All Forum Posts by: Elad Itzhari

 Did you follow-through with making the offer? 

As long as you are not adjacent to the parking lot (rain runoff can sometimes be a problem), I would think of it as potential renters. The church may know someone looking to rent, and since the church referred them, may help with any renter problems. My experience with weddings is mostly mornings to get ready, afternoon weddings, evening receptions. Saturdays mostly, with Friday and Sunday as cheaper reception options. Some times a reception at the church, but usually elsewhere. Although that may be a regional thing. There are usually several meetings and events a month, usually in the evenings, but usually small groups.

@Elad Itzhari If you’re worried about traffic from the church I wouldn’t. It might provide you with a potential tenant list if you introduce yourself to the minister and staff.

I own and house hack a duplex that abuts a parking lot for a small strip of retail businesses. There’s a considerable amount of traffic and disturbance at times during the day but once evening comes it isn’t an issue. 90% of the people that use the parking lot respect my two parking spaces and don’t park in front of my house.

The good thing is that it’s not busy after working hours or in the morning when most future tenants will be there after I move out of my side.

If there’s only traffic at the church Wednesday nights and Sundays and an occasional Saturday night for weddings I’d consider that to be a GREAT neighbor and buy that deal all day long!

I would think this is a bonus.  Probably low traffic for most churches...maybe Wed night and Sunday morning.  To me better than having a full time neighbor.

Maybe that is a demand driver.  Maybe someone that works there or attends there wants to be within walking distance.  Maybe a minister might want to keep an eye on things.  Maybe a choir director wants to have practice 3 nights a week.

I've had plenty of people for both purchase and lease want to live within walking distance of their place of worship.  Especially if they are daily practitioners.

What would be your concern?

Neutral in my book.

Good Luck!

I met with New Western at their offices today and am interested to see where our relationship goes from here. I'm not a newbie so maybe I won't be a good fit for them. Anthony and Nathan seemed nice enough. Time will tell if the words are backed by action and integrity.  Thankfully I have a shark of a lawyer on my team if any shenanigans should arise.  Anyone... feel free to message me in the future and I'll let you know how it goes.

Elad,

Congratulations on saving that amount especially in these economic times. What is your plan with the 90,000? Are you looking to buy the house cash and pay for the holding cost and rehab cost out of that 90,000? Do you have a day job and if so do you have disposable income each month to cover some carrying cost while you complete your rehab? 

     I understand wanting to invest in a lower cost market, but I prefer investing local. For a new investor I think investing local is better as well. Having said that I will say that in my market in NE TN I can do projects for about what you have. For example, my current project is a 2 bed/1 bath that I purchased for 65,000. I'm still a couple weeks from finishing the rehab, but it will end up costing around 30,000-35,000. The house right before this one I purchased for 55,000, put 42,000 in rehab costs, and sold it for 157,000. 

As far as building a team I think it will be more difficult to try to build a team in a market you do not live in. It will be hard enough to get contractors, who are any good, to show up in a timely manner to do your job. In my area good builders are booked for over a year, my electrician is booked for six months, my HVAC guy is out a couple months and so on. Because I do so much business with my contractors they squeeze my projects into their schedule. That loyalty takes time to build. 

You may want to look into a lease option on a cosmetically distressed property in your market. Find a property that you can sign a lease on with the option to buy at an agreed upon price sometime in the next two years. If it is ugly enough you should be able to sign that lease with either no deposit or a very low deposit because of the condition of the property. Then rehab the property and finance the property or sell it. 

I agree with the others on the importance of getting the work down in a timely manner. When I close on a house my team is already parked at the property. When I finish signing the paperwork I text them and they go in to start the work. Too  many investors buy properties and then bring in their team to figure out what needs to be done and to schedule the work. I figure those things out before the closing, get estimates and schedule the work before I close. Good luck on the project. Let me know if I can be of any help. 

Although $90k is a workable number, anything in a reasonably sized metro will require more than $90k for the purchase and renovation in NC. Caveat that with the fact that there are many assets and tertiary markets that could work, but most people take demographics over price when considering where to flip. I'd recommend getting a HML for the acquisition and renovation components; $90k will be sufficient to take on most projects that would be appropriate for a first timer. Name of the game will be speed though, so make sure you have the contractors in place to hit the ground running because that interest expense will start to add up