All Forum Posts by: Chris M.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

@Anthony Rosa Money in the bank is a perfect way to look at it.  The land is in an established residential area. Full disclosure, it's in a flood zone and half is under a utility easement. Again, the purchase was totally selfish, for a future business venture.  However, there is a sod farmer nearby that may be interested in using it until I'm ready.  Thanks for the motivation and leadership!!

@Noah Mccurley partnering with someone would be a blessing. It would behoove me to really reach out my networking. #BP

@Martin Potter "Knowledge is how you mitigate risk and move forward powerfully".  Never, have I ever heard a more sincere statement in this or really any business. TY for your leadership.

@Ola Dantis seems as though you've read my mind.  It's hard to ignore the internal desire to jump on these lucrative opportunities, even when they don't particularly fit my mold or investment strategy.  

For example, I came across an elderly couple who wants to meet next week to discuss selling some of their property (~50 acres).  It's very rural and would provide limited instant revenue streams. But, for the price we've trial closed on, I'd be a fool not to capture it. I'm sure they entertain just about any owner financing platform I could generate. 

I've considered a monthly payment toward only part of the property. Or, even offering to buy everything (including their home) and allowing them to live there for the rest of their lives for the rent free. These folks are in their 80's.

@Paul Day and @Judy Parker I love your ideas and brainstorming.  It's zoned residential. Therefore, storage is likely not an option. There are established homes all around so I don't believe sewage and water will be an issue. 

@John Teachout The house should be rented out next week. Had to to paint and do a little maintenance. Rent should bring 850 all profit, since there's no note. 

Land is vacant and very undesirable with nothing more than a power line and some trees. As mentioned, it was a personal purchase for later use. Don't want to build anything on it and have to pay flood insurance.  Wonder how hard it would be to throw a trailer on it and rent it out for a few years to have some sort of added income. 

Also, off subject, where can I find a generic contract to sign with motivated sellers. Figured there would be a cookie cutter version on the BP website somewhere. 

I'd be silly not to refi the cash home if I need extra cash. Especially since the only reason I didn't was to save on flood insurance. I'd be spending more on a hard money loan in interest than I would on flood ins. 

@Andy Bauman It would be a long road to find enough rentals to replace my income all together, so it seems like wholeselling and flipping is the way to go for now.  However, I'm hoping to exit my current job within a year (15 yr finance auto finance mgr). Still trying to formulate my goals to be able to do so. 

@Caleb Brown I've been doing around 50 to 100 letters every 3-4 days.  Time to circle back and send them all a postcard. 

@Patricia Steiner That's why I come to BP. For the encouragement like yours!! Didn't mean I was down and out, just need to find ways to be creative. Truth be told, the vacant land is for long term personal use down the road for another business venture. It's got river frontage which will prove beneficial. So no real income avail there. Not to mention, it too is in a flood zone. haha. 

@Marc Winter I've got a meeting with a fella in the morning. Going to see what he has in the seller financing field. He has several properties and is nearing retirement. Thanks so much for your encouragement. 

Saved about 100k to get into the business. Sent 2k yellow letters with a few hits.  Steadily getting more hits, but here lies the problem.  Spent 20k on 9 acres of vacant land in the heart of town.  Then, made the knee jerk decision to pay cash for a 62k rental once I learned it would need flood insurance. Otherwise would have financed it.  

Go figure, now I've got more opportunities knocking, and most of my cash is gone; in the blink of an eye. Of course, to finance, banks require 20% of sale price, regardless how good the LTV is. What do I do?

Thinking of selling the rental and chalking it up as a lesson learned.  Then, pursue buying as originally planned.  

Investment Info:

Single-family residence buy & hold investment in Oak Grove.

Purchase price: $62,000
Cash invested: $68,000

3 bed 2 bath SFH. Long term passive income.

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

Long Term Income

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

MLS. Lowest price point. Seller only wanted payoff.

How did you finance this deal?

Cash

How did you add value to the deal?

Paint, landscaping & appliances

Lessons learned? Challenges?

Blowing 65k cash on a property is not the ideal situation since rates are so low. But, since this property required flood insurance, we opted not to finance. Now, it'll difficult to muster up 20% cash down on a lucrative deal.

Investment Info:

Other buy & hold investment in Clarksville.

Purchase price: $22,818
Cash invested: $22,818

9 Acres vacant land with river access.

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

Price and location

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

MLS. Noticed it was inherited. Offered 50k below list.

How did you finance this deal?

cash

Lessons learned? Challenges?

Always use a closing atty versus Escrow Company!!!