I GENUINELY NEED HELP
Hi,
Im looking for direction, help, advice, or even someone whose willing to take me under their wing. Anything helps!
I have inherited land and property which is free and clear. So I decided 9 months ago that I'd get into Real Estate Wholesaling to educate myself about RE and also earn money to demolish the property that sits upon the land.
Its not as easy since the home has Asbestos on the home, and most companies are asking for 10k as the starting rate.
So, I figured I'd challenge myself and grow within the business. I found out I have a great passion for the field.
So, I'm in no rush because I know theres still soo much to learn. But I would really appreciate someone whose got a heart to guide me in the process.
Im going back and forth on trying to find someone to fund the project so that I could possibly place a multifamily home or apartment complex on the land after the home is demolished.
So as you see there is a lot that goes into this. But I can't and I will never stop trying to find the answers I'm seeking.
Please no rude comments or remarks. Everyone had to start somewhere. And this is my starting place. Thank you.
@Candace Hall you've been bitten by the bug! If you've got the drive, you can figure this out and build wealth to last a lifetime.
You should really look for an investor in your area that can mentor you. It will work best if you have something to offer in return. If you approach someone and just ask them to teach you, they'll likely ignore you. If you approach someone and offer to help them with XYZ, then they will see you're serious and are far more likely to help you or find someone that can help you. I've heard of successful investors starting out by sweeping up at job sites, picking up materials at Home Depot and delivering to a flip site, helping with direct mail marketing, cold calls, getting coffee, running numbers, or whatever.
Get involved with as many investor groups as you can. Meet people. If you're able to talk without slobbering, demonstrate an IQ above 100, and have something to contribute, you'll find someone to take you on.
Go to NETWORK at the top of your screen and you can search for other investors and investment groups in your area. You can also check meetup.com or search facebook for real estate investment groups, clubs, or meetings in your area.
First things first... LOVE THE NAME! :)
Which market are you in? I'm happy to help however I can. My RE strategy is wholesaling and buy & hold. Feel free to reach out whenever.
@Nathan G.
You have been great! Thank you soo much for your advice and guidance!
@Candice Wharton
Well Hello there ☺ Im loving your name also!
I appreciate you responding to my post.
Im currently in Sacramento's market. And my main focus was to build rapport and have a buyers list in hand before looking for leads. I figured it would make the transition go a lot smoother once I do find a lead.
Totally understand that strategy. I went down the same path. After trial and error, I would recommend the following:
- Attending as many REIA meetings as possible to network
- Learn your numbers (if you don't know your numbers, that can make or break you as a wholesaler)
- Determine what your lead source will be (driving for dollars, texting, cold calling)
- Jump in!!
You'll definitely make mistakes but if you approach your mistakes with a positive attitude and learn from them, you'll be good. Again, feel free to reach out. Happy to help.
Candace, Congrats on taking the leap into real estate! You are doing better than most investors because you are seeking advice prior to making big decisions and losing money, like many of us have done. So a very smart move on your part! From the limited info I have on this I will shoot out a few ideas.
1. Put together a plan to build your apartment building, including budget, estimates, etc.... Include the demolishing of the existing home in your plan, and budget. Flush out all the details and make it a full business plan, that can be presented to other investors and banks. Instead of looking at the removal of the building as an obstacle in the way, look at it as just part one of the plan.
2. Present to investors, banks, etc.. and try to line up funding or partnerships. Having all the details put together as a business plan will give you more confidence when presenting it, and will help show people how serious and prepared you are.
3. Is it possible to build a new building without tearing down the existing. This will enable you to finish the project, create income, and then use that income to remove the old building.
4. Could you trade the land for an existing multifamily? If you could locate a seller that has one that you want, and is looking for land this could be a possibility.
These are just a few ideas, Keep us posted as you progress! Aaron
I can’t help you with the wholesaling but have you talked to the fire department about the property. My old boss had a rental property that was in bad shape and on a decent lot he wanted to split. It was expensive to tear down but the fire cadets need training so they burnt it down for him and gave a nice tax break.
Is the property zoned for multifamily? Call the city and find out what you can build on the property, how many stories, parking requirements.
@Candace Hall
Hi Candace,
@Aaron Poling had, imo, the best advice. If you inherited the land, and it makes sense to build a multi in your market, focus on that. Speak to your buildings dept, zoning, know what you can build first. Talk to some architects, find out the cost of making plans for an approved project by the city. Have an idea of what you want, ex. A 10 unit all 2 beds, with a laundry area, parking, storage, etc, around 10000 sq. ft. Speak to some builders, what are ball park costs per sq. ft. for something of that size. Once you have all of those #'s, find out what average rentals/expenses would be. What can you offer a partner? Start jotting all that down, come up with a plan and hit your reia's. Meet investors who like multifamily. Find a partner, make sure your paperwork is tight and get going.
@Adam Martin
Thank you for responding to my post.
I actually have contacted the Fire department to see if they could also do this for me. But they declined since the home has Asbestos they didnt want to risk burning it and having all of the fumes go into the air.
But its very fortunate that your old boss got the opportunity to use this option
@Donna M.
Thank you for responding to my post.
I called them yesterday and they let me know that there are No Zone Restrictions. The lady said I can build whatever I want on the land. But my only concern now is if the water and electrity will supply multiple units. Im not sure where to find that information.
Maybe the electric and water companies?
@Ceasar Rosas
Thank you for responding to my post. I agree with you regarding Aaron Poling. He really broke it down for me. But I really am grateful for everyones advice.
Im happy so many people are willing to assist.
You made great points and gave me examples of what it is I should be thinking about. Planning wise.
I spoke to a lady who let me know that there are No Zone Restrictions on my land. So she said I can do whatever I want with it. But now it leaves me wondering if water and electricity will be able to supply all of the units 🤔 I'm not sure who I need to speak to on that part.
I was thinking about the water and electricity company.
Any ideas?
@Aaron Poling
You are such a life saver 😊
I appreciate you responding to my post. Yes, I wanted to learn all that I could before walking in blindly. But I am also trying to realize that I may have to take calculated risks in this business. But, to be confident and actually knowing what I'm doing will really help lol.
Regarding topic 1. When you speak of a business plan. I do have it in my head. But is this something that I should have written out in a professional manner in order to present it. Kind of like a resume? But for the plan I'm trying to portray?
To answer your question on number 3. It is a requirement to tear down the existing home. It has asbestos all around it and the home itself sits in the middle of the 8 acres. I tried to have the fire department burn it down but they will not touch it. Since the fumes will fill the air.
I will keep you posted for sure!
@Candace Hall
Yes, them, and you may need an engineer as part of the process as well. Maybe an architect with an engineering background.
@Candace Hall Hello, just wanted to chime in as an architect.
Asbestos is not uncommon, especially in older homes/buildings. Since you're new in this endeavor, it may seem expensive however $10k for asbestos abatement is not very costly. I recently completed a vermiculite (attic insulation containing asbestos) for a brownstone home in NYC and the abatement was close to $30k. I would advise getting a detailed break down of where the asbestos is located since it can typically be in various materials. [Such as insulation, flooring finishes & mastic (glue), and plaster to name a few.] Then abate these things according to local protocols. After which you can have a demo crew bring down what ever structure remains. The removal of the house needs to be thought of as a line item to get your project built.
As far as the MFH/Apartment, yes you can do the searching and investigating on your own or look for an architect familiar with your locale. Not sure of your state (I think you said in CA) or the project's complexity. However, you don't know what you don't know and this could hurt you down the line if proper due diligence isn't taken in the planning stages. CA has many restrictions and protocols. An architect could very well fill the voids you may have for the home's demolition plus other related cost for jurisdictional approvals (Building Department, Planning/Site Plan Review, Department of Health, etc.). Plus as @Ceasar Rosas said, speak to some local Builders for preliminary ball park cost.
Jared W. Smith - Principal Architect @ Architect Owl PLLC
Thanking you for chiming in.
You're correct. I'm in California and the property/land are located in Louisiana. It hasn't been the easiest task trying to locate the right people down there but I will not stop.
Im still learning everything that I need to know. Because I'd never walk into something so blindly without doing my own due diligence. But I think I'm going to start looking into finding a mentor of sort because this isn't my field. I was just fortunate to inherit this asset.
I just need help getting started. Wish me luck!
@Jared W SmithThanking you for chiming in.
You're correct. I'm in California and the property/land are located in Louisiana. It hasn't been the easiest task trying to locate the right people down there but I will not stop. I have been asking any and everyone of ideas,tips,everything. Basically anyone who will listen.
Im still learning everything that I need to know because I'd never walk into something without doing my own due diligence first. But I think I'm going to start looking into finding a mentor of sort because this isn't my field. And although I am learning I want to at least have a solid plan in place. It's 24,339 sqft per appraisal so I have to do something. Because I'd never sale it.
I was just fortunate to inherit the asset. So Im doing all that I know that I can do.
Wish me luck!
I don’t have great advice especially with everyone else’s. I just want to say good for you for being determined. Some people inherit things and sit on their hands. You’ve got the right spunk and attitude and the sky is the limit. Best if wishes to you.