All Forum Posts by: Adam Reilly

I'm looking to fund the purchase price and closing costs of both original purchase and sale, with a target of 3 months from acquiring the property to reselling it. All my targeted mailing is for raw land only, so I'm not looking to hold it for longer than it takes to resell unless something wildly enticing comes up. There are opportunities to do some land splitting; if the tract is 20+ acres, I may want to split it into smaller pieces, provided infrastructure is already in place, to increase the value and returns. This would add time to the holding, but would be a case by case issue, since my acreage range has been 5-20 acres for now.

I don't have an end buyer lined up for the properties I'm looking to purchase. I'm doing targeted marketing through fb marketplace, fb groups, mls listings and any other online listing sites, but I can't really market until ownership is in place without stepping into the wholesale ring, and in one of the states I'm working in, there are more regulations about that I would rather avoid.

The funder I'm working with on my first purchase has a contract that I was thinking of re-using, it stipulates that the funder takes  the actual ownership of the land, so that if after one year, they have the right to dispose of the land and keep all profits. Of course, I would rather that not happen but I feel it's fair when they're putting up the capital.

That same contract has a profit split outlined, where if I sell within 30 days of the original purchase closing, it's a 75/25 split, stepping down to a 60/40 within the 30-60 day window, and then to a 50/50 split after 60 days. Of course, this is their contract for first time deal negotiations, and puts a lot of the pressure on me to sell quickly. 

I've been working on building a land flipping business and currently have about 8 leads in active negotiation and 3 signed purchase agreements, with 1 working through funding. I think that the deals I have on the table and the ones likely to come in this year (I have a very consistent mailing schedule of blind offers), I will need to ramp up the money side, but that has been my biggest struggle so far. I've been going to local meetups looking to find some interested financers, but most or all of them were only interested in house flipping or LTRs. 

I could use some help finding some places or people that would be interested in funding these types of deals.

 Hey Brent,

Sorry for the delay in this, I haven't been back in a little bit and just saw this question.

Detention is not related to floodplain. You'll generally need to do detention to offset for any impervious cover you add to the property. This is to alleviate any added flooding your project creates for the downstream properties. It depends on the area you're working in too. North of Austin, the county regulations say you don't have to do it IF you're only doing residential, certain lot sizes and limiting the impervious cover of each lot. However, if you're in a city area, you'll have to plan for it. With the recent nation wide updates for flood modeling, you'll want to plan for bigger ponds. You can reduce size, if you go deeper, but that only works if you have steep sites or are willing to add a pump system to the outlet. 

You're also going to need survey and engineering work to get the permits done for putting in the utilities to the buildings, flatwork and other improvement requirements around the buildings. This is typically parking, detention pond and landscaping. I do most of this part in my day job. 

You'll need a building permit, and that will require either an architect or you to work with the shell building designer. This part, I don't know so much about.

if you need more info, feel free to reach out.

 That's a great question, but I'm not sure how it works with the taxes. I work in civil engineering and my experience covers the floodplain side of the lot. That would be best answered by a CPA.

The financing option was something I heard on a few of the BP podcasts lately, and seemed like it could apply. If you were to sell it, you'd be getting that monthly income and if they default, you'd have to repossess the property. I am still learning about the ins and outs of doing these, so I'm also not the best source right now :)

@Kenneth D. You're in a great community to keep moving forward. I'm actually in a very similar situation. I'm 44 and financially not in a place to do a deal on my own for another 3 years. I'm actively working on shortening that and saving what I can at the same time, so I can hit it faster. I've also been listening to the BP and BP Rookie podcasts daily, reading these forums and r/realestateinvesting, looking for books on the topic and trying to hit the meetups. There's one tomorrow that is on my calendar then another one on Monday. I may not hit them all, every time, but I'm trying to go with the goal of meeting as many people as I can and learning from each of them.

It's okay to feel discouraged, as long as you take a breath and realize, where you are now is only momentary, and as long as you're taking steps, you'll get where you want to go.

Welcome to the BP community @Ryan Edwards!

You're not too far off where I am with my journey. I've been working to get my finances in order, while attending local meetups to see if I can find the right team to work with. If you haven't already, checkout meetup.com. There are several good groups that hold monthly meetings and they've been great people to talk with so far.

Feel free to connect with me too!

Have any of them made any offers on financing or puchasing creatively? You might throw that idea out to some of them, as they might be struggling with financing. The flood zone might also be the bigger issue for many of them. It's typically much more expensive and time consuming to do anything with those types of lots.

Welcome to the community, Carson!

As Nathan mentioned, check out meetup.com. I found several throughout each month to attend, and the ones I've made it to had some great people that were motivated and informative. 

I'll send you a connection request too.

Hi @Cade Ruthardt and @Mike Reynolds Welcome to the central texas area. I'm in the Round Rock area, so if y'all ever get up here, reach out and we can connect. Send me a connection request too.