All Forum Posts by: DJ Cummins

Lol yeah I guess it’s a good problem @Canesha Edwards.  We have enough to put about 40-50% down on 1 duplex but couldn’t pay cash to put up one without some financing. 

I’ve bought and rehabbed multiple times now but building from scratch is a new animal. 

Hello all,

It’s been forever since I’ve made a post on here. Been a busy year with my blog and current real estate investments. As always, I appreciate any input you can give.

Anyway, long story short, my business partner and I have the option to acquire about 10 acres of land for no cost. He already owns it in a different partnership and they need to liquidate it. The land already has paved roads and sewer, and has been approved by the city for 14 duplexes. The two streets are located right behind the brand new local high school. Great location. I know it’s a great opportunity. The property tax of 19k per year is kind of scary but it’s still a fantastic opportunity. The land has a current appraised value of $450k.

I’ve never had a big land acquisition like this before. Since we will have the land free and clear, would we be able to use that as collateral to build the first one or two duplexes? My initial thought was to try that. We also have enough money to get a loan to build 2 more right off the bat. I had thought about using the land to build 2 free and clear duplexes, refi this to build two more, then 2 more, and keep that train going.

I'm not sure how that works with using a BRRR(missing an r for no rehab) type strategy while we own all of that land. Should we look at subdividing it into 14 different plots rather than one large 10 acre plot? I like the idea of them all being together but separating each might make sense. A few years down the road we might want to sell but I guess we could sell them all in a package as different plots anyway. Please let me know your thoughts. I appreciate it!

DJ Cummins

@Trevor Mleziva.  Good for you!  I wish I would have gotten started at 21 rather than 32.  Anything on BP is a great learning tool.  I have listened to each podcast multiple times.  There are also other great sites and podcasts out there too.  I have about 5 on my playlist that i listen to weekly.  Books are great.  I try to read a minimum of 4-5 per year regarding real estate.  

hello @Jon S.,

I would say it is absolutely feasible to get started.  It sounds like you are in a pretty good spot financially.  I think the most important thing for you to do right now would be to figure out what exactly your goals are.  Do you want to flip houses? - if so do you have contractors and systems in place?  Do you want to buy and hold a rental in Orange County with prices being so high?  Are you interested in buying something out of state that would have a cheaper entry point/possibly higher returns?  

Figuring out what path you can see yourself on comfortably makes a big difference.  Bottom line is there is when there is a will, there is a way.  What do you feel like doing? 

Just an example, the 25k you have liquid could buy you a turn key rental in a good/safe area here in the Midwest that would bring in roughly $200-300 in cash flow each month. A lot of people don't like the thought of investing from afar, and I get that.  I am 5 years into the game and am just now starting to consider the possibilities of it.  

Hello my friends.  I wanted to share with you my labor of love over the past four years.  My wife and I started writing a book, Landlord Life:  The Diary of a New Real Estate Investor.  We started writing the book a few months before our first rental property purchase.  I feel like this book is a great value to new and aspiring landlords, and also to seasoned professionals to see how other investors run their business.  This book is written as a diary and has real life accounts of all situations involved in the business from tenant issues to cash flow numbers and bank account totals.  Please see the link below if you are interested.

https://www.amazon.com/Landlord-Life-Diary-Estate-Investor/dp/179425885X/ref=sr_1_1?keywords=dj+cummins&qid=1547829024&sr=8-1

I think a lot of the time is you get what you pay for. Taxes are high in Illinois but there isn’t a personal property tax like Missouri. I feel like the area I invest in is much safer than St. Louis as well 

Just an FYI - this property went under contract a couple days ago.  Thanks for all the responses.  I have a single family i am selling in Bethalto, IL going on the market next week.  Then i am done selling...hopefully forever.  Big things coming in 2019!

Good luck to you @Vijay Jain!  We are selling a couple of rental properties now and are thinking about building a small facility ourselves next year!

my portfolio lender will give me a 20 year on as many mortgages as i want.  just wish i could afford more of them. lol.

@Justin K. - deals are out there, keep looking and you will find one.  my market they are possible to find.  i am actually selling one that is close to your example now.  70k asking price, was rented at $850 per month.  keep on looking and it will happen.  

@George Skidis  thank you. When are the meetings?  I might take you up on that. 

I own this property with an agent. I am just impatient. Haha. By my calculations the ROI at the asking price of $130k would be 20.76%.