All Forum Posts by: Matthew Koch

It is certainly unfortunate that those types of things happen to somebody's asset that they paid good money for to try to help a person out and get them in their place. I can also look at it from that survival perspective that you had talked about which translates to me they still need a place to live so if they have a chance to move into these rental properties and the finishes inside are built for a war zone type of situation although cheap materials maybe that would be the answer for the insides to be made almost literally bulletproof so no matter what goes on in the home the turnover might be fairly low if and when they do happen to move out so that alone would cut down on the costs and if those neighborhoods can be section 8 housing then part of the assets already protected by the government and that individual even though they may not be able to pay rent on time perhaps the turnover or vacancy rate wouldn't be as much or as high. Yes I am still new to this and I am definitely learning but I'll take all the knowledge that I can get so I appreciate the reply. I will definitely keep that in mind and consideration for the expectation of the possibility of having c or d class tenants in ruining the asset that my I might own one day, to focus a little more on The upfront cost in trying to tenant proof the inside as best as possible. 

I guess I seen it as a good move to try and help those who need a second chance it better reason to get out of the good and into a better place. My whole goal for being a real estate investor is to be that generous person like some of the big names from the podcasts like Grant cardone, Arron mazzrillo, Matt Faircloth and others I look up to because they're still people no matter their bad choices and they do need a place to go. That's another thing is to ask everyone, where is the niche that caters to those bad people like who have been in jail or murderers or drug dealers?  Not to be seen as the act for what they did but yeah a reason for the houses to be filled or the apts rented working with section 8 housing to maybe cut down on the vacancy rate and keep the people off the street in hopes they take care of the property and or able to pay the rent in the first place. The point is I get the business side of it that it hurts a bottom dollar amount to help these people who are into the bad stuff. That however is the literal point for becoming wealthy financially is to either give to charity for tax benefits being an entrepreneur or give it to the folks who can get a place or rental or some kind of dwelling that gives them a place to go even if it's temporary. If I've learned anything from anyone whom I've listened to on the 312 episodes of the podcasts is that when you get to a financial position of strength then money is not the problem and or a concern if your needs and personal financial house is in order and met then helping others is kind of the goal in the first place or am I missing something? It's solving a problem that benefits everyone no matter that poor person decision on how they choose to live or spend their money or ruin and wreck their chances of being In a nice home.....

None the less thanks for the reply and wish you the best in your realestate journey! 

Absolutely right and I appreciate the reply but I also looked at it from the angle in perspective of when that whole block is taken care of and those people who are currently living in those places no matter where you are in the country no matter what market you looking in when that one block of 10 or 15 or 20 houses is taken care of then naturally I would think that market is going to increase its value and then you do it to the other side of the market on the other side of the street and do what to the other 10 or 15 houses so potentially you have one entire square block of 15 or 20 places that are completely redone fixed up and taken care of by these higher net worth individuals helping each other out getting rid of their crime getting rid of the sad looking houses in the neighborhood that helps increase the values for everybody over all the only hurdle that I could possibly think of is of course the cost for all of this to happen as well as the tenants not wanting to sell and finally the protection that would need to be there so renovations and work can happen on those places that need to be fixed up.

So a problem that I have been noticing and I'm not sure if this is true in all markets but if a lot of people have a hard time buying in bad neighborhoods c or d class neighborhoods then the suggestion is to buy a run down or bad looking house in a good neighborhood so it could cash flow or it could be sold at a decent amount for profit. I submit to you where is the super team that is able to come in and on a block of 15 or 20 houses that's in a bad neighborhood that has a lot of crime that is known for either shootings or drugs or whatever and a group of 5 or 10 people are able to come into that area and work out a deal so the whole block is able to be negotiated with to help those people out get them out of a bad neighborhood or work out some sort of deal where their house is bought and fixed up and then protected by working with the local police department or the government in some way shape or form to systemically one by one block by block in one market or another could potentially be a better investment area so the end goal is Be able to get rid of crime for 1 to bring up the housing market in that specific area 3 have more of an economic standpoint on those houses to bring more jobs to people to get those houses taken care of and renovated and then maybe it's as simple as once the houses are bought those same people might have a potential of moving back in them if they can afford it to have a nice updated or new house or it could just be a rental and so it could potentially work out for everybody so where is this super team of investors that works together on one city block or one city area piece by piece. Overall the big picture that I'm looking at wood help everybody out? forgive me for my opportunistic and naive point of view but if I don't ask I don't know I'd love to hear people's opinions know about this. 

Is there a chance that the rental you currently have could be made into an Airbnb instead? I guess it would all depend on the least that you have with that tenant how long they are there for and instead of selling try the Airbnb route to where it might be beneficial to have your expenses paid off faster of course depending on the location as well and considering if your state allows that kind of thing and there's no anti-competition laws or something like that. Hope it works out for you and good luck

I'm also looking forward to it even though it is a small group of people. I wanted to take this moment the kind of cheat a little bit to share and hopefully reach everyone as I'm not sure who all listens to the podcasts for the real estate side of things but episode 290 and episode 307 are absolutely wonderful! do you have a chance to check them out it's definitely worth your time despite episode 290 is 2 hours long! Happy listening

I also would agree with @bob Daniels, that the PDF forms for a state specific purchase and sale agreement with added contingencies like walk through or due diligence period clauses. 

One category is offer her my first offer again at 80k the second offer is seller financed up to 80 percent of her purchase price or lastly 3rd option is being able to give her the purchase price that she's asking for minus 1 year of living expenses to move to Oregon if she agrees to finance the whole amount and become the bank and the terms are 5% interest only loan for 30years with a balloon after 2 years to be paid in full. 

Based upon the asking price of $189,000 in Jerome Idaho for a 5 bedroom 3 bath house. 

The goal is to have the homeowner move out and the home would take too much money to recover or renovate it so the goal is to take it down and build new from scratch as the lot would be able to allow for 3 units and each unit to put a duplex on that unit so the end result would be an almost full acre lot allowing the lot to be subdivided into three parcels and each parcel has one duplex on it or 6 doors total. 

Which options of those would be acceptable terms in regards to being in a position to get this house under contract or how else can I get it structured?

I'll update what info that I have found so far and I'm excited to share what I've uncovered so far. The property can be used for a duplex and there can be 3 duplexes on this almost full acre lot. The first step is to make sure that there is someone out there in the surrounding areas of Jerome Idaho than is a builder or contractor or developer that I can coordinate with in getting an actual real world final price for what it would cost to build those 3, 2 duplex units. I'm talking with a couple wfiof Realtors and getting their helpful info also and one in particular who is a 25 yr seasoned realtor president that could be in a position to at least give me at least the last sold info for other recently sold duplexes Wich will give me the idea for the arv. This particular setup of a deal I think is going to be built for around 120 k a piece per parcel per unit then total possibly 400 k in regards to water and sewer plus power hookups and then the appraised value can be strong 900 or more up to a million as the other duplexes around the area are going for 200 or more a unit. I'll hopefully know more tomorrow on Black Friday or at least next week at some point and time.

@Weston Johnson

Sure thing! feel free to text me as my personal number is on my footer for my replies.