All Forum Posts by: Mike Buchheit

Just another example to share. Our kids headed off to college this year and we decided to HH on a construction of a new duplex IN OUR BUSINESS NAME. Hence 100% tax deductible. Our numbers: $480,000 construction cost. $80,000 down payment by selling off another investment. Rent: for other 1/2 is $1400 + $500 for our half (bc we do Yardcare, scoop snow in driveway, and general mtce to discount rent from $1400 down to $500)” for our half) = $1,900 income per month. PITI+Mtce=$2,300 Negative cash flow of -$400 to my business but I also get to fully depreciate and expense 100% against any other expenses. I was paying over $2,000 per month to live in a $280,000 house two years ago that was 30 years old but now I pay $500 a month and everything is new.

I am a 20+ year investor and also just recently opened up our own brokerage. This is simple. Investors typically buy more than one investment. So keep that in mind. Second time around. Why would a buyer ever trust making an offer on a property that you represent? U may get one or two deals to swing your way but soon no one would trust you and eventually the offers could become non existent and then you are not representing sellers because all they are getting is your low ball offers. Buyers eventually learn who buys a property and Sellers won't trust they are getting the best deal if you conveniently are highest bid. Just being direct: It's not ethical, sustainable, or in best representation of your seller.

Oh yes. I am an investor of 21 years and licensed Realtor / Owner for past 3 years. It's insightful wearing both hats.

My advice. Analyze every investment two ways: 1). How would a real estate investor look at the deal 2). How would a typical home buyer look at the home to buy. 95% of realtors are pricing based upon #2 above. Think of it in those terms (unless you know that the listing agent has an investor slant to their mindset) and then lay your investor scenarios over top. What I find in my market are 95% of realtors don't understand what it costs to rehab a property and also don't have the sense for how to talk a buyer through this kind of purchase. Simple as it seems. Therefore it comes down to how competitive your investor competition is in your area. If u really want the property you may be willing to profit more/less than another deal. I have bought over 40 deals like this and I don't suggest letting emotions get in your way (not saying you are....).

I went through 22 years of real estate investing without a license and did very well. Then got my license and wished I would have had it years earlier.

The first several can be the hardest. Have to get very creative on source of hard money. No wrong answers. LOC, credit card, family, friend.

I typically go after properties I can buy $0.60 on the $1.  Then put $.20 on the $1 into rehab.  Leaves me 20% equity and the bank will finance up to 80%.  No money out of pocket -- go to the next.  Two deals per year for 24 years and 48 properties later I have close to $1M net worth in real estate and still growing.

If you want....A) A good quality window, B) Very competitive price, C) Maintenance free short/long term!  Go with Pella Impervia Fiberglass windows.  Sliders!!!   They are at a competitive price to Vinyl windows and will outlast any window on the market!  I have installed these windows in multiple

Projects and the install is simple also.