All Forum Posts by: Travis Estes

So, maybe someone can let me know if this seems like it would work.  I've used hard money in the past to finance larger deals, and the hard money lender I worked with said they can do a $500 fee, 14.9% cashout to 80% so that I can then rate and term refinance.  Has anyone ever used a similar method?  Seems to be that the hard part is finding someone who does cash out on appraised value, instead of just purchase price.  So this seems like a good workaround.  Thoughts?

Thanks @Tanja Davidson, it was a lot of work but very rewarding.  And the sale of that has enabled me to take on subsequent projects as well.  I thought my wife may die from the stress of it all though!

I had a piece of land in Flagstaff that I bought from a neighbor adjacent my vacation home out in Mountainair.  I bought it as it really increased the size of my lot and gave me 2/3rds of the cul-de-sac.  I decided to split off a 6,500SF section and build a spec house on it.  I didn't know the hurdles I'd need to jump through to get it done!!!

First off, during the survey to do the lot split we discovered that we had a property line dispute with the national forest service!  There was a lot of behind the scenes workings but in the end it took a signature from Obama on a bill in which the sale of the disputed land was earmarked.  So this one took authorization all the way from the top.

Additionally, soil testing came back bad and I had to do a pretty expense alternative septic system.  Not only that, but I was limited to 450gal/day so I had to lose the shower in my downstairs bathroom making my house a 3bed / 2.5bath house.  Other hurdles I faced was getting several variances.  Due to the size of the septic I needed two set back variances as well as a variance to have my driveway come off the street instead of the cup-de-sac.  

In the end I built a house that I designed and it came out wonderful.  It was a "contemporary cottage" concept house.  A 12/12 roof with a 4/12 shed dormer across the front, three tone exterior paint (two shades of grey and white trim), a wonderful passive solar design that helped land me a sustainable design award with the county, and so much more.  We put granite on all counters, porcelain tiles downstairs, walnut flooring upstairs, and we included 3 beautiful handmade black walnut barn-doors as well.  I'll probably post pics on my profile soon to show it as it is really a beautiful house.  

It sold to the first viewer for $100 over asking price.  She's now our neighbor when we head of to Flagstaff to escape the heat.  In all, from design to sale, this project took me about 4 years to get off the ground.  But after going through so many hurdles I feel like I can tackle any project now.

Anyway, that's the story of my first major project!

@Denny Robert sorry I tagged you wrong in my last reply (I was using my mobile).  Yes, I'd love to meet up.  Send me a message and we can schedule.

No problem @Ronin Crimmons

My thought process is like this. First, determine the total cash flow after PITI and maintenance. If one is much larger than the other I'd consider going for the greater cash flow. However, the more expensive house will be a greater liability if you end up with tenants who don't pay you. If you dont think you could swing the mortgage if the tenants skipped rent payments I'd be wary. If you can swing those payments then the more expensive house will provide more income when you have the mortgage paid off and retire. So, it's a matter of initial cash flow, ability to carry the debt unsupported, and long term investment goals. You'll have to decide the right balance for you.

@Denny Robert sure I'd love to meet up. I'm pretty slammed this week as I'm finishing a big project at work but maybe this weekend or in the evening next week would work. 

I have done one successful real estate project in Flagstaff.  I designed the home, built the home, won a sustainable design award, and sold it for an excellent profit.  I have experience with remodels as well but mainly as a contractor and not the owner/investor.  I also have done one condo remodel in Phoenix that went very well.  

I'm currently in the works on 2 more projects in Phoenix.  They are very architecturally interesting custom homes on South Mountain.  I would be interested in getting bids from some GC's in Phoenix as I don't have connections here like I do in Flagstaff.  

I'm also looking to find more projects to flip or even do some new construction development.  I'm also interested in stepping up to commercial properties, perhaps a small apartment complex.  I'd really like to find some people to partner with so I can tackle larger projects sooner than later.  I have a lot to bring to a team.

I am a Construction Manager by trade.  My day job is working as an Engineer for a national general contractor.  I have about 300 million in construction under my belt as an Engineer.  I've also been a Mortgage Banker and had lots of success in that until the crash in 2007 after which I decided to make a career change and become and Engineer.

Looking forward meeting some of you.

Thanks!