All Forum Posts by: Dustin Lavender

It is an umbrella policy* stupid auto correct 😂

I just signed a policy using Lloyd's of London. It is an Della policy that is Savin me approximately 7k a year in insurance costs. It took 3 months of gathering paperwork and information for my agent to put this commercial policy together but it is well worth doing.

I use an app that allows me to collect online payments from tenants.

Lol @Neil Aggarwal you are right. Plus it would take money for the ink pens and the paper they write their contracts on and money for the lunches they will eat and the gas to drive to the meetings. 

It is my experience that when most people say no money, they mean they don't have 30-50-100k to invest. 

Best of luck.

Kathleen Leary I have so many "parts" and "stuff" that I literally cannot find the "stuff" I need because all the other "stuff" I might need at some point is in the way lol. I stopped buying used appliances on our 3rd purchase. I put in brand new generic appliances and get the extended warranty and if I have issues they come and fix it. Way easier than replacing them all the time.

Neil Aggarwal that isn't all true we started our business with only $4500 from a tax return. I realize that is "some" money but it sure isn't much to starry with. Good luck to the OP lots of hustle in your future.

Hersh M. I definitely am starting to sway toward multifamily/multi-use/ commercial properties. In my area this is where the cash flow is at in my price range. Most of our properties are financed using equity from previous purchases. This year so far we completed the renovations on the 10 unit apartment we purchased in late December, we got the car wash and laundry there up and running and we have closed on two SFH since then and completed the updates on those and both are rented. it is definitely a hustle and at this point we re-invest all of the cash flow back into the business. That means I ain't getting paid yet! lol but I still work full time and so does my wife.

My lender is a small local bank (#shop local). They are great. I write up a 2-4 page proposal for each property we purchase explaining what our projected project costs will be and what our expected rents and cash flow will be for each, etc. and they haven't told me no yet. Many of our properties are financed with no money down because we cash out equity from the other properties and roll it into the new loan for the down and closing costs and many times we walk away with enough cash in hand to complete the reno's as well. We aren't doing full gut renos on most of these properties though. Our average is 5-7k depending on the extent of the work and how much of it I do myself.

There are those out there who seer debt is bad and a lot of people want to own their properties outright, but if we did that at this point we would be stuck with one SFH cash flowing at maybe $200 a month scraping together to try and buy another. In a few years we plan to start quickly paying down our highest monthly payment loans so we can cash flow better and then pay down the rest of them.

As you can see I don't mind talking, so let me know if you have any other questions. 

*Disclaimer: I am by no means an expert. This is just the strategy that is working for me today. Tomorrow I may change my mind.

@Jay Hinrichs I literally lol'd when I read your last reply. There is a lot of truth in that about the use of that 100k. When crunching the numbers the easiest, cheapest, and most profitable venture I have so far has been our small laundromat. The ROI is way better than single family and way less headache than our multi's.

@Jay Hinrichs I guess it is all how you perceive it. I look at every piece of property I buy as it's own individual business. Each one has its own profit and loss, maintenance and upkeep. They are all real estate and I am investing in them. You are right that it isn't flipping or wholesaling or BRRR, but there are many more aspects to real estate investing than just residential and multi residential properties.

Along with the carwash on this property, the laundromat has a 36'x40' shop/warehouse area and a 15'x 25' office area that are separated off from the laundry. Both of those will potentially provide additional income when leased out. 

@John Thedford the big one down from me has a line down the street on Saturdays and just two attendants. Once we get this deal closed and this little auto up and running I may change my tune on the price of these auto's. Maybe it won't cost as much to fix up as I have calculated. Right now I can't see the payback on a brand new one could be much less than 20 years here and at that point the equipment has got to be going south. 400 cars a week at $12 is just shy of $5M lafter 20 years, but with debt service and overhead I'm still not sure you would be at break even then. I guess if you did it for cash flow it could be good, but if you have 2-3M in the bank you could just live of the cash flow from the interest. Lol plus I have no clue what the numbers may actually be in terms of average turns or price/cost per turn. There I should definitely money there or people wouldn't invest in them. 

I am in this deal more for the coin laundry side. I know it is a cash cow.