All Forum Posts by: Scott E.

You can't feel bad about how your offers make the sellers feel. They have something for sale, and you're offering what you can afford to pay. It's just business.

What you should feel bad about though is if you're wasting your realtors time. You don't want to submit a bunch of offers like this that are 80%+ lower than the asking price as only one in a million are going to get accepted. Make sure you and your realtor are on the same page here.

Overall your thought process, drive, and ambition are all in the right place.

Unfortunately are a few issues with your plan - One of them being it is extremely unlikely you will get that property for anywhere near $11k. And if you are able to, then it is probably not a buildable plot.

The more likely scenario is that experienced, competent, sophisticated developers will bid this property up all the way until there is barely enough meat left on the bone for somebody with experience to develop. Maybe they'll pay $150k. Maybe they'll pay $450k. They'll pay whatever they can afford to pay if this is actually a good developable piece of property.

You're going to be at a disadvantage as somebody who has never done this before. You don't know the real value of the land because you wont be able to accurately assess the development costs. How long will this take you? What is the price per foot to build in this area? Who will be your architect? What will engineering cost? What's it going to be like to deal with the coastal commission? What will your holding costs be on a construction loan? Etc etc.

My 2 cents is to follow this auction closely. Follow other auctions in the area closely. Observe who these parcels are selling to, and try to get in touch with those buyers. If you start building relationships with these local developers, you will start to gain the experience and confidence needed to take on a project like this yourself.

Also... Thank you for your service.

You've come to the right place to start learning everything you need to know about real estate.

First thing I want to say is - It's not too late. You made poor decisions in your 20s... maybe you feel like you lost some time. Well good news is you have PLENTY of time left and you're still starting younger than most people do. Don't sweat it.

I'd spend the next 6 months reading posts here on the forums, listening to the biggerpockets podcasts, reading the biggerpockets blogs, and reading a couple of books.

While you're add it you should increase your income, decrease your expenses, and start working on fixing your credit score.

After 6 months you'll have a good foundation of education and you will start to understand if you still want to get into real estate. And if the answer is yes, you'll have a better idea of what area to buy in and what strategy is the best fit for you.

If I'm reading this right you're saying you will cash flow $1000 per month with a LTR and you will cash flow $1478 per month with a STR.

If that's correct, you should 100% a LTR (in my opinion).

STR is so much more high maintenance. Plus your expenses are going to be higher than you expect.

Sounds like the property manager breached your contract. That's not cool. You probably have a case here. But what are you going to do... have them take down the blinds and ceiling fans and then refund you your $3,000?

If tenants in your area expect blinds and ceiling fans, the PM did the right thing. They just should have asked you first.

Most of 85257 is solid. The last couple of flips I did in 85257 I sold in the high 700s. Tons of redevelopment happening around Skysong, Papago, and Entrada.

I appreciate you taking my feedback but I need to push back again on your claim about your friends. I lived in 85257 for almost my entire adult life (3 different neighborhoods). I've left amazon packages sitting at the front door for a week because I was out of town. I've left bicycles on my front patio overnight plenty, no issues. I never locked my car doors, never even thought about it.

Drive around literally any neighborhood in 85257 and you're not going to find 1 person with chained up furniture. I'm seriously not trying to be rude but that is a laughable claim.

Anyways not really much of a reason for us to keep going back and forth. I'm passionate about the topic because I've been doing deals in south scottsdale since 2011 and its just a bit frustrating to see somebody make clams about your neighborhood that are 100% fabricated.

Great question... but the simple answer is you can't believe most of what you hear on podcasts.

There are some really valuable podcast conversations out there. Unfortunately most people aren't telling the whole story though. 

A lot of these podcast guests fall into one of these buckets:

-Started with a bunch of money

-Made most of their money selling education before buying deals

-Don't actually do nearly as many deals as they claim to

-They own a tiny piece of a bigger deal (LP)

I still listen to podcasts a lot but you can't let the guests "successes" demotivate you. Just try to extract what value you can, then focus on scaling your own business based on your own personal circumstances... one deal at a time.

If you've got six figures to invest I wouldn't consider that "little to no money down" ... unless you're buying a $1,000,000+ deal.

Either way, buying a multifamily deal with no money down is a bit of a pipe dream. Nobody is going to finance you that way. Some might say you can seller finance but good luck finding a seller willing to give you 100% financing on a deal.

2nd issue with no money down is even if you do find this unicorn, it's not going to cash flow. Interest rates are still high. So if you're at 100% LTV on a deal with a 7.5%+ interest rate, you're going to be negative cash flow (or break even, at best).

Sorry for the discouraging post. All that being said my recommendation is to reduce your expenses, increase your income, and save up some more.

Analysis paralysis generally happens when you spend way too much time focused on reading books, listening to podcasts, going to meetups, etc.

So how to get out of analysis paralysis? Stop dong those things, or put a limit on how much time you spend on those things.

To do deals you need to spend more of your time evaluating opportunities, underwriting deals, and writing offers. Eventually you'll get an offer accepted then its off to the races.

Yes I believe this will impact resale value a bit, but it should have also impacted the currently value (meaning you should have been able to buy your home at a discount relative to other similar homes in the area that don't have the tower in view). 

Appraisers account for "negative external factors" on their reports. I've only seen them call out when there is a busy street or a big commercial building nearby, but a tower like this I would think is considered one of these negative external factors.

It's 8-9 houses down so that's not horrible. I doubt it impacts the experience once you are on your property. I'd plant some trees or something that grows tall on that side of your property. Hopefully it blocks or distracts from the views in a few years once the plants mature.