planned.
Lesson learned? You haven't finished. Acquiring is just one part of real estate investing. Any idiot can acquire - it's what you do with it that makes you genius (not to mention rich). Get back in there. You could finance the rental now or even the land. You could flip both. You could bring in a development partner for the land deal. Geez...you got stuff. Make it work for you. And, there will always be opportunities knocking and if you jump at every one, guess where you'll be? Right where you are. Start plotting and scheming on how you make what you have into something that shows you were right all along. I think you might just be...
For the 9 acres in the middle of town, find a developer to create an apartment complex, a mixed-use complex, a shopping mall, etc. Or do a Ground Lease to a Walgreens, CVS, Rite Aid, a bank branch, etc. You have lots of options. Time for you to hustle.
@Anthony Rosa Money in the bank is a perfect way to look at it. The land is in an established residential area. Full disclosure, it's in a flood zone and half is under a utility easement. Again, the purchase was totally selfish, for a future business venture. However, there is a sod farmer nearby that may be interested in using it until I'm ready. Thanks for the motivation and leadership!!
@Noah Mccurley partnering with someone would be a blessing. It would behoove me to really reach out my networking. #BP
@Martin Potter "Knowledge is how you mitigate risk and move forward powerfully". Never, have I ever heard a more sincere statement in this or really any business. TY for your leadership.
@Ola Dantis seems as though you've read my mind. It's hard to ignore the internal desire to jump on these lucrative opportunities, even when they don't particularly fit my mold or investment strategy.
For example, I came across an elderly couple who wants to meet next week to discuss selling some of their property (~50 acres). It's very rural and would provide limited instant revenue streams. But, for the price we've trial closed on, I'd be a fool not to capture it. I'm sure they entertain just about any owner financing platform I could generate.
I've considered a monthly payment toward only part of the property. Or, even offering to buy everything (including their home) and allowing them to live there for the rest of their lives for the rent free. These folks are in their 80's.
@Paul Day and @Judy Parker I love your ideas and brainstorming. It's zoned residential. Therefore, storage is likely not an option. There are established homes all around so I don't believe sewage and water will be an issue.