All Forum Posts by: Michael Lee

Hello and welcome to this site Nash!  In this economy I would recommend Fix and Flip Quick Flip and the main difference of those two is making any repairs/rehab.  You might make the most popular push a single family rentals and they are just too risky.  You can combine my two suggestions and they will work fine together.

You might be asking yourself "Who is this guy"?  In a brief description let me tell you who I am and why you should listen to me.  I'm currently 61 years old and I have about 30 years of experience in construction management and having a real estate brokerage license in Texas and I was born and raised in Dallas..  I also am a college graduate with honors in business that emphasized real estate and my Dad was a commercial broker when I graduated.

I was short and to the point with my decision.  I could go on for a long time by I do believe that this is the best way to go unless you can afford at least 30 units at this time with a positive cash flow on day 1 without forming a Partnership.

Good luck to you!

Hello and welcome to this site Hunter!  The answer is to do it with their blessing/permission and both side's patience.  Their permission with their schedule known by both parties and you have a key to their place.  Keep their place clean and livable.  This is a common situation and I have accomplished it many times.  It usually takes a little extra work for you to keep them happy but very doable.

Good luck to you!

Hello and welcome to this site Jared!  Always know the area of what you are bidding on.  Figuring a worst case scenario is a good way to look at your investments that should consider the worst case scenario as the worst case scenario of what it may look like if things go wrong.  Also, look at the best case scenario that assumes all goes well and helps you establish a price range.  A high-low price range would be developed to help you out.

When you are first starting out just figure any improvements will be the average. Do not cut any corners or try anything fancy until you gain some experience.  Just play it safe until then.  You did not mention the age of the property  you are looking at and that could make a difference if anything might need special care today like asbestos, lead paint, and the major draining system. 

Any of those things that exists or are  may have major costs associated with your improvements.  You might ask a local building inspector if there are any well-known problems with anything or any problems exist that you will have to deal with.  You did make a good appointment that can effect the cost related to the age of the building.

I just saw that the age of the building was included and I would see if there are any extra testing or repair costs associated with that age.  Knowing about any past items taken care of would be nice but there is a good chance to not now it all before buying.  Depending on your confidence of any problems may effect your final price and be a good reason to use a worst case scenario.  

"Taking Action" is an important item in being successful but do not try to do anything foolish to do that.  Good luck to you!

Hello and welcome to this site Geneva!  I would stay far away from Wholesaling.  It is not what many try to sell and mislead you on its difficulty and the lying you'll have to do and keeping the truth from the Owner/seller by having and paying for 2 closings to keep your profit away from the owner who might be offended by your profit.  That profession has many veterans and some of them would fight you for position.

I definitely would recommend a BRRRR strategy and tell you to be wise with your money when making repairs or doing rehab. Do what is the average in that area. Do not cut any corners or take any chances when first starting out. You might consider a Fix and Flip or a Quick Flip if it will be profitable going that way and just move on. It should be whatever the highest demand is for in that subject area.

I do not recommend a rent out unless their is a high demand for it in the subject area.  If you decide to hold onto that property you might consider just filling in the pool.  I'm not sure it would return what you have to put in it to make it nice again. you might take some bids on the pool before you decide.  A rental versus a sale unit might need different finish out.

I would figure out what that subject area would support your direction the most.  If you decide to sell with a repairing/rehab a total renovation might work out the best for you in the long run, especially depending on it's age.  If you decide to rent you might ought to finish it out more economical than if you decide to sell.

Who is this guy anyway?  I am currently 61 years old and have about 30 years of experience in construction management and real estate.  I was born and raised in Dallas, Texas.  I graduated from college with honors in business that emphasized real estate.  I think all of that speaks about my opinions as justifiable.

If you would like to discuss anymore, please contact me through this site which I am on just about everyday.  Good luck to you!

I am sorry, but I accidentally pushed the wrong button before I was finished.  I was going to say is that who is this guy and why I should listen to him?  I am currently 61 years old and I have about 30 years experience in construction management as well as my real estate brokerage license.  I have that broker license since I graduated college with honors in from North Texas in business.  Plus, I was born and raised in Dallas, Texas.  i have been a member of BP for about 5 years and have been a full time learner of real estate investment.

Good luck to you1

Hello and welcome Nick! I hope you just want the truth. You should have never bought a single unit rental unit house unless you could start off with several. Any positive cash flow off one unit will never give you enough money to do anything with. The best thing you could do is to quick flip it and hoe you can break even. The Banks sole purpose is to make you broke and for them to make alot off your money. They really do not care about your profit, just theirs. Credit Card and HELOC loans are usually a last resort and require much discipline and responsibility when the bulling statements come and keeping their payment requirements done on time and paid off as soon as possible. They are pretty easy to get right now and they offer low rates and hope with you they will make much money off you eventually.

You might should plan on Fix and Flip or Quick Flip right now in this economy and try to save all the money you can right now and getting into small apartment complexes are a better way to go.  The talk about needing experience to do that is a myth.  Plus, there is a pretty good chance that a smaller complex is owned by individuals who might finance the complex for you.  You might need to be creative to do that and show them on paper of how it can work for them and why they should do that. 

They will tend to be more advantageous for you and not always just think about themselves and how much money they will make off you.  If you think I can help you anyway, please contact me through this site which I am on just about everyday.

Hello Faye!  You are probably in the only place in California, if at all.  Unless you are a socialist, you probably should not be.  If I had to choose Fix and Flip or wholesaling, I would recommend Fix and Flip over Wholesaling.   I would rather see you taking a low down payment loan while doing  the minimum time as an owner-occupant in a triplex or four-plex house where the renter might at least lower your rent to make the debt payments, while adding value while you are there and managing next door places.  This also loans you for the repairs and you want to add-value while you use them.

They usually require you to live there for about 12 months. Many try to talk you into Wholesaling where there are many veterans and some of them just try to take advantage of you.  You also are better off if you will move to the hottest markets.  As soon as you feel that you have learned enough take that action.  It seems to be one of the most opinionated statement in investing.

Unfortunately, I have been bedridden for a few years and I have spent much of my time learning and I was in construction management and real estate licensure for about 30 years beforehand.  I am 61 years old now and from and risen in Dallas, Texas.  I also graduated college with honors in business.  I would like to say that I know what I'm talking about and that I see things from my honest heart.

Good luck to you!

Hello Bob!  None!  It's best to go with a "local" bank and not a national one.  All bankers are trained to say nothing but nice things.  If you find one that will say anything negative, you're lucky.  You will be better off with one that is willing to tell the truth, and not try to hide reality.  Anyone that says your house is an asset is lying, they are really a liability.  Them, the IRS employees, and the financial planners all tell you things that create income and employees, and nothing real or negative.

Good luck to you!

Hello and welcome to this site Braden!  That is a good question but do not expect them to work for nothing.  They might be OK at first, some of them, as long as you take care of them later.  Do not expect them for nothing but if they can depend on you later they might work for you and/or get paid later, some of them will work under those circumstances.

Good luck to you!

Hello and welcome to this site Andy!  I just finished a book on buying and selling apartment buildings and it included what appeared to be very useful.  He recommended a type of Partnership called "Tenants in Common".  This way you can take all control no matter what your percentage is to the total and each Partner can be given different responsibility. I think you can start off with $100,000 cash and work your way up as you have more cash and experience and can afford a professional Management Company with about 30 units. 

I agree that positive cash flow from day 1 is important.  You may have to look harder but there's a good chance to find a smaller complex that provides owner-financing which is usually more negotiable.  You might need to be more creative to satisfy the Owner's needs.  For example, you might need two notes of different time that gives him the cash he needs but is still doable from the paid rent.

Just make sure everything is done in writing that you understand.  Your exit plan will be easier if you can add value to the complex by either raising the rent or doing some kind of improvements either to the interior or the exterior.  It is important that other complexes in your subject area is what they are doing and getting for rent.  It's location and access are very important plus the parking, impression, and amenities will be important too.

Good luck to you!