All Forum Posts by: Geordy Rostad

If you write 3-4 offers per day, can you close them all? If you are writing a bunch of offers concurrently but really only intend to close one, you are acting in bad faith.

Try smaller regional banks.

I used beenverified for this today. Only 20% of the numbers I called weren't disconnected.

I think it's a reasonable place to start since it's pretty cheap but there's probably better ways to chase leads deeper.

I'd say a mini-split adds value to the property.  A window unit is really just personal property. 

Most of the mini split systems I see are pretty reliable compared to ducted furnaces. It's really just a window unit split into two pieces.

Four units that bring in $8800/mo and it costs $1.3M to build and that doesn't even include the value of the land? I would think you could go find a better deal on the open market and not have all the blood, sweat, and time to build out the project. 

Might make more money finishing and finalizing the design. Get the permits ready to pick up, and then put it on the market as a package. Sometimes it's best to just sell the dream...

It's absolutely possible to wholesale a lot.

But, to do it right, you're going to need to add some value. Grab the lot, tie it up with as long of a feasibility study as you can get. Then go down to the county/city, find out EXACTLY what you can do on it. What are the setbacks? What is the maximum structure size? Any restrictions? Wetlands? How far is the sewer? Are the utilities on the lot already? Does it need a drainfield? Does the lot perc for a drainfield?

You might even have to invest some money into some of these test and feasibility studies but after you do, you have literally added value to the property and you then can go sell that to a builder as a package. 

Aside from the feasibility, you need to know the numbers a builder uses. In my area, it's 1/3, 1/3, 1/3.

1/3 cost of the developed land (land with utilities and is ready to build)

1/3 cost of constructing a dwelling

1/3 soft costs and profit (financing, realtor commissions, closing costs, profit)

You need to look at some of the vacant land builders have bought and built on recently. Then work the numbers backwards. And/or call some up and ask what sort of numbers work for them.

This is not something you should just jump into with no knowledge. Vacant land can burn you if you are left holding the bag. In my area, most vacant land is vacant for a reason. Usually it's too difficult or expensive to build on. In my area, it's better to buy a house to tear down or better yet, a mobile home on land.

Indeed, I have thought about it. I probably will do that. But the list that I'm working is mostly apartment owners in their 70's-90's. My SEO strategy probably won't capture them no matter how good it is. I was trying to do something different. The list is really short. Only like 35 properties. My plan was to build some rapport and contacts within that group. 

I might have someone call them all and warm them up for me. Anyone tried that?

If you go and buy a house for 20% down, fix it, then rent it, how many times can you do that before you run out of money?

On the other hand, if you buy a property cheap enough that you can fix it up, rent it, pull out $1-$25,000+, how many times can you do that before you run out of money?

There is theoretically no limit but here's the thing, it takes money to make money. To get started with a BRRRR, you will need to find the deals and you will need to finance them while you're doing the fix up. Maybe you have the cash? Great! More likely though, you'll need to borrow it via hard or private money. So you might be paying 10-12% interest while you are fixing up the property to rent. Not only that, you'll need 10-25% down to obtain one of those loans. Also, you will probably need to hold the property for 6 months or so before you can refi for value as opposed to what you paid for the property. Add in all these cost to make sure it's a functional BRRRR.

Those rules aren't set in stone but those are some of the obstacles you will encounter.

The addition is going to be insanely expensive. Also, you'll need permits that might require more review and potentially engineering.

Your vision is going to make that bedroom really tight and small. Also, what is in those voids right now? Aren't they ductwork chases or something? Is the voided space really just waste? Seems like you could have some stuff in your way.

This is a rental. I would go with option #3 and do nothing. Just keep collecting rents. 

Alternatively, is there a laundry room in the house you can turn into a 1/2 bath? That will add some value but should be pretty cheap to do.

Keep analyzing deals.

Try to make the numbers work without you doing the work yourself. Do you really want to be doing all the rehab yourself?

Portland is expensive. Have you considered investing in Vancouver or somewhere else on the outskirts where you can get a better deal?

If you eliminate the idea of doing all the rehab yourself, that should wifely expand your target area.

Most Portland investors are playing the appreciation game. That's a lot like playing hot potato IMHO.