All Forum Posts by: Bart Libsock

I appproached a guy I used to do alot of work for about financing flips, he came back with maybe buying alot of lower income rentals. I will do all the brush beating, analyzing, fixing and managing of the properties. I am not the most experienced in analyzing and managing but with BP am sure it can be figured out. My main contribution is knowing the area, contacts, and hustle. My company will do all the physical work to the property. He will provide 100% of the capital to get this idea afloat. We are wondering what the best way to structure this deal would be, if it is even a deal. I am not interested in making wages, end game is earning enough equity to own a piece of properties.

Think I came out of the gate asking to much, had two agents tell me I could get way more than what we expected, so they were priced way to high right off the bat. All the water wells are on one lower lot and could only drill 4 wells, did not want to do shared water wells as that usually means big big fights around here. The lay of the land really dictated the lot layout, wanted to do more lots but it just did not seem to be the thing to do back then

Good points @Brent Coombs, am definitly getting an education in what not to do, but it could have gone the other way also and sold out fast, when we subdivided there were 0 lots in the area to build on, and houses were being built on every available lot, so I took the chance that they would sell fast. 

So I had the bright idea of subdividing 20 acres into 4 five acre lots, 4 years ago, thinking that after loans were paid off we would have some capital left to invest in rentals. Have sold one lot, deeply deeply discounted, getting impatient, have been actively looking for deals but how do you turn empty lots into cash for multi's or BRRR's. Still owe lender 110,000. We have about 15,000 in equity in the house we live in and about 80,000 in the subdivision.

Hello @Jared B. I've got a long boring story about that tudor, I was the one that originally bought that house for $5000, and moved it to where it sits now. The same mover moved it from downtown Billings in 1972 to where we bought it from 3 years ago. 

My intentions were to bring it over here to Columbus, put it on some land we subdivided and turn it back into a duplex. The cost to move it the 30 miles was $24,500, not counting wire raising charges. The wire charges were to be about $8,000. The wire charges to move it the 3 miles to where it sits now were $4700, more than half of the total.

One issue with the house is it is really tall so routes to move the thing under most wires are hard to find. The mover who moved the house has passed on, it is sitting on his lot and his equipment, so there may be a little issue with the estate, not sure. He was going to sell the lot the house is on for $20,000, which seemed out of line for the neighborhood, and there is no water or sewer so a guy would have to do drainfield and cistern. There is a house mover here in Columbus but he will not touch this house, it is to tall. There is a mover out of Livingston that might be interested, Tamianetti i think. If you could find some land west of where it sits now would be pretty good, smooth roads and not many wires.

When i bought the house it was in fantastic shape, no cracks in the plaster or the outside stucco, moving it the 3 miles cracked it like you see it now so I decided not to bring it over, because the route we were taking was mostly all gravel roads to save on wire raising, I actually thought that it would hold together. 

The people we bought the house from had the house inspected and tested for asbestos, which there is none, I have all the reports and my contract from the mover, if you would like I can send them to you. Can also get you the number for the movers widow to see if the lot is still available, and if any relatives will move the house.

We took great pains to save all the bricks from the chimney, put them on pallets, might want to make sure they come with, as no other bricks will match.

Having the surveys done on each lot is pretty far down the list of things that need to be done when subdividing, here where I am at,  yes each lot will have to be surveyed, pinned, and plotted on the final plat at the courthouse, you have to decide how many lots and if the governing body will even approve the proposed subdivision. 

It is his own company he made alot a money in the bakken oil patch, and bought a bunch of big equipment. I went with him because he had the big stuff and could get the job done fast, most dirt contractors around here have a backhoe and a dumptruck, and little equipment, it takes them a month of Sundays to build a road. He is owning up to the mistake and is fixing it today it is 8:10 p.m. and he is still working, so that is good.

@Brian Eastman

 Thanks for the info, will relay to CPA hope she knows this stuff.

Hello just listened to podcast 162 with Amanda Han. We are just finishing up our subdivision, will be putting lots on market in about 3 weeks, was wondering if it is to late to start a self directed "anything"  so the taxes will not be so massive,  the plan is to just keep that money rolling into real estate but if the IRS takes 50% there is not much left to roll. To 1031 lots in a subdivision is not without risk and thinking it is not really a good option.

Hey @Nate Barbee  Even little projects came take an inordinate amount of time, I got caught in a rule change by the DEQ and our state DNRC on water wells, the laws were so new that neither agency really knew who was going to do what, meanwhile the guy holding the bag is losing time and money while they sort it out, another good one is, when I went to get encroachment permits to work in the county right of way, the  road super told me that you can no longer put mailboxes on a county road right of way, huh? the postmaster told me that the USPS is not allowed to deliver on private roads, huh? after 3 weeks of wrangling the postmaster said if we built  a turn around just inside the sub they would deliver to the subdivision, constant little battles like these can and do eat  large amounts of time and money.