All Forum Posts by: Duke Marquiss

Well played. Very creative. Keep up the good work and you can turn your credit line expontially. 

You did that "one thing" that most don't get. You figured it out.

Welcome to the investing world of Northern Colorado.  If I can be of help, let me know.

Good morning.  I grew up in Gillette, went to UW, taught school in Cheyenne and now live in Fort Collins.  Presently invest in CO and WY.  We have over 35 rented townhomes in Cheyenne, twenty peas in a pod in Gillette (20 unit apartment) and over 45 rentals in Colorado.  We always buy when we can and if we do not have time to remodel, we will wholetail units out.  Loaded units are always available to sell.  We have shifted to buying and rehabbing commercial buildings at the present time.  

At the same time we also buy mortgages across the country.  Both performing and nonperfoming - this is the most fun I have had in real estate in 40+ years.  

I have been a full time investor since 1984.  Kinda tells you that I am an "Old Guy" but I am young at heart.

Mathew, nice to talk to a fellow WY resident.  I grew up in Gillette and went to the University of WY.  Now live in Fort Collins, CO but still do a lot of investing in Cheyenne, Gillette and Rock Springs.  We always have fix and flip wholesale and retail properties.  Get a chance, we should connect.

We purchased a first and second defaulted mortgage on a 13.000  SF warehouse in  a nearby city.  We were able to negotiate a deed in lieu of foreclosure.  The first thing we did was gut out everything back to a core and shell, had new roof screws put in and metal over old fiberglass skylights.  We had leases for two spaces of about 3,000 sf each ready to sign and a buyer came in and purchased the building with him doing the build out for the tenants and he is using the balance for a robotics shop.  You don't know where the buyer is but i think it is important to clear out the building, do minor repairs asap, and remove old landscaping that has overgrown the property in the past.  We hire a good commercial agent to market and handle showings and contract. Total profit was $485,000 in just under 11 months start to finish.

Discounted notes is a good way to get into any rehab commercial buildings.  Really get to know your market.  Distressed office buildings in our area are fun to do.  Most of the buildings are 10-20,000 sf that were single tenant (usually medical) thatwe repurpose by dividing into smaller space and condo out for the smaller companies.

You are on the right path.  Keep it up.  

Depending on where you are located, mineral rights may be a possible.  In any event, make your offer for the land and any and all mineral rights owned by the seller.  If they say they do no own any, then tell them it won't make any difference, you are just asking for any they may own.  Many do not know if they own any minerals.  I did this on a small farm in WY and found out that I also got about 640 acres of fee coan the owner did not know he owned. Leased them for a signifiant amount of money.  When I sold the farm, I reserved the coal rights and any other minerals that I may own.

Open storage may be an option in areas that you do not need.  Corners are good for that.

good luck

They may be a management company.  I have seen people build this type of portfolio quickly.  They do it just like you eat an elephant, one bite at a time.

Listen to Grant Cardone on Bigger Pockets Podcast #108.  

Most sellers know that it needs to be renovated.  Estimate the value after the repairs, in other words, after you are going to do what needs to be done to make the property rent in whatever market that you are in.  Then take that times a factor of 70, 75 or 80% and subtract your rehab costs to determine what you can pay for the property and assure yourself a good profit.  When we start making offers, our first is the  70% and if accepted, that is one that we can flip or rehab and flip or hold and if we go all the way to 80%, that is one that we have to know in advance it is a buy and hold property.  

To buy at retail even ARV and only get the renovation expenses, makes very little sense unless you are in a very strong market and you believe in the "greater fool theory". You make your profit when you buy. Good luck.

We only buy what no one else wants.  Distressed physically is scary to most people.  You really have to understand your costs to rehab and plan for more but there is very little competition in this space.

Just like rehabbing a house, just more of it.