All Forum Posts by: Michael A.

Any chance that an insurance policy (umbrella or otherwise) can help cover this fraudulent activity? 

Bumping this thread in the hope that I can get some advice. 

About to close friday. Buyer was victim of wire fraud. Wired entire down payment to a fraudster. They are talking with their bank but I'm not sure if they can help. However, they have a recently-purchased umbrella policy. Is there any hope at all that their liability insurance can help with this? The buyer is a close friend and I feel absolutely terrible that this has happened. Everything described in this thread is exactly what played out. I am shocked...and it is a sobering reminder for us all. 

@John Pierce I was preparing to help someone navigate this process last year for a lot split and new townhouse construction. Financing stalled their particular project however.

@Bryan Devitt Excellent advice here. My big takeaway right now is that unless you’ve structured something with good numbers it is best for someone with very limited funds like me to keep saving for my next buy and hold rather than taking on a higher risk new construction project.

@Bryan Devitt Your perspective is precisely why I felt the need to reach out to this community. I’m 75% done with saving for my second property. Likely best to pursue that route as I expand my portfolio. And yes, my aim is to build a business and not necessarily amuse myself through pet projects. I also thought to myself at one point that it would be great to build a rental portfolio that one day could help finance new construction with its revenue. Patience is a virtue I suppose. Again, thanks for the input.

@Josh Twaddle While I am not in TX, I did this in my home town and it was the single most rewarding thing I could have done! Good luck in your endeavors and in hearing sound advice in person from someone like minded!

@Marcus Auerbach I appreciate the insight. On paper it is all about the lot price to me right now. The small area I’m interested in working has flips selling in the $100 to $120 per square foot range very quickly.

I am simply chasing the desire to design and build my own simple work. If I build these skills in a lower risk scenario then I am hoping to not only take a small return away from it, but valuable experience as well that I can hopefully scale.

I am confident that I can build for just under $100/sf and sell in the $125/sf range. I am not sure that leaves much room for a return right now.

Experienced spec SFH builders - what is your best advice for someone who wants to build small properties in C neighborhoods that are gentrifying? I am an architect and have always wanted to finance and build my own work. I closed on my first rental in my city recently and have my sights set on this as a next step in my career. Really appreciate the insight.

John - what are you currently doing to collect rent? Just wondering. I am looking for the best online collection option. Lots of good stuff said about Cozy, Tellus, etc. but there are seemingly some risks. 

Thanks very much @Catherine Emert - I think that will be the best approach.