All Forum Posts by: Joel Florian

Investment Info:

Other other investment.

Purchase price: $7,000
Cash invested: $7,000
Sale price: $16,000

I purchased the bare land at a tax deed auction. Cleaned it up, paid for a survey, chased off squatters and then sold it with owner financing. The buyer was often behind but I took pity on the lady because her husband went to jail and her son was in trouble too and she kept having hard luck. Right after I started the foreclosure process, her divorce got finalized and I got paid in full. The dates may not be 100% accurate because I'm filling this in from memory and the form only accepts exact days.

What made you interested in investing in this type of deal?

I got interested in tax deed investing because a friend from church was doing it with money he made from his fishing business. He owned his home outright, invested in mortgage notes, bid on tax deed auctions, and used a HELOC to pull money from his home when needed.

How did you find this deal and how did you negotiate it?

Scoured the borough tax website and then bid a few dollars over the minimum -- actually, if I remember correctly, i was outbid on several more desirable properties in the formal silent auction portion but this property had no other bids so I was able to buy it during the outcry portion of the auction. I think there was one other bidder. I was desperate for a deal at the time since I missed out on the ones I really wanted.

How did you finance this deal?

Cash

How did you add value to the deal?

Cleaned up trash and removed old cars. Sold the abandoned travel trailer on Craigslist.

What was the outcome?

It was frustrating. I got death and legal threats. Previous owners trespassed on property and pulled out my survey stakes and removed my no tresspassing signs. The buyers built a shack and filled up the property with trash and junk cars. I didn't want to foreclose because the property would have cost almost as much to clean up as it was worth.

Lessons learned? Challenges?

People that have distressed credit and jail time probably will go back to their old ways. For an owner financed property, purchase price and interest rates are not as important as downpayment and monthly payment -- and the prospective buyer's ability or intention to pay. People often create their own bad luck and any handouts or mercy will be used to perpetuate the bad decisions that got them into trouble. In retrospect, I should have foreclosed immediately after the first missed payment.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with Bret Jameson, an investor and hard money lender and Tyler Bobo, a realtor.

@Frank Geiger

Thanks Frank. Did you try to invest in Hawaii while you were stationed there? I didn't see any HI properties in your biggerpockets profile

Investment Info:

Single-family residence fix & flip investment in Wasilla.

Purchase price: $78,000
Cash invested: $20,000

2-bedroom 1 bathroom SFR with 1-car garage with several old cars and 10 truckloads of debris in the yard. Added another bathroom and increased the garage to hold 2 cars.

What made you interested in investing in this type of deal?

I have invested in several real estate notes but needed something that could generate cash. I like the idea of working on a house rather than getting a job.

How did you find this deal and how did you negotiate it?

I partnered with a realtor for 50% of the profit instead of his commissions on the purchase and sale. It was a divorce sale and he got the deal from another realtor that didn't want to deal with the mess and drama

How did you finance this deal?

Cash, 401k loan, credit cards

How did you add value to the deal?

Increased useable space in garage, moved laundry facilities to garage. Added boiler and subfloor heat. Added 1/2 bath. Removed debris. Repaired drywall. Repaired roof.

What was the outcome?

Buyer took early occupancy waiting for her other house to sell

Lessons learned? Challenges?

Trying to conserve cash, I hauled all the trash and debris to the dump myself. It was very frustrating coordinating trips to the dump with trips to haul materials and tools. A dumpster would have been worth the extra money. Also, trying to save money on thermostats, I ruined the boiler control board -- a $650 extra expense. And I see how a rehab can be a black hole. Everything I touched ended up being more work than I expected I might have spent 2 more months if Tyler hadn't sold early

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Tyler Bobo is a very talented realtor with lots of experience with creative financing, owner financing, low-income housing, and distressed property rehabs. Two other realtor friends, Jay Bruzas and Tyson Kroon convinced me that real estate is the best investment.

Investment Info:

Single-family residence fix & flip investment in Wasilla.

Purchase price: $78,000
Cash invested: $20,000

2-bedroom 1 bathroom SFR with 1-car garage with several old cars and 10 truckloads of debris in the yard. Added another bathroom and increased the garage to hold 2 cars.

What made you interested in investing in this type of deal?

I have invested in several real estate notes but needed something that could generate cash. I like the idea of working on a house rather than getting a job.

How did you find this deal and how did you negotiate it?

I partnered with a realtor for 50% of the profit instead of his commissions on the purchase and sale. It was a divorce sale and he got the deal from another realtor that didn't want to deal with the mess and drama

How did you finance this deal?

Cash, 401k loan, credit cards

How did you add value to the deal?

Increased useable space in garage, moved laundry facilities to garage. Added boiler and subfloor heat. Added 1/2 bath. Removed debris. Repaired drywall. Repaired roof.

What was the outcome?

Buyer took early occupancy waiting for her other house to sell

Lessons learned? Challenges?

Trying to conserve cash, I hauled all the trash and debris to the dump myself. It was very frustrating coordinating trips to the dump with trips to haul materials and tools. A dumpster would have been worth the extra money. Also, trying to save money on thermostats, I ruined the boiler control board -- a $650 extra expense. And I see how a rehab can be a black hole. Everything I touched ended up being more work than I expected I might have spent 2 more months if Tyler hadn't sold early

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Tyler Bobo is a very talented realtor with lots of experience with creative financing, owner financing, low-income housing, and distressed property rehabs. Two other realtor friends, Jay Bruzas and Tyson Kroon convinced me that real estate is the best investment.

Investment Info:

Single-family residence fix & flip investment in Wasilla.

Purchase price: $78,000
Cash invested: $20,000

2-bedroom 1 bathroom SFR with 1-car garage with several old cars and 10 truckloads of debris in the yard. Added another bathroom and increased the garage to hold 2 cars.

What made you interested in investing in this type of deal?

I have invested in several real estate notes but needed something that could generate cash. I like the idea of working on a house rather than getting a job.

How did you find this deal and how did you negotiate it?

I partnered with a realtor for 50% of the profit instead of his commissions on the purchase and sale. It was a divorce sale and he got the deal from another realtor that didn't want to deal with the mess and drama

How did you finance this deal?

Cash, 401k loan, credit cards

How did you add value to the deal?

Increased useable space in garage, moved laundry facilities to garage. Added boiler and subfloor heat. Added 1/2 bath. Removed debris. Repaired drywall. Repaired roof.

What was the outcome?

Buyer took early occupancy waiting for her other house to sell

Lessons learned? Challenges?

Trying to conserve cash, I hauled all the trash and debris to the dump myself. It was very frustrating coordinating trips to the dump with trips to haul materials and tools. A dumpster would have been worth the extra money. Also, trying to save money on thermostats, I ruined the boiler control board -- a $650 extra expense. And I see how a rehab can be a black hole. Everything I touched ended up being more work than I expected I might have spent 2 more months if Tyler hadn't sold early

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Tyler Bobo is a very talented realtor with lots of experience with creative financing, owner financing, low-income housing, and distressed property rehabs. Two other realtor friends, Jay Bruzas and Tyson Kroon convinced me that real estate is the best investement.

Investment Info:

Single-family residence fix & flip investment in Wasilla.

Purchase price: $78,000
Cash invested: $20,000

2-bedroom 1 bathroom SFR with 1-car garage with several old cars and 10 truckloads of debris in the yard. Added another bathroom and increased the garage to hold 2 cars.

What made you interested in investing in this type of deal?

I have invested in several real estate notes but needed something that could generate cash. I like the idea of working on a house rather than getting a job.

How did you find this deal and how did you negotiate it?

I partnered with a realtor for 50% of the profit instead of his commissions on the purchase and sale. It was a divorce sale and he got the deal from another realtor that didn't want to deal with the mess and drama

How did you finance this deal?

Cash, 401k loan, credit cards

How did you add value to the deal?

Increased useable space in garage, moved laundry facilities to garage. Added boiler and subfloor heat. Added 1/2 bath. Removed debris. Repaired drywall. Repaired roof.

What was the outcome?

Buyer took early occupancy waiting for her other house to sell

Lessons learned? Challenges?

Trying to conserve cash, I hauled all the trash and debris to the dump myself. It was very frustrating coordinating trips to the dump with trips to haul materials and tools. A dumpster would have been worth the extra money. Also, trying to save money on thermostats, I ruined the boiler control board -- a $650 extra expense. And I see how a rehab can be a black hole. Everything I touched ended up being more work than I expected I might have spent 2 more months if Tyler hadn't sold early

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Tyler Bobo is a very talented realtor with lots of experience with creative financing, owner financing, low-income housing, and distressed property rehabs. Two other realtor friends, Jay Bruzas and Tyson Kroon convinced me that real estate is the best investement.

@Aaron K.

I like to invest where I'm living.  I'll be living in Hawaii for at least 2 years for work. And I prefer not to rent.   Ideally, I would find a distressed property and do another live-in flip while I'm in Hawaii.  Also, I didn't pay very much for my home in Alaska so I would like to take advantage of the capital gains exemption while it is still an option.  And my wife and I are Dave Ramsey fans  so the only way I could hope to buy a place in Hawaii with cash would be to sell my Alaska home.  Also, I'm afraid that I won't be able to get a bank loan in Hawaii since I haven't had a paycheck for 10 months.

Summary: I want to become a real estate investor in Hawaii. And I have a bunch of questions. Any advice is appreciated but specific answers preferred.

1. Should I sell my $400k home in Alaska or try to rent it out?

2. Should I buy a 4-plex in Hawaii?

3. Should I buy a SFH in HI?

4. Should I rent for 6 months first?

5. How restrictive are building permits and inspections in HI?

6. Can I get financing since I have not had a steady job for the last 10 months? ( sold share of contracting business and have been consulting, doing home inspections, and rehabbing a flip)

7. Will the recent changes to AirBNB legislation in HI affect home prices in the next few years?

8. Should I even buy property on Oahu if I intend to move to the big island in 3 years?

9. Are there deals in central oahu I could get for less than $500 k cash?

10. Should I use a realtor? If so, please recommend one who likes biggerpockets.

11. Should I apply to become an appraiser in HI to learn more about the market?

12. Should I sell my tools and furniture and buy replacements in HI, or ship everything over?

13. If a house is listed as a "tear-down", how hard is it to get a permit to rehab it?

14. What is the most economical solution to extensive termite damage? Epoxy injection?

I have been a contractor in Alaska for 20 years. I have done 6 live in flips and just completed my first investment flip. I just found biggerpockets and listened to about half the podcasts. I think I've finally found my calling: real estate investing.

I just accepted a position on Schofield Barracks which is approximately in the middle of Oahu with the nearest towns being Wahiawa and Mililani.

@Nandy B.

I read other responses to your post and I'm ashamed to admit that the cheapest house I've purchased was $78k cash (we are Dave Ramsey freaks) plus $20k materials and 2.5 months labor.

I bought it because I didn't have a job or enough income to support my family. I wanted to make an offer on a D-class 4-plex but my realtor convinced me to flip this 2/1 SFH. It is under contract for $180k and the buyer took early occupancy with a pending sale of her other home.

I would do it again but hire out more especially the trash removal.

@Chris Wilkening

I have been listening to Dave Ramsey for 10+ years and been helped by him. After a few years of being entertained and challenged by his radio shows, I started to realize that there was more to life than budgeting, saving and saying no to debt. I thought I would find about the other side when I went to a couple of Entreleadership Summits but that seems to be geared towards small business owners who are already making a living and want to improve or just socialize with like minded business owners.

And I just recently listened to a podcast where Dave Ramsey explained how he worked his way out of bankruptcy -- he wholesaled real estate and worked as a realtor for commissions. The business ( card table in his living room) started part of his volunteer teaching program at his church. Keep in mind that his parents were Realtors and he got a degree in marketing. When his overleveraged empire crashed, he fell back to a "job" he knew that didn't require capital. Once he saw the demand for his "get out of debt" message, he applied his marketing training to growing it as a side business. Meanwhile, he kept doing RE deals. Once he had enough cash, he bought the best bargains with his own money. He loves real estate and acknowledges that a large percentage of his wealth is due to RE. I have never heard details of how he acquired any of his RE -- probably because it would confuse his listeners and possibly taint his message. (He has probably had partners and syndicated deals. Possibly structured some creative non-recourse owner-finance deals where he got equity without any liability)

Hogan was a football coach and a banker. He doesnt have the same understanding of RE as Dave Ramsey.

My conclusion is that Dave Ramsey and Chris Hogan are primarily entertainers with a message that helps many people. But I dont think their "rules" apply to every person in every situation. Robert Kyosaki is another educational entertainer who promotes debt -- the antithesis of Dave Ramsey's message. He has failed and lived in the back of a car.

Personally, 80% of my retirement is invested in Real Estate notes secured by properties within 15 minutes of my house. The rest is in penny stocks. My non-retirement net worth is split between equity in my house and shares of a small business I sold. I have a small futures account that I autotrade for fun. My newest car is 12 years old. I wouldn't recommend that anyone copy my path any more than I think you should convert to my brand of religion. Live by the truth you know and as you learn, modify. Ultimately, you are responsible for your life, not the government, not some guru, not your broke neighbor....