How to get to $30k/month if you were me?

[Account Closed]

Hello! I've learned so much on BP, mostly from lurking over the last few years as I prepare to shift full time to RE. I'm curious to tap the brain trust here on any angles I may not have considered. Would love to hear your thoughts or strategies if you were in my shoes. 

I am 40, a creative director burnt out on the advertising industry, and ready to do construction/RE/rentals full time. I think the world needs more homes, and I want to be more involved in providing people a place to live. I believe builders and landlords do the country a service. 

My question: What's my best angle to dive into RE, given my skills and assets? I have the sense that I have a lot of good building blocks to work with, and I have some strategies I'm considering (like build and hold), but I would love the thoughts of the community. 

My goal:

Net worth of $10M, or $30k net monthly income.  I think this is a modest goal, in this day and age. 

What I have to work with: 

- An LLC (currently just run STR taxes through this)

- A Type S Corp (I run my ad business through this, but will shift it over to construction)

- A General Contractors license in the state of Oregon, tied to Type S Corp (have had and maintained since July of 2022)

- A construction skillset. Have built a couple dozen homes since my early 20's, on the side as specs and for us personally. I have tools for everything from concrete forms to finish carpentry.  

- Two homes: a primary residence and second home that we STR most of the year when we're not there. Both in Oregon. One worth $600k, one worth $400k. Combined debt on them is $394k.

- A $300k HELOC on the second home, at prime + 3% with a 20 year draw period. Balance $0. Just closed on this, and it's the final piece in my plan for a career shift.

How would you reach my goal, if you were me, starting with these tools and experience? I guess I'm hoping for ideas other than "use the HELOC to finance construction of a spec house, rinse and repeat."

Sorry this post is so long, no need to reply unless it's interesting or a fun thought experiment for you. TIA, and thanks so much to this community for the generous sharing of knowledge. One of my favorite places on the internet for keeping it real. 

[Jonathan Bock]

[Jonathan Bock]

@Account Closed

Tell us some more if you are able too? We are trying to fill in a rather wide wealth gap

[Chris Seveney]

@Tyler Brain

Curious why you chose $30k/mo - as you get older do you really need $30k a month to live?

Let’s at that’s the magic number which is $360k/yr

You would need $3.6M in cash at 10% to get to that number. How to get to that number is the real question which for most doesn’t come from passive income but from active income - so that is where I would put the focus

[Jay Hinrichs]

well thats a long slog trying to do it with rentals.

and the limited amount of captial you have currently which from your post is borrowed money .

To me you need to find land develop it and build it out.. thats where you will make big to bigger bucks the quickest then peel some profits off if you want to get into the rental game.

[Robert Ellis]

Quote from @Account Closed:

Hello! I've learned so much on BP, mostly from lurking over the last few years as I prepare to shift full time to RE. I'm curious to tap the brain trust here on any angles I may not have considered. Would love to hear your thoughts or strategies if you were in my shoes. 

I am 40, a creative director burnt out on the advertising industry, and ready to do construction/RE/rentals full time. I think the world needs more homes, and I want to be more involved in providing people a place to live. I believe builders and landlords do the country a service. 

My question: What's my best angle to dive into RE, given my skills and assets? I have the sense that I have a lot of good building blocks to work with, and I have some strategies I'm considering (like build and hold), but I would love the thoughts of the community. 

My goal:

Net worth of $10M, or $30k net monthly income.  I think this is a modest goal, in this day and age. 

What I have to work with: 

- An LLC (currently just run STR taxes through this)

- A Type S Corp (I run my ad business through this, but will shift it over to construction)

- A General Contractors license in the state of Oregon, tied to Type S Corp (have had and maintained since July of 2022)

- A construction skillset. Have built a couple dozen homes since my early 20's, on the side as specs and for us personally. I have tools for everything from concrete forms to finish carpentry.  

- Two homes: a primary residence and second home that we STR most of the year when we're not there. Both in Oregon. One worth $600k, one worth $400k. Combined debt on them is $394k.

- A $300k HELOC on the second home, at prime + 3% with a 20 year draw period. Balance $0. Just closed on this, and it's the final piece in my plan for a career shift.

How would you reach my goal, if you were me, starting with these tools and experience? I guess I'm hoping for ideas other than "use the HELOC to finance construction of a spec house, rinse and repeat."

Sorry this post is so long, no need to reply unless it's interesting or a fun thought experiment for you. TIA, and thanks so much to this community for the generous sharing of knowledge. One of my favorite places on the internet for keeping it real. 

 I'm much younger and have 20k a month goal. I'd look at land value and land development to capture substantial upside, I'd look at 50+ unit deals for entitlement, I'd self perform land acquisition and land development in a midwest market like columbus that allows for substantial gain and represents a more stable long term growth, but when you break down the industry new construction is very stable you are already doing that by just working in new construction. you'd essentially be the developer on a larger deal you could do that in one deal. lol 

[James Wise]

Quote from @Jay Hinrichs:

well thats a long slog trying to do it with rentals.

and the limited amount of captial you have currently which from your post is borrowed money .

To me you need to find land develop it and build it out.. thats where you will make big to bigger bucks the quickest then peel some profits off if you want to get into the rental game.

 It's a pretty wild question... hey, I got a small amount of money and I've built a few houses, how do I create a $10 million dollar business............Having said that, I agree that this would be the most likely path given the amount of info you provided about your skillset. Having said that, the probability that this happens is fairly low, $10 million dollar businesses don't just pop out of nowhere.

[Account Closed]

Quote from @Jonathan Bock:

 Ha, perfect! Yes, exactly. 

[Account Closed]

Quote from @Jay Hinrichs:

well thats a long slog trying to do it with rentals.

and the limited amount of captial you have currently which from your post is borrowed money .

To me you need to find land develop it and build it out.. thats where you will make big to bigger bucks the quickest then peel some profits off if you want to get into the rental game.

Thanks Jay! And other folks for replying. I must have a setting wrong, as I didn't get notified by these.  

I think the $10m goal is distracting from my main curiosity on whether there were specific ways in, in my situation. I'll edit the original post. 

And I like the idea of bigger scale developments, and am going to educate myself here.

Maybe a better initial question would have been something like this: Many/most cities/towns in Oregon now (by law) allow you to build three doors on any SFR lot (duplex, plus ADU). Many commuter towns (ie. Albany, or Lebanon, or Prineville) still have relatively affordable lots.

For easy math, if I build one triplex a year for the 10 years, I'll have 30 doors. If those doors average $1k month income, that's $30k/month. Using the next ten years and the snowball method to pay them off. At that point - won't it be at $30k/month, adjusted for inflation?  Seem like a good plan?  

[Dan H.]

You are basically mid career and looking at non passive means.  As a creative director, GC, experienced builder you have a rare base.  

Some things to consider:

- use that creative side to find something that leverages AI technology that less creative people cannot see. 
- investigate use of 3d printing in development.   You could potentially invest in a 3d printer for development and use that creative side to market it.  It may not be total pivot from your current occupation but you could be self employed. It looks to have a promising future especially for those that can market it to the masses. 
- sophisticated value adds: development, TIC/coop, take advantage of localized regulations (2 off the top of my head: San Jose lot split for ADUs, San Diego city unlimited ADU count in existing conforming building), etc. note some localized regulations require creativity to envision. - other creative paths. For example how does the tic/coop differ from the new San Jose lot split? The most impactful way is financing. Creative solution to the tic/coop financing and you have a value add that you can leverage to riches beyond your stated goals.

I suspect a more creative person than me could expand this list.   That is your strength.  If you come up with a good creative idea or pursue one or more of my suggestions, pm me. 

Btw I do not know much of your background but know your stated goals are possible for many if they are willing to work it and take calculated risks.  My 21 year old son literally has worked 2 months at w2 in his life making very little money (at pet boarding place) but has over $200k from entrepreneur and side hustles that he has creatively recognized.   This while getting his degree from UCSB (so part time entrepreneur).  This includes subleasing his bedroom while at ucsb and sleeping in his car.  It is a good start.  I fully expect he will achieve your goal even if he does not inherit anything from me.  

Good luck

[Jay Hinrichs]

Quote from @Dan H.:

You are basically mid career and looking at non passive means.  As a creative director, GC, experienced builder you have a rare base.  

Some things to consider:

- use that creative side to find something that leverages AI technology that less creative people cannot see. 
- investigate use of 3d printing in development.   You could potentially invest in a 3d printer for development and use that creative side to market it.  It may not be total pivot from your current occupation but you could be self employed. It looks to have a promising future especially for those that can market it to the masses. 
- sophisticated value adds: development, TIC/coop, take advantage of localized regulations (2 off the top of my head: San Jose lot split for ADUs, San Diego city unlimited ADU count in existing conforming building), etc. note some localized regulations require creativity to envision. - other creative paths. For example how does the tic/coop differ from the new San Jose lot split? The most impactful way is financing. Creative solution to the tic/coop financing and you have a value add that you can leverage to riches beyond your stated goals.

I suspect a more creative person than me could expand this list.   That is your strength.  If you come up with a good creative idea or pursue one or more of my suggestions, pm me. 

Btw I do not know much of your background but know your stated goals are possible for many if they are willing to work it and take calculated risks.  My 21 year old son literally has worked 2 months at w2 in his life making very little money (at pet boarding place) but has over $200k from entrepreneur and side hustles that he has creatively recognized.   This while getting his degree from UCSB (so part time entrepreneur).  This includes subleasing his bedroom while at ucsb and sleeping in his car.  It is a good start.  I fully expect he will achieve your goal even if he does not inherit anything from me.  

Good luck

I just saw a news clip that San Jose CA is going to allow those that do ADU's to sell the ADU's like condo's I suspect those will be HUGE money makers in that market. .. we have done this a lot in Charleston SC they call it a Horizontal regime.. Although the back house is larger than a typical ADU.. And in Portland Or.. you can really cram the density in on smaller lots.. I built 3 homes on a 50X 100.. full size homes.. now the lot did go street to street so there is that.

[Account Closed]

Quote from @Dan H.:

You are basically mid career and looking at non passive means.  As a creative director, GC, experienced builder you have a rare base.  

Some things to consider:

- use that creative side to find something that leverages AI technology that less creative people cannot see. 
- investigate use of 3d printing in development.   You could potentially invest in a 3d printer for development and use that creative side to market it.  It may not be total pivot from your current occupation but you could be self employed. It looks to have a promising future especially for those that can market it to the masses. 
- sophisticated value adds: development, TIC/coop, take advantage of localized regulations (2 off the top of my head: San Jose lot split for ADUs, San Diego city unlimited ADU count in existing conforming building), etc. note some localized regulations require creativity to envision. - other creative paths. For example how does the tic/coop differ from the new San Jose lot split? The most impactful way is financing. Creative solution to the tic/coop financing and you have a value add that you can leverage to riches beyond your stated goals.

I suspect a more creative person than me could expand this list.   That is your strength.  If you come up with a good creative idea or pursue one or more of my suggestions, pm me. 

Btw I do not know much of your background but know your stated goals are possible for many if they are willing to work it and take calculated risks.  My 21 year old son literally has worked 2 months at w2 in his life making very little money (at pet boarding place) but has over $200k from entrepreneur and side hustles that he has creatively recognized.   This while getting his degree from UCSB (so part time entrepreneur).  This includes subleasing his bedroom while at ucsb and sleeping in his car.  It is a good start.  I fully expect he will achieve your goal even if he does not inherit anything from me.  

Good luck

 Thank you for taking the time to reply, and for your general optimism. 

This is exactly the kind of thinking/ideas I was curious about. Pain points that I'm not yet aware of in this space, that I can potentially approach differently/with a new perspective. TIC/Co-op/condo type financing is an interesting angle I had not yet considered as a value add possibility. I need to connect with a bigger scale developer start to finish on a project to see how and where 3D printing could streamline there, but I love this idea. I'm working with a local engineer on finalizing a couple of ready to build ADU/triplex plans that I designed specifically for Oregon for my own uses, but you've got me thinking re: scale in general.

Will have to mull this over - thanks again for the reply. 

[Account Closed]

I just saw a news clip that San Jose CA is going to allow those that do ADU's to sell the ADU's like condo's I suspect those will be HUGE money makers in that market. .. 

I feel like if they can streamline the titling and financing on this kind of thing, this a big potential path for Millenials/Gen Z to jump in to ownership, to @Dan H.'s point above.  I feel like I don't go a day without seeing an article wondering how Gen Z will ever own homes - this and the cottage cluster concept seem like a good start. Thanks for the thoughts. 

[Jay Hinrichs]

Quote from @Account Closed:

I just saw a news clip that San Jose CA is going to allow those that do ADU's to sell the ADU's like condo's I suspect those will be HUGE money makers in that market. .. 

I feel like if they can streamline the titling and financing on this kind of thing, this a big potential path for Millenials/Gen Z to jump in to ownership, to @Dan H.'s point above.  I feel like I don't go a day without seeing an article wondering how Gen Z will ever own homes - this and the cottage cluster concept seem like a good start. Thanks for the thoughts. 

a few builders have done cottage clusters in PDX.. market is not accepting them and as such you wont see many more since they are not penciling out.

[Dan H.]

Quote from @Jay Hinrichs:

Quote from @Dan H.:

You are basically mid career and looking at non passive means.  As a creative director, GC, experienced builder you have a rare base.  

Some things to consider:

- use that creative side to find something that leverages AI technology that less creative people cannot see. 
- investigate use of 3d printing in development.   You could potentially invest in a 3d printer for development and use that creative side to market it.  It may not be total pivot from your current occupation but you could be self employed. It looks to have a promising future especially for those that can market it to the masses. 
- sophisticated value adds: development, TIC/coop, take advantage of localized regulations (2 off the top of my head: San Jose lot split for ADUs, San Diego city unlimited ADU count in existing conforming building), etc. note some localized regulations require creativity to envision. - other creative paths. For example how does the tic/coop differ from the new San Jose lot split? The most impactful way is financing. Creative solution to the tic/coop financing and you have a value add that you can leverage to riches beyond your stated goals.

I suspect a more creative person than me could expand this list.   That is your strength.  If you come up with a good creative idea or pursue one or more of my suggestions, pm me. 

Btw I do not know much of your background but know your stated goals are possible for many if they are willing to work it and take calculated risks.  My 21 year old son literally has worked 2 months at w2 in his life making very little money (at pet boarding place) but has over $200k from entrepreneur and side hustles that he has creatively recognized.   This while getting his degree from UCSB (so part time entrepreneur).  This includes subleasing his bedroom while at ucsb and sleeping in his car.  It is a good start.  I fully expect he will achieve your goal even if he does not inherit anything from me.  

Good luck

I just saw a news clip that San Jose CA is going to allow those that do ADU's to sell the ADU's like condo's I suspect those will be HUGE money makers in that market. .. we have done this a lot in Charleston SC they call it a Horizontal regime.. Although the back house is larger than a typical ADU.. And in Portland Or.. you can really cram the density in on smaller lots.. I built 3 homes on a 50X 100.. full size homes.. now the lot did go street to street so there is that.

 To the best of my knowledge it is one lot split.  You cannot split and split again. Seems like an outstanding opportunity for those who see the possibilities, can property evaluate the risk/reward opportunity, and can execute.

Every suggestion that I had in my post I believe has large possibilities but because the San Jose ADU lot split rule is already approved, it seems like an almost cannot miss (assuming no RE crash). Best option is likely to buy RE with an already existing detached ADU. Split using new law. Sell the property purchased as single property as 2 properties. I would think besides the bureaucracy of splitting, the most effort in this scenario is maybe utilities require splitting. Buying existing ADU will be much faster and typically cheaper than adding the ADU. Prices are real high in San Jose so many will need a financial partner. But if you successfully do a couple of these with significant profit, finding financial partner will get easier.

I know a developer that has successfully gone full cycle using the San Diego ADU law that allows max AduS to legal existing space likely over 10 times. They buy apartments with significant ratio of garages and convert garages to studios or 1 BR. For managing I dislike studio and 1 BR but they have best NOI for highest dollar at exit.

3d printed structure are cheaper than conventional build and less prone to disasters.  Seems highly likely to have significant growth.  

In my market they just approved a large development for a secondary airport (Brown Field).  It is likely any investment in that area will out perform larger market.

Note if someone can creatively address the tic/coop financing issue, they could virtually split anywhere.   No restriction to places with unique laws such as San Jose.

There is  abundance of opportunities.  Recognizing and acting on them in a smart manner is the challenge  

Here is another prediction, those that recognize the value in my post already have a plethora of opportunities.  Virtually all of those who believe there are few opportunities will get no/little value from my post. 

If it gives one investor an unrecognized opportunity then great. 

Best wishes

[Jay Hinrichs]

Quote from @Dan H.:

Quote from @Jay Hinrichs:

Quote from @Dan H.:

You are basically mid career and looking at non passive means.  As a creative director, GC, experienced builder you have a rare base.  

Some things to consider:

- use that creative side to find something that leverages AI technology that less creative people cannot see. 
- investigate use of 3d printing in development.   You could potentially invest in a 3d printer for development and use that creative side to market it.  It may not be total pivot from your current occupation but you could be self employed. It looks to have a promising future especially for those that can market it to the masses. 
- sophisticated value adds: development, TIC/coop, take advantage of localized regulations (2 off the top of my head: San Jose lot split for ADUs, San Diego city unlimited ADU count in existing conforming building), etc. note some localized regulations require creativity to envision. - other creative paths. For example how does the tic/coop differ from the new San Jose lot split? The most impactful way is financing. Creative solution to the tic/coop financing and you have a value add that you can leverage to riches beyond your stated goals.

I suspect a more creative person than me could expand this list.   That is your strength.  If you come up with a good creative idea or pursue one or more of my suggestions, pm me. 

Btw I do not know much of your background but know your stated goals are possible for many if they are willing to work it and take calculated risks.  My 21 year old son literally has worked 2 months at w2 in his life making very little money (at pet boarding place) but has over $200k from entrepreneur and side hustles that he has creatively recognized.   This while getting his degree from UCSB (so part time entrepreneur).  This includes subleasing his bedroom while at ucsb and sleeping in his car.  It is a good start.  I fully expect he will achieve your goal even if he does not inherit anything from me.  

Good luck

I just saw a news clip that San Jose CA is going to allow those that do ADU's to sell the ADU's like condo's I suspect those will be HUGE money makers in that market. .. we have done this a lot in Charleston SC they call it a Horizontal regime.. Although the back house is larger than a typical ADU.. And in Portland Or.. you can really cram the density in on smaller lots.. I built 3 homes on a 50X 100.. full size homes.. now the lot did go street to street so there is that.

 To the best of my knowledge it is one lot split.  You cannot split and split again. Seems like an outstanding opportunity for those who see the possibilities, can property evaluate the risk/reward opportunity, and can execute.

Every suggestion that I had in my post I believe has large possibilities but because the San Jose ADU lot split rule is already approved, it seems like an almost cannot miss (assuming no RE crash). Best option is likely to buy RE with an already existing detached ADU. Split using new law. Sell the property purchased as single property as 2 properties. I would think besides the bureaucracy of splitting, the most effort in this scenario is maybe utilities require splitting. Buying existing ADU will be much faster and typically cheaper than adding the ADU. Prices are real high in San Jose so many will need a financial partner. But if you successfully do a couple of these with significant profit, finding financial partner will get easier.

I know a developer that has successfully gone full cycle using the San Diego ADU law that allows max AduS to legal existing space likely over 10 times. They buy apartments with significant ratio of garages and convert garages to studios or 1 BR. For managing I dislike studio and 1 BR but they have best NOI for highest dollar at exit.

3d printed structure are cheaper than conventional build and less prone to disasters.  Seems highly likely to have significant growth.  

In my market they just approved a large development for a secondary airport (Brown Field).  It is likely any investment in that area will out perform larger market.

Note if someone can creatively address the tic/coop financing issue, they could virtually split anywhere.   No restriction to places with unique laws such as San Jose.

There is  abundance of opportunities.  Recognizing and acting on them in a smart manner is the challenge  

Here is another prediction, those that recognize the value in my post already have a plethora of opportunities.  Virtually all of those who believe there are few opportunities will get no/little value from my post. 

If it gives one investor an unrecognized opportunity then great. 

Best wishes

i looked at the 3d printing  the machines are really expensive and the logistics can be pretty tough .. will not work well in super tight building lots or areas you need space for the machine and the big pile of sand :)  but on large lots and small acreage.. and the machine was I think 600 to 800k .. but then you own it..  

[Dan H.]

Quote from @Jay Hinrichs:

Quote from @Dan H.:

Quote from @Jay Hinrichs:

Quote from @Dan H.:

You are basically mid career and looking at non passive means.  As a creative director, GC, experienced builder you have a rare base.  

Some things to consider:

- use that creative side to find something that leverages AI technology that less creative people cannot see. 
- investigate use of 3d printing in development.   You could potentially invest in a 3d printer for development and use that creative side to market it.  It may not be total pivot from your current occupation but you could be self employed. It looks to have a promising future especially for those that can market it to the masses. 
- sophisticated value adds: development, TIC/coop, take advantage of localized regulations (2 off the top of my head: San Jose lot split for ADUs, San Diego city unlimited ADU count in existing conforming building), etc. note some localized regulations require creativity to envision. - other creative paths. For example how does the tic/coop differ from the new San Jose lot split? The most impactful way is financing. Creative solution to the tic/coop financing and you have a value add that you can leverage to riches beyond your stated goals.

I suspect a more creative person than me could expand this list.   That is your strength.  If you come up with a good creative idea or pursue one or more of my suggestions, pm me. 

Btw I do not know much of your background but know your stated goals are possible for many if they are willing to work it and take calculated risks.  My 21 year old son literally has worked 2 months at w2 in his life making very little money (at pet boarding place) but has over $200k from entrepreneur and side hustles that he has creatively recognized.   This while getting his degree from UCSB (so part time entrepreneur).  This includes subleasing his bedroom while at ucsb and sleeping in his car.  It is a good start.  I fully expect he will achieve your goal even if he does not inherit anything from me.  

Good luck

I just saw a news clip that San Jose CA is going to allow those that do ADU's to sell the ADU's like condo's I suspect those will be HUGE money makers in that market. .. we have done this a lot in Charleston SC they call it a Horizontal regime.. Although the back house is larger than a typical ADU.. And in Portland Or.. you can really cram the density in on smaller lots.. I built 3 homes on a 50X 100.. full size homes.. now the lot did go street to street so there is that.

 To the best of my knowledge it is one lot split.  You cannot split and split again. Seems like an outstanding opportunity for those who see the possibilities, can property evaluate the risk/reward opportunity, and can execute.

Every suggestion that I had in my post I believe has large possibilities but because the San Jose ADU lot split rule is already approved, it seems like an almost cannot miss (assuming no RE crash). Best option is likely to buy RE with an already existing detached ADU. Split using new law. Sell the property purchased as single property as 2 properties. I would think besides the bureaucracy of splitting, the most effort in this scenario is maybe utilities require splitting. Buying existing ADU will be much faster and typically cheaper than adding the ADU. Prices are real high in San Jose so many will need a financial partner. But if you successfully do a couple of these with significant profit, finding financial partner will get easier.

I know a developer that has successfully gone full cycle using the San Diego ADU law that allows max AduS to legal existing space likely over 10 times. They buy apartments with significant ratio of garages and convert garages to studios or 1 BR. For managing I dislike studio and 1 BR but they have best NOI for highest dollar at exit.

3d printed structure are cheaper than conventional build and less prone to disasters.  Seems highly likely to have significant growth.  

In my market they just approved a large development for a secondary airport (Brown Field).  It is likely any investment in that area will out perform larger market.

Note if someone can creatively address the tic/coop financing issue, they could virtually split anywhere.   No restriction to places with unique laws such as San Jose.

There is  abundance of opportunities.  Recognizing and acting on them in a smart manner is the challenge  

Here is another prediction, those that recognize the value in my post already have a plethora of opportunities.  Virtually all of those who believe there are few opportunities will get no/little value from my post. 

If it gives one investor an unrecognized opportunity then great. 

Best wishes

i looked at the 3d printing  the machines are really expensive and the logistics can be pretty tough .. will not work well in super tight building lots or areas you need space for the machine and the big pile of sand :)  but on large lots and small acreage.. and the machine was I think 600 to 800k .. but then you own it..  

 Imagine how quick even a 10% structure savings would pay that off.  Especially your large single level Units that you are developing in large volume.  In addition if you can creatively solve some of the 3d printing short-comings (OP is creative director) you could be market leader. My guess is your development (not including infrastructure and non recurring costs) even in your large volume is over $450k but I have less clue as to how much is structural (issue with me doing rehabs and not development).   The savings in cost and time could easily pay the financed payments for the machines and provide good return.  If you solve some of the issues, you could dominate the market.  

Good luck

[Jay Hinrichs]

Quote from @Dan H.:

Quote from @Jay Hinrichs:

Quote from @Dan H.:

Quote from @Jay Hinrichs:

Quote from @Dan H.:

You are basically mid career and looking at non passive means.  As a creative director, GC, experienced builder you have a rare base.  

Some things to consider:

- use that creative side to find something that leverages AI technology that less creative people cannot see. 
- investigate use of 3d printing in development.   You could potentially invest in a 3d printer for development and use that creative side to market it.  It may not be total pivot from your current occupation but you could be self employed. It looks to have a promising future especially for those that can market it to the masses. 
- sophisticated value adds: development, TIC/coop, take advantage of localized regulations (2 off the top of my head: San Jose lot split for ADUs, San Diego city unlimited ADU count in existing conforming building), etc. note some localized regulations require creativity to envision. - other creative paths. For example how does the tic/coop differ from the new San Jose lot split? The most impactful way is financing. Creative solution to the tic/coop financing and you have a value add that you can leverage to riches beyond your stated goals.

I suspect a more creative person than me could expand this list.   That is your strength.  If you come up with a good creative idea or pursue one or more of my suggestions, pm me. 

Btw I do not know much of your background but know your stated goals are possible for many if they are willing to work it and take calculated risks.  My 21 year old son literally has worked 2 months at w2 in his life making very little money (at pet boarding place) but has over $200k from entrepreneur and side hustles that he has creatively recognized.   This while getting his degree from UCSB (so part time entrepreneur).  This includes subleasing his bedroom while at ucsb and sleeping in his car.  It is a good start.  I fully expect he will achieve your goal even if he does not inherit anything from me.  

Good luck

I just saw a news clip that San Jose CA is going to allow those that do ADU's to sell the ADU's like condo's I suspect those will be HUGE money makers in that market. .. we have done this a lot in Charleston SC they call it a Horizontal regime.. Although the back house is larger than a typical ADU.. And in Portland Or.. you can really cram the density in on smaller lots.. I built 3 homes on a 50X 100.. full size homes.. now the lot did go street to street so there is that.

 To the best of my knowledge it is one lot split.  You cannot split and split again. Seems like an outstanding opportunity for those who see the possibilities, can property evaluate the risk/reward opportunity, and can execute.

Every suggestion that I had in my post I believe has large possibilities but because the San Jose ADU lot split rule is already approved, it seems like an almost cannot miss (assuming no RE crash). Best option is likely to buy RE with an already existing detached ADU. Split using new law. Sell the property purchased as single property as 2 properties. I would think besides the bureaucracy of splitting, the most effort in this scenario is maybe utilities require splitting. Buying existing ADU will be much faster and typically cheaper than adding the ADU. Prices are real high in San Jose so many will need a financial partner. But if you successfully do a couple of these with significant profit, finding financial partner will get easier.

I know a developer that has successfully gone full cycle using the San Diego ADU law that allows max AduS to legal existing space likely over 10 times. They buy apartments with significant ratio of garages and convert garages to studios or 1 BR. For managing I dislike studio and 1 BR but they have best NOI for highest dollar at exit.

3d printed structure are cheaper than conventional build and less prone to disasters.  Seems highly likely to have significant growth.  

In my market they just approved a large development for a secondary airport (Brown Field).  It is likely any investment in that area will out perform larger market.

Note if someone can creatively address the tic/coop financing issue, they could virtually split anywhere.   No restriction to places with unique laws such as San Jose.

There is  abundance of opportunities.  Recognizing and acting on them in a smart manner is the challenge  

Here is another prediction, those that recognize the value in my post already have a plethora of opportunities.  Virtually all of those who believe there are few opportunities will get no/little value from my post. 

If it gives one investor an unrecognized opportunity then great. 

Best wishes

i looked at the 3d printing  the machines are really expensive and the logistics can be pretty tough .. will not work well in super tight building lots or areas you need space for the machine and the big pile of sand :)  but on large lots and small acreage.. and the machine was I think 600 to 800k .. but then you own it..  

 Imagine how quick even a 10% structure savings would pay that off.  Especially your large single level Units that you are developing in large volume.  In addition if you can creatively solve some of the 3d printing short-comings (OP is creative director) you could be market leader. My guess is your development (not including infrastructure and non recurring costs) even in your large volume is over $450k but I have less clue as to how much is structural (issue with me doing rehabs and not development).   The savings in cost and time could easily pay the financed payments for the machines and provide good return.  If you solve some of the issues, you could dominate the market.  

Good luck

you have it about right when I talked to the manufacturer of the machine he quoted me 10% savings and of course some time savings .. u also have the issue with man power and who knows how to use them and the other subs who have never worked with them.. then getting them approved at the county level etc etc.. So ya on my build jobs that are 350k to 600k for vertical only  35 to 60k  and I have been doing about 22 a year.. so your right machine could pay for itself in the first year.. And I suppose so one did not have to drop all the cash one could find a leasing company to finance through.. Not sure my local bank would.  but for me I am just about done with this project and dont have another one behind it right now. At least in Oregon. If I wanted to go that way I would really need to travel to where they are being used and spend a week watching how it all goes talk to all the other subs etc etc.. frankly I like some of the panel construction companies on the east coast we dont really have them on the West coast.  for the ADUs maybe boxabl will be viable will see..

However on the 3d to own the machine it would make no sense if your just a mom and pop do one or so a year.. take you long time to pay it off etc. Plus keep in mind it is a machine they break and if it breaks your down and nothing is happening !!

[Dan H.]

Quote from @Jay Hinrichs:

Quote from @Dan H.:

Quote from @Jay Hinrichs:

Quote from @Dan H.:

Quote from @Jay Hinrichs:

Quote from @Dan H.:

You are basically mid career and looking at non passive means. As a creative director, GC, experienced builder you have a rare base.

Some things to consider:

- use that creative side to find something that leverages AI technology that less creative people cannot see.
- investigate use of 3d printing in development. You could potentially invest in a 3d printer for development and use that creative side to market it. It may not be total pivot from your current occupation but you could be self employed. It looks to have a promising future especially for those that can market it to the masses.
- sophisticated value adds: development, TIC/coop, take advantage of localized regulations (2 off the top of my head: San Jose lot split for ADUs, San Diego city unlimited ADU count in existing conforming building), etc. note some localized regulations require creativity to envision. - other creative paths. For example how does the tic/coop differ from the new San Jose lot split? The most impactful way is financing. Creative solution to the tic/coop financing and you have a value add that you can leverage to riches beyond your stated goals.

I suspect a more creative person than me could expand this list. That is your strength. If you come up with a good creative idea or pursue one or more of my suggestions, pm me.

Btw I do not know much of your background but know your stated goals are possible for many if they are willing to work it and take calculated risks. My 21 year old son literally has worked 2 months at w2 in his life making very little money (at pet boarding place) but has over $200k from entrepreneur and side hustles that he has creatively recognized. This while getting his degree from UCSB (so part time entrepreneur). This includes subleasing his bedroom while at ucsb and sleeping in his car. It is a good start. I fully expect he will achieve your goal even if he does not inherit anything from me.

Good luck

I just saw a news clip that San Jose CA is going to allow those that do ADU's to sell the ADU's like condo's I suspect those will be HUGE money makers in that market. .. we have done this a lot in Charleston SC they call it a Horizontal regime.. Although the back house is larger than a typical ADU.. And in Portland Or.. you can really cram the density in on smaller lots.. I built 3 homes on a 50X 100.. full size homes.. now the lot did go street to street so there is that.

To the best of my knowledge it is one lot split. You cannot split and split again. Seems like an outstanding opportunity for those who see the possibilities, can property evaluate the risk/reward opportunity, and can execute.

Every suggestion that I had in my post I believe has large possibilities but because the San Jose ADU lot split rule is already approved, it seems like an almost cannot miss (assuming no RE crash). Best option is likely to buy RE with an already existing detached ADU. Split using new law. Sell the property purchased as single property as 2 properties. I would think besides the bureaucracy of splitting, the most effort in this scenario is maybe utilities require splitting. Buying existing ADU will be much faster and typically cheaper than adding the ADU. Prices are real high in San Jose so many will need a financial partner. But if you successfully do a couple of these with significant profit, finding financial partner will get easier.

I know a developer that has successfully gone full cycle using the San Diego ADU law that allows max AduS to legal existing space likely over 10 times. They buy apartments with significant ratio of garages and convert garages to studios or 1 BR. For managing I dislike studio and 1 BR but they have best NOI for highest dollar at exit.

3d printed structure are cheaper than conventional build and less prone to disasters. Seems highly likely to have significant growth.

In my market they just approved a large development for a secondary airport (Brown Field). It is likely any investment in that area will out perform larger market.

Note if someone can creatively address the tic/coop financing issue, they could virtually split anywhere. No restriction to places with unique laws such as San Jose.

There is abundance of opportunities. Recognizing and acting on them in a smart manner is the challenge

Here is another prediction, those that recognize the value in my post already have a plethora of opportunities. Virtually all of those who believe there are few opportunities will get no/little value from my post.

If it gives one investor an unrecognized opportunity then great.

Best wishes

i looked at the 3d printing the machines are really expensive and the logistics can be pretty tough .. will not work well in super tight building lots or areas you need space for the machine and the big pile of sand :) but on large lots and small acreage.. and the machine was I think 600 to 800k .. but then you own it..

Imagine how quick even a 10% structure savings would pay that off. Especially your large single level Units that you are developing in large volume. In addition if you can creatively solve some of the 3d printing short-comings (OP is creative director) you could be market leader. My guess is your development (not including infrastructure and non recurring costs) even in your large volume is over $450k but I have less clue as to how much is structural (issue with me doing rehabs and not development). The savings in cost and time could easily pay the financed payments for the machines and provide good return. If you solve some of the issues, you could dominate the market.

Good luck

you have it about right when I talked to the manufacturer of the machine he quoted me 10% savings and of course some time savings .. u also have the issue with man power and who knows how to use them and the other subs who have never worked with them.. then getting them approved at the county level etc etc.. So ya on my build jobs that are 350k to 600k for vertical only 35 to 60k and I have been doing about 22 a year.. so your right machine could pay for itself in the first year.. And I suppose so one did not have to drop all the cash one could find a leasing company to finance through.. Not sure my local bank would. but for me I am just about done with this project and dont have another one behind it right now. At least in Oregon. If I wanted to go that way I would really need to travel to where they are being used and spend a week watching how it all goes talk to all the other subs etc etc.. frankly I like some of the panel construction companies on the east coast we dont really have them on the West coast. for the ADUs maybe boxabl will be viable will see..

However on the 3d to own the machine it would make no sense if your just a mom and pop do one or so a year.. take you long time to pay it off etc. Plus keep in mind it is a machine they break and if it breaks your down and nothing is happening !!

You are correct that low volume would not work.

You would either need to develop in counts similar or higher than your counts or be a contractor in a growth area that is contractor to build the structure like other contractors in the build process. Imagine the return if you could operate the machine for structure building every workday (excluding holidays).

Have you ever flown into brown field? It is common airport for private planes coming from Mexico as they have CBP there. My last time landing there was a private return flight from Mexico. It has a multi phase many year development project approved in an area that has huge amount of agriculture zoned now. I see virtually no chance that it does not outperform the general San Diego market which historically has outperformed 90%+ of markets. Buy some cheap (by San Diego standards) agriculture land and either wait, rezone, or develop. Lots of options near brown field

https://www.sandiego.gov/insidesd/construction-begins-landma...

there are a plethora of opportunities for those with vision, able to properly access risk/reward benefits, and work it (mostly at this stage I do not want to work real hard for my returns).

   Best wishes.

[Jay Hinrichs]

Quote from @Dan H.:

Quote from @Jay Hinrichs:

Quote from @Dan H.:

Quote from @Jay Hinrichs:

Quote from @Dan H.:

Quote from @Jay Hinrichs:

Quote from @Dan H.:

You are basically mid career and looking at non passive means. As a creative director, GC, experienced builder you have a rare base.

Some things to consider:

- use that creative side to find something that leverages AI technology that less creative people cannot see.
- investigate use of 3d printing in development. You could potentially invest in a 3d printer for development and use that creative side to market it. It may not be total pivot from your current occupation but you could be self employed. It looks to have a promising future especially for those that can market it to the masses.
- sophisticated value adds: development, TIC/coop, take advantage of localized regulations (2 off the top of my head: San Jose lot split for ADUs, San Diego city unlimited ADU count in existing conforming building), etc. note some localized regulations require creativity to envision. - other creative paths. For example how does the tic/coop differ from the new San Jose lot split? The most impactful way is financing. Creative solution to the tic/coop financing and you have a value add that you can leverage to riches beyond your stated goals.

I suspect a more creative person than me could expand this list. That is your strength. If you come up with a good creative idea or pursue one or more of my suggestions, pm me.

Btw I do not know much of your background but know your stated goals are possible for many if they are willing to work it and take calculated risks. My 21 year old son literally has worked 2 months at w2 in his life making very little money (at pet boarding place) but has over $200k from entrepreneur and side hustles that he has creatively recognized. This while getting his degree from UCSB (so part time entrepreneur). This includes subleasing his bedroom while at ucsb and sleeping in his car. It is a good start. I fully expect he will achieve your goal even if he does not inherit anything from me.

Good luck

I just saw a news clip that San Jose CA is going to allow those that do ADU's to sell the ADU's like condo's I suspect those will be HUGE money makers in that market. .. we have done this a lot in Charleston SC they call it a Horizontal regime.. Although the back house is larger than a typical ADU.. And in Portland Or.. you can really cram the density in on smaller lots.. I built 3 homes on a 50X 100.. full size homes.. now the lot did go street to street so there is that.

To the best of my knowledge it is one lot split. You cannot split and split again. Seems like an outstanding opportunity for those who see the possibilities, can property evaluate the risk/reward opportunity, and can execute.

Every suggestion that I had in my post I believe has large possibilities but because the San Jose ADU lot split rule is already approved, it seems like an almost cannot miss (assuming no RE crash). Best option is likely to buy RE with an already existing detached ADU. Split using new law. Sell the property purchased as single property as 2 properties. I would think besides the bureaucracy of splitting, the most effort in this scenario is maybe utilities require splitting. Buying existing ADU will be much faster and typically cheaper than adding the ADU. Prices are real high in San Jose so many will need a financial partner. But if you successfully do a couple of these with significant profit, finding financial partner will get easier.

I know a developer that has successfully gone full cycle using the San Diego ADU law that allows max AduS to legal existing space likely over 10 times. They buy apartments with significant ratio of garages and convert garages to studios or 1 BR. For managing I dislike studio and 1 BR but they have best NOI for highest dollar at exit.

3d printed structure are cheaper than conventional build and less prone to disasters. Seems highly likely to have significant growth.

In my market they just approved a large development for a secondary airport (Brown Field). It is likely any investment in that area will out perform larger market.

Note if someone can creatively address the tic/coop financing issue, they could virtually split anywhere. No restriction to places with unique laws such as San Jose.

There is abundance of opportunities. Recognizing and acting on them in a smart manner is the challenge

Here is another prediction, those that recognize the value in my post already have a plethora of opportunities. Virtually all of those who believe there are few opportunities will get no/little value from my post.

If it gives one investor an unrecognized opportunity then great.

Best wishes

i looked at the 3d printing the machines are really expensive and the logistics can be pretty tough .. will not work well in super tight building lots or areas you need space for the machine and the big pile of sand :) but on large lots and small acreage.. and the machine was I think 600 to 800k .. but then you own it..

Imagine how quick even a 10% structure savings would pay that off. Especially your large single level Units that you are developing in large volume. In addition if you can creatively solve some of the 3d printing short-comings (OP is creative director) you could be market leader. My guess is your development (not including infrastructure and non recurring costs) even in your large volume is over $450k but I have less clue as to how much is structural (issue with me doing rehabs and not development). The savings in cost and time could easily pay the financed payments for the machines and provide good return. If you solve some of the issues, you could dominate the market.

Good luck

you have it about right when I talked to the manufacturer of the machine he quoted me 10% savings and of course some time savings .. u also have the issue with man power and who knows how to use them and the other subs who have never worked with them.. then getting them approved at the county level etc etc.. So ya on my build jobs that are 350k to 600k for vertical only 35 to 60k and I have been doing about 22 a year.. so your right machine could pay for itself in the first year.. And I suppose so one did not have to drop all the cash one could find a leasing company to finance through.. Not sure my local bank would. but for me I am just about done with this project and dont have another one behind it right now. At least in Oregon. If I wanted to go that way I would really need to travel to where they are being used and spend a week watching how it all goes talk to all the other subs etc etc.. frankly I like some of the panel construction companies on the east coast we dont really have them on the West coast. for the ADUs maybe boxabl will be viable will see..

However on the 3d to own the machine it would make no sense if your just a mom and pop do one or so a year.. take you long time to pay it off etc. Plus keep in mind it is a machine they break and if it breaks your down and nothing is happening !!

You are correct that low volume would not work.

You would either need to develop in counts similar or higher than your counts or be a contractor in a growth area that is contractor to build the structure like other contractors in the build process. Imagine the return if you could operate the machine for structure building every workday (excluding holidays).

Have you ever flown into brown field? It is common airport for private planes coming from Mexico as they have CBP there. My last time landing there was a private return flight from Mexico. It has a multi phase many year development project approved in an area that has huge amount of agriculture zoned now. I see virtually no chance that it does not outperform the general San Diego market which historically has outperformed 90%+ of markets. Buy some cheap (by San Diego standards) agriculture land and either wait, rezone, or develop. Lots of options near brown field

https://www.sandiego.gov/insidesd/construction-begins-landma...

there are a plethora of opportunities for those with vision, able to properly access risk/reward benefits, and work it (mostly at this stage I do not want to work real hard for my returns).

   Best wishes.

I love path of progress we have made some of our most serious hits with path of progress..

I have not flown into Brown.. I had my plane at Thermal for an entire winter and did a lot of the socal airports Catalina ( very cool) the most south I got I think was Borrego Springs..

Otherwise Santa Monica  and airports up in the Valley and up the coast and we would pop over to Vegas etc.

I will check out Brown field though I would love to develop a hanger project !!! talk about passive and decent tenants specially if they have turbine aircraft or jets.. 

[Dan H.]

Quote from @Jay Hinrichs:

Quote from @Dan H.:

Quote from @Jay Hinrichs:

Quote from @Dan H.:

Quote from @Jay Hinrichs:

Quote from @Dan H.:

Quote from @Jay Hinrichs:

Quote from @Dan H.:

You are basically mid career and looking at non passive means. As a creative director, GC, experienced builder you have a rare base.

Some things to consider:

- use that creative side to find something that leverages AI technology that less creative people cannot see.
- investigate use of 3d printing in development. You could potentially invest in a 3d printer for development and use that creative side to market it. It may not be total pivot from your current occupation but you could be self employed. It looks to have a promising future especially for those that can market it to the masses.
- sophisticated value adds: development, TIC/coop, take advantage of localized regulations (2 off the top of my head: San Jose lot split for ADUs, San Diego city unlimited ADU count in existing conforming building), etc. note some localized regulations require creativity to envision. - other creative paths. For example how does the tic/coop differ from the new San Jose lot split? The most impactful way is financing. Creative solution to the tic/coop financing and you have a value add that you can leverage to riches beyond your stated goals.

I suspect a more creative person than me could expand this list. That is your strength. If you come up with a good creative idea or pursue one or more of my suggestions, pm me.

Btw I do not know much of your background but know your stated goals are possible for many if they are willing to work it and take calculated risks. My 21 year old son literally has worked 2 months at w2 in his life making very little money (at pet boarding place) but has over $200k from entrepreneur and side hustles that he has creatively recognized. This while getting his degree from UCSB (so part time entrepreneur). This includes subleasing his bedroom while at ucsb and sleeping in his car. It is a good start. I fully expect he will achieve your goal even if he does not inherit anything from me.

Good luck

I just saw a news clip that San Jose CA is going to allow those that do ADU's to sell the ADU's like condo's I suspect those will be HUGE money makers in that market. .. we have done this a lot in Charleston SC they call it a Horizontal regime.. Although the back house is larger than a typical ADU.. And in Portland Or.. you can really cram the density in on smaller lots.. I built 3 homes on a 50X 100.. full size homes.. now the lot did go street to street so there is that.

To the best of my knowledge it is one lot split. You cannot split and split again. Seems like an outstanding opportunity for those who see the possibilities, can property evaluate the risk/reward opportunity, and can execute.

Every suggestion that I had in my post I believe has large possibilities but because the San Jose ADU lot split rule is already approved, it seems like an almost cannot miss (assuming no RE crash). Best option is likely to buy RE with an already existing detached ADU. Split using new law. Sell the property purchased as single property as 2 properties. I would think besides the bureaucracy of splitting, the most effort in this scenario is maybe utilities require splitting. Buying existing ADU will be much faster and typically cheaper than adding the ADU. Prices are real high in San Jose so many will need a financial partner. But if you successfully do a couple of these with significant profit, finding financial partner will get easier.

I know a developer that has successfully gone full cycle using the San Diego ADU law that allows max AduS to legal existing space likely over 10 times. They buy apartments with significant ratio of garages and convert garages to studios or 1 BR. For managing I dislike studio and 1 BR but they have best NOI for highest dollar at exit.

3d printed structure are cheaper than conventional build and less prone to disasters. Seems highly likely to have significant growth.

In my market they just approved a large development for a secondary airport (Brown Field). It is likely any investment in that area will out perform larger market.

Note if someone can creatively address the tic/coop financing issue, they could virtually split anywhere. No restriction to places with unique laws such as San Jose.

There is abundance of opportunities. Recognizing and acting on them in a smart manner is the challenge

Here is another prediction, those that recognize the value in my post already have a plethora of opportunities. Virtually all of those who believe there are few opportunities will get no/little value from my post.

If it gives one investor an unrecognized opportunity then great.

Best wishes

i looked at the 3d printing the machines are really expensive and the logistics can be pretty tough .. will not work well in super tight building lots or areas you need space for the machine and the big pile of sand :) but on large lots and small acreage.. and the machine was I think 600 to 800k .. but then you own it..

Imagine how quick even a 10% structure savings would pay that off. Especially your large single level Units that you are developing in large volume. In addition if you can creatively solve some of the 3d printing short-comings (OP is creative director) you could be market leader. My guess is your development (not including infrastructure and non recurring costs) even in your large volume is over $450k but I have less clue as to how much is structural (issue with me doing rehabs and not development). The savings in cost and time could easily pay the financed payments for the machines and provide good return. If you solve some of the issues, you could dominate the market.

Good luck

you have it about right when I talked to the manufacturer of the machine he quoted me 10% savings and of course some time savings .. u also have the issue with man power and who knows how to use them and the other subs who have never worked with them.. then getting them approved at the county level etc etc.. So ya on my build jobs that are 350k to 600k for vertical only 35 to 60k and I have been doing about 22 a year.. so your right machine could pay for itself in the first year.. And I suppose so one did not have to drop all the cash one could find a leasing company to finance through.. Not sure my local bank would. but for me I am just about done with this project and dont have another one behind it right now. At least in Oregon. If I wanted to go that way I would really need to travel to where they are being used and spend a week watching how it all goes talk to all the other subs etc etc.. frankly I like some of the panel construction companies on the east coast we dont really have them on the West coast. for the ADUs maybe boxabl will be viable will see..

However on the 3d to own the machine it would make no sense if your just a mom and pop do one or so a year.. take you long time to pay it off etc. Plus keep in mind it is a machine they break and if it breaks your down and nothing is happening !!

You are correct that low volume would not work.

You would either need to develop in counts similar or higher than your counts or be a contractor in a growth area that is contractor to build the structure like other contractors in the build process. Imagine the return if you could operate the machine for structure building every workday (excluding holidays).

Have you ever flown into brown field? It is common airport for private planes coming from Mexico as they have CBP there. My last time landing there was a private return flight from Mexico. It has a multi phase many year development project approved in an area that has huge amount of agriculture zoned now. I see virtually no chance that it does not outperform the general San Diego market which historically has outperformed 90%+ of markets. Buy some cheap (by San Diego standards) agriculture land and either wait, rezone, or develop. Lots of options near brown field

https://www.sandiego.gov/insidesd/construction-begins-landma...

there are a plethora of opportunities for those with vision, able to properly access risk/reward benefits, and work it (mostly at this stage I do not want to work real hard for my returns).

   Best wishes.

I love path of progress we have made some of our most serious hits with path of progress..

I have not flown into Brown.. I had my plane at Thermal for an entire winter and did a lot of the socal airports Catalina ( very cool) the most south I got I think was Borrego Springs..

Otherwise Santa Monica  and airports up in the Valley and up the coast and we would pop over to Vegas etc.

I will check out Brown field though I would love to develop a hanger project !!! talk about passive and decent tenants specially if they have turbine aircraft or jets.. 

 If not coming from out of country there are a lot of secondary airport options. Coming from out of country it is one of the few options.

A hanger to me is a creative development that mostly would be recognized by pilots (such as yourself)

I like how it is basically a storage unit but little chance the tenant will abandon their plane for missed storage payments.   unlikely LL will ever need to auction off the storage contents.  collect payments from mostly wealthy renters.  Tough to beat that.  If you are looking for partner, let me know.  

Best wishes.  

[Scott Mac]

Quote from @Account Closed:

Hello! I've learned so much on BP, mostly from lurking over the last few years as I prepare to shift full time to RE. I'm cur...  

As a start up building firm, a business plan with a worst case, best case, most likely case financial scenario played out for a seven year term into the future- will probably reward you with more specific dollar amounts that you could potentially earn, then simply picking large dollar amounts and asking how do I get to these figures from this small borrowed amount I have.

Focusing on the financial numbers for these scenarios would probably be the most beneficial, vs. focusing on the written portion.

You might want to start with a chart of accounts for the business and work on the pro formas from there for the scenarios-- Treating them similar to budgets.

If you are unfamiliar with producing a business plan it can be quite daunting, it may take you a year or more to put the numbers together. Or you could just wing it, but remember winging it produces a lot more risk.

https://www.paloalto.com/solutions

Good Luck!

[Andy Bahr]

Quote from @Account Closed:

Hello! I've learned so much on BP, mostly from lurking over the last few years as I prepare to shift full time to RE. I'm curious to tap the brain trust here on any angles I may not have considered. Would love to hear your thoughts or strategies if you were in my shoes. 

I am 40, a creative director burnt out on the advertising industry, and ready to do construction/RE/rentals full time. I think the world needs more homes, and I want to be more involved in providing people a place to live. I believe builders and landlords do the country a service. 

My question: What's my best angle to dive into RE, given my skills and assets? I have the sense that I have a lot of good building blocks to work with, and I have some strategies I'm considering (like build and hold), but I would love the thoughts of the community. 

My goal:

Net worth of $10M, or $30k net monthly income.  I think this is a modest goal, in this day and age. 

What I have to work with: 

- An LLC (currently just run STR taxes through this)

- A Type S Corp (I run my ad business through this, but will shift it over to construction)

- A General Contractors license in the state of Oregon, tied to Type S Corp (have had and maintained since July of 2022)

- A construction skillset. Have built a couple dozen homes since my early 20's, on the side as specs and for us personally. I have tools for everything from concrete forms to finish carpentry.  

- Two homes: a primary residence and second home that we STR most of the year when we're not there. Both in Oregon. One worth $600k, one worth $400k. Combined debt on them is $394k.

- A $300k HELOC on the second home, at prime + 3% with a 20 year draw period. Balance $0. Just closed on this, and it's the final piece in my plan for a career shift.

How would you reach my goal, if you were me, starting with these tools and experience? I guess I'm hoping for ideas other than "use the HELOC to finance construction of a spec house, rinse and repeat."

Sorry this post is so long, no need to reply unless it's interesting or a fun thought experiment for you. TIA, and thanks so much to this community for the generous sharing of knowledge. One of my favorite places on the internet for keeping it real. 

Hi Tyler!
Great question and we are roughly the same age! 
Since you have your GC license, I would get the trades together and start building houses. You might have to start small, however, I know a builder here in Charlotte, and he said a builder should make about $40-$50k per house, and I think that might be around a 20% margin so figure that in as well and compare it to your market.
If the ad business is running on auto pilot I'd keep that going for additional cash flow.
You can also look at buying distressed properties and revamping them to BRRR or Flip, again, since you have a great construction background.
Rentals and STRs can produce $30k net a month, however, it might take a number of them. However if you want to optimize the STRs, I'm a broker, and our team lead Rory Cummins and his partner created an "Air BnB Wealth Academy," that covers everything from acquisition to staging and photos.
Good luck!


 

[Ryan Donohue]

Tough to formulate a plan for the info given. 

I may be speaking out of line but most people on here aren't at the $30k/mo level. You want to talk to tons of people at that level(sum of the 5 closest people saying). Partner up with a developer or 2000 unit level guy, etc. I could try to give you pointers but I can't speak from experience. That's what I'm telling myself at least...syndicating value-add garden style apartments here in NJ. 

[Jimmy Lieu]

Quote from @Account Closed:

Hello! I've learned so much on BP, mostly from lurking over the last few years as I prepare to shift full time to RE. I'm curious to tap the brain trust here on any angles I may not have considered. Would love to hear your thoughts or strategies if you were in my shoes. 

I am 40, a creative director burnt out on the advertising industry, and ready to do construction/RE/rentals full time. I think the world needs more homes, and I want to be more involved in providing people a place to live. I believe builders and landlords do the country a service. 

My question: What's my best angle to dive into RE, given my skills and assets? I have the sense that I have a lot of good building blocks to work with, and I have some strategies I'm considering (like build and hold), but I would love the thoughts of the community. 

My goal:

Net worth of $10M, or $30k net monthly income.  I think this is a modest goal, in this day and age. 

What I have to work with: 

- An LLC (currently just run STR taxes through this)

- A Type S Corp (I run my ad business through this, but will shift it over to construction)

- A General Contractors license in the state of Oregon, tied to Type S Corp (have had and maintained since July of 2022)

- A construction skillset. Have built a couple dozen homes since my early 20's, on the side as specs and for us personally. I have tools for everything from concrete forms to finish carpentry.  

- Two homes: a primary residence and second home that we STR most of the year when we're not there. Both in Oregon. One worth $600k, one worth $400k. Combined debt on them is $394k.

- A $300k HELOC on the second home, at prime + 3% with a 20 year draw period. Balance $0. Just closed on this, and it's the final piece in my plan for a career shift.

How would you reach my goal, if you were me, starting with these tools and experience? I guess I'm hoping for ideas other than "use the HELOC to finance construction of a spec house, rinse and repeat."

Sorry this post is so long, no need to reply unless it's interesting or a fun thought experiment for you. TIA, and thanks so much to this community for the generous sharing of knowledge. One of my favorite places on the internet for keeping it real. 

Hi Tyler, I'm personally from Portland, Oregon myself so great to meet another Oregonian. I will say to forget your idea that you're going to build 10M in real estate just like that - it's a long term game and you have to be okay with a 10-year plan. You have a big advantage compared to other investors with your 300k HELOC. Because you want to scale and build positive cash flow, I would look into the BRRRR strategy. I would first recommend looking outside of Oregon as a real estate market. Oregon is so expensive and saturated and you won't be able to find any positive cash flow there. I would recommend taking a look into Columbus Ohio as a real estate market because you can still find positive cash flow, the 1% rule, and tons of appreciation. So many companies are moving and developing here such as Intel, Google, FB, Amazon, Honda, etc and essentially why I moved here myself. There's a ton of great BRRRR and flipping opportunities here and I feel like it would be a great landing spot. Happy to connect and answer any questions you may have!

[Henry Lazerow]

The stupider the BP posts get, the more I think we are at the market top haha