All Forum Posts by: Wayne Bolen

I think we're going to leave it as is unless something compelling comes along. I actually just made contact with a broker who is looking to expand their footprint in OK, so leaving it alone for the time being may be our best option. Our goal is to simply 1031 this for a larger facility in the next 12 months so this will provide the upside that another investor would be looking for.

 It sounds like their pro-forma is against their entire "portfolio" vs your particular area. 

Sounds like you're making a lot of assumptions on something that hasn't happened yet. Are you setting aside money for repairs and capex? Any repairs should ideally come from the deposit. You're also assuming this could happen multiple times per year, which should not be the case. Duty stations are 2-3 years, sometimes longer. Aside from deployments (which are much less common than they were 10 years ago), you should have plenty of a great experiences renting to military personnel.

My partners and I recently purchased a small self storage facility outside of OKC. The sale included both the lot with the storage facility, as well as an adjacent 0.4 acres. This was a value add facility (we fixed the gate, added software, got rid of a meth-head, etc. Our goal is to put the facility back on the market next summer and 1031 into something larger. In the meantime we have the adjacent property that we're at a bit of a loss on what to do with. It's not fenced in, and would cost 50k or more to fence in with chain link. We're not in a position to put that much down for something that might simply sit vacant. Hoping the BP community will have some ideas.

There's very little influence from Austin MSA currently. There are SOME houses being flipped, but the city is in no way looking to make any major improvements to the area. Eventually it'll happen, but it's a ways out. Liberty Hill, Lago Vista, and I think to some extent Marble Falls are seeing increased growth, but Burnet is simply too far removed at this time. Once more development happens along highway 29 I think we'll see things change, but again, it's a long ways off. Most of the development is pushing north.

Thanks @Costin I. for the detailed info. We've been shying away from properties with foundation issues and this is all good information to have should we consider one in the future.

Thanks @Mike De Lota. In your experience, how much time does this typically add to the rehab? I know addressing foundation issues can cause problems with the plumbing. Have you seen this happen? Also, do you have a preferred company you deal with? Net Worth includes quotes from Low Jack Foundation Repair, but I've not dealt with them before.

As I'm sure a lot of you know many of the properties being offered up by the wholesalers typically have foundation issues. I'm curious as to what others in the area think about these? Addressing foundation issues can be costly and add additional time to a rehab. What are others doing with these properties? We personally have chosen not to deal with these previously, but that means we end up passing on a lot of properties. 

Can you post a hypothetical example?

Why can't one be an ethical wholesaler? They're out there finding properties for investors who don't have the time/resources. As such, they're making money for their efforts.