All Forum Posts by: Donald Capwell

Hi, @Anmmar Alsaggaf.  Have you had a meeting with all partners to discuss this? My first thought is you need to get everyone together to have a plan that everyone agrees to.  Make sure you record and document the outcome.  If you don't already have a RE attorney on your team, get one to review the agreement to make sure it is legally enforceable.  It's great that you trust everyone, but get everything in writing up front so there are no "misunderstandings" in the future.  

What you suggest here relative to splitting profits and expenses seems reasonable and pretty standard, although your team may not come into agreement with a buy-out without capturing accrued equity. Also, spell out the responsibilities for the rehab (who pays for what, and how decisions are made), if a rehab is necessary.  

Good luck!

Hi, @Jason Layman. I'm confused by the question... There are a lot of strategies in REI, but I'm not sure why someone would want a long term strategy if not for cash flow (rental) and eventual appreciation (which is a bad plan to hope for, if you buy too high). UNLESS you mean not exclusively for cash flow... The only thing that comes to mind is what I would call SPECULATION (ouch) that an area will greatly and quickly improve in value (such as the knowledge that a major employer is moving to the area and buildng a headquarters, translating into a need for more A-class homes). Even so, its still the best move to buy at a deep discount, rehab, and sell at a large profit, but I suppose this method has the added excitement (read "buy and pray method") of waiting for appreciation.

I hope you get the answer you are looking for.  I'm not a buy and hold guy, yet, so I'm looking forward to the responses of others... Maybe I'll add a new approach!  For now, stay in the education section of the site and see what you can pick up...  Cheers

Hi,@Daniel Velazquez, and welcome! It's great to have you on the site, and asking such a great question! Go to the education tab on this site and start with reading the a Ultimate Beginners Guide to Real Estate Investing. In each chapter there are links to other posts and podcasts that will teach you even more on each topic. Once you get the kind of knowledge you need to decide which avenue you think you want to take, then get on meetup.com and look for a local REI club in your area. Attend a meeting, introduce yourself to everyone, and tell the other investors that you want to learn by helping them make money! If you are as interested as you seem with this post, you should be able to find investors willing to help you.

The key is that you have to be willing to work harder than anyone else to be successful!  Don't ever pay for any training classes or "schooling" without checking them out on BP first... Chances are, you can learn the same info for free right here!  Also, don't let anyone tell you that you can't do this or that you are too young!  Of course, you need to be 18 to enter into a legally binding contract (I think throughout the US), so make sure your folks know what you are doing if you are still under their care...

Good luck!  Get going!!! I can't wait to hear about your progress!

@Account Closed, if you had kids, I'd think you're a jerk for working on Christmas! (Grin, just kidding). This said, you seem eager, and if your goal is to "arrive" at your destination sooner, whatever that destination is, then I give you credit for the effort. I wouldn't use your buddies as justification, though, since as a veteran that has been deployed during the holidays, and as the father of a veteran that served in Afghanistan during the holiday season, I'm fairly certain that your friends would rather have been home on the 25th. Also, since REI is a bit different than what they are doing, I doubt they'd award brownie points for your 10 hour "sacrifice," unless, of course, you doing this to build the business with the intent of offering them jobs when they come home (in which case I'll give you the brownie points!). Either way, thank them for their service, and good luck! We each blaze our own path, and you obviously have inspired some here...

@James Ritter... Whoa, my new friend!  You have been on the site for a day (according to your profile...).  I think we all appreciate your enthusiasm, but I think a deep breath and a comfy seat (with a good internet connection) is in order!  

From your dashboard, click on the "Education" tab at the top of the page, then go the the How To guides... read the Ultimate Guide to Real Estate Investing, first.  I dont thnk anyone should even post on the site until they read this (yes, it's that important), but that's not the point.  After reading that guide, since you think right now you are interested in rehabs, read the rehab guide.  (Don't be surprised, though, if your strategy changes as you learn more).  Each Guide has several blog posts and podcasts linked within that will give you more detailed information relative to the topic you are studying.  SUPER VALUABLE, and FREE.  Take a look at the names of the experts that are giving the interviews or that are very active on the posts... Follow them. Also, enter "Rehab" or "fix and flip" as key words in your profile so you are notified every time there is a new forum post started, and pay attention to the questions and answers.

Bottom line... First determine what you want to accomplish with real estate, and take a sniper's approach, not shotgun blast. Once you know what you want (goal), and how you will get there (strategy), then you will be ready to build your team that will help you succeed, and define your systems. Read posts by and podcasts with people that do what you want to do, and learn. Invest your time in the education before investing the capital. Go to Meetup.com and search REI groups in your area, and then attend a few meetings before writing that first check. This is a huge step, too, and not all REU groups are made equally, so join a coup,e if that is an option.

@Mary B. is right on!  There will be many here and locally that will have great intentions to help you (while also helping themselves - and there's nothing wrong with that), but how will you know if they can deliver if you don't know what to ask; how will you know what to ask if you don't get an education?  All the information on this site is free, so invest in yourself before pulling the trigger...  Everyone is different, but I'd give it at least a coupleader of monthsNo sense making your own mistakes when you can learn from those that have gone before you!  There is nothing new under the sun, after all!

Good luck, and welcome to BP!!  Poke around a while here, and I look forward to reading about your success in the future!  $100k is nice starting seed, so protect it now and watch it multiply later!  Cheers!

howdy, @Andrew Flusche.  My wife had a Zumba studio over by your office, until just over a year ago.  (she sub leases a space now over by the Cracker Barrel on SouthPoint Pkwy... :). 

What is your REI strategy? Rehab? Buy/Hold? I am filling my pipeline with motivated sellers, and looking to add to my buyers list. Let's meet when you have some time... My contact info is posted in my profile. Welcome to the site.

hi, @Humphrey Piccus.  I am in Fredericksburg, and multi families are slim pickings here (I also have my eyes open for them).  This said, I don't have too many realtor connections, yet, to find out about the deals early... Ats not to say they don't exist, but I have inly seen one in the last few months, and although it was close to Mary Washington University, it wasn't a deal price wise...  If you are ever in the area, look me up!

Funny how we read this differently... I read it to mean that Noel wants to convert a duplex into a SFH, not a duplex into 2 SFH's...

Ok, @Noel Fleming Jones, one more time, please.  What are you trying g to accomplis?  It's the holiday season, and perhaps we're all celebrating too early!   LOL!  And, do you have the duplex already, or are you looking at a deal?  If you have it, have you spoken to the bank already (I suspect not, but trying to help get you answers by getting some more specifics)

Thanks...

I agree with the rest... Stay conservative... If you lose the bid, there will be others, and if nothing else, you'll have this experience under your belt, the start of what sounds like a strong team, and one more grey hair attributed to the wisdom of patience!  :). Good luck!

You mention an addition, and this makes me think of pulling permits and the bad experience I've had locally with getting the county to show up for inspections.  You've probably factored that in, but if your inspectors are slow like mine, it could add to the holding time.  Waited nearly a month for an inspector once, and he was on site for less than 5 minutes.  Argh!

Probably not helpful, but it's the only thing I know to add to consideration in this scenario.  Cheers.