All Forum Posts by: Landon Bleau

All sound like great options, why not all 3?  $1,200+ cashflow per month sounds like a great deal to me.  Sure it'll be harder to figure out the financing, but sounds like the reward is worth it!

$900K wholesale fee!? Congrats!! That's incredible.  Any plans to decrease your taxable gains?  

Jeff, since it's all equity at this point because you paid it off, have you considered 1031 exchange?  Even if the new law passes, you won't be anywhere near the $500k limit so you can still do it even in the future, as long as they don't completely eliminate it.  Assuming you put 20% down, you'd have $500k buying power which could put you in some good sized multifamily apartments that cashflow significantly better than your apartment.  You'd more than likely have to buy out of state, but as long as you're able to build a team there it could be a great option! Make sure you consult with a good RE attorney before making any decisions though.  

Corbin, double check with the banker to ensure that they'll lend on 80% of appraised value and not 80% of appraised value or purchases price, whichever is lower.  Nearly all lend on the latter, however, it's not impossible to find a bank to lend based on only appraised value, just very difficult.  Assuming you're able to find this bank, you'd just have to negotiate with the seller to purchase the property at that 80% of market value and you'd be able to get into it at $0 down!

Cody, great idea! I could see those places cashflowing like crazy.  It is quite a bit riskier than just a regular investment property just as you're mentioning so I'm thinking either a private lender or equity partner is the way to go.  Since you already own the land, I'd look for a private investor since the upside is extremely high in this situation.  However, since it is a bit riskier, I could see the lender wanting a rate higher than commercial.  I would try to structure it as a fixed payment at as long of term as possible, ie 5-6% for 20+ years, it could be very difficult to find a private lender who's willing to do this, but it is possible.  If you do already have some private lenders that you know, I'd reach out to them and just have an open and honest conversation and ask what they would want, maybe it's 6% on a 5 year balloon, maybe they'd be willing to do 30 years at 5%, etc, as long as it works for you and your projected numbers, go for it!

Jessica, if I were in your situation I personally would not wait to list.  Just as you mentioned, since their property is nicer, they'll get higher rent, so just price yours slightly below the cost of theirs, and look for a creative way to get yours to stand out.  Renting it out will allow you to save up that $10K much more quickly and then you can decide if it's worth the investment to get a little bit more out of rent per day.  Going off what you said it sounds like this would be a great town for an AirBNB, so you shouldn't have any problem getting booked, even if their place is a bit nicer.  

As for wholesaling, I would look to work for free for some of the top wholesalers in your area.  As them if you can make calls for them, write letters, door knock, etc for them all for free.  Through this, you're able to provide them value, as well as learn about how their business runs in the process.  I would be careful about quitting the W2 too quickly, as I've heard from others, it makes getting loans much, much more difficult!

Congrats on getting started! Make sure to listen to all the BP & BP Rookie podcasts, or at least as many as you can, there's so much great information in there and it's all free.  Also, stay active within the forums, if you're looking for investor clients, there's no better place than here to find them.  I also assume you already know about House Hacking, but if not, make sure to look into that as well as it's arguably the best possible way to get your feet wet in real estate investing.  Best of luck to you!

Logan, great question, following along as I'm very curious as well. I would think the renters would be in trouble for knowingly allowing underages to drink on the property, as opposed to the owners, but I'm curious what others would say?

Alex, I was in a similar situation and it is very difficult to get people to trust you.  I personally asked the sellers to walk me through the house, I showed up on time, dressed well, and had done tons of research on the property and in the area before I showed up.  On top of this, I tried to personally connect with them throughout the showing.  Overall, it went very well and we're still in negotiations now, but they did tell me they never would've ever considered seller financing had they not met me, so I'd start there.