All Forum Posts by: Brandon Battle

It sounds like you are setting yourself up for a disaster. Rule of acquisition #74," Knowledge equals profit".You need to do a ton more research and due diligence before you agree to anything.You need a power team to help you make this decision,an experienced realtor who also is a property manager and knows exactly what the property will rent for with some redecorating completed and a great contractor who can point all all the flaws in the property that are going to need replacement or repairs in the next 10 years.Rule of acquisition #3,"Never pay more money for an acquisition than you have to".After you have identified the flaws in the home(needs new roof,plumbing,electrical,appliances,etc) you can offer a better price the property knowing the actual retail value of the property and not just giving him what he wants.No one should ever by an investment property with no hope of steady cash flow after the tenants move in.Complete your due diligence and remember always rule of acquisition #18," An investment without profit is no investment at all".

Your landlord sounds like a pile of trouble.Sounds like they want their money and the ability to kick you to the curb anytime they want by denying you the ability to prove you are a paying tenant and not just a house guest who won't leave their house.Let me guess,they want to be paid only in cash or cashiers/travelers checks,right? They want to deny you a paper trail to show to a judge in court.They also won't be giving you any receipts for the cash either.Personally,I would demand a contract to sign and receipts for any cash given.Maybe you should look someplace else to live.

Dan Stewart,you should offer to show them your last two tax returns which shows your exact income every year( Summer only or not).That is how self employed people verify their income for loans and such.

It's good you are asking for advice to learn from your mistakes,most of which were avoidable.You need to learn some of the rules of acquisition to prevent having problems in the the future.Rule of acquisition #3, "Never pay more for an acquisition than you have to".You paid way too much for a property in that bad a shape.If you can't get it for around 50% of the after repair value,let it go and find a better project.Rule of acquisition #21, "Never allow friendship to get in the way of profit".You can't make good business decisions if you are trying to keep a friendship from souring if you don't do what they want.You need to keep everything professional by only hiring employees you can terminate immediately when they fail to accomplish their tasks on time and on budget.Contractors are employees,not partners! Never give them part of the after sale profits,ever.Have a plan,hire the right contractors,and push them to complete it without excuses.Purchase all the materials yourself and make sure it all arrives to the job site and doesn't end up in their cousins garage to be used for their personal use.Rule of acquisition #74, "Knowledge equals profit".Before you sign a piece of paper or plunk down one dollar know,don't think,know exactly what the property will need to be fixed,listed,and be sold quickly to prevent this year long sale from ever happening again.Get advice from local experts on everything from the neighborhoods to invest in,where to buy the best materials for the best price,and who the best contractors are to hire.Good luck in the future.

Experience,pure and simple.Always have a GC with you for your first dozen times you look at properties and write down everything they say about how much money per square foot it would cost to repair or replace the bones(roof,plumbing,electrical,foundation)and upgrade redecorating costs.After a while it will come naturally to you and you won't need a GC by your side every minute during evaluations.

This is not a good property to try to wholesale,especially for a first timer investor.Something like that would need an experienced wholesaler with lots of buyers whom they know are into properties like this.It would be better to locate a good investment club and learn all about wholesale opportunities in your local market from them.

Local real estate investment clubs are better for finding equity partners when you don't already have a project and a full action plan to present for funding to all of us nationwide.

Your specific question needs to be answered by the city planners office of the city in which the property is located.What you are asking to do can be extremely difficult to accomplish,especially for a brand new investor with no experience.The neighborhood would have to be zoned legal for multi family properties to exist in that zone,many neighborhoods aren't.Here's a clue,if you don't see any multi unit properties within a couple of blocks of your desired location,the answer is probably "no".You might be able to build a duplex or triplex but probably not an entire apartment complex.You really should find some experienced partners who have done this before and can lead you to a profitable and legal deal.

Be the bank and make loans to flippers.You can invest in an investment group that makes the loans and does all the legwork for you and they will give you 10% interest or more.

The fact that you have to ask the question should have given you the answer you already know in your heart is correct.This clown is trouble from the beginning.