All Forum Posts by: Kyle Myers

Interested in the been there done that persons response for sure. Similar situation for me. However based on what I’ve learned and seen there’s no magical answer to this other than for lack of a better word hussle to get the funding you need for deal even if that means asking friends, family, or Co workers. Have to figure out best way to present deal to them and assure they get their return on investment while making sure you get your cut so you can build up your own capital and in future not rely on them as much/acquire history that other lenders and banks are willing to work with you on.

Would i be reading this correctly to conclude the following?

1) Pitfalls if you you just bid and not researched ahead of time other than general rehab needs being not knowing need for a well, and auction was selling property on someone elses land?

2) Neighbor was willing to work with you and adjust lot lines in exchange for the bungalow?

3) How easy do you expect it will be to sell the seperate land parcel? In general do you find that people are willing to buy land and build on it or prefer to fix up existing buildings? 

4) In this scenario is there ever a leasing option for land? I.e the 50 acres leased out or is that really for commercial properties only?

5) Granted i dont know the area or layout of land but Was there ever comsiderstion for dividing the 100acres into say 4-5 parcels and selling that way?

Wow. While I think I slowly was coming to this conclusion. Reading this really made it hit home. Exact situation for me and holding me back wanting to have it all lined up and steps ready so when I find deal it’s a push go and it just all gets done. 

My other fear in taking it step at a time is the worry hitting an end roadblock that doesn’t just kill the deal but kill my credit, savings, etc that doesn’t allow me to keep trying.

Interested in how people approach offering on deals especially those starting out or have done couple deals.

On regular rentals. Seems there is always (most times anyways) a number between purchase price and rent to get the ROI you want. Even if that means purchase price is Free.

I’ve been getting good at doing quick analysis of deals to determine if worth the time, and then diving into more numbers and like to play with them until I see what the purchase price would have to be to get the return I’d want.

How far below purchase price are you guys typically willing to go before you say theres no chance at getting that price agreed on or do you find that sweet spot, offer, and see what happens?

I already work in the facilities /property management world so figured if I have to deal with the headaches that come with it why not try to make the financial upside unlimited vs capped salary. Plus stock market dividend at my current income/savings level isn’t that exciting.

It may not hurt to do a deal like this as a way to go through process and get failures out of way and learn more. The thing I would think about, at least I do is, if your happy with current job and do this as side income is $100 or $200 mo worth the work to manage yourself? It could end up being super easy deal never or rarely have to worry about tenants or maintenance making that net profit worth it. Could be a headache to deal with and that net not worth it, but I guess something really won’t know until your in it. not sure what you do for a living or salary so you’d have to determine if time spent on it makes sense. 

Math seems good. I’m usually more conservative on vacancies/op expenses. As long as managed yourself, no PM company. Are all expenses accounted for as far as landscaping/snow? Closing costs? upfront rehab costs needed at all?

I probably wouldn’t do deal based on cash return from how much up front it would take but it seems to make money so up to you on what your return goals are.

I’d be interested in others Input. My only thinking is family/friends at that level maybe coworkers?. That or keep learning and sock everything you can into savings to build that up a bit more maybe to $5-10K or more.  

I’m kind of in situation. About a year ago I stopped putting all my money into 401Ks and Just put into savings (could have put into something to earn little interest but goal was to have safe way to build that capital), and spent that time reading and listen to podcast as much as I can. Now at point where seriously looking for deal.

My current plan is to find low cost flip or small SFR rental to basically get that real world experience of process and show I can do it. Even if it costs me my investment. I almost view it as paying to go to real estate college. Then if it doesn't work out build capital and try again. If it does do couple more times until I can show real investors not just family/friends that ive done it and your not investing your money into a novice.

Granted advice here is just my plan on paper so take that for what’s it worth. My regret so far is I didn’t just call agents and get offers on properties and kind of jump in head first to begin with vs trying to plan everything out. 

I don't own but work at a commercial management company. My input would be get the legal stuff setup (LLC, Corp, some entity,), Insurance, etc. Accounting system of some sort (Quickbooks), and then your biggest challenge will just be marketing and getting customers.

I think once you get a customer or two then your knowledge of property management will kick in and you’ll be fine but it’s just like any business the hardest part is selling and getting customers.