All Forum Posts by: Chad Trail

@Ujwal Velagapudi our last resort is to go the full seller finance route. The seller is looking to retire and move back to South Korea. I’m waiting on one last bank for a 7a and then will try renegotiating for seller financing with about 100k down on 700 sell price and lease the building from him.

I’m seeing a lot of decent deals for properties in what will likely be student housing near major universities. It seems there is a reluctance to buy student housing now. I have theories as to why but I’m curious about other opinions.

I’m trying to buy a high cash flowing business that has not been effected by COVID. Real estate is valued at about $1M and business is worth about $700k. Cash flowing $300k/yr, even in 2020.

I have had 3 banks turn me down for a 7a loan because I also own a restaurant. Most banks now don’t want any involvement in any way with restaurants. Despite the fact that mine is doing fairly well, 83-88% of Q1 revenue.

Is there a private or hard money lender that will do a loan on the real estate with $100k down. The seller will finance the remainder.

@Adam Zach I think the better question is what about engineers make us better investors. My freshman intro to engineering professor once said that an engineering degree is most valuable because it teaches you HOW to learn. I believe this ability and addiction to learning how things work is why engineers are so prevalent in the investing world.

Ever since my senior engineering economics professor introduced me to amortization calculations and when I read read Rich Dad Poor Dad while my college roommate was trying to hookup with the Barnes & Noble barista, I have been hooked on studying and reading about investment strategies.

I built a small portfolio of starter houses and duplexes and in the last year bought a good cash flowing business. Now that my “real job” is gone, I am tooled up with knowledge and enough cash to really dive into the world of full time investing.

I’m trying to buy another high cash flowing business now to replace my engineering income and then will focus on building my rental portfolio.

@Mark Kelly no I didn’t purchase real estate. I learned the company I was working for was in very poor financial health and I decided to buy a business instead. Management was already in place so I ran it as semi-absentee until January when my job company couldn’t make payroll.

I’m hesitant about student housing because they leave in the summer. I also saw my alma mater, University of Kentucky, obliterated the student housing market by building enough apartment style dorms for almost all students.

I’m still looking for opportunities for either real estate or business acquisition.

@Pete Harper thanks! That helps a lot.

I just moved to Waco from Houston and made a decent profit on my house in Houston. In the next few months I’m either going to look for a good cash flow property or looking at a small business for my wife to run since our daughter starts kindergarten in the fall. That business could fund faster real estate purchases.

@Steven Ko I am the sole owner. A few years ago I was in the process of buying a metal fabrication business. 2 weeks before closing the owner and his wife died in a motorcycle accident sending the estate into turmoil. My private lenders backed out and left me with a fully set up business entity and no business. Also a lot of sunk cost in legal fees and appraisals.

For a over 10 years I have ran my rentals out of my personal accounts. Only used the business account and entity for a few consulting jobs. I figure it will make things cleaner and build a revenue history for my entity that I can expand my credit access. The real estate is all legally in my personal name.

I have been taking depreciation and other deductible expenses but I doubt turbo tax is getting me everything.

I recently moved to Waco and have noticed that on paper the Kileen multi-family market looks good. I hear it is really rough as far as crime and drugs. I’m curious as to the experiences of investors in this area. Are these areas dependable for keeping tenants that pay and don’t trash the place?

I already have an LLC set up and active that I have used for consulting work in the past. Should I use this entity to set up a business checking account and keep my 5 doors of rentals separate from personal expenses?

I am looking to hire a design engineer in Waco, TX for bathroom products. We need someone with an eye for trendy designs that would be appealing for remodels and higher end homes.

Let me know if you are interested or know anyone who may fit this. I figure BiggerPockets may be a source to find and engineer with fixer upper or remodeling experience. Contact me for more details.