All Forum Posts by: Alex Huang

Good thing her shooting percentage was worse than Isaiah Thomas's.

You could always try to get private money.

My buddy does this with friends and family. They provide a 12-month loan at 10% and he uses it to acquire properties. Then he can refinance and cash out and pay back his investors. You can provide quarterly interest payments, bi-annual, or whatever structure is most desirable for your investors.

Use your first property (pictures and numbers help) to solidify your experience and knowledge. You'd be surprised how many people would happily put their money in a guaranteed 10% return as long as it is secure.

To echo what others have said, the important thing is that your numbers are sound.

There is no reason to chase specific %s. We all have our own goals in this journey. Just understand the pros and cons of things. Smaller profit margins require less work (pro) but are more risky if you overlook something (con). Larger profit margins require more work (con) but leave you with a lot more wiggle room with the unforeseen (pro).

I'll be very eager to see how that one rents.

To me, it seems over-priced, but I'm not as familiar with the rental market in that section of Dayton.

 Hey Michael -

Not sure if you are still looking for some contractors, but I have a team (based in Dayton, OH about 90 min away) that can tackle pretty much anything.

We work in the Columbus area too, so if you should need any help, please feel free to reach out to me.

It's tough to quantify what your effort is worth to the project. I'm not trying to sound mean; just trying to be objective at the situation.

Presumably, he'd be completely comfortable and able to run this operation without you since he's had experience and likely has systems in place to succeed (unless you are in a new market for him). He's probably using his own contractors, etc and there is already a level of trust and expectations between the two parties, so how much value does a supervisor add? That's a difficult thing for outsiders to assess. For me personally, I'm happy to pay a premium to have someone like you handle dealing with contractors; others don't mind it.

It's great if he's willing to let you buy a piece of the deal since it isn't something he needs to get the property closed.

At the end of the day, even if he doesn't let you in on the deal financially, it is a great opportunity for you. To see a project from start to finish, not to mention the value in building a relationship with this flipper, could be a tremendous learning experience that will help you down the road.

tl;dr the obvious route is to just get close to a fair-share of your contribution. So $290k all-in would leave you about 8.6% ownership at a $25,000 financial contribution. Maybe you could bump that to 10-15% if he feels your supervision is worth that much. If nothing can be worked out, it still seems like a great thing to do for free to learn and build a relationship with this flipper.

I'm looking to hear if any one has any experience or creative ideas for a building that is available in a great location.

Initially, I thought the building would make for a great 4-plex. It's located within walking distance of a great community park, groceries, and restaurants. It's in a good school district as well. The building has been vacant for quite some time now (more than a year).

Unfortunately, I spoke with the city planner and it doesn't sound like rezoning of the property to residential is possible. They cited that the surrounding businesses deter them from a willingness to rezone because it would be on its own residential island. Frankly, I was a little surprised by this response since the building has been empty for so long. Is this a standard policy?

Are there any creative ways to get around this to convert this property into a residential property? Or maybe a hybrid commercial unit + 3 residential? There is a 100+ apartment complex about a half mile down the street from this building, FWIW.

I don't have much experience in the commercial / zoning, so I was hopeful to gain some insight on potential strategies here.

Shoot me a PM on details (location, scope of project, etc). 

I have a crew that can take care of just about everything. 

It really depends on a whole lot of other factors.

If it were my very first property, I would recommend finding a single-family BRRRR property. It's a low-risk way of gaining A TON of education in real estate investing and developing skills that transpose to other segments (wholesaling, buy & hold, flipping, etc).

You can cashout your money soonafter and utilize that $100k to do anything else now that you have experience.

Where did I bash you? It certainly wasn't my intention, though I am not sure where you might have misconstrued anything I said earlier as a bashing.

You asked for advice and I laid out an example (using your numbers) to illustrate what numbers you should be targeting to make a little profit.

Good luck.