All Forum Posts by: Wayne Bolen

What outcome do you expect? They're not agreeing to a contract to pay you, so why do you think they would listen to what a civil court tells them to do? My guess is if they're not paying rent, they likely don't have money to pay you after court anyway.

I've thought of that, and am looking into it.

In the pursuit of financial freedom, I am considering redirecting my funds from my 401k into another vehicle that's liquid. This will give us immediate access to the money for purchasing/rehabbing properties. I'm not planning to touch what's already in my 401k, simply redirecting the funds that are going there from my pay. I'm curious if others have done this and what others' thoughts are on this technique. I know most people will say "that's a terrible idea, you're taking away from your retirement" and my wife has even had similar concerns. I've explained to her that 401k values are not guaranteed and we're still setting aside the money for investments, just more near term vs long term. I believe building out real estate portfolio will prove more valuable to us in the long term than a 401k will.

@Arta Montero I know here in Texas the covid eviction criteria is very strict and the tenet must follow a certain process in order to fall within the protection guidelines. I do not know about your area, but here simply refusing to not pay does not protect someone from eviction. Have you researched the rules for your area?

@Toye Ade we'd love to pick up something locally, but deals are difficult to find and prices are much higher here in Leander and Liberty Hill.

@Andrew W. yea, we've been looking in Austin as well. The problem is most of the properties are pretty significant BRRRR projects past our level of experience and out of our comfort zone from a financing perspective, although we're continuing to keep our eyes open. I was stationed in Ft. Hood from 05-07 so I'm very familiar with Killeen. If we were to pick up anything there, it would likely be something we can get for at least 20% CoC return due to the lack of appreciation.

My wife and I are getting back into property investment. We did a flip in Round Rock in 2018, and although we ended up losing money, we learned so much from it. We've recouped our losses and are taking our experiences and lessons learned and getting back into the game. Our goal is in long term rentals. Unfortunately the prices in the Austin MSA make this very difficult to get into and limit options for cash flowing properties. We have recently started to look outside the area in places like Burnet, Marble Falls, etc. These areas seem to have a mix of A/B/C property types, and have seen appreciation recently due to the massive growth of Austin and the surrounding areas. I'm curious if others are investing in these more rural communities and what luck they've been having.

@Jay Hinrichs good to know. I know some people here in central Texas that have discussed this but it's not something I've personally looked into.

Thanks Bruce. I like the idea of the ADU to increase the overall rent for a property, similar to MFH, but we'll have to do our due diligence prior to purchasing something. At this point I'm back in research mode. We did a flip in RR in 2018, but lost some money (and learned a LOT) during the process. We're looking into areas just outside of Austin area as the influence continues to expand in to more rural area (hence looking into places like Burnet, Marble Falls, etc).

@Bruce Lynn thanks. This is actually in Burnet, not Leander. I'm new to the ADU term so I'll do some research.

Here's my $0.02. I'm by no means an expert, but have been around BP for a while and have done our first deal in 2018.

Can a form of the BRRRR method be used in this investment? - This seems to be more of a new construction rather than the typical BRRRR scenario. I supposed you could use hard money for the purchase/build phase, then refinance after it's all complete, but that could be expensive.

What kind of additional financing would be the best option for this investment? - This really depends on how much money you have and how much you need. 

Bank loan or an alternative loan? - Banks will always be less expensive than hard money, but they're much harder to qualify for.

Electric and Water first before putting down the containers? - I'd say yes, as typically the utilities will be ran underground and having the containers in place may make that more difficult.

Who else is needs to be essentially involved with the blueprints and the inside compared what I can do myself? - This really depends on your skillset, you local/county/state guidelines, and your finances. 

How long until I can look at another property in the future? Without more information, there's nothing keeping you from looking for a second property while working on the first. This assumes you have the needed capital/financing in place, credit, etc.

Any other advice for this investment I will accept, please and thank you. - More background information is needed. Where are you located? What is your experience? How much capital do you have available? Have you already spoken with banks/credit unions for financing and/or hard money lenders? Without more information, your questions are really open ended and difficult to answer. The more specifics you can provide, the better information you'll receive.