All Forum Posts by: Andrew Dao

@Joseph Luce Oh and one more thing, don't ever work for free lol

I agree with both @Tim G. and @Cody L.

The ability to find deals is highly valuable, any investor will tell you that.

I did the same thing as @Cody L., straight out of architecture school, I wanted to go into real estate so I asked someone I knew who flipped houses to throw me on with his crews. I worked alongside professionals as a "helper" With pretty much no construction experience, they put me on the dirty grunt work, cleaning rat poop, removing the old toilets, scrubbing down baseboards, etc. but as I was doing that, I was watching every single thing they did, and pestered them with tons of questions on how to do things and different techniques. I would ask them to try stuff and absorbed everything I could. I worked with literally every single trade.. plumbers, electricians, framers, painters, carpenters, masons, roofers, etc. I learned it all.

6 months later these guys were working for me on my flips.

I find the knowledge in construction to be both highly beneficial but can also be a vice. It helps me manage my rehabs efficiently, identify when a sub is trying to take shortcuts, performing subpar work, or just trying to take advantage of me. The ability to perform the work myself also allows me to absorb unforeseen surprises/expenses by doing it myself. But, It has been a vice for me because I would try to do more than I should myself, and I end up working in the business as opposed to working on the business. I would find myself spending my time installing cabinets and baseboards when I should be out finding more deals.

@James Cook like @Danny Webber mentioned above, don't partner if you don't have to. If you feel confident in managing the deal/rehab yourself from start to finish, do it yourself. It'll be cheaper to get lending than splitting a percentage of the profits. Also, you'll avoid potential disagreements that could become huge headaches.

If you're looking for the partner to contribute additional value besides money, like guidance/advice, help with the rehab, etc., then I understand partnering. 

I've been in multiple partnerships, some good, some bad. I started with no money and limited experience, so at that time partnerships were good options for me. 

You have the deals and are going to be doing all the work, so you hold the power. You're provided them with an opportunity to make a nice return on their money, so you name your terms.

Hey @James Cook, are you looking to JV only for financing or also for some guidance through the rehab and flipping process? Have you considered tackling the project yourself and using hard money? Not saying its a better option, just curious what exactly you're looking for.

Could someone please give me any advice on finding ARVs for smaller non commercial multis. 

I purchased and rehab a 4plex in Richmond, Tx for about 160K all-in. It's pulling in +$3,000/month in rent but when I went to do the cash out refi, it was valued pretty much at what I put into it. Appraiser said because it was not valued on the income it was producing as it was not a commercial property and more off comparable sales in the area.

Is there is a way to find/estimate the ARV somewhat accurately for these types of properties? There are barely any comps to compare them to if any.

Looking for more multis but having difficulties analyzing these properties.

Thanks!

@Mark Sewell Oh nice hopefully it turns out to be a good deal! Last year I did 2 houses right next door 77083

Thanks @Mark Sewell!! I appreciate it! I say I'm never going to sell but who knows what the future holds.

You still doing any deals on this side of town?

@Account Closed Haha when I find an opportunity I will. I started on my real estate journey right out of Architecture school, ultimately to get to designing and developing my own properties from the ground up. Along the way, I'm going acquire as many rental properties as possible!

What happened to your rental property on Synott and Richmond? Do you still own it? Do you happen to have any more properties in this area?

@Account Closed I was actually the GC and put in a lot of sweat myself. I'm degreed in architecture and the educational background help a lot. It took about 6 months from start to finish. It was an off market deal I found from (hate to say it) my bandit signs. The sellers (original owners from 1979) actually had  slightly higher offers but when I told them my background and intentions with their home, they decided to sell it to me.

But yes it was definitely above and beyond lol. I did all the electrical myself, and the millwork and additional wainscoting I also did myself, so the monetary cost was very low, but a lot of sweat. It is indeed too much to be done to any property in this area, but I have the capabilities and was going to move into it myself so I thought, why not?

The floors are actually a nice porcelain wood tile that I ran throughout the entire house. I have good relationships with my vendors and was able to get it for only 82 cents/sf.

The sweat I put in to the tasks that I was able to handle myself, allowed me to invest the saved capital into the mechanics and bones of the house (foundation, new roof, new plumbing, HVAC, etc.) and allowed me to get slightly nicer finishes than I would have put into any other investment property I wasn't intending on living in.

The goal with this property was longevity, since I will be holding onto it in perpetuity. 

I started by working mornings for an investor from 6:00am - 2:00pm doing whatever he needed and learning as much as I could. I would then bartend at a high end sushi restaurant from 3:30pm - 11:00pm, rinse and repeat. I saved every dollar I could, and with the help of a couple small loans from family members (at 8%) I had enough to get my first property.