All Forum Posts by: Seth Teel

Two degrees and well over a $100,000 paid in tuition...what can I say.

College isn't for everyone.  I don't even think it was for me.  I wanted to be a carpenter.  But folks gave me an ultimatum: Go to school or GTFO the house.  So I went to college.  I was too immature to take it seriously and had no clue what the hell I wanted to do.  I drank and partied so much it took me 5.5 years to get my bachelor's degree.  I did work full-time for the Campus Police the last year and half to pay for my tuition.  And another 2 years to pay for my Master's degree.  BA in Criminal Justice & MA in Urban Affairs (urban planning/ public policy).  Even working for the University I ended up with around $40K in student loans.  

Was it worth it?

Some of the best times of my life were during my college years, but very little of it had to do with schooling.  What I did learn was how to grow up, discipline, dedication to hard work, & time management. Did I need to take 8 years of my life and spend $100K+ to do it, nope!

Would I do it again?  

Maybe. Here's why:  The student loan system is a lie. It sets students up for immediate failure in their adult lives.  We have this mindset of "you can go to the best school you can get into and we'll pay for it with student loans."  Reality is the school you go to really doesn't matter unless you're going into a few specific professions (Doctors, Lawyers, etc.)  If I had to do it all over again, I probably would have stayed in town, gone to a state school and come out with little-to-no student loans, wouldn't have wasted a ton of my folk's money, and if at any point I wanted to quit or failed out, the financial consequences would've been much less severe.

Alternatively, pursuing a trade may be more beneficial.  Both cost of tuition and time it takes to graduate are much better than college. Additionally, you graduate with a marketable skill that no one can take from you.  This skill can be used to make money.  Often degrees are much more theoretical, you have knowledge, but takes years to become professional that field. It takes even longer to make decent money.  

I spent almost 8 years in the "corporate world."  The highest salary I achieved was $55K/year.  When I quit, I had $10K to my name, and owned two duplexes.  Moved back to San Antonio, got my real estate licensed, tripled that salary within a year.  Was I able to do this because I went to college, no.  Did it help, Yes!  Yes, for all the reasons I mentioned above: discipline, dedication to hard work, & time management.  Can these traits be learned elsewhere, yes.  

Ultimately you need to do what's best for you.  There is no negative to having a degree, especially if you can do it without student loans.  Knowing what I know now, I would gone to trade school and got into real estate full-time about 10 years before I did.  You're starting young, the world is your oyster.

Good luck!

@Allan Foote

@Rick Levada

"I've been told you can shim vs complete repair. I'm primarily looking a quick turns for rental properties. Would you folks consider this "kicking the can down the road" and setting myself up for future disasters?"

A few things to consider: 

1) Your reputation, 

2) Just because you can do something, doesn't means it's the correct way to do it, 

3) Shims are for fixing minor settling, generally after the foundation has already been repaired. In most cases, shims will not suffice.

@Rick Levada This is my rule of thumb for a "quick and dirty" foundation estimate without engaging a foundation contractor...yet.  

Take the floor area and divide by 49.  Generally piers need to be set 7' apart, so 7x7= 49sf.

Let's say the house is one story @ 1,400sf.   1400/49 = 28.6 or total of 29 Piers. 

Now multiply the number if piers by $250.  29x250 = $7,250.

Now add $200 for permit & $400 for Engineer's letter (yes, both of these are required by the City).  200+400 = $600

Total foundation price = $7,850.  

In the above scenario, this assumes all piers need to be replaced (this is usually not the case). It does not account for new beams. I do not have a rule of thumb for beam replacement cost, but it's usually another line item on the foundation bid.  It should also be noted price per pier cost can vary different from contractor to contractor, from around $200/pier on the low end, to $600/pier on the Retail end. 

Hope this helps. 

-Seth

We host an REI MeetUp/Networking happy hour the first Tuesday of every month. 6 - 8pm @ Joey's on N. St. Mary's. It's free, no guru pitches, just straight networking. Our next event is tomorrow. DM if you want more info.

@Jeff C.  If it makes you feel any better, we have had to do this with our property down on at the Coast.  Folks are still charging "hurricane prices."  Between contractors and insurance agents, I'm about at my wits' end today.

@Jeff C.

*Crickets* from the peanut gallery on this one.  

We've spoken about this a few times, I don't think you can expect to compare Bakersfield pricing with San Antonio pricing.  Even the cost of materials is going to vary between the two locations.  No doubt I feel like you're getting an "Out of Towner" tax, but it's also a risk to the contractor and you both may need a little give and take on the first couple of projects.

Labor only, you're looking at $1 - $1.50 for flooring install weather tile or LVP.  It goes up for carpet if you use a "Carpet Installer" : $3.50 - $4.50 (ridiculous, right?).  

For doors, we usually see a charger per door.  I've seen as high as $50/door (pre-hung) installed.  Does not include trim (unless it comes with the door), and does not include door knob/lock install or paint.

For exterior paint: budget $0.75 - $1.50/sf for two colors + primer and some prep.  Add for heavy sanding and don't forget carpentry budget for siding replacement & patching.

For interior paint:  Budget $1.50+/sf for texture, prime, paint.  Extensive patching, lots of trim, and/or heavy sanding will drive this cost up as well.  

None of these prices are set in stone, just kinda a rule of I used to run numbers.  Rest assured, they only go UP from here.

@Jacob Herrera

I'd say other than cost, the biggest factor is how you learn.  I tried the online stuff and it just wasn't for me.  I had trouble concentrating and retaining information.  For that reason I took 7 weeks and went to school at San Antonio Board of Realtors (SABOR) and treated like a job.  The in-person classes were more accommodating to my learning style and provided real-word anecdotes and scenarios by experienced agents in San Antonio. 

Many of the agents I have worked with over the years, including some of the agents I sponsor at my brokerage, did all of their training online.  This allowed them to work at their own pace, and was more cost-efficient than going to in-person classes at SABOR or Champions.   

The real crux in all of this is how well you will be prepared once you get your license?  Both formats can be effective and can help you be prepared for your new career.  The bogey in the equation is your new Broker or Mentor once you've received your license.  Make sure they is a good on-boarding and/or training program or that you are partnered with an experienced agent (s) that will help guide you through your first year. 

We're building a new spec home right now:  3 bedrooms, 2.5 baths, detached 2-car garage, approximately 2,500sf, located in the Alamo Heights ISD.  Projected sales price is $400 - $440K (we ran our numbers at $400K, but comps are showing up to $500K right now.) 

Our construction costs come in at $101/sf.  (I believe this PPSF to be a little high)

Our total soft cost, including architecture, engineering, and site prep, was an additional $30K. (This two was a little high)

Both are construction and soft costs came in a little high.  We know we can get them lower now.  Fortunately we acquired the lot and a very reasonable price to offset this.  

Don't forget to factor in holding costs, insurance, sales commissions, and closing costs.

Above are real numbers on my real project that is almost complete.  

When I build another one, I will use $100/sf as my rule of thumb for construction costs.  And will add or subtract based on the level of finish.  

Hope this helps and good luck!

@Ramon Martinez

To piggy-back on what @Mike Castellow,  Determine the following:

1. "As-is" Value
2. Cost of Repairs
3. After Repaired Value (ARV)

Now look at Net profit

1.  Selling as-is (Account for 6% commission + 1.5% closing costs).  =  X
2.  Net Profit if Renovated (Account for Repair costs, 6% Commission + 1.5% Closing Costs) = Y

Determine which is great X or Y, then factor in Time, Risk, and Return on Investment (ROI) and make your determination as to which strategy to pursue. I am happy to help with valuations, just shoot me a DM.

Good luck.  

Just pull permits.  It's the difference between doing it right and doing it wrong. Plain & Simple.  The costs & time associated with the permitting process is so minimal it accounts for less than 1% of any of our budgets.  However, it reduces liability tenfold.