All Forum Posts by: Dan Nutter

I'm having a tough time finding a contractor for a major rehab in Raleigh. Looks like we're all in the same boat :( 

Does anyone out there in Raleigh BP land have contractor recommendations?

@Misti DelMar

There's property out there for anyone/everyone. There are properties that you'll be able to go after if you've only got $20k of capital, though you'll need to be able to secure a loan. The biggest thing you want to do at this point is strategize a way to save/make more money to continue your investing journey (the more capital you have to at your disposal, the more options you've got). Just remember, your first property may not be exactly what you're envisioning at the moment. 

Similarly, there's a realtor out there for everyone. Some realtors may only want to work with buyers/sellers of more expensive properties, but there are absolutely realtors who help you even if the property is $60k. Just be clear to any prospective realtor about your game plan.

Eventually, you'll just need to pull the trigger and take some action. Not that it's right, but my thought on real estate is if I'm not taking a step forward, it's actually a step back.

Hey @Garreton Smith, this is definitely interesting. It looks like you've been in contact with the seller and may have a gauge on their true desire to sell, which can help you determine whether the $600 for an appraisal is money wasted or a worthwhile risk.

My supposition is the appraisal will come in higher than your offer, which will likely embolden the seller to stick to the appraised value or higher. However, if you think you can make some good money off of this property, and you don't see the seller budging without an appraisal, then it might be money well spent. 
I think it's a good sign the seller didn't outright tell you to go take a hike at your offer amount, so there's probably some negotiating that can be done.

Quote from :

"How to win friends and influence people" by Dale Carnegie. It's been in print for 85 years for a reason.

It'll help you get the best from your contractors, keep the best tenants, and frankly help you in all aspects of life.

I'd give a lot of money to have read it at your age.

 Honestly, I wish I learned earlier in life how powerful it is to have people on your side (and quite frankly, just having people like you). It took me too many years thinking being right was the "right way." Dumb dumb dumb dumb of me. @Joel Orozco Read this book, practice its principles, then begin your real estate foundation. 

@Tyler Piciullo

Welcome to 2022 (and 2019 and 2020 and 2021)! It's definitely not easy to find what one might call a "good deal." Home prices are through the roof and rents have not yet caught up. Depending on what your investing strategy is (flip, BRRRRRRRRRR, buy/hold, cash flow, appreciation, etc.) you'll have a different path to finding what you're looking for. It's definitely taking more creativity today to find a "good deal" than it was a few years back.

Personally, I'm not looking for cash flow in the first 24-months, which consequently allows me to make larger mistakes than the cash flow investors. 

I hear there are still deals to be had, it's just a matter of how much time/energy you have to devote to finding them. If you're hoping to spend 20 hours glossing through zillow to find a deal, it's not likely to happen. There's so much cash out there right now with too many people looking to buy assets as a way to combat inflation, so the competition is fierce. 

I'm sure you'll have better responses to your question than mine, sorry :P 

Personally, I would take a combination of Nathan and Colleen's approaches. Since the heat and leaving the unit early are separate issues, I'd recommend treating them as such (though it's the same issue, money, to the tenant).
Let the tenant know you absolutely understand that he'd like to leave the unit before the expiration of his lease, and to help him in this endeavor you'd like to get the unit re-rented ASAP. To motivate him, let him know you'll give him a proration of March's rent if you're able to get a new tenant in sometime during March. This may also give him motivation to have the unit show-ready in February, where otherwise he wouldn't care.
Though you're not responsible for doing this, I do think it shows good faith. You're going to need to re-rent the unit anyway, so giving a flexibility usually pays off (at least it makes me sleep better at night).

@Jonathan White

Hey Jonathan, I've got personal experience house hacking MFH in San Diego, and I'd be more than happy discussing with your client. Additionally, I have a mortgage broker who's sole practice is with VA loans, and I could absolutely put her in contact with him as well.

PM me for my # if you'd like to pass it on to your client.

@Alex Hawk

Every person is going to have a slightly different opinion on this topic (though you'll notice some themes), so I'll throw mine in here as well just for fun.

1) How are you planning on earning capital to purchase your properties? Think of what vehicle you'd like to use to begin your REI career. Do you want a white or blue collar job? Obtaining an MBA is 6 years of education where you will not be earning an income (and potentially you'll be paying for school as well). This can be as much as a $60k loss of earnings/year ($40k of income and $20k for tuition/books/etc.). The more money you make early in your career, the faster you can grow your real estate empire. Making and saving money should really be your largest focus for the next few years.

2) You do not need an MBA to be a successful investor. And quite honestly, I would not recommend an MBA unless your future plans/goals include managing a company (and even then, an MBA is not a necessity). 

3) There's not a single path to success with real estate, which is partly what makes it so alluring to many of us. You can be successful with a relatively small amount of capital, knowledge and execution of a few basic principles, and a decent amount of drive.

For what it's worth, I have an undergrad degree in engineering and a Juris Doctor. If I could do it all over again, I would have become a heavy machine operator (think large dozers and cranes) out of high school and stuck with that for my income stream. I would have chose differently for many reasons :D 

@Lance Stokes

The only thing I'd be worried about is whether there's any deferred maintenance that's going to result in some major CapEx in the near future. Otherwise, looks great (assuming all expenses are accounted for in the $300/mo)!

@Aris Alexiou

If you're fully funding this deal, why not just sign a contract with a builder to design/permit/construct the home at a fixed price and you keep all of the equity? I can see some pros for having the builder keep an equity stake, but in my naive brain it seems like you're in a position where you don't need to give somebody a cut of the pie.

Also, nice job with your English, I think it's better than mine (and this is my first and only language) :P