All Forum Posts by: Ben Sawyer

I have an A/B grade rental property in south Charlotte, NC. Looking for a qualified contractor to do a kitchen renovation. It needs cabinets, countertops, tile floor, and paint. Have you hired anyone, had a good experience, and would work with them again? Or do you know any Charlotte investors that do flips here and might have a recommendation?

Congrats on your winning investment.  Hold or Sell seems like it would depend on your long term goals, interest to be more active or passive in your investing, and your cash/debt situation. 

My decision points would be based on the following:

- Are you interested in lump sum cashflow now or building equity/wealth for later collection?

- Do you want to be a landlord or a builder? Would you prefer working on tenant acquisition and management or home building and working with contractors? Or would you eventually hire a property manager (impacting cashflow)?- $13K per year cashflow (passive income) versus around $50-60K cashout from sale after expenses (more active income).  Takes only 4.5 years or so to meet breakeven point for this equation.  Rental option has additional value later on assuming same $50-60K equity plus potential appreciation plus principle paydown plus tax benny's minus eventual capital expenditures

- How would you finance properties 2 and 3?  Do you need the cash from liquidation of the first property by either refinance or sale to do properties 2 and 3?  How does this impact cashflow of property 1?

- If you were to sell and roll out the other 2 properties, what is your next opportunity? What would you invest the combined proceeds into next? Could you find another investment with the rate of return you could get from these duplexes as rentals? Do you have the opportunity to continue the $50-60K duplex cashout equation with more acquired land?

These are the questions I would be asking myself.  Don't think we can answer any of them for you.  It also doesn't have to be all one or the other.   

Good luck with your decision.

For those that are waiting on the sidelines but want to be in the game, and assume by you have some cash to get started... What are your biggest questions? What are your concerns? What would give you the confidence to take the first step?

Interview them, not the other way around. If you are sure about how you want to use your license, see how your prospective firms can support you in your efforts. And find out what their fees are when you earn commissions, and monthly fees as well if applicable. But if you are new to the industry, I would also consider reaching out to a few local and successful realtors and ask them how they would focus their efforts if they were to start again today, before you decide that doing wholesale work is best. Ask them lots of questions about the differences in working with people in different areas of real estate. Give yourself a chance to find your niche and what you might enjoy doing. If your goal is to make money, an experienced realtor can tell you where/how it's best being made right now in your market. Best of luck to you.

Avoid the penalty for early withdrawal. You can still invest in R/E, investigate a self-directed IRA. There are companies that will help you do it. Here is a listing to help you with research.

http://selfdirectedira.nuwireinvestor.com/list-of-self-directed-ira-custodians/ 

Calvin,

This is a great community.  Lots of intelligent and experienced people roaming the halls.  Soak it in and best of luck in your first real estate investment!

Originally posted by @Briana Hesselbein:

this post makes me kinda sad seeing all these comments lol. I'm an exotic dancer and save the majority of my money in order to invest into real estate at a very young age. Never touched a drug, never drank, am totally normal lol. It honestly depends on the person but I'm glad you found another tenant. 

 While reading this post, I thought the same thing as well.  It's discouraging to know that people stereotype so much.  And they'll read one sentence and form a complete and decisive opinion about a situation, as if all people that wear thumb rings and have tattoos are bad tenants.  

As real estate investors (and landlords), we have an obligation to be fair and impartial and respect the individuals and families we interact with.  Not only because it's the law, but because it's the right thing to do.  Appreciate the differences and the freedom we have in this country to be whatever person we want to be, and make choices that others don't always agree with or understand or would make for themselves.   Judge responsibility, judge history (credit, criminal, income, tenancy), and make an informed decision.  But don't judge people because of a stereotype or because they don't resemble you in the mirror.  

There are a lot of bad tenants out there, indeed.  But there are also a lot of good tenants, that don't go to church every Sunday morning.  Housing is an essential need that every person has.  If you can't make a profit in this business without respecting your customers and being fair, you do the rest of us in this industry a disservice who are trying to help people fill that essential need, and make some money along the way.  

@Briana...   kudos to you for making your way, in your own way.