All Forum Posts by: Jared B.

Ok, sorry for my long absence (tech difficulties). Anyways, here are some pics of the property. I have a video too, but it's pretty long. I think in this market and the right neighborhood this house after rehab would go for at least $250k. 

@Joshua D. Ya I've heard mixed things on moving costs. I don't even know the best companies to approach about an actual estimate in the area. I've heard anywhere from $10k to $35k for moving. I was looking into moving it to a plot near the airport in a really nice neighborhood, but found out Google Street view doesn't always show depth very well, and that the lot is 100% steep rocky hillside. 

Anyways, still thinking over what to do about this home. Really love the potential, but I can't get a construction loan since my income is mostly commission and I need $20k down anyways. Looking into Credit Unions but not sure how much better terms I'll get. Don't know any hard money lenders. Would this qualify as wholesale-able? Alot to think over...

Anyways, house is 1200ft downstairs and same up. 30x40ft, 27ft tall. Needs new bathroom and kitchen setup. All new doors. (Easy) repairs to walls. Top of chimney repaired. And, of course, put on some land. 

1929 Tudor House, Billings  MT

Hey all,

I'm working with a gentleman in what will possibly be my first deal and am looking for opinions and advice on how to move forward smoothly. Home is in Billings Montana. Don't have actual square footage down yet. Built in 1929 and moved off original lot for some business expansion. Seller only asking $35k, and doesn't sound excited about owner financing but may give it a shot with a hefty down payment.

Need to acquire land, and am eyeing one plot I may be able to get on loan. Walls are plaster and many appear to have cracked in transport off original foundation. Underside of house is immaculate, without cracking or for of any kind. Seller states plumbing and electrical are updated modern. 

I just found out a nifty way to fix plaster walls without replacing them, which basically involves binding them back to the lathe backing.

So, my understanding is I Need to price land, moving costs, foundation costs, permits, utility hookups, renovation/landscaping, and then sell/rent this thing into bigger pockets :)

Let me know what you all think. Sorry I'm having difficulty getting pics and video formatted right to post on here. Should have them up soon hopefully.

-Jared

Nice to meet you Bryce! I'm definitely interested in meeting with other investors, and Josh I'm definitely interested in looking at the group you have going in Billings, but generally Thursdays at 6pm are almost always tied up for me. Always open to scheduling meetings for other days/times though.

Hey Mr. Blum, thanks for your advice. I agree that 40k as down payment for a place in Montana sounds nuts, but that would have been my thoughts prior to researching the housing markets here. You can get cheapy fixer uppers for 50-100k, but those are only SFRs in dinky little markets I know have just about zero demand (I'm talking towns of 100-200 people most Montanans have never even heard of, with no geographical assets whatsoever). What I'm looking at is a duplex with some small value add potential, but that is otherwise totally renter ready and has been severally underpriced on rent (I'm talking nearly half value). This is in the State's most booming market where houses have doubled value in just the last few years, and people try to sell mobile homes for $100k. The place I'm looking at, I'd expect a minimum of $300k asking price, and after running preliminary numbers, at worst it would cash flow about a quarter of what I make at a job. 

Anyways, I'm interested how the home would fall over to the bank if instead of paying the owners a lump sum down payment, I just payed them installments. It sounds like in RE every solution just gives birth to a set of twin obstacles.

Hey Jake, thank you for your input! You're right that I absolutely have more research to do, and your post was a big step in the right direction for me. It's a bit of a downer to hear that I should have 30k saved up as padding (probably more than I make a year after taxes), but I'm happy to look at the down payment from a more solid understanding. 

From the sound of it, if I want to hold a rental property rather than flip a BRRRR, an optimal path might be to get pre-qualified for an amount and then try to negotiate owner financing to cover the remainder that the bank won't touch. That sound about right?

I've only been researching heavily over the last week, and have no prior financial knowledge to speak of short of common sense spending practices, so I'm sorry if my questions come across a little 1st grade. I have some BP books in the mail to help supplement my online studies. Anyways, thanks again and any other pointers to help get things rolling are very appreciated!

Aloha to both of you Justin and Joshua! I appreciate the welcome and advice. @Joshua D. I pass by Columbus once or twice a month, so I'd be happy to sit down sometime and talk real-estate!

Hi, my name's Jared and I'm a newcomer to the game in the Bozeman MT area. I've lived in Montana most of my life, excluding a brief stay in lovely Phoenix AZ.  I'm here looking to build connections, friendships (perhaps partnerships), and to learn and grow every step of the way. The goal is financial freedom, being my own master second to God, and building a positive legacy for my future family. Anyways, very grateful for all the assets BP provides and all the potential for growth. Looking forward to the adventure!

-Jared

Another question for when the crickets stop chirping....In the BRRRR system one seems to often use a hard money lender to purchase a property in need of at least minor work and then re-fi after it's completed in order to score the cash to pay off the original lender. My question is, if a bank isn't likely to give me a loan in the first place, are they any more likely to refinance for me? Does a re-fi usually still require a down payment? The DP is perhaps my biggest obstacle. Thanks!

-Jared