All Forum Posts by: Glenn Espinosa

I have a full time job as an active duty Naval Officer. I dreamed about this career my entire life and 6 months into it I realized how I completely dislike working for other people! Major bummer.

So, I spent a month researching about real estate and bought my first flip shortly after. Three months later I made out pretty well and I've been hooked ever since!

I'm currently counting down the days until my service contract is up. In the meantime I have a full time job in the Navy and a full time hobby with real estate. It's just nice to know that my hobby has the potential to pay better than my job! I may be green and naive right now but I've definitely found something I enjoy. In 2.5 years when I turn down my commission and instead go full time working for the hardest boss out there (myself) it will truly be a breath of fresh air.

My advice: do your research and due diligence. Not everything is going to be lined up perfectly when opportunity strikes but that doesn't mean you should let it pass! Jump in the waters warm. :)

Why would anyone do this? It seems soo much harder than simply buying a REO and flipping it.

Just reading that process gave me a headache.

If you want to break into real estate don't worry so much about whether or not you're going to need to pay your own gas but instead look at the learning potential of this opportunity.

I'm Asian and I would totally buy it. IF the numbers were right for me to flip it that is.

Al Williamson I definitely have the desire. I'm already thinking of ways to make this idea work. My partners and I have EVERY intention of making this the new hip student location.

I've already started brainstorming ideas and I will definitely start with networking with the college's Facilities Director as suggested by Bill Gulley. I want to form a mutual partnership in which I slowly but surely remove the blight within the surrounding areas and they help me attract a steady stream of tenants.

Secondly, I plan to connect with one of the guys who I graduated high school with and who is now a professional football player. He grew up in the warzone area and is a champion of the community and has held numerous fundraisers and community building activities throughout the years. I expect he will see the value I am adding in changing the community one property at a time and maybe he could lend his popularity status to help welcome us into the area.

The first step is acquiring the properties. I will have a flip to finish before I can start the renovations but that should give me ample time to further develop our game plan and how we can become the community champions.

Theres a lot on my to do list regarding these properties. Please feel free to add to it with your ideas! This thread has really gotten my head churning. :)

The best approach to find a mentor is to put yourself out there into uncomfortable situations and network! You have to talk to these guys before they can even say yes or no.

Get a piece of paper together and write down everything you have to offer to an investor. If nothing else offer to work for free doing anything they desire related to their real estate business. If you're in their properties hammering nails all day then guess what, you now have a first row seat to the process of rehabbing! Soak it all in.

You have to bring some sort of value to the table in order for these guys to take their time and invest it in you.

These guys want to know that they're grooming someone who will eventually bring them JVs, equity deals, and partnerships.

Find your value and these mentors will materialize.

Al Williamson One step ahead of you! I'm no longer considering if I should buy this, Im considering if I should also buy the one a few houses down the street for a similar price! It's a little rougher but its a 4 plex none the less.

Now I just need to tap into my private investors to see if I can make this happen. I'm convinced this is a good play. I put up a craigslist ad advertising premium apartments in this area and the response I got was really good!

Mike: I don't think I would sacrifice increased cash flow simply because land lording is a chore. Worst case scenario I hire a property manager and share some of that headache. By attracting "upscale" tenants I would expect to lessen some of that headache that way also.

Shanequa: I was merely using the warzone term to paint a pretty picture. :) I, personally, have lived in this are for 25+ years and feel safe walking in and around this area (but my street smarts tell me not to walk around the streets at 2AM like most of the victims without being strapped, lol). The local media has painted a really awful picture though and that's never good. I WILL change that, one property at a time.

Bill: OH MY GOSH, thank you for that suggestion! It never even clicked into my mind to seek an approval letter from the school as a way to get my banker to say yes! I will definitely get started on wining and dining the Director of facilities. Thanks again!!

Anyway, I'm going to spend some more time on due diligence in the meanwhile but I'm getting the feeling in my stomach and my trigger finger is itching! I've always made out well when that happens. :D

Thanks for the advice guys and please if anyone else can knock some sense into me... be my guest!

I don't understand your post at all... The fact that the labor could have been done by another party doesn't subtract from the him putting $15k worth of labor into it. He did the work, he should be paid for it. This doesn't mean he is not entitled to his 50% profit split.

Also with an even split her take would only be $20k as she bought the house for $30k.

Thanks for the reply Kyle. Yes you are right - on the back of my napkin the cash flow numbers are good, especially if I can attract the older more mature graduate students who might have the income to pay a premium. Doing the numbers on an even more conservative basis still yields decent cash flow...

There is the factor, however, of higher turn over and more repair costs associated with college students. Do you guys who invest in this niche calculate more for vacancies, repairs and turnovers? Should I just subtract 2 months of rent income every year to account for the summer?