All Forum Posts by: Weston Bovee

Welcome to the best place to live, Martin!

I am a total novice when it comes to RE Investing, but I'm looking to take the plunge soon, I just don't know the avenue I want to take but that's a story for a different thread...

I recently renovated my house in Arvada (Northwest Suburb between Denver and Boulder) and we spent about $35k, here is a list of specs:

2000sq ft 3 bedroom Trilevel built in '73, redid main living area of about 1100sq ft.  Took down non-load bearing wall, added/framed a new bathroom, all new electrical, fixtures, appliances, stone countertops, 1100 sq ft of luxury vinyl plank flooring, paint, and new furniture for two main living spaces.

I spent $1200 on a drywall crew, $5000 for plumbing (had to dig up slab and replace main), $2700 for new chimney, $500 for a structural engineer and $400 for help from my electrician buddy.  We did all of the framing, finishing, floors, carpentry, etc.  

That came out to be about $32/sqft with us doing a majority of the labor so if you are going to hire a GC or sub your own specialists, it could definitely been in the realm of what Matt M was mentioning. 

Hopefully this gives you a bit of a baseline?  Good luck. 

@Joe Norman - thanks for confirming my gut... I'm a bit apprehensive about the "court house steps" method, so I'll work on understand that as I advance with my business.

@Stuart Grazier - I think I'm leaning towards a HELOC - I found a credit union that allows me to borrow 90% of my Primary Residence loan to Value (not that I would do that) of which I have $300k in equity, lock in a rate for 3, 5, or 7 years, unlock and relock as needed, no carrying fees, no prepayment penalty, etc. This is why I'm interested in the BRRRR, I feel I could be competitive with that kind of financing?

Either way, I think there are plenty of posts regarding HELOCs for Flips/BRRRR that I need to read, but I'm thinking that my question has been answered on this post - I will now contact my Real Estate Agent friend and we will refrain from getting a license for the time being.

Wow, this site moves FAST!!  

First, thank you all so much for your timely responses, I can't wait until I'm in a position to reciprocate/pay it forward!

@Steve W. - we found these by driving the area, I don't have access to the MLS... in fact that was one of the reasons the Real Estate license was intriguing - access to the MLS and being able to walk potential properties without having to contact an actual agent.

@Dan Maciejewski - thanks for the wealth of feedback... your point about the property being listed with an agent makes perfect sense for integrity purposes, I was inquiring more for the "off market" kind of opportunity. 

- Thanks for the link to the approved contract, I will definitely be going over that in the very near future

- Based on your feedback about the Real Estate License, I was unaware of the annual fees... our friend pays a ton of money every year for mentors, assistants, company legal coverage, etc. - all of which I thought was silly until now.  Perhaps the best course of action is to finally make contact with her and explore our options.  I just have Rockefeller's quote in my mind: "A friendship built on business is far greater than a business built on friendship" or something like that.

- I love the advice regarding the lowball... consider that one stored in the memory banks for good

@Kent Lord - East Arvada is EXACTLY where I found these... I live in North Arvada so in the interest of starting local, I have just been driving the areas that I feel I can afford an investment property.  

- Unfortunately, my sons are NOT handy at all, but this will be a great reason for them to become so.  We recently redid our entire primary residence and I did all the work with them assisting (using this term loosely) and it is fair to say that they have A LOT to learn but they are a cheap (and strong) resource.  Maybe once they get some experience under their belt? 

Hello, am just getting in to the realm of Real Estate Investing in the Denver, Colorado area and I'm here to ask a question about a particular aspect of finding a good deal...

Currently, I have a W-2 job in sales that yields a healthy income - I am 100% commission so I don't have a cap on how much I can (and can't) earn and in this roll. I work from my home/the road and have tremendous flexibility so I'm thinking that this bodes well for a BRRRR or flip style of engagement since I can be more available to refurb the property than someone who has to report to an office. On top of this, I have two sons that are 20 and 22 that I'm trying to teach the value of passive income to that I can use as "employees" on the refurb - both of whom have money of their own to potentially put down on a deal as a "partner".

My question is centered on how to make an offer on a potential property... I have found a few that I think would be good but it seems crazy to offer so far below their asking price in order to make the math work - ([.7 x ARV] - repair costs). We have a good friend that is an agent in the area who also works with investors... but I have been hesitant on approaching her prior to knowing a bit more about the process so as to not waste her time.

In addition, my wife does not work so we have ample time to invest in research and education but when we find a potential deal, we are a bit stumped on how to proceed which brings me to my actual questions (finally):

If we find a potential deal, can we approach the owners of the property to make a low ball offer directly or do we need to go through an agent?  If we need to go through an agent, should either my wife or I invest in getting our Real Estate License (most likely my wife)? 

I have been listening to the BP podcast in chronological order from #1 so that I can learn in an organic matter and so far I have heard a lot of anecdotes about, "knocking on the door and asking if they want to sell their house" and, "buying on the courtroom steps", but what I don't understand is how these offers are actually made?  Do buyers/investors simply interface with the current owners and make a deal that in turn is brought to an agent, or is it all through agents from start to finish?  

I want to start making offers on some properties but I don't want to do so in a way that is going to guarantee failure, so perhaps obtaining a license is best - for practical and educational purposes?  Any assistance is appreciated!  

I'm very new (a couple of weeks) to BP, and equally as new to investing and I honestly have no idea what I'm doing, but I'm diving in so that I can immerse myself in the culture.  I'm not sure if this will be applicable for me/you but I'm willing to give it a try and learn from it. I'm in the Denver area as well.