All Forum Posts by: Derek Rice

I believe they would be a write-off for tax year 2015 (whatever date that you paid for them). You wouldn't have had to, but since you set up an LLC it may look more legit to the IRS to write them off. Legal fees, business equipment, and membership dues all sound like common business expenses to me

Hello all!

During the market downturn, my family and I purchased an REO mini golf course. I have heard on the podcasts and read a lot in here about direct mail campaigns for finding motivated sellers. While my question isnt necessarily about real estate, I know there will be some direct mail genius's on here that can help!

We are wanting to do a direct mail campaign, more to families with younger children, but really anyone that may be a potential customer.

Anyone have any good ideas about how to go about it (criteria during list search)? What companies may be best for us, to generate a good list and do the direct mail also?

Thanks!

A very basic quick calculation I use is 7.5 bricks per sq ft, and then about $1 per brick for material and labor. It's not perfect but it usually gives me a good rough idea when figuring new construction.

Yes, this would be a seller financed offer. On all the loan comparable numbers, I added back in the down payment to arrive at my numbers. The asking price currently is 547K, but it has been for sale for 2+ years. I believe it was around 570K when originally listed. 

I am sorry that the spreadsheet is impossible to see. BUT, if you right click on it and open the image in a new tab, then it is legible. Sorry for the inconvenience

To start, I am sorry if the spreadsheet is hard to read. I am not sure how it will come out after I post. If it's hard to read then this entire post is useless and I will try to delete it.

 Anyway.. I feel that I am very knowledgeable in real estate and construction, but I am new to the rental side of real estate and this would be my first deal.

This is a 12 unit deal, involving two 5 unit buildings, and one duplex, all built in the early 70's. It is in a C to C+ area. The schools are good, but the town's population has been stagnant for the last 25 years. It looks as if the buildings have all been taken care of decently, but to the minimum degree. I haven't been inside any units yet, but from the outside I can see that they will all require new roofs and new A/C units in the near future. They are mostly brick, but have a small portion of B&B siding that needs a paint job soon too. 

The owner is 63, lives about 40 minutes away, and also has close to 30 units in his hometown of a B+ area. These are the only units he wants to get rid of and he owes nothing on them, so that is why I have structured my offers in the way that I have. 

Any insight will help and is greatly appreciated! Thanks!

I am a new construction home builder in the southwest ohio area. I've built 15+ houses in the last 8 years and currently have 2 spec houses going right now. Aside from 2008, I've had no trouble selling them, and even had multiple offers on one I did this spring. I currently have about $85k in them, and about $85k to go to completion. I have 8 vacant lots with an average value of $15k a piece. Absolutely no debt to my name, but I only have about $70k to put towards completing these houses. To bridge the $15k gap, I want to get a LOC against the 8 vacant lots, or even my paid for truck with a $35k value, but every lender I call says that they aren't interested, even when I say I would be fine at a 30%-40% LTV. Most are willing to do a construction loan to finish out the projects, but I'd like to have an open loan to use even after the homes sell to help me stay out of this pickle in the future. Any suggestions?

Hey Everyone.

I am brand new to BP, but definitely not Real Estate. I have ran a new residential construction company for the last 8 years. I built my first market house to sell at the end of 2007, right before the bust! I sat on that new house for over a year before it sold and was very close to giving up after that. I didn't quit though, and since then I can't seem to build houses fast enough, they are selling like hot cakes! I am new to the investing side of real estate and would love to attend a meetup sometime soon in the future. My first child is due on the 16th of this month, so I doubt I will be able to make the September meeting, but please keep me posted! Thanks!!