All Forum Posts by: Alicia Yoder

@Angela Doyle absolutely! I have a bunch of nieces and nephews and have learned that e-gaming is on the verge of becoming a sport. These kids play in fortnite tournaments and win huge sums of money. Lack of entertainment is an issue in rural communities for kids it seems so def could be worth looking into! If it turns out to be a million dollar idea follow back up and let us know! Lol Good luck!

@Angela Doyle I live in a rural part of East Texas. Not quite as small as it sounds like in your area. Nevertheless, our family owns self storage and from our experience that turned out to be a great investment. If the daycare is the route you want to go maybe brainstorm complimentary businesses for that daycare? Arcade/gaming center, ice cream shop, Ect. If no self storage is present I would def say that could be a good play!

@Angela Doyle when I am trying to find highest and best use of something I always turn to demographics first. What age demographic is in your area? What income level? Use your local demographics to try to paint a needs picture. Sometimes I even get on fb and just ask friends and family, hey what do y’all thunk this town needs. You would be surprised how opinionated and passionate people are about their community.

I’m surprised to hear a nursing home went under considering baby boomers are one of the largest generations currently, getting to the age of being in their second to last (senior living community) or last (assisted living) beds. Maybe it wasn’t a need issue that brought it down as much as poor management. I know from an infrastructure costs if you could rehab it and keep it as an independent senior living community maybe could be a good okay?

Hope that helps!

@Vernon Chiu not sure in your area but in east Texas we have labs all over the place. You can literally just take samples of the water and send to lab for full analysis. Google water testing services and give one a call. Pretty reasonably priced and fast.

@Jeff Kehl those are both excellent ideas! Really appreciate that! I think maybe because I’m from the area and such a small town I missed the obvious lol. Thanks again!

Thanks for all the info gentlemen!

Hey guys,

I have a dog walking company and was improperly told to elect S Corp status. I don’t make enough in the company for that to be advantageous so I would like to cancel it but not dissolve the company completely. How can I do that? Do I just file a 1020s and mark final return?

Thanks in advance!

Investment Info:

Other other investment.

Purchase price: $325,000

Purchased 1970's 10,000 SF mansion with 18 acres, a 30x40 metal building, a 25x75 six-car garage and 1500 SF greenhouse for $325k. I divided the parcel into 3 pieces and sold the mansion and 4 acres for $350k. I invested $35k into dividing utilities and building fences. I spent $115k, turning the metal building into a house. I now have a 2/1 with 6 car garage on 4 acres and another 10 acres tract with roughly $300k in equity between the two leftover parcels.

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

The land and location. When I realized it was 18 acres with frontage on another road my only hope was to end up with that back 10 acres for a future high-end rental community.

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

Sat on MLS for over a year. I offered them all cash, no contingencies, close in two weeks and they took it with no negotiations.

How did you finance this deal?

Private equity partner

How did you add value to the deal?

The mansion we just power washed and took care of deferred maintenance. The place had set vacant for so long and was so big it was just intimidating to most. Most of the equity we put into the mansion we put in sweat equity.

We fenced up two sides separating the mansion from the metal building and shop. We then turned the metal building into a 2/1 house.

What was the outcome?

About as phenomenal as one could hope. We were pretty nervous to take on such a big project and our only goal starting was to end up with 10 acres for free. We not only got the 10 acres for free but ended up getting to live in the metal house on 4 acres for free. My appraisal is coming up and we expect to pull enough equity out to pay all the present bills to live for free the next two years and then will sell it for zero tax with not a dollar of our own original money in the deal.

Lessons learned? Challenges?

Don't be scared!!! I had a lot of people look at me like I was nuts to do this deal but my gut just would not let me walk away from it. My equity partner even tried to bail and I had to talk him into staying. Always follow your instinct! Really the only challenge was just the immense amount of labor. We worked our butts off for about 6 months straight but in the end, was worth every minute of it.

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

I am a real estate broker so yes, I would recommend myself! lol

thanks for all the responses, everyone! I sort of assumed it probably did happen but just not in my area. 

@Jeff Kehl I appreciate the creative insight. I never thought about the ability to add value with just better tenants. That is just another cherry on the sundae! 

Just curious but does anyone have any creative suggestions for warehouse space? Our local economy is primarily oil and gas. We are also centrally located between East and West coast and right off a major interstate. I think bonded warehouses or just spaces that could be used for distribution or light industrial are good from a macro perspective. Aside from logistics though just trying to think of niche markets I could renovate to accommodate?

So I grew up with a contractor as a father that built design metal buildings. He was and still is one of the only folks around that builds commercial spec buildings. This last one he did, I sold for him (I am a licensed broker) and did so fairly quickly. I have primarily worked in the residential space most of my real estate career. That sale however, showed me very quickly that commercial is where I want to be. It was the easiest transaction I’ve ever done as well as the largest single commission I’ve ever made. (I know I’m very blessed to have gotten that opportunity!)

I own a few residential rentals that I BRRRR'ed and I think it's just a brilliant means of wealth building. I like the money you make on paper as well as having a like new place with low maintenance in the short term.

I want to take this strategy into the commercial space. My question is, why are more people not doing this? Is costs just a barrier to entry? Obviously greater risk associated but why do we not see more spec commercial buildings or flips so to speak? Or do we and I’m just not privy to seeing this in my little rural area?