All Forum Posts by: Jamie Parker

Side note:I got a photo with Tom Cummings, Prolly the only real value I gained with 7-8k invested in education that year. His story was, he failed in business 2 times and figured it out on the 3rd go around. 3billion later i got to take a picture with him.

Since then I havent went to another training, course or weekend event. only working to unpack the information that I picked up to be useful so definitely no argument there. 

Thanks for the clarity. 

In my first stint in real estate, I thought reinvesting in the business was keeping the marketing engine running. At the time I was running on direct mail. I thought reinvesting in the business was partially investing in education. I justified going to the 10X Growth Con in 2017 and a couple local investor seminars. Only thing I got out of those events were I didn't understand how to get to the next level (no fault of the events, I take responsibility of my on inability to make the connections in the content).  Taking notes and asking questions only got me deeper in the weeds as if I was asking the wrong question. 

After purchasing my first property last year, I have resumed cold calling after purchasing a second property this year. Closed my first wholesale deal in 5 years. But now, I am more concerned with entity structure. I wholesale in LLC #1, and the 2 properties i purchased is in my name currently.

The big question for me: When I start to build, should the properties be held in an entity? I will need to partner with a builder to get financing. Secondly, should Building LLC be separate from Wholesaling LLC(currently being used for wholesaling). Who should I or do i talk to about getting things more compartmentalized. I recently ordered a survey on the two lots I own, and realized that I may be approaching this the wrong way.

For clarity, as i understand the concept of reinvesting in the business, each "Bucket" should eventually fund itself without the need for cash injections or contributions. Where or when is the point should I consider this or can just start out at any point? 

Any thoughts?  

What should I look for when getting Civil Contractor bids for Capital Improvement Projects? (I am learning the terminology, I hope I am saying it right). 

Is it a timeline thing? Certain Certifications?  The lots themselves are located on a State Owned and Enviromentally Protected Lake, would there be extra considerations made? or will the engineer know what to do by default? 

The long-shot play I became aware of; Capital Improvement Project Funding that the city/county have allocated for projects that meet 2 criteria.

• Have a lifetime greater than 10 years
• Cost more than $50,000

I believe, even if the water and refuse collection run is only 1000 ft, that may not qualify but to do it "right", that two mile run would allow the entire subdivision to be supplied with services. The area affected would be over 100 acres of un-entitled land. 

While this may converge with a planning commission meeting for 2024 budgeting, if it is at least on the table for 2025, that would be exciting. 

I am under contract with a land deal, on Marrowbone Lake In Joelton. After talking with planning they mentioned that utilities were 2 miles (10,000+) ft away. However after being directed to Metro Water, They mention that the nearest services, are a 1000 ft away. I checked with the state and the state will not allow utilities to be ran underwater to the property across the lake. So Basically as mentioned by Metro Water, consulting with a Civil Engineer to get a quote to understand the projected cost of the project. 

When working with Civil Engineering, Is it best to simple pick on firm and go with them, Or is the 3 quote rule in effect at this stage of the process?  What are some best practices when working through due diligence at the phase of projecting cost?  

New construction in a city like Nashville was and has been a staple in how I started my journey as wholesaler. Wholesaling in Nashville was my first experience into the world of real estate investing. Understanding zoning, and land uses has been the extent of my experience. 

If you are familiar with Nashville, The Nations, is what i think of. Doing my first wholesale deal in 2016, at that time there were builders buying blocks of houses from residents and doing new construction. That was almost 8 years ago. I would argue that the development prior to that when as far back as 2014 for new construction. Turning an entire neighborhood where over 80% of the homes are new construction dating back to least 2015 till now, over a span of ten 10 years.

Building houses is required to initiate a major gentrification process of a neighborhood, but the guy that invented tires didnt invent cars as we see them today. In the 10 year process new construction exit prices were 350K- 420K during 2016-2017, by 2019, 499K-520k were starting to move. 5 years later ( accounting for COVID and mortgage rate changes) prices are up around 650-800K in the same area. 

In Memphis Tennessee, would I ever think this would be the place to start something like that 10 years ago, NO. But today, I have a different attitude towards a major infill redevelopment of an area in Memphis. While there are at least 5 other areas that could be a launchpad for a project of this magnitude; XAi, BlueOval(Ford) and major zoning proposals changes to increase density, specifically. According to my thesis on the subject $80MM investment over 10 years resulting in 30 new homes per year would be the ticket. 

Has anyone ever initiated or been close to ground level in a major redevelopment of a neighborhood?

How did you chose that area?

How did you get past the first year or two?

What were the initial sales price in the very beginning? 

I appreciate any thoughts on the topic. 

It is wild how creating solutions can change a situation, 

April 1, 2023 I closed on 1522 Latham for $35,000. Making Payments consistently and actually bumping payments up to over that actual payment amount. In July I realized that this payment hurts. A non performing asset that for reasons mentioned before and a payment for a property that was recently torn down. I realized that something had to change. So with I decided to ask the seller(lender) for a loan modification. 

After going to the board of equalization to reconsider the value of the property, the came back with a updated assessed value of $8,000 and some change. After speaking with the seller, the seller was very understanding. In the regard the seller mention that I SOLVED a PROBLEM. Going through environmental court process, evicting the squatter and getting the property out of a blight situation. After the seller made those statements, I was actually joyful to hear that I was useful in this situation. For me at this time in my life, that is huge. 

Short story long, we agreed on a modification of the sales price to $15,000. 

This deal has been such a lesson in persistence and sticking with it. Accepting that problems come up but not giving up, finding solutions and keep going.  

For anyone interested. I finished my MBA in Business Analytics about 2 weeks ago. The biggest take away was my ability to utilize machine learning for this process. This using a machine learning approach creating returned something a little different than I first anticipated.

Without boring you with methodology, the result of an in depth study, leads me to believe that this is how gentrification starts. After listening Jerome Maldonado for the last week and most importantly taking notes, having 2 properties to start is the best place to start. 

A quick run down:

at $150/sqft 

1473-1666 sqft  

1667-1833 sqft

1834-2000 sqft 

The chart shows 4 categories but that can be broken down into 3 categories. Machine learning shows that building 14 more smaller properties will be more profitable than over a 10 year period than building 8 larger homes. The average build cost is nearly identical but the lower price range nets out 308 builds in ten years vs 303 with conventional algorithms. 

What i will do is use $155/sqft

1426-1613 sqft

1613-1773 sqft

1774-1935 sqft

The current footprint is 1448 sqft on 1522/1516 Latham. Using the average 1519/1520 of livable square foot may be the sweet spot I have been looking to find. I went a long way to get it, but I am poised for the next phase in getting these bad boys out of the ground.  

The next installment of 1522 Latham and also 1516 Latham:

Months have past and this project has lead to many moments of "what am I thinking" and "one step in front of the next". After finally surrendering to the city's opinion and not fighting the courts something great happened. A property, condemned and badly damaged. Talking to contractors and they suggesting to simply start over. I had to swallow my pride and ego to accept what was simply the best course of action to take in the matter.

This past weekend, labor day weekend, driving around town with my mom and daughter running errands. I got the ideal to drive past the property to see how bad the weeds were. I was simply waiting on the day that the county would demolish the place. The decision was made back in May. I didnt see my tax bill showing a line item. Nothing. However I decision to go with the ideal and drive by. Such a refreshing sight to behold.