All Forum Posts by: Kj Rustom

@J Scott - Worthy consideration, I am aware of that risk and should probably give it more weightage  - since I do not have any contractors who can be trusted to that extent.

On a side note - what would be the best way to determine the buildable area for a lot? This is for a SFH on a 10 acre wooded lot with a creek + pond and my play would be to sub-divide - if there is enough buildable potential. Available survey is very rudimentary and not conclusive for determining build potential.

I have a few rehab and flip opportunities in Atlanta which have significant upsides if done properly. In order to scale, I would like to partner with contractors for rehabbing. The thought is that I shall focus on deal qualifications and acquisitions. This will include my investment into the purchase process. In the meanwhile the experienced contractor would invest (money+sweat) in post-purchase / build out for the final product. 

The margins shall be split in a win-win manner. This allows each of us to focus on our strengths with a stake in the deal for mutual benefit. If done right, scaling is possible to the extent of our interest and capabilities. Looking forward to hearing from contractors, suggestions or opinions and alternate advice from current investors.  

@Mike Salisbury - Would you have any samples of GA purchase contracts that you could share?

Anyone have samples of GA purchase contracts which are simple enough for the seller yet enforceable in case of disputes?

@Aundrea Newbern - It's been a while since you started looking for a management firm for your Piedmont Park unit. Would you have a learnings and experiences on how that worked out - or references if any? I am looking to be in the same area and thinking of short term rentals in a similar manner.

@Edgar Hernandez - like you said, podcast #229 with Zeona has struck a cord with folks who have been thinking along the lines of STR / Airbnb but wanted to see it executed as a valid concept.

@Mindy Jensen - Are you familiar with any flippers who take the ugly house in a great location, rehab it for the purposes of eventually selling it as turnkey rentals for investors? In my simple mind, the process can be: 

1) Build instant equity via Rehab

2) Airbnb it for a 1-2 years to establish above average rental cash flow track record

3) Recoup significant part of your rehab cost via rentals

4) Sell at marginal premium to investors looking for Turnkey rentals given it's proven higher cash flow 

Repeat process via 1031

Over time, with 3-4 properties always in various stages of the process, I should be able to book decent cash flow as well as flipping profits - without becoming a Airbnb maven with significant landlord responsibilities. 

Creative financing, lease-options, rent-to-own, etc can further reduce upfront costs to get started while securing full control of the unit?

Where am I being overly optimistic and naive? :)

@Dan Brewer - I am intrigued by this sector, do you have any projects in the Atlanta area? It would be helpful to study the business and returns in my market. Of course, investing in your fund itself is another option.

@Romont Johnson I am in a similar spot with my RE investing cycle. It would be great to connect with like minded investors from the location market.

@Dan Brewer  by any chance are you associated with the Seniorlivingfund or are aware of it? They are based out of Lenexa as well. 

@Joel Owens, I agree ALF is often a owner or operator model but I am curious if there is a pure investor play in this space as well? The fund mentioned above claims returns upto 21%. Wonder if any BP members have experience with them.

Agree @Justin Windham, would it be possible to connect with you next week? On your site, you offer Custom 401k plan and trust documents including IRS determination letter. Is the IRS letter a pre-req for 401k setup? 

@Sheryl Gurvey, just dropped you a message. Looking forward to exchanging notes with you.