All Forum Posts by: Kai Van Leuven

@Hobart King

I have renovated a lot of houses that are old. I will tell you this. Demo’ing a house is really fun. Putting it back together not so much. On my first project I went down to studs and added a few bathrooms. 3 years later I was so fed up with the project I sold the house and was happy to just get it gone. This is what I would do.

1. Ask the contractors where they will need holes for new plumbing, electrical, HVAC ect. Mark on the walls with spray paint.

2. Jack up the house. You may need to cut relief joints in the plaster to get the sagging floors to move. The horizontal lathe might keep it all as a solid brick. I had this happen to me years ago...

3. See what you have after steps 1 and 2. Maybe there are tons of problems in the kitchen and bathroom areas and you want to sheetrock them. The bedrooms might be just fine with a few patches and a retexture job.

On your first project you don’t know what you don’t know. I just tore apart my first place and it came back to bite me. Good luck.

Sometimes it matters who you hire. I have hired plumbers, electricians and framers who have been clueless. All licensed and insured.

My wife today had a guy come out to paint the fascia on our house. He told me he was going to need scaffolding and it would be 3k. My wife turned to me and said “ for 3k give me a paintbrush”. I said, “that is why it do it myself”.

For how much labor is, I can honestly do it better and faster. Not trying to toot my own horn but it’s not that hard.

@Curtis Bidwell

I agree with you on this one. What the person is really asking when he says “are you a personal owner”;

Translation: No one who rents out homes enough would rent to me. I am going to try and sell you on why I need a “second chance” because on paper, I look terrible.

@Brady Boyer

My process after doing prescreening over the phone is to send them a text message that looks exactly like this;

Tom,

Thanks for your interest in my home at 123 Main Street in Everett. I look forward to seeing you at 7pm tomorrow. Let me know if something comes up between now and then.

Thanks,

Kai Van Leuven.

I do this for a few reasons.

1. I’ll have all their info without writing anything down

2. They can go back and look at the time.

3. People cancel more through text.

I have about 80% show up. For the ones that don’t I see it as them disqualifying themselves.

@Ken Eck

I worked a deal with James Smith at Berkshire Hathaway a few years ago. He was a really good buyers agent.

@Mike Lock

Off market is going to be the best option for you. One of the main reasons is it eliminates competition on the terms side. What I have seen, is that on a market deal that is priced well I am not willing to do a no inspection, cash, close tomorrow deal. Some are, I just don’t like that risk. I would rather take it through a portfolio/traditional lender, really inspect the property, Take my time and come up with a solid plan.

@Grant Fosheim and @Amine Nhila

I have to echo what Grant is saying. I have a few places in N Everett. Cut your expenses and ride it out. Looks like a nice place but may not be moving because it’s not an actual duplex.

I have a very close friend who has been forced by the city to convert 5 places back to SFR from the city of Everett. I don't even go down that road now.

Rents in Everett have gone through the roof over the last decade. I remember begging renters for 1275 for a 3/1.5 in the northwest neighborhood. Now I am getting 2175. Kinda nuts.

@Ryan Rush

I have been in this spot a lot in my investing life. The biggest suggestion I would have would be to write everything down.

Create a spreadsheet that shows current cash flow, proforma cash flow, debt, equity, money needed to complete xyz project. From this I am able to see where I can get the biggest amount of output for the least amount of work/money. Then as others have suggested, focus on the “low lying fruit” or most urgent thing first. Sometimes things have to sit in order for the most important thing to be done. Stay laser focused. You are going to make it work. My mom would always say “there is no one better in the world to deal with your problems than you.”

When I have a lot to do this is usually my schedule. Wake up at 7 and work until 5. Go home and do a 2 hour dinner break until 7pm and then work until 10:30 or so. I found that the 7-1030pm shift was my most effective because I am usually by myself and getting things done.

@Isaac Johnson

2-4 is probably the worst investment in my area. People pay 200-300k per unit at 3-4% cap. The ease of lending makes them terrible deals. I would pay no more than 100k a unit in my market.

5+ weeds out all the wanna-be’s that can do a 0-3.5 government product. I feel like these people are paying for experience. Single family or 5+ is the only way to go.

People are in a frenzy. They talk about real estate investing like it is a 100% lock on becoming a big shot millionaire. Not true. It’s all about equity and cash flow. In that order. Good luck.

@Shiloh Lundahl

Debt buydown- I would think that depreciation recapture, and how much is being bought down in that part of the AM schedule would be minimal. Probably negating the real value of the buydown. The biggest benefit would be negating a Short Term Capital Gain. I would think.

Higher strike point- The place still has to appraise. While the market fluctuates in that 3-5 year period can really only hurt you with a longer term. Either it appraises at cost (best outcome) or higher (a bad outcome) or it come is low (another bad outcome). Not seeing the benefit of setting a long term price point, ya know? 

You are setting a price point on something you do not know. I would want to be controlling the price. Are they hiring an independent appraiser to verify value? If not, market is what is signed in the option contract.

Like I stated above. I like your model. I don't know if I would want that many private lenders but I think it helps you scale your business and its cool. Just trying to give my 2c. I always feel like I come off like an... jerk.