All Forum Posts by: Ben Dunning

@Steven Kleppin  Thanks for the advice.  My initial thoughts were as follows.  Assuming a thorough rehab there would be limited Cap/Maint for the first year but i still want to build up reserves and I used .  Of course things can happen.  The numbers I have in there puts me at $1680 for Capx/Maint per year.  I also planned on having 3K per properties in emergency reserves. Vacancy number are in alignment with 1 months rent  which s 1K a year.

Does everyone think that is reasonable from a financials perspective?  Should I be accounting for more/less?

Great advice on validating the sales price.  I certainly planned on verifying Comps but I didnt know that there was a specific practice of propping up prices in hight rent neighborhoods.  The initial feedback on the neighborhood is that its in a slightly higher Owner/Occupied.  My thought there is that this could slightly benefit my exit strategy perhaps.

@Brent Coombs  agreed i need to independently verify.  Are their online sites you could recoomend in addition to talking with PM/Agents?

Thanks everyone!

Ben

Gerald Harris Thanks for the reply! It's a turnkey opportunity so it shouldn't need any rehab. The provider works with many CA investors and appears to be reliable and highly regarded here on BP. I certainly am not entertaining a remote DIY rehab remotely from CA which is why I am targeting TK to start.

Hi Everyone,  Hoping to get a second set of eyes on my first set of calculations.  This is a TK in Indy, good B neighborhood.  I still need to talk through all the details of the rehab but it will be thorough.  

Quick thoughts?

Cheers and thank you!

Ben

@Thomas Franklin, I hadn't worked through all the details but you clearly helped me realize I have a bit of homework to do regarding corp structure.  My sincere thanks!

Cheers, 

Ben

@Douglas Skipworth  Sorry,  should have known better and provided more context.  I would say in general I would like to target B class properties, working class, good neighborhoods, schools etc.  Targeting 3B2Bath minimums.  I am pretty flexible on purchase price dependent on financials.   

Thanks!

Ben

Hi @Douglas Skipworth,  Thanks for taking the time to comment!  I really appreciate the warm welcome!  I have listened to a ton of the BP Podcasts as well as the past Webcasts.  @Brandon Turner books as well have been extremely beneficial!  I have started initial conversations with Memphis Invest and Mid South and certainly would like to speak with more.  I am certainly going to reach out to @James Martin and @James Wachob !

Any advice on initial target neighborhoods which I use to jumpstart my investigation of schools, geography, business centers..etc?

Cheers!  

Ben

@Thomas Franklin Thanks for the Reply! Your list of questions are supper helpful I really appreciate it! I have considered asset protection and the plan is to form an umbrella LLC which will own an LLC specifically for each investment. I certainly understand that there will be costs to this type of structure but the protection is more than worth the risk for me. My thought was to buy the property myself then transfer the deed to the LLC. I recently read a bit on Series LLCs but they are not available in every state from what I understand. I still need to figure this out. I am unsure where to form the "holding LLC" which I assume should be CA which is where I live then form an LLC in the state where the property will reside. I need to vet a strategy with a CPA and Attorney. Also, members of the team which I have not identified. Still lots of work to do.

Cheers!

Ben

Hey Everyone, New Investor from beautiful San Francisco, CA.

I am a transplant from the North East and loving the California lifestyle! Even if rents are completely obscene here in the city! A little about myself... I have been with the same tech company for the last 15 years and have been raised to believe that building wealth towards retirement is done by saving, investing in my 401k and buying a house to settle down in. My 9/5 job has certainly helped me raise capital as well as gain significant Tech, Business and Sales skills. It's my hope these will serve me well here in REI. This traditional mindset on building wealth is shared by literally my entire family. It's amazing how many of my friends and family back east, each who are successful and have good careers think I am crazy! I recently had the classic "ahhhhh haaaa" moment! I am now completely committed to breaking the cycle in my family and teaching everyone I know about what I am learning.

For me, it started by listening to Tom Wheelwright’s “Tax Free Wealth” then amplified exponentially by of course “Rich Dad Poor Dad!” I am now spending all my spare time consuming everything here on BP as well as everything I can on Audible. Acquiring assists and building income streams is now my #1 priority.

I know my REI criteria based on where I am at in life, I have capital to get started but have limited free time to start. I feel the best approach for me is to look to buy/hold income producing properties. I am currently debating the TK versus "do it yourself" but for me time is still an issue and I have no trustworthy feet on the street at this time. I will be working aggressively to change that. I believe I will take the approach of starting with a couple TK properties as I need to learn the process and I would like to move quickly to start. While I am working to close my first couple deals I will setup the contacts, infrastructure to build leads and find properties which will align to more of a buy, rehab, PM and Rent strategy.

I am a little stuck right now, as I have not narrowed down a market to focus. My list is Memphis, Indy and TX currently and I have began interviewing TK providers but I would still like to find a great agent/broker who has the passion, knowledge and focus on investors from which can be my trusted advisor. I have no doubt I should be able to meet some great people here on BP!

I really look forward to talking with all of you and learning, building wealth together! I have already seen that this is a great community and I know we can all make lots and lots of money together.

Thanks!

Ben

Hi @Linda Zhou how did this go?  Did you complete the rehab?  I am looking to do the same thing.  Currently identifying markets and the RIGHT team.  

Thanks!

Ben