All Forum Posts by: Dustin Young

This is something I intend to start doing this year, 2023. I’m currently building out my team. Let me know what your interest is, maybe we can work together in some fashion 

I am in the middle of this same search. I have one referral to SVA like @Rebecca Knox mentioned. The other is Eclat Enterprises a REIA referral

As an agent I can't define "good" for you. What are your criteria?

1. Property type

2. Budget

3. Will you be local or need a team?

4. Investment strategy?

Have you narrowed your scope? 

Try searching groups on FB (brew city rei, landlords of mke, etc)

Are you pre-approved with your lender so you can act quickly?

I’d gladly offer a second set of eyes on a showing or analysis if you’d like. 

The first go around of refinancing was fine, same bank, no issues, easy peasy. The second time around which is coming up we received a letter that they didn't want to extend the terms and the balance would be due upon completion of the 5 year term. However...because of my new career in investment real estate and a portfolio that has grown my banker has offered to treat it like any of my other properties. It should be rolled in my commercial portfolio. But I have until June for them to change their mind... Good luck!

Investment Info:

Office Space buy & hold investment in Racine.

Purchase price: $275,000
Cash invested: $37,500

3 commercial buildings with 1.5 acres on 1 parcel.
3200sf daycare with full basement
5700sf office with full basement
4500sf shop with 10' drive through doors
Been vacant for 5+ years

What made you interested in investing in this type of deal?

I could see the potential. All 3 buildings were vacant, 2 with water damage to the basement, 1 still had 6-8" of standing water. All 3 had new roofs in 2014 so I knew the water problems were most likely resolved.

How did you find this deal and how did you negotiate it?

MLS. I made a really low cash offer and a more reasonable offer with financing.

How did you finance this deal?

Partner and I split the down payment and used private money for the balance.
Personal money for repairs

How did you add value to the deal?

Renovate and rent out

What was the outcome?

still working on it but we had two tenants ready to go before a single hammer was swung

Lessons learned? Challenges?

60 days to close on commercial is not enough

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Me!

I sent @Brandon Turner an instagram DM about a month ago summarizing my first year in real estate. He then shared it and @David Greene asked if I shared my story here on the Success forum. So here goes!

I closed on my first (intentional) real estate investment 13 months ago now. Since then I've acquired a total of 31 doors (a little bad math on IG where I said 30). I have 5 single family, 1 duplex and (what will be) 24 units. Once my 5th SF and the 24 unit are fully rehabbed and rented I should be around $20k/month in gross rents.

A lot of the questions I got from IG I'll answer here:

1. How did you do it?

Well, it's my full time "job" at this point. But how I did it was patience, perseverance and action. 

Patience: I've been a member of BP and my local REIA for much longer than a year so I got a lot of education first. I haven't listened to all of the podcasts but well over half. I've read a dozen or so books.

Perseverance: I don't even have a count of how many showings I dragged my agent to before pulling the trigger.

Action: I finally did it! Brandon continually says how you need to get the first deal to get to the second deal. My first deal was an education in and of itself.

2. How did I pay for it all?

This is the part of my story that isn't repeatable as it involves getting run over by a truck and Flight for Life. I am a former FedEx Ground contractor. I grew from one route and truck in 2004 to 30. In 2014 after a work accident I sold about 20 of them I owned locally to recover and enjoy my family. In 2018 I decided to sell the remainder. It was the proceeds that funded my real estate deals. My first deal was a $20k C class single family, that part is repeatable. Nothing glamorous. If you want the gory details on the accident I have a Note of my FB page facebook.com/dnamke

3. How did you find your deals?

3 on MLS

2 Sheriff Auction

1 Wholesale

1 Private

In the Milwaukee/Racine area.

4. Gross is great but cashflow is king...

Yes $20k/month sounds impressive but what's my cut? After PITI and 2 full time employees there should be about $6k leftover. Not quite enough for the Mrs to quit her job but it's only my first year...

As an added bonus I also BRRRR'd a bundle of my properties. The one private sale SF I doubled my money on with a mere drive by appraisal 2 weeks after closing and no work done. Not too shabby!

Anything I missed? Feel free to ask here.

Investment Info:

Single-family residence buy & hold investment in Milwaukee.

Purchase price: $22,000
Cash invested: $12,000

Former duplex converted to single family (4 bedroom, 2 bath, partially finished basement). The conversion process was completed before me and makes for an interesting story. I met the owners back in September but couldn't get the deal done then. Fast forward to January when I called again out of the blue and they were ready make a deal.
Work done: installed new flooring, new kitchen, new bathrooms, and new doors throughout. Should rent for $1000-1200.

What made you interested in investing in this type of deal?

I own 5 other properties nearby

How did you find this deal and how did you negotiate it?

Private sale

How did you finance this deal?

HELOC

How did you add value to the deal?

installed new flooring, new kitchen, new bathrooms, and new doors

What was the outcome?

Should rent for $1000-1200.

Lessons learned? Challenges?

Follow up is key! Demo doors BEFORE installing new flooring.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, me!

Well done! I just left FedEx last week after 14 years. I have acquired 8 doors since March. I’m hoping to be around 50 by this time next year. 

I own 2 properties in Williamsburg (Vienna & Port, Vienna & 4th) I also own 1 on Ring & 3rd. I agree with Mike, property quality can be hit or miss but finding tenants hasn't been an issue.