All Forum Posts by: Douglas Larson

@Carol T.

Bamboo in Hawaii was a great choice because everyone takes shoes off at the door! Also, the humidity helps to keep the product pliable. You may find the same results in N. Carolina!

Bamboo is terrible with dog's claws and in dry weather and I would NEVER install it in a rental in Utah, where I live now. I have seen it crack and scratch horribly in less than a year.

A great test with any hard flooring product is to take one plank, tile or section of it and use a couple cleaning products, a scotch brite pad and then try to make a few scratches with your keys. If you can live with the results then it may stand up to your needs. I found that cork is a terrible option for most uses and it's really hard to beat a porcelain tile like Cortina at Home Depot ($1.75 per sq. ft. not including install).

Have fun!

@Mohamad Ajaj

Thanks for the insights! I've never done any mailings but my leads are getting fewer and farther between so direct marketing may be in my future!

I would love to know what the list cost you, how much this mailing cost and how much time is involved just to get the letters out.

Thanks for sharing!

@Morris Lucas

You've got it! Most great deals have to be "created" but sometimes there are awesome investments just waiting to be discovered like hidden treasure.

Happy Hunting!!!

@Will Barnard aka "BiggestPockets"

Yeah, if I had only known you then . . .

It would have been great to spec a luxury home on this lot. The builder that bought it from me projected a 250K+ net gain. I hate to leave that much money on the table but there is also the opportunity cost. I was able to put that cash immediately into another property. I will think of you the next time I find a sweet deal that needs a fat wallet!

@Anthony Hornbeck

I've been so busy chasing and making other deals over the past 18 months I never gave much thought to simply sticking with this as a predictable strategy. In my area the inventory of low-hanging fruit has really dropped over the last year so I need to do a little more digging and negotiating to make each deal happen. I will pursue these specific kinds of land deals actively now instead of relying on the wind to blow something my way.

Below is the google maps screenshot that sealed this deal for me.

@Alfred Green

I'd like to add my 2 cents if you don't mind. I don't know anything about Jack Bosch or land in Florida where you appear to live but I have bought and sold over $1M in land over the last 3 years (about 25 lots so far), along with doing several SFR rehabs. My average purchase price is about 40K and Net profits have been about 30-40%. I ONLY BUY IMPROVED LOTS! Although, after listening to @Seth Williams I am considering raw land as well. My strategy within the state of Utah has mostly been to purchase 3-5 lots at a time from banks and sell them one at a time or on a take-down schedule to smaller builders. New construction is not what it was in 2006 but, builders are still building! If I can buy land for less than the cost of development, I feel pretty safe. I like improved dirt for these reasons:

1. Easy to find valuations!

2. Easy to find buyers.

3. Multiple exit strategies (MLS conventional sale, Owner-financed sale, Partner with builders who build on spec and get paid when home sells.)

4. I can increase a lot's value by a little grading, weed control, survey work or even by obtaining a variance or conditional use permit from the city.

5. It's easier to push some dirt or mow some weeds than to rehab a house!

6. Less competition than other RE niches.

The down side is that you really need cash to buy these deals. I have used hard money (2pts and 12% APR) only once to buy a lot, and that loan had to be attached to another SFR I owned. Nobody likes to lend on land these days.

I'm sure that with a little more research you'll find a niche that fits you well. I just wanted to add my experiences.

Have fun and Make your own luck!

@Anthony Hornbeck

You bring up a great question Anthony! You've got me wheels turning now. Once impact fees have been paid and permits have been pulled, there is a 1-2 year window (depending on the county) in which the builder has to start construction. There must be a way to search for expired permits where fees were paid. I will absolutely look into it.

@Tim G.

I checked out your photos of the kitchen progress at the photobucket.com link you listed in Sept! It's looking great! Please post complete pics inside and out on the "success stories" forum. Everyone loves to hear the REAL rehab stories and see the before and after shots.

P.S. I love surfing at O'side pier! What a great spot your'e in!

Great work Tim!
@Tim G.

@Bryan Harmon

You've had some good responses so far. My 2 cents might be to ask some other questions of yourself:

Why do you want to keep the property? Nostalgia? Cashflow? Move-in?

Assuming you can get financing, what kind of financial stress will keeping this property create with its mortgage, taxes, insurance, etc?

How would owning the duplex, being a landlord/vacation-rental manager help or detract from your other family and financial goals?

If you did take your share of the money in cash at the sale of the property, what could you do with it that might also help you accomplish your family and financial goals?

Not every property purchase has to be dictated strictly by the numbers. That said, if you don't look at all aspects of a big deal like this, you could find yourself under water, instead of on the beach!

@Sean Rand

When you are limited on cash, credit and also holding down a day job it's tough to get started. Lots of us investors did it but it ain't easy. Being a good deal spotter is important but that's like trying to find that needle in a haystack. (I wrote about one of those recent deals .) However, almost all of the great deals I've gotten over the years were not just sitting there waiting to be spotted. You have to find motivated sellers and create the great deals! There are some amazing wholesalers on here that can lay out the best plan for that strategy. You can also hook up with some at your local REI group. I am not a wholesaler and if that's the space you want to be in you need to learn from great wholesalers.