All Forum Posts by: Fred Conway

This would be my first deal of any kind, someone I know well and trust is looking for me to invest cash of about 25% of the purchase price into a fix and flip. Basically about 200k for the house, 30-50k in repairs and comps of 300k. What are some contingencies I should ask for? How would I write up a contract that basically I can't get screwed in the event something goes wrong? Should there be some type of clause that I get my money back as soon as the house is sold no matter what? Is there some kind of due diligence I should do before? How should I transfer the money? Check, bank transfer?

Basically, what are some basic things I should do?

Thanks

Texas property taxes are very high, i believe the highest in the nation with the exception of New Jersey. Also insurance is pretty expensive there as well but it comes down to whether it can cash flow or not. If you make 100k a yr in profit, then states w no income taxes is your best bet. If you really want no state income taxes, id look into florida, lower property and insurance costs. 

Also, something that isn't going to be talked about too much is appreciation because you cant really count on it. States w no income tax tend to have higher swings in property values, florida, nevada, tennessee, although texas has done a very good job of avoiding those. People in states w no income taxes tend to have more cash for rent and buying homes, so if you can buy right, you can make some serious profit. 

sounds like its time to sell your house and 1031 it in a different market

In additiom to what Rod said, theres some really great deals to be had north and west of the st johns river, that being said they are closer to C properties and if you dont know the area you should probably stay away from. Best areas for A/B properties are gonna be closer to the beach and the st johns town center. The jags owner is investing alot of money into the downtown area to make it a work/play/live area but at the end of the day it comes down to jobs and incomes. Unless he can bring in bigger companies, itll be tough to generate high rents. The tampa bay lightning owner is doing the same thing in a tampa neighborhood called channelside and is having much more success. 

As far as what its like to live there, people, etc its the most laid back and traditionally southern of the big florida cities. People consistently say how big it is because of the amount of land that jax covers, but in reality compared to other metros, the population is small. Theres not as much of a transplant population from northerners and latins compared to tampa or miami, more so people from georgia or south carolina. With that being said, its a very friendly city with a good mix of people from all different walks of life. Its a family oriented city, not so much for singles but thats to be expected from a smaller city. Theres not alot of high paying positions compared to the other florida cities, so your rent may be lower. Theres also alot of people that just want to live on the beach and make just enough to cover their rent. 

 I dont see interest rates going anywhere, not for atleast 6 months. The biggest issue w the stock market right now is companies are posting growth and profits but their stock is continuing to drop based on oil prices, raising and lowering of the dollar value, external factors like greece and china. This is the reason id gtfo of stocks for the next 3 months. Apple dropped 17% over the last 30 days because people are speculating on the chinese economy. Facebook dropped 15% for no reason at all. When profits and losses no longer become the basis of measurement, its time to get out. 

im looking for tips/do and donts for buying land. I understand the buying foreclosed land or somebody didnt pay they're taxes on it but looking for what actually will make land valuable as well as what to stay away from. Is it better to buy land in a suburb in a neighborhood or buy something in the middle of the city and hope it appreciates. 

Also, Im seeing things like buying 10 acres but only 7 acres are liveable and theres no disclosures, what exactly makes land unliveable besides toxic waste or something along those lines?

i look at it a few different ways, i dont think its a bad idea to diversify. This will limit your risk and as you said, your other propertys have PM, so not a major headache for you. People that have all their eggs in 1 basket get crushed. If 1 market goes bad or has major appreciation, it could be a good thing or a bad thing. Realistically, its all about the investment and whether or not you think you can make money there. If it doesn't work out in Omaha for whatever reason,  yoy could always sell and buy more in AZ. 

 Ethan, Ive always thought Jax could be a bigger city, it has alot going for it and theres alot of money being put into the downtown area but i just dont see the diversity of big corporations moving there. I think the 3 biggest employers there are csx, winn dixie and florida blue. 

Jacksonville reminds me of south GA and I mean that as a compliment, if I could move there I would but as of right now, Tampa and orlando pay much more for my line of work. Which is probably why there's not more people moving there.

 @jeremiah hilliard was saying everyone living in florida isn't from florida, which is true. Not sure which you meant but the majority of people in florida, are from somewhere else with the exception of probably Jacksonville and the panhandle. Miami has alot of latin transplants and people with serious money moving there for the south beach life. Tampa and orlando have alot of northerners moving down there for the cost of living and weather. Pittsburgh, NY and Boston are probably the biggest cities where floridians come from. If you ever go to Tampa Rays game when they're playing a boston or NY team, it's pretty much a home game for the away team. Much of the beach towns have older retireees