All Forum Posts by: Tim W.

Definitely call and see what they have to say. There can be a beneficial end for both parties. You do the work, they reap the benefits and you get to learn.

Most guys around my area want materials up front, labor at the end.

Im not a  pro but I don't think a bank will want to be in position 2. This is where its time to get creative. Home equity loan, personal line of credit, look for private investors, look for family, etc. If its a good deal, other investors will jump in on a partnership. If you cant find other investors that like the deal, its probably not a deal.

@Tracy D.

Unfortunately we live in a world where you wont be able to change the way society is. The entitlement mentality is getting worse and worse and like you said, some states have horrendous eviction laws. Im here to make money. Unfortunately its easier to see if someone will take the money and get out rather than destroy your house or live there for the next 3 months while they wait for you to do all the legal precedings

Private equity would be the way to go. Unfortunately that usually means family and friends in the beginning. Hard money is a strategy but your rates will be high and they will charge you points up front on the loan to get started. They will usually loan the money if the property numbers line up.

I would look into what is going to set you apart from that redevelopment. Are you going to be cheaper in rent, larger units, less commotion? If you can find something that sets you apart and will offer value in one way or another, the new apartment wouldn't scare me off.

@Connor Swalm

Thanks for the advice. Property management is something we will probably always keep in our business. My fiancé has been a property manager (albeit commercial) for 10 years. She also just quit her job recently and will have plenty of free time. I have seen some very poor quality property managers in both residential and commercial through her job and wont allow my funds to be handled by someone who doesn't care as much. The reason I want to get into real estate is the control over my own investments.

I know construction and will probably do the majority of the work myself in the beginning, though when I can afford to, handyman stuff will probably be the first thing I hand off.

Keller would be my ideal location. Great schools, some areas with affordable housing. The rental market seems strong though rent is hard to gauge due to low volume of comps.

Just start with some mortgage brokers.. Quicken, Lending Tree, Box loans, etc. If you have house hacking, you qualify for live in mortgages like Fannie Mae and what not.

I would offer what you feel is right based off of your numbers. Their valuation and asking prices don't mean anything if the numbers don't make sense to you. What is your goal for the property? Cash flow? Appreciation? Buy and hold?

Banks usually wont loan higher than the appraised price. Unless this is a hot market where people are paying over listing (cash), I would offer less than the appraisal. You can always negotiate.