All Forum Posts by: Richard Sherman

100% agree with @Jeremy Mangen (GREAT job man!) look at this as a way to INCREASE income to pay off those debts!

@Trinh Huynh It is time to find a local (in TX) attorney who specializes in construction defects and go after the builder and/or their bond company.  I would also consider hitting the CCB board in TX with a complaint.

Maybe 1 more call/email laying it out.  Listen, here is the new report, and I want the following

1. Repairs made and I will have them inspected

2. You are covering all costs for inspectors

3. You are covering any lost rent or other issues

4. If these are not done, I am 

A. Filing a complaint with your licensing board 

B. We will be filing suit against the builder, the selling agent and their construction insurance.

@Henry Lazerow   MAYBE some of the agency loans, but probably too small for them.  Most commercial are 5 year +5 year with a reset (float) for the second term and a loan rate cap.  All the ones I have are 30 year AM though not 25.  I would not waste my time with the major banks.  Get to local/regional banks and credit unions and ask some commercial property brokers for a local loan broker.  Good luck man!

@Nicholas Lemmond Welcome and congrats on the mind set change! It is hard to argue with rent like that! How about finding a duplex to 4 plex that you can buy and maybe live in one unit for a while (so you get the owner occupied loan) then maybe you decide to move back to the RV maybe not, you just have to INTEND to live there as your primary home. If done right, this could be done with a VA or FHA with very little down and is a low risk way to start (assuming you really get a decent deal and make sure it will cash flow to cover the loan.) GET that consumer debt paid off...it is easting you alive!

@Patrick Crehan It could be a good deal for you.  If the aunt was asking I would probably say DO NOT rent to the family unless they are 150% the RIGHT people and you want to help them get some good experience etc.  The issues that everyone has is wearing the two hats of family and renter/landlord.  if things go badly, they are family, so you will hear about it forever and there might also be boundary issues (on your side or theirs.)  Also, remember, until you tie the knot you are just the boyfriend...so you better be a freaking prince or you will never hear the end of it.

LOVE the idea of lease option etc. BUT NOT UNTIL YOU ARE MARRIED...until then do NO combine your finances in any way!

@Jay Hinrichs We have to get lunch sometime (I am buying). Willamina is my neck of the woods.  I grew up down in Jefferson and have seen most of the corn and mint fields turn into houses for commuters to Salem and Portland. 

 We split off 11 acres of the 72 acres I talked about above (Eola-Amity AVA, surrounded by vineyards, 1 mile from Hyw 99) and got the old homestead building permit renewed and approved for a home site, sold that 11 acres for $370k...we paid 325k for the whole 72 under 4 years ago (like you said, cash, was in an estate, had to close in 10 days, no inspections etc.)  The remaining 60 will go for between 10-14k and acre (so around $600,000 and $800,000k to either a vineyard or a conservation group to protect the oaks.

This is small change compared to what you are talking about but opened my eyes for value.  We took some of that money and bought 100 acres with water rights and a lake off Red Prairie (between Sheridan and Dallas OR).  Working on getting the lots combined to get a house approved (80 Acre EFU) clear the brush and sell it I think after we fix up the outbuildings.  Good place for our cattle herd while we do the work too.  

You are right though, the investment is for the big pay offs, cash flow sucks in the meantime haha.  BUt timber or Ag reduced taxes make it much better than speculating on lots.

@Steve Oswald Hopefully one of the 1031 guys will reply.  I would ask your accommodator to be sure, I am not sure if that is doable or not. 

Keep up the good work and congrats! Also, get to your local REIA/BP meetups those are gold mines for contractor referrals!

100% agreed.  The best return I have ever had was on 70 acres of what I thought was going to be my hunting preserve just west of Salem, OR.  No where near those returns...but VERY good for 4 years of holding and running cows on it.

Very interesting call out Jay, takes some long-term thinking and surplus to invest, but depending on the property (especially ag with the low taxes) you can even make a little on it along the way.  Another call out..water rights...even in OR water is an issue and will become more of one in the future.

@Jeremy Aldridge Has anyone opened probate?  I would get to the county and see if you can find any probate proceedings if you have not already done that.