All Forum Posts by: Kevin Burns

@Donnie Martens Before you go and become a landlord. Consider reading "The Strait Path to Real Estate Wealth" by Kris Krohn. I promise you, you won't want to do buy and holds any other way. I have executed this method and it is by far the best. It's the lease option method(use rent-to-own when you advertise, people don't know what lease option means). You buy with 15-20% equity. Then when you turn around and rent/sell---the buyer will give you an NON-REFUNDABLE "option payment" (a fee for the option to buy) anywhere from $3000-$10,000. That's average. You can get more though, I've seen it. That money will come off the purchase price when they exercise the option to buy. You're basically pulling equity out on the front end. Get a home that's not structurally damaged but just out of date. If there are minor repairs to be done. Carpet, paint, old cabinets etc., etc. You can give the tenant 30 days and whatever repairs they do can come off the purchase price as well (totally up to you what you want to credit). You're helping people who have no credit or not enough work history to get into a home and STOP PAYING RENT. You can ask for $2-$300 above normal rent rates since they have the option to buy and you give them $50-$100 per month as an "accumulated option payment", which comes off the purchase price as well. If they put $10,000 down, they buy the house in 2 years and you give them $50 credit every month (24 months x $50=$1200, they would get $11,200 of the purchase price + any initial 30 day repairs you may credit. The kicker is that you structure your contract so that all repairs and maintenance after 30 days are on the tenant. They are "renting" but hold the right of the option to buy at the same time so we view them as owners. Boom! You're not a "landlord". No calls in the middle of the night. No repairs eating up your cash flow. The tenant has the pride of ownership. Oh ya and one more thing. When you set the purchase price, you set a floor. A floor price you wont' sell below BUT the actual price will be whatever is determined at the time of appraisal as long as it ISN'T below your floor price. If you factor in the option payment, your monthly cash flow and possible appreciation your ROI is through the roof! Hit me up if you're interested in the contract I use. We can work something out

 Do you happen to know the authorities I will have to contact for these answers?

I saw a duplex that I'm interested in. What I want to do is change the legal description of the property to condo or single family so I can do a lease option on both sides of the property. Does anyone have any knowledge on this? From what I understand I need to contact the housing authority of the city and also the lender to get approval.

@Account Closed I actually just got off the phone with the realtor and heard that it went under contract this morning. It seemed like a just a hypothetical situation because depending on what development company you wholesale to, is what they will perceive the value as. If you turn it into 4/4 you could get upwards into $700,000-$1,000,000 on a new build, depending how extravagant you want to get. But the market is there, it's a good location and there are many flips happening within a few blocks. In this case it was a 2/1 and they were asking $199,900. The comps were ranging from $270-$380,000, but with the amount of work (forgot to mention foundation cracking), a basic flip didn't seem feasible. But like I said you go a do a pop-top 4/4 on it and all of a sudden $199,900 is a decent price. I did see on Denvergov.org the actual and assessed. I wasn't really understanding it though. Actual was at $249,900 and assessed was at around $19,000. They said assessed was 7.96% of the actual. I thought where does that leave me? Because $249,000 is way too much and $19,000 is way to little 

I'm looking to wholesale a property that is in real bad shape, built in the 1900's. Honestly, I think the only way to market this is as a pop-top, expanding the house into a full scale construction adding bedrooms, bathrooms, living space, the whole nine yards. Based on the comps I just don't see a general flip/remodel will leave enough profit, needing everything from new electrical, plumbing, cosmetic and all. What is the best way to assess the value of the land itself, seeing as the house is basically worthless except maybe it's foundation and basic frame?

Thanks @Anson Young, I'm going to PM you and keep that in mind.

Can anyone out here in Denver, Colorado recommend a good school to get my real estate license?? I read some reviews on Kaplan and they weren't that good. Creschool seemed to have some positive feedback and was considerably cheaper than some others. American Real Estate College had some good feedback also. I think I'm going to do the online course because I run my own business now and need the flexibility in time. Suggestions?

Can anyone out here in Denver, Colorado recommend a good school to get my real estate license?? I read some reviews on Kaplan and they weren't that good. Creschool seemed to have some positive feedback and was considerably cheaper than some others. American Real Estate College had some good feedback also. I think I'm going to do the online course because I run my own business now and need the flexibility in time. Suggestions? 

 @Brian Fouts

Thanks for the input Brian, I think having a contractor with you is the best way to go in the beginning also.

 @ Rodney Marcantel

Yes I saw that book while doing my analysis. I think I will read it.

Thanks