All Forum Posts by: Jared Baker

I'm ready to start figuring out what I can afford for my first duplex.  I figure I will start with banks and credit unions but since I am only 22 I'm not sure what questions to ask.

What are the important questions to ask and is there anyone in particular I should be talking to? I am looking to try to get an FHA loan but I definitely am open to other options.

Thanks BP.

@Stephanie P.

The plan is to live it in while fixing it up.  After the first unit is complete that will be rented out and I would move into the other half and fix that up.  I would stay there until I find my next deal, hopefully I have created some equity so I would refinance to to get the next down payment and then repeat.  I figure it will probably take me 8-9 months to redo the whole building myself and with a little help from friends.

Where would I find a mortgage broker?  Do I just go to my local bank or Credit Union?  Or is there somewhere else to go to?

I am looking at buying a duplex this year or possibly next and I want to get my funding lined up so when I find the right property I am ready to pull the trigger.  I want to find a duplex that will be in need of some work because I will have the time and skill to fix it up.  My question is, what type of loans, mortgages, etc, are out there that will help me purchase a somewhat distressed property?

I've read some posts about loans that require a contractor to do the work, is there a way around that?

Thanks BP!

I have spent the last 8 months finding out everything I can about REI investing. I think within the year I will be in a financial position to buy my first duplex. My question is when do you have enough information to make the plunge. I dont know what I don't know and I don't know exactly everything I need to know. So how will I know what I need to to be successful? Is it just a trial by error?

@Chris Heeren I actually just moved to Hartford for my new job.  If you want to DM me we can maybe talk about possibly working something out, because I would definitely be open to driving down to Rock County on weekends to do work!  I definitely would like to start buying real estate, starting with a duplex, but not sure if I would be ready to do that quite yet.  

@Glen Morrow @Scott Schultz  Thanks for the response.  As a handyman, I don't think I would need to pull building permits for painting a room, replacing a faucet, or putting up drywall, would I?  

Also as I put in the original post, do you know where I can find out any legal requirements?  I remember reading somewhere that in Wisconsin a handyman can't do any jobs over $500, is this true?  The big thing I would like to know is what work a handyman is legally allowed to do.  I know some states won't let you do any electrical work unless you are licensed, so you couldn't do something like replacing a faulty light switch.  These are the kinds of things I am looking to figure out so I don't go out and end up getting a massive fee.

Hello BP!

I recently started a new job and I am looking to possibly partner with my uncle to purchase a duplex this year. Our goal is to find a duplex that is in need of repair so we can add value to create a nice ARV. As such, the agreement will be that he puts up the capital and I put up my time and energy to fix up the building. Seems like a good plan so far right?

So, I have helped my dad remodel his house, helping with maintenance, doing repairs, helped close in the front porch, and built a new porch on the back of the house. In addition I also helped him build a 100'x30' shed. So with all of that I have a fair deal of knowledge on how to do things and have access to the resources to figure out how to do the things I don't.

So before we find the ideal property I figure there will be possibly 4-10 months before we find something that will fit what we are looking for. So in this time I want to start a handyman business. My plan is to take smaller jobs(that should be obvious) but wont actually make any money. I want to use maybe the first dozen jobs or so as free labor for the customer. So I would do the work, get the experience, and the customer would just pay for materials. I think this would get me a good foundation to be able to then figure out what I would have to charge later on and give the experience to make the best choices when fixing up the duplex that I purchase.

So with all of that said, here is my question. In Wisconsin what are the legal requirements for a handyman? I have seen some states require that you have a licenses, so don't require it, some put a limit on how big a job you can accept, or how you advertise. So here in Wisconsin what license or paperwork do I need so I don't get fined or huge tickets and where can I find that information? I spent most of my weekend combing the internet to see what I could find for Wisconsin but I can't seem to find anything. Any help will be appreciated!!

Thanks!

Marvin welcome to the community!

I am also very new to real estate investing.  A couple tips that I have are continue reading, listen to the podcasts, and post here on BP.

I would say without a doubt you should read Set for Life by Scott Trench.  If you take to heart what is written in the book I believe it can be the difference between early financial freedom and working until your 65 at a job you don't enjoy.

Second, I would encourage you to listed to the BP podcast.  If you don't know anything about RE investing, like myself, there is a lot you won't understand, but that is GREAT news.  That means you can hope on BP or read a book and figure it out which will help you in the long run.  I would also encourage you to listen particularly the podcast 223 with Scott Trench and podcast 108 and 250 with Grant Cardone.  These guys know what they're talking about and you can get some good takeaways from them.

Best of luck!!!

Hello BP!

So I am very excited to write this post so hopefully you can make it through the whole thing and leave me some constructive comments at the end.

So first off I just graduated college and started a W-2 job in Wisconsin.  Although the work is good, I do not want to be chained to this W-2 paycheck the rest of my life.  So as such I have taken steps to begin my real estate investing.  The first thing that I did was read Set for Life.  Most of the living frugally stuff in the book I was already doing and still am doing (just finished the book a week ago)  however, after reading the book I realized that I would have to work this whole year and save as much as I could to afford a down payment on a moderate duplex to begin house hacking.  However a very fortunate (at least I think it is) opportunity has arisen.

My uncle is looking to invest in a duplex because of his current situation he for some reason has a large chuck of cash sitting in a savings account getting less than 1% return.  He is aware that real estate can offer better returns than the savings account and this is something he is pretty set on but isn't educated on.  Now, I am by no means an expert, but I have spent the last year reading posts here on BP and looking at housing prices, so I would say I have a slight bit more knowledge than he does on real estate investing.  

So here is the plan and I am hoping to get some input on it:   As I stated before my original plan was to just save for a down payment on a duplex and start house hacking myself.  As such, I would have saved as much as I could and continued to pay rent up until the time I could find a suitable duplex that I could add some value to.  However, I recently learned my uncle wanted to purchase a duplex so I talked with my dad and we came up with a rough plan.  I would like some input as to make it the best plan possible so it would be something my uncle would at least consider.  This plan would be my uncle providing capital and I would provide the labor.

Plan of Action:

• My Uncle and myself would agree on a criteria of the property to be purchased.
  • Something that has damage so we can improve the value of the property as well as something that can achieve the desired rents
• Once the criteria is decided we would both split up and each contact a separate RE agent and begin looking for said property (I think this would widen our pool of available properties as some agents might now of properties that will be up for sale soon, but not listed right away)
• Once a property is found my uncle would put up the capital to purchase and fund the rehab.
• After determining the estimated rehab cost, my uncle would give my between 30-40% of the rehab cost for me to be able to buy material and get started on rehab.
• We would both have say as to what the money will go towards ie: types of fixtures, cabinets, doors, ect.
• I would live at the property rent free only paying for utilities out of my own pocket.
• I would spend my time fixing up the first unit (the one I am not staying in) so it can be rented out as soon as possible.
• Once the first unit is done, I would move on to the unit I am staying in.
• Once the unit is completely done, I would either stay in the unit paying reduced rent or none at all, while pursing another property to buy-possibly making the same arrangement as this one.
• Once the property is completed and done to a satisfactory level of work I would receive a lump sum of possible 10-15% of the materials cost to act as my "labor cost"
• Once the units are rented I would then take over as the property manager, taking care of screening tenants, collecting rent, paperwork, and repairs.  As such I would charge a 5-10% fee of the rent as my fee for doing that work
• After that I hope to either find my own or possibly continue to partner with my uncle depending on how he would finance this first deal.

So BP, what are your thoughts on this preliminary arrangement?  My plan is to make a formal document to present to him with prices and all the details laid out so there should be very little question as to how has what role.  Any input is appreciated!!

Thanks!!

Hello BP!

I recently started a new job and I am looking to possibly partner with my uncle to purchase a duplex this year. Our goal is to find a duplex that is in need of repair so we can add value to create a nice ARV. As such, the agreement will be that he puts up the capital and I put up my time and energy to fix up the building. Seems like a good plan so far right?

So, I have helped my dad remodel his house, helping with maintenance, doing repairs, helped close in the front porch, and built a new porch on the back of the house.  In addition I also helped him build a 100'x30' shed.  So with all of that I have a fair deal of knowledge on how to do things and have access to the resources to figure out how to do the things I don't.  

So before we find the ideal property I figure there will be possibly 4-10 months before we find something that will fit what we are looking for.  So in this time I want to start a handyman business.  My plan is to take smaller jobs(that should be obvious) but wont actually make any money.  I want to use maybe the first dozen jobs or so as free labor for the customer.  So I would do the work, get the experience, and the customer would just pay for materials.  I think this would get me a good foundation to be able to then figure out what I would have to charge later on and give the experience to make the best choices when fixing up the duplex that I purchase.  

So with all of that said, here is my question.  In Wisconsin what are the legal requirements for a handyman?  I have seen some states require that you have a licenses, so don't require it, some put a limit on how big a job you can accept, or how you advertise.  So here in Wisconsin what license or paperwork do I need so I don't get fined or huge tickets and where can I find that information?  I spent most of my weekend combing the internet to see what I could find for Wisconsin but I can't seem to find anything.  Any help will be appreciated!!

Thanks!