All Forum Posts by: Justin P.

@Ryan Herald Email or call anytime : )

Thanks, @Jay Hinrichs. I just about always learn something from your posts. Happy that I was on the right track with my thinking.

@Ryan Herald, I was actually referring to you providing 1st position on one or more of the 16 properties you already own as collateral for the $300K. You can then use that as down payment for your 85 unit deal. The two can be completely separate transactions.

@Ryan Herald, Are you open to doing a 1st position note on one or more of your other properties as collateral for the 300K? This would feel safer and more equitable to me.

@Jay Hinrichs, What do you think of that as a strategy?

Could you share a few of the main risks you alluded to that a second position takes on behind such a big first? The first ones I can think of are the potential lack of equity to be able to recoup a loss in second position and the complexity of having a note that spans so many properties making it hard to pursue a foreclosure. 

Thanks.

@Cassie Sherie,

I don't think what those people did is repeatable or necessarily even learn-able. They are were often the right person with the right experience in the right place at the right times and that's just how it is.

@Andrew Klotz

People can confuse Motivation with daydreaming about what could be. At you're stage I would suggest finding a plan of action that will work for you and then just work the plan. Don't get distracted by daydreaming and don't spend too much time reading/thinking/worrying about how to do steps 15-20 if you're still on step 2 or 3.

I appreciate your very impassioned position, @Bill Gulley. I'm not following the connection though and feels like a false dichotomy between land and everything else. There are many things besides land that are unique and irreplaceable and not directly comparable to other similar things (art, literature, specialized knowledge, experience, time spent, etc.). These are bought and sold all the time and I would say that a person's time and expertise are worth more than any physical thing.

Not trying to be difficult, I just don't see how buying low and selling high is necessarily wrong at a certain % margin for real estate but nothing else. Every industry on the planet is built on that basic principal and not getting the highest price for something is not a requirement for a successful transaction (on either side).

In my business, I will often sub out work to people I know will do an amazing job (better than me in some cases) and they charge a fraction what I charge my end clients for the final project. Is that wrong? Does it make it wrong if they were my employee and they are paid a fraction of the rate I'm billing the client for? These people (who I count as friends and allies) are happy with the rate they are selling their time and expertise for. I'm providing value to both my client (getting their job done on budget and time) and my subcontractors (making what they feel is fair). I even pay some of them more than their asking rate because of they value they give me. I feel that's a good thing to do, but by no means required in order to be an ethical person.

In other businesses I've bought products from one vendor and resold elsewhere for 3-5 times as much. Is this wrong? I have even purchased the same product for widely varying prices from different vendors and it's worth it to me *as long as I can make a profit*. I don't begrudge one vendor selling me a product that I can only make 30% just because they charge more than another. I can still make 30% on it.

This is a complex topic where each situation has to be judged on a case by case basis (they are each unique) and can't be covered by blanket statements. 

Thanks for the LLC clarification, @Brandon Hall. 

Great example, @Linda Weygant. I've not seen it explained this clearly before.

I agree with @Alexander Felice. Stabilize yourself. Real Estate can be a long term goal.

@Andrew Klotz,

You're in a really rough spot and I wish you the best. Wishes don't do you much good though so here's what I'd suggest to help you get started working with others in the industry:

• Focus on the value you can bring them (it's all about them).
• Ask local churches if they have work that can be done or if any of their members have work that can be done.
• Go to a local real estate meetup and offer your services as a handyman.
• Do not lead or even mention your story and what you need (this is a turnoff even to good people who want to help).
• Charge reasonable rates for your services slightly below your local handyman average.
• Have a rate in mind and give your price. Don't tell them you'll work for whatever they think is fair or ask them what they pay - this puts the burden on them and most will not want to make that effort to negotiate prices.
• Do a good job and always do a little extra "just because" (like cleaning up really well after a  project).
• Talk to other handymen in the area, work hard.

I haven't been in your shoes or situation. These are the things I've learned selling my services and buying services from others.

Not related to finding work: Find good homes for the puppies with other families. They are going to make it a lot harder (lots) to find a place to stay. Maybe your local Humane Society can help place them with foster families for a while. People will judge you harshly (whether deserving or not) for having pets while you have human mouths to feed. 

Again, for what it's worth, I wish you the best.

@Wilson Adams,

Could there be an underlying fear keeping her from being more open to it? Often times we see an objection and try to overcome it directly without looking at what might be triggering it.

My wife has been adamantly opposed to REI for years and we've done nothing. It wasn't until I was able to build up cash reserves through a second business that she began to warm to the idea. Turns out it wasn't real estate she was opposed to, it was investing without having a cash buffer in place for the family.

We now have funds for investing and separate funds just for family savings.

Hey, @Patrick Britton. Few questions for you.

For collateral, would you consider 1st position on another property?

For returns, are you offering full 15%-25% ROI after 4 months?

Are you looking for equity partners to share in % of profits after properties are sold?