All Forum Posts by: Kase Knochenhauer

@Damari Bell - welcome to BiggerPockets and the world of real estate!

There's a saying out there that goes something like this, "if you find a good deal the buyers will come." While that's true - you've got to ensure each property meets a few characteristics:

1. The area of purchase must have buyer demand and potential of $30k+ profit
2. The property itself must be priced properly (in my book, a good deal is 70% ARV minus any repairs). That means, if you want to wholesale the home you have to get it for LESS than that price
3. You must present/market the property properly

The tough park of wholesaling is finding properties that meet the above criteria. When you find a property and put it under contract (properly and legally), here's a BASIC outline of how to sell your property:

- post your property and details on Facebook Marketplace
- post your property and details on Craigslist
- sign up for BiggerPockets and post on it's Marketplace
- google, "sell my home fast in ______". Send your property to 2-3 of those websites.
- message me - I'll buy it

If you take those steps you will sell your property.

@Adam Fiore - I've been scared of leverage many times. One book corrected my thinking to ensure I properly leveraged my time & money. I suggest reading 80/20 Sales and Marketing by Perry Marshall.

Perry's book has earned my hundreds of thousands of dollars over the last few years. Read it right away. :)

If you PM your mailing address, I'll send you a copy!

@Timothy Douglas - planning is a great first step to increasing your passive income. As @Taylor L. mentioned, $3000/month passive income is a pretty hefty goal and one that will take LOTS of work!

To get there you'll need to do three things:

1. find more deals
2. get more money
3. make more time

Spend your time building systems, taking action to build your pipeline or developing your skills to generate those three and you can succeed. Good luck - you absolutely can do it!

@Matthew Brunner just like @Nate Astrup mentioned, the more targeted your websites the higher your conversion will be. Running multiple sites for your business should be a no-brainer if you do this full time or are in it for the long haul.

We currently have two Carrot sites - and are building a third as well. Here's our list:

1. Seller focused - focus on the benefits the seller gets from working with you (fast, easy, flexible)
2. Agent Referral - website built for agents that describes how we work with them and their clients. (How do agents get paid on off market deals? Why work with us instead of another investor? etc)
3. Money Site - currently building - built to encourage people with money to connect with us.

BONUS - your property featured wholesale website wouldn't be easy to send through Carrot but might be possible. We aren't wholesalers so don't have the need to build this.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Chicago.

Purchase price: $130,000
Cash invested: $23,000

Performed cash out refinance at 70% LTV with appraisal of $232k. Infinite equity!

What made you interested in investing in this type of deal?

This is my first out of state investment and the first property I have bought and rehabbed without ever seeing the property. This was on my bucket list of things to do for 2019.

How did you find this deal and how did you negotiate it?

I found this deal through an agent/wholesaler. No negotiation.

How did you finance this deal?

Cash purchase and repairs. Performed cash out refinance through LMCU at 70% LTV.

How did you add value to the deal?

Performed light rehab including flooring, paint, exterior repairs, interior bath and kitchen updates, etc.

What was the outcome?

Infinite returns on BRRRR.

Lessons learned? Challenges?

It's important to thing several steps ahead when you are performing an out of area flip/hold. Things move a lot slower with less control than a local flip.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Derrick Jackson in Chicago did a great job arranging the purchase of this home.

@Bronson Kane - we never did connect. How have the last three years treated you?

Let's get this Holland thread renewed for some conversation! :)

@Cody Malave - house hacking by the room is a great way to earn the maximum cash flow possible.

I was lucky enough to be a tenant in a friends house hack in Grand Rapids, Michigan. The going rate for a crappy 1 bedroom apartment was $600-700/month. Instead, I happily paid $350 for a bedroom and shared bathroom and living space. The owner had 4 bedrooms and grossed over $1000/month with a $600 mortgage. It was a win-win for everyone involved.

You'll likely find that your tenant base may turn more quickly as they'll likely be single and possibly transitioning their lifestyle.

Connect with friends and see who might be interested. I didn't take the same steps my friend did all those years ago; I really wish I did! I would have been a LOT farther along in real estate than I am today.

Morning @Owen Thornton! This is a great question that provides a lot of confusion among investors and other business people.

LLC provide one thing: a legal hedge of protection for your assets.

(NOTE: an LLC provides NO tax savings as it acts as a pass-through entity.)

If you are looking to create a business with outside partners, an LLC and it's Operating Agreement may help define the roles and responsibilities of the members involved but won't provide any tax savings unless you file as an S-corp (more on this below).

However, if you choose to transition into real estate as a full time investor there are many more complicated arrangements that can provide additional legal protection AND tax savings.

Here's a quick summary of how we have our real estate business legal structure outlined:

@Patrick J. - there's a LOT of good and bad information on this forum. Rather than discuss how we put our S-corp together, I'll give you the source that taught me. 

Mark Kohler runs an incredible youtube channel, has a great book, and is fun to listen to (you can't say that about may accountants). He has literally saved me hundreds of thousands of dollars - and I'm not even his client.

Go buy yourself his book and listen to a few of his youtube videos.

"The Tax and Legal Playbook" -- Mark Kohler

@Joel K. - morning Joel, you know I'm interested! It was great connecting with you last week. :)

As I mentioned shoot anything more you get over my direction! We are looking for properties at 75% ARV minus any repairs in Kent, Muskegon or Ottawa counties priced under $120k.