All Forum Posts by: Kevin Koenig
Kevin Koenig has started 1 posts and replied 4 times.
Post: Introduction to my Real Estate Journey and my New Business
- Posts 4
- Votes 1
Quote from @Nik Moushon:
As a fellow architect I have to say this with respect but..... you are opening yourself up to a hell of a lot of law suites and potentially putting your license on the line here.
Without completely understanding a projects scope, the work thats already been done (be that design or construction), reasons behind decisions, etc etc you could very easily direct someone down a path that could be even worse than they are currently in. Unintentionally of course, but still... Just getting past the legality of stepping over the architect of record for a project is a huge hurtle....not to mention the ethical reasons not to do it.
If you stuck to just interpreting local zoning codes then you probably would be ok...but I wouldnt go into giving solutions for on going projects. That could get very messy and very risky, very quickly. I'm all for helping the little guy out, but you have to be careful to the amount of exposure you give yourself with these kinds of "quick answers". We are in a very law suite happy field of work to begin with....to expose yourself more...especially if its for such little returns.
My suggestion, for using your license and experience, is to start looking at doing your own developments. New construction and at a scale that allows you to leverage your drawings as collateral....or at least save you money and time on not having to have to expense of hiring an architect. With your project management experience you could easily GC a project yourself. Just with those two costs cut out, you just shave an easy 20-30% off a project. With a buy-n-hold project that is massive cash flow. That is what I'm doing and see 50%+ returns.
Totally agree about the exposure Nik. I’ve been trying to make sure I reduce my liability because yes that could definitely get messy fast. Thanks for the tips!
Post: Introduction to my Real Estate Journey and my New Business
- Posts 4
- Votes 1
Quote from @Joshua J Cawthorn:
Hi Kevin,
Welcome! I like your Ask an Architect idea, that seems like a great way to generate some income. I don't have much experience working with architects or their services, but I'm looking forward to learning about it from you!
Your buy, upgrade, and hold model is both a good and a popular model here. You bought at a great time and every upgrade you make forces appreciation. Fantastic!
I want to push back on your "but rising interest rates..." objection. I doubt you could find a single investor that will tell you "I always timed my investments via the interest rate." You know why no one will say that? No investor cares that much. There's only one thing that matters: the cash flow. Say it with me: the cash flow the cash flow the cash flow!
You may have hundreds of thousands of dollars in equity tied up in your current house. What if we could put it to better use! What if we could, say, pay down other/bad debt? You may have a new loan with a higher interest rate, but if other debt with a higher interest rate is eliminated and bottom line cash flows increase, wouldn't that be a good use of time and money?
Maybe you don't have any other debt, which would be great! My point is simply not to get too bogged down by the interest rate. It's only relevant with respect to your cash flows.
Can't wait to hear about your future deals. If you get stuck or want to chat, I'd love to hear from you!
I love it! Great motivational read on a Monday!
Post: Introduction to my Real Estate Journey and my New Business
- Posts 4
- Votes 1
Quote from @Nicholas Coulter:
@Kevin Koenig have you thought of a Heloc? It could be a way to borrow against your current residence to fund another deal!
We need rents to rise just a bit more before that becomes an option. We could probably get a rent that covers the current loan and HOA but not if we pulled money out. I was thinking about trading up to a larger project and adding an ADU but the higher interest rates mean if we sell we'd just be getting a much more expensive mortgage for less money. At least the way I'm seeing it. I'm sure there are still ways to make deals work though. I'll just keep cruising this site.
Post: Introduction to my Real Estate Journey and my New Business
- Posts 4
- Votes 1
Hello everyone,
I wanted to introduce my beginning real estate journey and my side business I’ve been running awhile but haven’t taken too seriously yet. I started out my career in architecture and after 7 years received my license to practice in California. The money in that field, mostly due to many architects just not understanding it, wasn’t there for someone starting a family so I switched careers and went into project management for a general contractor. After a few years in my new career, I was finally able to get a place that I’ve been fixing up since. The goal was to finish the remodel, pull some equity and repeat but the rising interest rate market seems to have put a hard stop to that strategy so here I am seeing what other investors are up to. With my main focus seemingly on hold I’ve fired up my “ask an architect” business once again that I figured would be helpful to many here. The main purpose of the business is essentially architecture on demand for any one savvy enough to be running their own jobs but who might hit a snag with the city permitting process, zoning or even needs some ROM pricing help. Instead of hiring an architect, which can cost thousands for the entire duration of the job, I provide quick answers or solutions with a simple flat fee invoice for anything as easy as double checking zoning to providing a code compliant feasibility study with a current market ROM cost estimate. I’d love to hear any suggestions on both my investing quandary or any constructive feedback on my fledgling business.