All Forum Posts by: Derek Guyer

I'm having trouble adding the link. I've tried several times and for some reason it won't work, so just copy and paste it:

http://www.biggerpockets.com/renewsblog/2006/03/15/assembling-your-real-estate-investing-team/

I work as a birddog/reatlor for investors acorss the country here in Indianapolis and have rentals myself.

A lot of where I would suggest going next, depends on where you are right now. Feel free to shoot me an email with your number and we can talk it through a little. I'd be more than happy to spend some time talking with you about it. derek @ landchasers . com

Jeremy,

Welcome to biggerpockets! It sounds like you and I have very similar ambitions and goals. I'll be interested to hear more about it at some point.

As for your plan, it doesn't sound like a bad idea, as long as you've got a solid team around you. I would highly suggest sitting down with a good attorney to ensure that everything is set out clearly from the first moment to ensure you're protected. It's amazing how ugly things can get when money is involved.

Check out the list Josh compiled on Assembling Your Team as you're considering who you want to get involved and who you will want and need to be involved to protect you and push you in the right direction.

NHVetteFan,

What is the property's fair market value? Tax assessed value doesn't mean much in most markets and therefore has very little value when running your numbers. If you haven't done so already, I would highly suggest having a realtor pull some comps for you to see whether there is in fact any equity and how much. It may be great, but it would be better to check that out now.

As well, are you going to have any cash flow on that property? If it rented for $1600 and your PITI came out to $1300, you'd be lucky to make $100/month after vacancy loss, association fees, and maintenance fees.

That cash flow seems a little tight to me, but if you've got a good neighborhood and enough equity, maybe it's better than it appears to me.

Yeah, I would guess it will have a pretty good impact on the price, but I'd prefer to know that ahead of time. Take some time to talk with a realtor and ask for some comps in the last 6 months to year with both 1.5 baths and 2. You'll want to know this for pricing it anyways.

I'll be interested to hear an update on this when you're done. Fill us in when you've finished the work and find a buyer.

Sorry I'm late on this one, but I would first check to see how much of a difference in the comps between a 3bed 2bath and a 3bed 1.5bath. Take some time to find out if the amount of money it would cost to make the change would be worth it in the ARV.

It depends. If you sell them for their market value, how much will you lose vs letting them eat into your pocket month after month for the next few years?

I'm a little late on this discussion, but will chime in anyways.

I've heard really good things about Ohio, Illinois, some parts of Kentucky and personally know that Indiana is great. I can't imagine paying what some investors are paying out in areas like California for property. It's gotta be impossible to cash flow with those ridiculous prices.

In the above mentioned states, you should easily be able to find a multi-unit under $100k that should cash flow several hundred dollars after taxes, insurance, property management and maintenance fees, vacancy loss and mortgage payments are all figured in to everything and taken out.

I was just thinking the same thing as yunghova. If you don't have the time or desire to head down there yourself and get it, I guess I can understand paying for it.

My mentor has long said that when you've got that kind of cash to work with, you should make every deal work with only a few thousand dollars. Make sure you're getting good deals with plenty of equity as always, but do everything you can to only use $2k per deal. This may seem impossible (and some are probably laughing), but you will only find what you're looking for and if you're determined it's not out there, you're likely to never find it. You can't expect to find a deal like this if you're looking for one where you'll have $30k out of pocket.

If you don't want to use your cash, don't. Get creative and find ways to get seller concessions and/or land contracts, use OPM, etc. There are tons of books, articles, and resources here on biggerpockets and on the web.

Start searching. If you don't have a good team to help you do this, start building one. If you've never done this before, you'll want help through it and that will require numerous advisors to help you put the puzzle together.

You can attribute that mood to biggerpockets creator, Josh. He and his moderators seem to have a way of keeping people relaxed and stimulating good conversation where the other boards have seemingly shut people down and made them feel and look foolish for asking questions and suggesting ideas. I think you can attribute the mood created here at biggerpockets to a great deal of its success.