All Forum Posts by: Brad Starling

Looking for anyone who might be successfully investing in rehabbed meth homes as a niche. I'm not looking for those to tell me to "run", or "be very careful"! Fortunately, due to my day job, I am all too familiar with the pitfalls of meth houses, the extensive amount of cleanup involved, costs, liabilities, etc... I have the contacts for testing and remediation, and I am very familiar with my state laws concerning disclosure. I am also very familiar with how clean a house can be made, given the right clean up crew and process used. And yes, I would live in a remediated meth house if I were the one in charge of cleanup!

But, when I look out there at our very active flipper market, I see one type of house with very little competition for purchase, the meth house. I'm looking to hear from those who have knowingly invested in and rehabbed these homes. Were they all REO, or did you get any from private sellers? Do you have a rule of thumb for a discount from ARV that you're looking for? 30-40% of ARV? Did you have to adjust you're ARV for the psychological stigma these houses have? Did your appraisers deduct? Did you choose (if not required) to disclose after remediation? And finally, was it worth it?

I think @Samuel Sedore gave you a good idea of the type of people that live in a fourplex. By what you described, I'm guessing you've been looking at plexes on the SE side of COS, near the bases. Move away from there, and you get into units that are a little more taken care of. The cost is a little higher, but so are the rents. Unfortunately, that's the demographics you will get in that area of town. Every once in a while a good opportunity pops up on the SW side (closer to Broadmoor), West side, or near UCCS. And the central area of town is always a good spot, close to everything yet taken care of. Powers corridor is hot right now, and prices are higher than the rents justify, for the most part, IMO. I've also seen that in those plexes that have better management, you get some very long term renters, while the others tend to be more nomadic.

@Chad Harter, I'm not sure I would describe the Military Housing market in Colorado Springs as niche, as it makes up a fairly sizable portion of the market. You'll find that the SE side of town and Fountain (areas closest to the bases) are where most of your lower enlisted ranks live (if living off base), while the Powers corridor and Nortgate have most of your officers/contractors. Of course, like Mark said, you can find them anywhere, but these are certainly the concentration areas. Will was right on with finding out the BAH rates, you list your rental within those rates, and it will almost always be rented. 

Check out Briargate, Northgate, Stetson Hills, Banning Lewis, Falcon, Stratmoor Hills, Cimarron Hills, Fountain, and Security/Widefield as some of the best places to find housing for active duty. Feel free to PM me with any specific questions.

@Steven Wiggs, PM me and I can give you a few contacts for local lenders.

I think you will find that most people that deal with lenders on a daily basis, would recommend NOT using a national bank for their lending. Just too many issues and not enough customer service. Use a local lender that knows the market and the products. And if there is a hiccup in the process, you have a place to go for answers. You'll never see a national bank have a loan officer at closing, my loan officer attends almost all my closings (and takes me out to lunch!)

@Steven Wiggs, welcome to the BP family, and better yet Colorado Springs! If you haven't been stationed here before, you're in for a treat.

Hottest market right now for resale is the North and Northeast areas of town. In you're price range, if you look for a 3-4 bed, 2-3 bath, you should be able to rent it out no problem when you leave, as that area of town is also in highest demand for our military renters (not everyone has an investment mindset). You're greatest challenge will be in finding a home that will make sense financially as an investment, especially if you're going with no money down. They're out there, they just take time to find, and quick action once one is found. The more sweat equity you're willing to put in, the better off you'll be.

Take advantage of that VA loan, it's a terrific way to set yourself up for retirement!

Welcome @Chuck Buck , glad you like Colorado Springs enough to stay. Using your VA benefits are a great way to get started in REI!

welcome @mikeal taylor

I have no experience with geothermal, but with solar, the only way I've seen to make it affordable is to do a lease. The problem with the lease is selling - good luck finding a buyer willing to take over you're solar lease. Plus, they have to qualify from the solar company. Oh, and then at the end of the lease, you own...nothing. 

I vote for @Russ Draper, split the utilities, have the tenants pay.

@Johnny L., everyone here makes some really good points, I'll put in my .02 worth.

To start, to be successful in real estate, you have to work at it. Leads aren't going to come to you, you have to go get them. Bottom line.

I started with KW Clients Choice, for two primary reasons. 1, KW in general offers some of the best training in the industry, especially for those just getting started, but not every office has a robust training schedule. KW Clients Choice (KWCC) has over 200 agents, so they have the ability to provide lots of different training, sometimes multiple times per month. In addition, they offer a mentorship "Club", where you get the full benefits of a mentor, training specific to the new agent, and you only put in 10% of your commission (most mentors take 50%).

The second reason for KW is it's easier to get started financially as a new agent through them. Nuts and Bolts, other than a small monthly fee (less than $100), I don't pay unless I close a deal. 

In the end, you have to interview them, and find a program that will help you be successful. I said help you, because no matter how much training you get, you still have to work at getting clients. And some people simply don't like having to do what it takes (door knocking, for instance) to get those clients. 

When I started, I started with 10 other new agents around the same time. Of the 10, 2 left real estate all together within a few months, 3 were recruited to other brokerages (you know you're doing OK when you're being recruited), and the rest of us are still with KW. Other than the 2 that left real estate all together, the rest of us are doing pretty good.

If you're interested in KWCC, PM me and I'll give you the pertinent info.

Best of luck to you!