All Forum Posts by: Jason James

Do you invest in the West End?

NO!

Why?

Because in this city there are much much better places to invest. The west end has little to no room for appreciation, rent increases or exit strategy. Just a bad area. You have to buy CHEAP CHEAP to make it worth your time. You can make money in the west end but I would rather make money in areas with fewer headaches. Just me...

Any advice?

Stay away from the west end and buy in other areas. If you want lower price homes I would look in the 40214 area. Good prices, nice pockets of good areas and less headache. I am buying in this area now. I am finding deals like 2-3 bedroom 1 bath homes for $15k - $20k and renting them for $700 - $750. 

@Andy Robison Yup. He did set it with some guidance from yours truly. He is a great kid. He is going to do just fine in this business. For him it is all about having support. He just felt he couldn't do it without the support. I see us working together in the future for sure. Again very rewarding. 

I just wanted to post a few pics of the house my "newbie" is working on. I have been super busy and have had limited time to be onsite to help him. He has really taken control and jumped in there. He wanted to learn how to do a few things as well so he is actually doing things like tile and such. Of course this is taking him a lot longer than normal but I really feel it’s going to help him learn a lot. When he started he had a tough time putting a door knob on and now he is setting tile. Huge improvement! He hopes to wrap the project up by the end of the month. Even with the delays I feel he will do very well on this deal. Also as I stated before it’s really fun watching someone get excited about a project and helping them learn. I would say if you have some free time or just want to get excited about real estate again mentor a newbie. It really is fun.

Sorry for the crappy pics I just snapped a few last week when I was in the area. More to come.

Personally I don't do deals in the west end of Louisville. Not to say you can't make money there I just feel there are better areas to make money in this city. All other areas are fair game in my eyes. Really just depends on your business plan and what your goals are. I always say different people like to live in different places. Just because one tenant doesn't like the west end doesn't mean another doesn't. You can just about find a tenant for any property but who knows what that tenant will be like. I am assuming you are looking to buy and hold. My thoughts. 

@Bill Schrimpf Thanks for your reply. I love Tesla and I think Tesla will have a HUGE impact on the area. I hope to be in the area in the next few month for other business. I plan on checking some areas out then. Maybe since you know the area very well we could get together. I really think once the Tesla plant gets started there will be some real money to be made. We will see... 

@Troy Cole Welcome

I too like the 40214 area. Also 40272, 40229. As always I will look at any deal you have. That’s the great part about real estate; you can get creative and turn nothing into something sometimes. Keep an open mind and be persistent. You will succeed! 

@Darrell Boaz I would add that comps (solds not actives) change frequently as real estate is dynamic. In other words a property’s value in an area today isn’t the same value tomorrow (not literally tomorrow) so you have to constantly evaluate the market/area. You have to know your market! You have to know what’s happening in the area. For example let’s say Kroger or Wal Mart is building a new store in an area where most people don’t have access to those stores. Will this help or hurt the value of your property? Basically the value of the property isn’t only dictated by the comps but also the other things happening in the area. Is a highway coming through the front yard next year??? Know your area inside and out!

I am looking at another 6 plex right now in an area that is on a bus line, 1 block away from a medical center, 1 block away from dinning and soon to be 2 blocks away from a new LARGE Kroger store that is going in a vacant shopping center. This may not have an immediate impact on the value of the building but it will surely help me keep the build occupied. The units are lower income 1 bedroom units. The addition of this Kroger will benefit my tenants greatly (if I can work the deal out).

Having a passion for real estate makes all the work of understanding your market/area fun. It's not work if you love it!

Good luck and if I can help in any way feel free to reach out. 

@Steve Babiak I am sure. No fleas. 

I agree you would think in that filth that there would be a rodent/insect problem but for some reason there wasn't on this one. We have had the house treated to be sure as we always do.

My newbie is doing great and really getting his hands dirty on this one. It'sgoing to take a little longer as I stated because I am going to let him meet contractors with me, negotiate bids and so on. I could easily use my contractors and make this super easy for him but I really feel he needs to go through all steps as if he was doing this alone. Of course I am guiding him along the way and pushing to keep things moving. It's actually more fun doing this than I thought it would be. I have been flipping properties for years and have become numb or bored with it. This has really helped me to get excited about this part of the business.

I would encourage all your experienced folks to mentor someone. It gets you pumped again and helps you stay fresh. Plus it's nice to help others and 99% of the time good things will come back your way...

@Roy N. 

Agree... Good one...

It took 2 of them to get the trash out! Not demo just trash... Gotta love it

Welcome @Kenneth Stump and @Account Closed 

I agree podcast are great. Browse the forums too.. Just dig in and you will find a wealth of information.

I will give an update on this project when I have more time.