All Forum Posts by: Jake Colter

If you are the cash, then you should see a significant amount of effort and work from their side to make you feel good about the 50/50 split.  Your partner having $$$ in the flip will definitely make them more invested in the outcome of the project. Skin in the game is important in my opinion but it sounds like you already have a great relationship with them so it could work beautifully.  

I bought a beautiful 1.3 acre lot out in the county near a river for 175k.  It has a huge septic already in, a good well and an existing home from the early 1920's that I am planning on tearing down.  The area has million dollar homes right down the street on some 5 acre lots so I think there quite a bit of potential for a custom build.

My question is, what to build?  I have considered building a big beautiful custom home and have interviewed builders but that requires a lot of cash down, I was quoted $184 a sq ft based on the building plans, which put me at around 460k for the build, which brings me to around 635k all in.  Based on the lot size and lack of comparable properties in the area its been a little hard to project a list price but I would like to clear a good chunk of money for my efforts.  And selling in that 700-900 range properties tend to sit a bit longer because there are less buyers in that price range.

I have also considered building a spec home at a considerably lower price, and I am also toying with the idea of putting a manufactured home on it for around 100k and getting a quick return.  Would love your thoughts Bigger Pockets!   
 

I think Max has the right idea!  BBQ time

 Hey Ivan,

If you just purchased a personal residence and you are not sure if you can purchase a second home through traditional financing, a great way to get into an investment property is seller financing.  You can cut the bank out and a lot of the financial requirements a bank/institution would ask for.  The seller usually wants a down payment and sometimes they will ask for a ballon payment due in a period of time you both agree on.  I would recommend finding a really motivated realtor in your area and have them set you up on an automatic notifications for any seller financed properties.  

I have found that often when you are deciding to do something that scares someone else they will project their own fears and insecurities about that onto you.  I went from a government position where I was paid very well, and then moved into a full commission position, and everyone tried to talk me out of it and told me I should stay in my field.  My first year there were a lot of struggles and I faced a lot of adversity but I just kept pushing and during my second year I made 3 times my annual salary of my old job.  I have been able to invest in two properties in the last 3 months and looking at a 3rd.  That wouldn't have been a possibility in my government job.  

Investing in real estate scares people, and there are still those that are recovering from the 2008 real estate crash.  My advice would be surround yourself with driven, like minded people and you will see success.  Your family and friends will be so happy for you, and secretly wishing they had your courage.