All Forum Posts by: Mike Reynolds
Mike Reynolds has started 31 posts and replied 2028 times.
Post: weird to approach an investor about being their private lender?
- construction
- Nacogdoches, TX
- Posts 2,091
- Votes 1,164
Originally posted by @Kellyn Cameron:
Hey everyone,
I was just curious if it would be weird for me to approach an investor that I know about being a potential private money lender for their flipping business. I went to high school with him and just recently discovered that he is flipping properties in my hometown and I really like what he is doing and would love to help fund future deals. Do I just reach out and tell him I am interested in being a private lender on a future flip and ask him to send me some more details about his portfolio?
Kellyn
NC? His name isn't Tony by chance, is it?
Anyway, I would just approach him and see. I used to be weirded out by this stuff but now it only takes a few sentences to figure out if they are even interested or not. I had always heard that people will come to you with deals after a while. I never believed them but it's true. It IS true. It was a pleasant surprise to me. It may be to him also.
Post: weird to approach an investor about being their private lender?
- construction
- Nacogdoches, TX
- Posts 2,091
- Votes 1,164
Originally posted by @Kellyn Cameron:
Hey everyone,
I was just curious if it would be weird for me to approach an investor that I know about being a potential private money lender for their flipping business. I went to high school with him and just recently discovered that he is flipping properties in my hometown and I really like what he is doing and would love to help fund future deals. Do I just reach out and tell him I am interested in being a private lender on a future flip and ask him to send me some more details about his portfolio?
Kellyn
NC? His name isn't Tony by chance, is it?
Anyway, I would just approach him and see. I used to be weirded out by this stuff but now it only takes a few sentences to figure out if they are even interested or not. I had always heard that people will come to you with deals after a while. I never believed them but it's true. It IS true. It was a pleasant surprise to me. It may be to him also.
Post: Is This A Rental Scam? Landlord Requiring Cash Deposit
- construction
- Nacogdoches, TX
- Posts 2,091
- Votes 1,164
Am I the only one that uses an online ap? That's how I take deposits and rent. I thought I was tech challenged but I guess I am not.
Post: Basement Remodeling Project
- construction
- Nacogdoches, TX
- Posts 2,091
- Votes 1,164
Originally posted by @Dwayne McNab:
Hi BP,
I wanted to get the community perspective on remodeling a project. Does it makes sense to get a professional drawing? I am kinda confused here. I am in the process of making my basement a legal flat and wanted to know if it made sense to get a pro to outline my idea. Do you think it makes sense for such a small project?
Thanks for your input.
Buddy called it. Legally, it depends on where you live and the AHJ. Realistically, you need it. You need to have a kitchen, bath and mechanicals to make a place to live full time. How are you going to get that sewer out of that basement? On demand water heater? Be prepared to have a large breaker box OR gas hookup. You need at the least an architect who will get an engineer to handle the mechanicals. For your purpose, this isn't money spent, it is money saved.
Post: Basement now waterproofed, need help making it look great again.
- construction
- Nacogdoches, TX
- Posts 2,091
- Votes 1,164
Originally posted by @Paul Winka:
@Bruce Woodruff True, true, Bruce, good input. Not sure about your area, but I don't have a list of subcontractors that will pick up the phone and snap to it within a reasonable time to give an estimate. Just wanted to get a ballpark idea in short order to see what I'd be looking at, and HD does that for small amount, plus they do a measure so I can take that. Yikes, $5K. That's nearly as much as a the waterproofing job.
I am trying to decide what is easier and makes more sense between these two: Get spun up on laying tiles and fitting that in my busy life, or deal with the draining experience of getting a contractor to show up, give an estimate, then appear weeks or months later, do an honest job, stick to it and finish on time. 😀
If this were me, I would go to a flooring place. Every town has one. They sell flooring there, but they also have installers. Here is a trade secret for situations just like yours.
Don't tell anyone else please. Shhh
The more reputable they are (bigger showroom/better products) the better they are for your situation. They do jobs that are millions of dollars often for commercial contractors. So, how does this help you? This helps you very well. When they do a multi-million-dollar job they have to keep "attic stock" for 12-60 months. On month 61 they have all that stuff that has been paid for by the large GC/client and nowhere to install it at.
This is where you come in at. Ask them if they have any attic stock (use this term) to sell and see what it would cost to get installed. The owner will want to kiss you and dance at your wedding but won't let it show. He will tell you that he can get it installed when his guys have time (once they run low on work) for x amount of dollars. It will be way cheaper than Lowes can do it. And it probably wont take that long to get it done. They will have something that will suit your needs and be glad to get rid of it to clear the warehouse. I have done whole houses this way with different tiles for different rooms. Usually less that 2-3 dollars a foot installed. It might cost a bit more for the first few but after you build a relationship, they will call you and ask you if you need some tile or lvt for your next project. It is a great way to gain more pro's for your inner circle.
Dont always assume the cheaper places are actually cheaper. Think outside the "box"
Pun intended.
Post: Ask me your electrical questions!
- construction
- Nacogdoches, TX
- Posts 2,091
- Votes 1,164
Originally posted by @Pat L.:
@Loren Thomas saw your bump so thought I'd throw this in as a fun appliance hookup of old...
What's your point Pat? You know that it was "space age" back in the day. Don't need no stinking GFCI.
God, I feel old.
Post: Quarter Acre Lot in a Golf Coarse Community
- construction
- Nacogdoches, TX
- Posts 2,091
- Votes 1,164
Originally posted by @Palani (Pono) Wright:
Investment Info:
Other other investment.
Purchase price: $3,987
Cash invested: $5,430
Sale price: $17,900
This is a portion of the listing ad:
Wonderful, Level lot, Overlooking the 13th Green of the Flying L Golf Course * Build a home on your time schedule, or just hold on to it as an Investment, because they aren’t making anymore land in the Texas Hill Country;) Many Oak trees adorn this 1/4 acre lot and a good portion of the lot has been cleared of cedar * The lot is almost a perfect square, which is great to build on
What made you interested in investing in this type of deal?
I've been wanting to test out a new market like Texas for a while
How did you find this deal and how did you negotiate it?
I sent out a offer letter to absentee owners who owned property in the Flying L Ranch subdivision with a price I would be willing to pay for their property.
How did you finance this deal?
I self financed the deal.
How did you add value to the deal?
I looked at previous sold and listed property in the area, came up with a median valuation and than offered a percentage of what I thought the values were.
What was the outcome?
I listed it with a realtor and had it sold a few months later.
Lessons learned? Challenges?
The major lesson that I learned with this deal is I have to be more aware of the flood zones in the area. Luckily, this property was not in a flood zone but another property that I had a opportunity to purchase,( a few hundred feet away) was partially in a flood zone that could of dramatically affected the exit should I had bought that property.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, I called a few agents in the area that seemed to have a lot of land listings but found it very difficult to get any of them on the phone. My hopes would be to list this property with agent that I could use for future deals but I don't think that will happen.
If only it had been on the 18th hole you could have got more for it.
Good job.
Post: STUPID??? Rented lots for traliers.
- construction
- Nacogdoches, TX
- Posts 2,091
- Votes 1,164
Originally posted by @Champ Leong:
@Paul Moore what about the idea of my buying land and buying mobiles to put on the land to create rental income?
Paul is right. I bought and out of state park with a partner. She was all about the "extra" rental income from the park owned homes and I wasn't. I wanted to rent the lots only. But she was the face and force of the park. Let me tell you she is a force of nature too. She wont let anyone walk over her. She is my sister.
The first 6 months she was having a blast. She was going by the park every day before and after work. Every weekend for hours on end. Someone would move out and she would be in there tearing out carpet because they had 20 cats in there. Luckily, she had the Covid and her sense of smell isn't what it used to be. We spent 3-4k every time someone moved out. They would turn over every 12-24 months the previous owner said. I think he lied.
Then she ran the actual numbers and found out we were losing money by renting out the homes. People that rent mobile homes in a park are transient. People that rent mobile homes on private lots are not. That is the difference. If you have a park, then you need to rent the land. If you have a lot and want to put a mobile home on it then go for it.
Fast forward 6 months later and all our trailers are sold. She hasn't been to the park since September. She will go by next weekend because there is supposed to be a cold front coming in. If a problem arises, she will call a plumber and go home. What is your time worth? Are you doing REI to work 18 hours a day or to be independent of a job?
Post: Tax Sale Purchase... Sell or Hold? Capital gain! Waco, Texas
- construction
- Nacogdoches, TX
- Posts 2,091
- Votes 1,164
Originally posted by @Andrew Bourgeois:
Best of luck on that one bro! I've got a friend who works for Stewart Title in Beaumont if you're looking to explore other companies to see what your options are. Let me know and I'll make the connection.
I can also vouch for Stewart Title in Beaumont. Good people there and very professional on all my stuff down that way.
Post: Has anyone had trouble getting a cash out refi in Texas?
- construction
- Nacogdoches, TX
- Posts 2,091
- Votes 1,164
Originally posted by @Oswaldo Torres:
Hi everyone, I'm a new investor in Texas working on getting my first investment property.
Prior to committing to a hard money loan, I wanted to make sure I would be able to get a cash out refinance once I'm done rehabbing the property. I spoke to someone today from a national lending company and they told me that getting a cash out refinance in Texas is nearly impossible to do for an investment property.
Do any of you have experience with difficulties getting a cash out refi? If not, would you recommend using a local credit union/bank for a cash out refi over a national lender?
I haven't really had a problem. I use Texas First and they have branches all over. Mine was in the Galveston area if you need a contact in that area.