All Forum Posts by: Dolly Caswell

WOW @Nancy Neville...wouldn't you like to come live in Alaska and manage property?

Hi @Ryan M, I can understand your many questions about where to invest. Personally, I feel like I've got to be close enough to a property that I can drive to it in at least 3-4 hours. In Alaska the larger cities are spread out. I can't even imagine the expense if I owned rental property in AZ or GA or somewhere in the lower 48; my issue has always been how do I find attorneys, general contractors, realtors in an area that I don't know. It's not like I've got this huge slush fund that will buy airplane tickets and rental cars and hotel rooms for me to stay in while I solve problems or have to foreclose. I know, I know, everyone on BP says we have to get past that. I think they're the ones that have been doing this a long time, have it all figured out and have that slush fund (expense account) to pay for the plane tickets, rental cars and hotel rooms. Tax deductions are great, but I've got to make some money first.

When I'm a "big girl" I'll be able to buy outside my area...right now...not so much!

Our market in Alaska, especially the Municipality of Anchorage, which includes the big city, Eagle River, Chugiak, Peters Creek and etc. and the Mat-Su Valley with Palmer, Wasilla, Big Lake and other smaller areas are "hot" now too. It's difficult to find a bargain. But if you've read many of the blogs here, you should know by now that the majority of the money you are going to make in a deal is when you buy it. I think too, we've got to look at worst case scenarios for the local economy as well as country-wide and be sure you can cover expenses and mortgage when the "what if" issue comes along, as it surely will.

Hi @Jen Etten, I've bought RTA cabinets twice for new kitchen installs in Alaska, once when I lived in Dillingham and then again for my home in Eagle River. They are dramatically less expensive because you aren't paying for "the air" inside the box when it's shipped. I found them to be higher quality as well, compared to the ones locally or shipped with "air". Be especially careful as you assemble, using good carpenter's glue and being careful not to strip the screw holes. Be patient, and you will have some great cabinets. They do take some time, but while you're putting them together, think of the money you saved and how much you'll enjoy them! Fortunately, I had the foresight 20+ years ago to put white cabinets in my ER kitchen and they still look wonderful and of course make the space very light and bright.

Can someone explain the 100/10/1 rule? I've never heard that one before.

Thanks to all of you, I guess I didn't make myself very clear. The GC I'm planning to work with is going to also be an equity owner, at least that was my thought, and he wants that too. He is a very experienced contractor, in all of the construction fields, has run multi-million dollar jobs, is retired now and wants to continue to be busy, but doesn't have all the money in the world to buy houses and fix them up. I don't either, but I have some, and I'm trying to figure out how he and I can work together. I don't think I can afford him as a GC, so I thought (and he did too) to make him part owner of the property or properties. No doubt we'll have to figure out what his time and skills are worth as well as mine and then figure out how much money we can each contribute to the project.

@David Miller, this will not be new construction,  we just plan to find fixers, clean them up and if appropriate sell them, if not make them a rental and we split the expenses and the profits... somehow? That's what I'm trying to figure out.

@Valerie Hiscoe, thanks for your book recommendations, I've read a ton of stuff, but not those yet. I know a lot about construction, and have actually done some of it, but I can't any longer, have some knee and shoulder issues. I appreciate you taking the time to read twice, sorry I wasn't clearer. I believe I do trust him, just trying to figure out how to get the work done and him  have some "skin in the game" as well.

@J. Scott, you're right, I hadn't thought about all those issues. Regarding equity perhaps I have 75% and he has 25% or some such figure.

Performance, you're right, I can't fire him from the LLC.

If we can't sell, I think it's okay with both of us to hold, rent and split.

Losses I'm assuming we'll split. Yes, he needs to agree to that too, and I believe he does.

Hello BiggerPockets, I have a problem! I'm experienced enough to have had a few "almost disasters" due to contractors bad work/failure to finish/cheating me in rehabbing a condo as well as work on my home. A couple of them I originally thought we could have worked together long-term, but after  our misunderstandings on that project, he did the work (not always great), I paid the bills, but his promises vs my expectations just didn't match up. My problem, I'm sure. Just so you know I've even had a contract a couple of times and it still didn't work out satisfactorily.

I want to continue to buy and rehab property, but still have no long-term GC to plan projects, keep the ball rolling, comply with local requirements etc. I'm not a carpenter, painter, sheetrocker, electrician or plumber, but I can do the books, find the properties, make the analysis, have great credit, and fund at least a major portion, if not all, of the purchase. 

I've been reading about the "Waterfall Framework" for establishing equity between people working together in real estate acquiring businesses. (FYI, I've been told it's best not to refer to us as "partners," and our business arrangement is "NOT a partnership"). Also I live in Alaska and my investments will be here, fairly close to home, Anchorage, Eagle River, Chugiak, maybe the Mat Valley and everything must comply with the RE laws of the State of Alaska. 

1.  Is there anyone experienced in utilizing the Waterfall Framework in either a successful or horribly disappointing outcome? If so, please explain.  I know I've been very loose and trusting, with bad contracts or no contracts at all in the past which is why things didn't work out to well. When they didn't perform as promised I didn't take them to court, not wanting the grief. I totally take the blame for that. I always pay my bills or the bill for the person doing the work, I don't cheat anyone and I believe my expectations are reasonable.  I just keep hoping I'll find an honest, trust-worthy person who knows what they are doing......

2.  I want to be able to trust another person, as they will have to trust me, but how do we establish who does what and how much value does it add to the overall project? 

3.  Is the Waterfall Framework the best or only way to recognize each person's contributions? 

4.  Does anyone on BP have other suggestions for me?

5. For example, I envision establishing one LLC to include me and the GC, and that will cover the first property that we buy and work on. If all goes well and the misunderstandings aren't TOO great, we can continue and acquire another, utilizing the BRRRR theory. Although we may decide to sell.

6.  I need you folks with greater wisdom than I have had in the past to advise me. I've been so badly burned that now I'm afraid to try again and yet I know I bring a lot to the table as well, and it could/should be a successful venture for both of us.

7.  How in the world are good, long-term business relationships developed? 

Thanks for your advice.

Well done Gentlemen,

I appreciate the logical, orderly way you said it should be planned. Now if I could just find the right property....

Hmmm, I understand all of it except GWAC!

Perhaps you need to change the state designation in your listing. You have AK which is Alaska and I think you mean AZ which means Arizona.

Ericka J. could you elaborate on "sandwich lease options?" I've never heard of them and just want to warn you about the AHFC loans - they have a reputation of being absolutely non-negotiable about anything. I live in Eagle River, if you ever get to "the big city" give me a call, I'm listed.