All Forum Posts by: Brian Turnbough

@Brian Turnbough

With $1,000,000 you can probably join a hard money lending company and get great returns on your money if you didn't want to do rehabs yourself.  Another option would be to become a private lender yourself and lend to other rehabbers at 8-12% interest.

It seems to be a waste of time talking to non-investors about your investment deals. I work with and know many non interested, non real estate investors who know I am in my starting to invest in real estate and begin asking me questions about why I buy properties. When I give them my reasons for investing they only want to focus on the negatives like, plunging toilets, bad tenants, ect. ect which are valid thoughts, but are a foolish reason to avoid investing. They seem like they just want to bash real estate investing rather then listen to the reasons I give as to why I chose to invest (even though they ask me about it) These people tend to house their wealth, if you call it that, or hold debt in new cars, campers, boats, snowmobiles, motorcycles, and homes, most of which, are quickly depreciating assets. Although I love these things, I don't like the noose around the neck feeling of the debt and many years of hard work to pay for the toy that loses its value quicker then you can pay them off.  

I have many family members and acquaintances  that own from my meager duplex, to as many as 160+ units to draw experiences from. The benefits out way the bad most of the time. Some of the richest people I know house most of their money in real estate somewhere.

It is just demoralizing and discouraging as I am trying to get my first property up and running. I guess I should ignore these comments, but it is difficult, makes you second guess yourself. My plan is modeled after some very tried and true investment strategies of successful family members.

Any of the rest of you guys run into this during your first projects? 

I would find some where that I could buy land that could be subdivided and put Manufactured houses on it.  Not quite a MH Park but close.  Sell the Homes and rent/lease the land to the people that buy the Homes.   Impossible to do in my area but I am sure some where would let me put MH on a 1/8 or 1/4 of an acre.   Might have to go up to 1/2 acre if in a Semi Rural area where Septic Systems are the norm. 

After that Income gets to be enough to finance some Commercial projects, I would build or buy a Storage Unit Facility. Maybe even a RV Storage Lot. The own your own garage complexes are popping up by me now which might bring a decent ROI if you are the developer of one.

I have both first and second mortgage of my primary home. The second mortgage rate is much higher than first.

I also have several rentals which have either 15 year or 30 year loans, they have different interest rates.

If I want to pay down the balance, which loan should I pay down first, and what's next? 

My guess is to pay down the second mortgage of my primary home. Then I don't know what should I do. Will it be my primary home first mortgage or the highest rate of rental, or the loan with smallest balance.

I am paying minimum due for all loans now.

If I was given a million dollars, the first thing I would NOT do is quit my job.  Even in the midwest, $1m isn't enough to live on; unless maybe if you are in your 90s and in bad health....

I would continue to work as if I never received the money and I would invest all of it in real estate in Kansas City.  Specifically, I would look to invest it in 2 different redevelopment projects (just in case one fails).  Mixed use/commercial/retail.  2 years ago, I would have invested it in a multi family redevelopment but that market is quickly becoming saturated.