All Forum Posts by: Kevin Bonner

Crazy that I’ve been looking into this exact thing the last couple weeks. I like James Wise’s info on the area, but definitely looking to find out some more info. 

I’ll dm you and hopefully we can collab and help each other figure a few things out here.

There may be an opportunity to purchase home very close to my primary I’d need to put an offer in basically by tomorrow. Looking for additional funding, around $400k, and curious what terms some of you might use for the note.

I’m not too worried about raising the funds, but I’m much more concerned whether to offer equity or a fair return on cash, other terms some may include to make a good deal for both sides.

thanks! 

 Hi Seth - 
100% hoping to work with a team. I’m reading a lot about Memphis the last few days from other members and it seems like a pretty attractive market. 

One of my biggest issues is the “over-analysis-paralysis” problem, hence the lower price point goal to ideally allow me to just go for it when something may pop up. 

interested in learning more about your company, I’ll take a look and let me know if there’s anything you would suggest.

Quote from @Jon Q.:

Quote from @Kevin Bonner:

Hi! Finally in a place where I have financing available and motivated to purchase out of state.

Goal is to keep purchase price down (lower risk intro purchase) and secure some connections in the potential market.

Looking at some obvious areas like Cleveland, Memphis, Indianapolis, but understand there are countless markets to consider.

Would love to meet up or have discussion with anyone in SoCal area with some knowledge regarding experience in the matter. 

thanks!!

Those markets are higher cash flow, but LOW equity growth markets and you'll generally attract a low tenant quality, which will be management hassles.  

Again, what is your specific investment goal?  

Cash flow important? Equity growth important? How much money do you want to generate per year?

What is your current profession?

What skills do you have that you can you offer in real estate investing?

Can you build things yourself?

How much free time do you have for growing your RE business?

WHY are you investing in real estate?

BEFORE you buy any investments, I highly suggest you read the top 6 books on this book list:

I currently work in financial planning/portfolio mgmt and have about 10 years experience in remodels/project management. Current house I purchased as a tear-down and rebuilt the whole thing myself- doubled in value since purchase! Have enough sqft here to build a couple adu’s to rent after moving out. 

Working with around $200k for down payments and want to start by using as little as I can to test an area and see what kind of team I can build. From there I ultimately want to acquire properties that can cash flow positive.

Open to any suggestions at all or advice on pitfalls to avoid. Been researching and actually read several of those books on the list over last 5 years or so, but had other priorities and just now ready to go all in.

Hi Cody!
I feel like I can provide some valuable perspective, being that I can relate on several levels, just happen to be 10 years older now. A lot of things I would have liked to approach differently. Don’t learn from your mistakes, learn from mine!

Born/raised/live in SoCal, read/loved Rich Dad Poor Dad in high school, been investing in stock market since ‘08, and been researching real estate investing for probably last 7 or so years. In a great spot now, but could have got here much quicker having switched a few things up.

Advice is to definitely get a salaried job after that degree, for so many reasons, but for real estate it’s to get some income for those debt/income ratios banks will need to see for you to start out.

If you have inheritance/cash, just save that and invest in Tbills until you have a good plan to start from. Cash is the hardest thing to obtain at a young angle like that, so you can put it to great use if approached cautiously.

I’ll message you direct so we can discuss in detail if you’d like so I don’t ramble on here forever! 

Hi! So hiring an abatement company will cost you quite a bit. Everyone I’ve worked with in SoCal usually avoids it when there is not necessarily a high-risk, however, it changes when there’s a tenant and it’s not the homeowner making the call.

Where is the asbestos located? 

Hi! Finally in a place where I have financing available and motivated to purchase out of state.

Goal is to keep purchase price down (lower risk intro purchase) and secure some connections in the potential market.

Looking at some obvious areas like Cleveland, Memphis, Indianapolis, but understand there are countless markets to consider.

Would love to meet up or have discussion with anyone in SoCal area with some knowledge regarding experience in the matter. 

thanks!!

I'll pretty much repeat what everyone else is saying, and mention that it's incredibly high (at least 2x). The contractor sounds like he doesn't want the job, so he is bidding it so high that if you did accept his bid, it would be worth the trouble in his mind. It's definitely a huge hassle going through a bank for a remodel, which I'm sure could be a factor in turning them off the project. 

Get a few more bids, and consider trying to tackle all the demo in bathrooms/kitchens yourselves.