New Member Introduction
Hi My name is Tim Weber.
A little about me, I'm a local boy born in STL area. Left for a little bit while serving uncle sam, and then came back home to the STL area. During this time in the service I did some silent partner investing with my mom and step dad in three long term rentals. They broke even (kind of), I got my money back. I also work for UPS, I've been with them for 18 years (military leave), and approaching 25 years I can retire from UPS and would like to. So I've started the process of building something else.
What I have my hands in now.
One house I live in with roommates that cut my mortgage in half, it is a rehab and long term rental when I decide to move on (which may be soon, roommates suck). The property sits in a "B" class area, in unincorporated St. Charles County sandwiched between St. Peters and O'fallon. The house is the same house I grew up in, and I don't see it ever getting sold. The problem with this property is the mortgage, long before I was interested in real estate. My Mom and Step dad at the time bought two rentals and turned this property I'm in into a rental. To do this they took a second mortgage out on the my house. Now those two are divorced, the two rentals have been sold, I got my investment money back (and then some), but the 2nd mortgage remained on my property. Of which my mother pays, I pay her rent, she makes little to know cash flow, but I put plenty of sweat equity into the house. She has plans to refi the house, recombining the two mortgages into one again.
House number 2, my mother house, this was always planned as a rehab, a long term rehab. before my little sister started school my mom bought a house on quieter street then my house, for bike riding walking distance to school. This is what I would call an "A" property. My sister is now approaching the end of her high school career, and we are prepping that house for rehab. Last month I installed drain tile along the foundation in half the basement that was having water issues from hydro static pressure. I think I have solved the problem, just waiting for a rain to prove it before recovering the trench with concrete.
Plan for my company:
Real Estate investment is not my end point, and I believe with the proper plan I can skip the standard "buy 4 green houses, and turn them into one red hotel" method. My end goal is to be the space X of construction equipment, simple right lol. Real Estate will be the launch pad.
Current deal I'm working on, which I have posted in the contractor part of the forums, asking for help. This deal is progressing as follows. Near me there is 34 acres for sale with a 3br, 1.5 bath duplex on it. I've watched this property on the market for some time, first on craigslist and then on MLS. I recently drove to the property and discovered that it is nearly flat and would take limited work to turn the property into an open air recreational/commercial storage lot, that is secure and automated. I plan to start with 1 or 2 acres of storage and add to it from there, while developing a plan for the back 15 acres that involves some long term alternative investing involving Ginseng production, and morel mushrooms. The duplex is a long term hold rental that will have a previous tenant living in it, and one of my current roommates maybe both.
Financing,I'm looking into getting an SBA loan to finance the deal, along with bringing private equity into the deal. To get the SBA loan in the first place. I know several managers at UPS that have more money then time, I have approached them and they are interested in working together on the right deal. As well as some family that owns few dozen rentals already.
My lawyer has begun to draft up documents that would show a potential investor what equity would look like. Class "B" stock in my LLC, and things like that. He has also advised me to protect my investor that is already at the table (my mother) to form a promissory note system with her.
I have contacted the county government about the permit process, and understand the basics of it.
Thanks for reading my second post, I plan to keep this updated as like a running log I can refer back to and maybe get some guidance. An insight, ideas, or quick tips would be great.
Brandon if you read this, I bought that book on raising private capital, that last podcast was the best.
Thanks