All Forum Posts by: Sam White

I think BP fosters unrealistic expectations in the same way that gyms foster unrealistic expectations. If I am new to the gym routine, and Sometimes when I go to the gym I see the chiseled bodies and let my trainer know I want only the routines that will make me look like that in a few months, a good trainer would set my expectation, and remind me that these people with incredible results have been working at it for years. Also, I think the average real estate agents are really, really bad at finding good investments. They are looking for off market discounts, because that's what the pros they follow on here are getting. But they are looking on the open market, where everyone is pushing up price.

Hey BiggerPockets!

I just wanted to drop a quick note this morning.  I am at the Inside Self Storage (ISS) Expo in Las Vegas this week.  (I just made my first Tweeter.)  This trip marks MANY goals accomplished.

 1.  On the plane ride here I finished "THE Book on Tax Strategies for the Savvy Real Estate Investor" by Amanda Han and Matthew MacFarland.  Great book. Must read if serious about keeping your money.

2.   Over a year ago, I made the decision that I was going to acquire a self storage business within my market (Dallas/Fort Worth).  I spent about a year researching the industry and walking properties.  Back in October, 2016, My business acquired its first storage facility (80 units).  I will do a separate post with numbers and deal info soon.

3.   I left corporate life over a year ago, and I am still alive!  I used to travel every other week in B2B sales.  I loved it for a while, but it started interfering with my life and the things I truly cared about.  I love traveling.  But on my terms, of course.  I told myself, "one day I will travel because of MY business.  By my choice."  Now, using the cash flow from a good investment to fund a trip out here to learn more about real estate. 

I learned so much and continue to learn everyday in my single family and small multifamily investments.  

The county raises property taxes on me ... And I'm good owner. So yes. I do. But I raise it incrementally and give them a respectful notice in person.

The smart newbie silently collected everyones "two cents" on this thread and has their down payment now.

#humble

Maybe you're not a good salesman.

Way to go man. That's a beautiful little property based on the pics. One units are my favorite. Rent to young professionals with no kids!!!

I think this is a great story. Some people are really bad judges of character and they should just stick to the numbers. But if you can read people and feel in your gut that you are making the right decision, give people a chance. It also helps to be in a landlord friendly state. In case you turn out to be wrong you can evict them. My best tenant ever had a felony on their record.

I have a friend who lives out of state and owns a college rental in Texas. 

I am a landlord and have my Texas Real Estate license.

He has asked me to help him sell his house.  My license is hung at the commercial brokerage I work at.  So my broker doesn't sell houses.  Being an investor I have bought and sold my own property under my license, etc. 

Any advice?

I have thought of buying the deal myself.  The house is in an area that suggests ARVs of $575k-600k based on price per sqft.  At the moment I am not liquid enough to put 25% down of the project LTC loan.

So 2 question summary:

1.  If I want to sell this house, but my license is hung at commercial brokerage, how do I navigate?

2. Would I be better off putting under contract with my landlord LLC and trying to creatively finance, with the exit strategy of reassigning contract if that fails?

ARV: $580k

Repair: $55k

Purchase:  $460k

@James You


That's a negotiation. 10% of the true profit is what I aim for if the person is just fronting money. 

As you get better and more trustworthy you can work down, but in order to secure money on the first deal, you really have to entice the PM investor

EX:  house buy at $100k with 30k in work

ARV: $190k

Hard-money at 12% interest only = $1,300/mo holding cost

Private money at 7% interest only = $758/mo holding cost

(not to mention the 1-3 points a hard money guy charges up front) $1,300 - 3,600 up front

so lets say a perfect deal and you spend exactly what you budgeted, and because your a newb it took you 6 months to flip and net $50k after paying the agent.

With hard money you paid $7,800 in holding and a couple grand in points, lets call it $10k in finance costs with hard money.

With private money you paid $4,548 in holding, and no points, but you gave him 10% of the profit ($5,000). 

So in reality, you did not save that much money.  A few hundred bucks, or virtually even.

However, you cut your monthly holding in half and paid your money partner his bonus after you made profit.  The hard money lender collects his bonus on you before you ever touch the house.

I know which relationship I prefer.   However, I still have a hard money guy, because options make you stronger.