All Forum Posts by: Adrian Tilley

@Theresa W. Welcome back! Lots of helpful Denver people on here. We'll look forward to hearing about your next deal.

I would calculate vacancy and maintenance at 10% each to be conservative. What are you planning to get done for the initial $2,000 fix up? That won't get you far. How old are the roof/heat/AC/water heater? Unless they are all fairly new you might want to budget for replacing those in the near future.

How does the cap in the 7s compare with other properties? If it's low you might want to try to negotiate a lower price or move on to something that will provide a better cap.

@Steve Hyduchak It depends on your goals in life and your passion. If you have a passion for the law, do that. If you have a passion for real estate, I would think very carefully about continuing. If you want to make big money in law, you need to get your grades up. Top 10% minimum to work at one of the big firms making big money. You can always start at a smaller firm and move at some point. Keep in mind that if you get there, you will work a lot of hours. If you want to be a superstar associate at one of those firms and make partner quickly, you will work a LOT of hours. Go take an associate at one of those firms out for coffee and ask about his/her work schedule.

If you just want to make the most money for the least work, REI is a better deal. However, it's still work. I haven't found that being an attorney gives me any real advantage in REI. It helps some, but the parts that are relevant could be learned in 6 months of "on the job" REI training. I think the biggest advantage is that everyone THINKS I know all the secrets.

If you want to chat more, feel free to give me a call.

@Bill Coleman Where are you looking for properties? If you're simply looking on the MLS or zillow, you won't find many deals. Those that exist are snapped up very quickly.

Also, I didn't see a line item in your deal for CapEx. Beware the special assessment!

@Maverick V. I don't think you need to stay away unless the property is a liability - it would cost more to clean up than it's worth. I would make your offer on the property inclusive of cleaning up all junk/cars/personal property, etc. If you make the seller do that, what value are you bringing to the table?

We can't tell you what to do with the property without knowing the exact situation. Why can't you do a new build? I would consider partnering with an experienced investor in your area. Good luck.

@Bill Newport It will really depend on the deal, but as @Jeff S. said, I would think most would be lending on the deal unless you have significant assets.

@Walter Thompson Make sure your list is good, be consistent, and follow up.

@Account Closed Doing a "driving for dollars" campaign may be the most cost effective way to generate leads. Pick a neighborhood and drive every street writing down the addresses of any houses that look distressed/vacant/etc. Mail a simple letter to the record owner stating that you want to buy the house.

Good luck.

I think @Jon Holdman has basically the right idea - you need to temper your expectations with a lot of reality. However, if you look around the forums, you will see a lot of people succeeding in finding deals. However, you can't just sit on the couch and expect them to drop in your lap. It will require work.

@Kevin Fletcher An LLC is probably the way to go. As far as taxation, electing a different status for taxation purposes only helps if you do everything the right way. Talk to a CPA or tax attorney to get the most tax benefits out of your company. Until you're established, I don't think you'll see too many savings.

I've said this before, but at the risk of sounding like a broken record, a company will do little to "protect assets", but it can help.