All Forum Posts by: Chris Nance

My friend and I have been actively looking in an area to invest in. We cannot agree on what true 'value' or 'deal' is. One of us wants to do the flipping route, but I don't believe the margins are there the actually gain a profit. One instance would be buy a house for 40k put 20-30k realistically sell it for 100k(being beyond generous with these calcs, the perfect world scenario). Realistic budget with a down payment of 15-20% is 150k or less, this puts us out on flipping in nicer neighborhoods because we haven't found a lender that would meet that range. But these neighborhoods are not the best (current growth and development makes these long term holds). The other idea is to BRRRR in a little nicer area. Buying in the 120-150k range and renting in the $700-1000.

My question is for first time investors is there a rule of thumb as far as profit margins we should be following? Or do we just jump right in and learn the hard way. What is the rule of thumb for experienced investors for either a flip or BRRRR in determining a good "deal" or a REI with "value"? And lastly how do we go about finding another source of money to raise our budget ?

With the BP among other personal resources, I'm coming to the conclusion that we need to stick to a specific % as far as returns. In a perfect world you rent for double or more of your mortgage, but that just is not the case a majority of the time. 

Hey BP, my grandmother bought this property for my uncle to start a business. Long story short he ran the business into the ground and now my Grandma is hemorrhaging money on taxes every year for this thing. It is all paid off, but has not been generating any cash flow for the last several years.

It is located in Kearney MO. Right off the interstate, tucked up in an industrial zone, and across the street from the Kearney Police station. For out of state people who follow the sub forum of Kansas City, Kearney is right outside Liberty MO which is considered a big suburb of Northern Kansas City. 

My family has tried to list it with a Real Estate agent, but no luck. There is at least $500k invested into the property including the lot, structure, and restaurant equipment inside. Since I am just starting in the Real Estate game I am trying to gain experience so what better way than try and help Grandma out with getting some cash flow through the door. I'd like to keep it in the family by finding a business to lease the lot and building out. How do I go about doing that? Compiling a list of local vendors that would be interested. The only problem, as you can see from the pictures, the building itself is a horrible pink with an ugly design. I can't think of any business that would want to take this over as a lease. Would it be a viable option to put some more money into remodeling (taking out the roof, gutting the inside,etc).

What do you guys think ? Remodel and try to rent out to a small business in the area? Or taking more of a loss and selling it to a low ball offer? 

Hey  BP family. My name is Ben Piercy. I am new to the BP family. I have been listening to podcasts, attending webinars, taking vigorous notes on evernote, pretty much trying to be a BP sponge. I have a couple buddies that are in the same boat as me. Recent college graduates who don't want to work the traditional w2 9-5pm jobs. We want to put our work ethic to the test and control our destiny and as such our income. We are on the hunt in finding our first flip deal in the Kansas City market, so we are learning how to put together a business plan, what to look out for, and hopefully learning what makes a good flip. 

-Initial questions for those in the Denver area. Investing in another area, how can you judge a property is worthy of a flip if you cannot actually visit the property?

-What is some advice you would give you a first time investor looking to do a flip in another state? 

Right now I am absorbing as much information as I can via the BP family. In the meantime I have applied to graduate school down in Denver. I know that with my income (not very much) about to be going back on student loans in fall of 2017, that I cannot afford a traditional loan to buy my own place. I do have some cash saved up so if we find a lender or someone to work with us I'd love to meet and network with you. 

So this is why I am here. I am selling my services for any mentor who is in the Denver market. Ultimately I'd love to go in on a house hack while I am going back to school, putting my sweatquity into a place with someone. I have a pretty solid background of working with tools and machinery and a basic house hack would be right up my alley if I could find someone in the same boat to eventually work on a flip or even a rental property.

If not I'd love to even just spend sometime on the weekends working with anyone in the Denver area. Whether you need a ride to the airport or need someone to help lay landscape or rip out a toilet I'd love to shadow you, absorb all that I can, and help you with any projects along the way!

Anyhow I'm in Fort Collins right now and I plan to come down to the network even Thursday (WEATHER PENDING). I'd love to meet all of you in the Denver market and hear all about your adventure into the Real Estate game. 

Thanks guys . 

-Ben