All Forum Posts by: Bob Langworthy

You can repay them with the BRRRR method. Buy, rehab, rent, refinance, repeat. Assuming that you can add value to the property, you should be able to refinance the property in 6 - 18 months and then pay back the investor.

Hope this helps,

Thanks for documenting this for us. Interested to see how it goes.

Thanks @Levi Lewis. It's a certain amount of accountability to post it here as well. 

Update: We decided to list the land for sale. The biggest reason is that we want to prime the pump and move towards our next cash flowing investment. We'll look to do a 1031 exchange from the land in to the next property. More to come!

A common misconception with laundromats is that they are passive. They require a lot of work. Particularly an older one with older machines. I have a client that owns a laundromat in our town and it's a constant struggle between finding good employees and repairing machines. He makes a living, but it's not much. If you talk with the owners, you'll want to get financial statements or tax returns.

Hope this helps,

I'll add to the chorus of "repurpose the vault". In downtown Portland, ME there is a clothing retailer in an old bank space. The vault door is permanently open and the clearance items are in the vault. It's a pretty sweet setup.

I usually offer specific advice or my own analysis on a deal. This time, I'm going to do something totally different.

Go for it.

Your potential losses are small and what you'll learn is huge. Here's a short list of things you could learn:

1) What are commercial rents like in the area?

2) What's it like to do a rehab?

3) Do you like having a partner?

4) What does due diligence look like for commercial property?

5) What type of business wants to rent my type of space?

6) Maybe you'll hate commercial and move on to residential.

7) How do you create a pro forma financial statement?

8) How do you estimate costs for a property?

9) Is passive income actually passive?

10) Is real estate investing all its cracked up to be?

Hope this helps,

I'm a big fan of office space. My tenants are low maintenance (literally and figuratively), there is very little turnover cost, they sign long leases, and they pay promptly. Yes, vacancies may be a bit longer, but to me it's worth it. 

One caveat: location seems to matter more with commercial rentals than multifamily rentals.

Hope this helps,

The jump from flips to commercial development is big. I would recommend working for a commercial developer so that you can see all that goes in to it. You may have the opportunity to invest alongside them, or you may decide to go out on your own, or you may decide to stick to what you're doing!

Hope this helps,

Could you use the 4-5 person office for your business? As far as attorneys/accountants leasing v owning, there is no universal answer. Some see the value of owning real estate and others don't.