All Forum Posts by: Joseph Medina

No, this is great! this is why i am coming to the forms with the idea. to see if its actually something investors in my area would be interested in. i mean if it is then go to the drawing board and hammer out all the fine details and then buckle up for the learning curve. 

what I was thinking the process would follow more along the lines of a sweat equity partnership. where one guy brings the money and the other hires out the help. however, the help instead of taking a 'paycheck' takes a chunk of equity. 

 " It's also going to be tough to get equity just for lipstick labor. Sorry, but any bad handyman can swap fixtures and flooring, especially if we have to get the material." 

Yeah I am feeling out the idea. I mean if the idea is in high demand then getting a team of guys would open up the possibilities of moving walls and plumbing. But when youre talking about moving walls and plumbing the price is going to skyrocket much faster.  And as an investor its probably a wise move for you to purchase the materials yourself anyway. That way you're limiting the expense and risk if the contractor is fraudulent and he takes your 10K$ for material and disappears. now you're just out 10K$ instead of the minimal amount to secure the job. 

But, I really like this it causes me to think for solutions. keep them coming

Hey Guys, 

I have been on the fence with this idea for a little bit of time now, which is contracting myself out. I am not sure how valuable contractors are in the houston market. just trying to see what people think. from what I know and what I hear is that it is hard to find contractors. 

So i'm going to purpose an idea too, because I'm all about testing the waters and taking risk (history rewards the bold), how well received would it be in the investor community that instead of charging money I charge equity.  

So, for example, let's say an investor wants a kitchen remolded, like some basic stuff such as throwing some rock on the counters, wall, and floor, changing light fixtures, plumbing fixtures, paint, etc. The quote would be lets say $30K, and instead of paying cash I enter and share some of the risk with the investor and say I'll take 10% equity on a potential, for example, $300K ARV which is the equivalent of the $30K quote.

and we're talking like basic renovation stuff 

Some of the upsides:

1. Investor saves AT LEAST half  on the front end of the job, because all they're really paying , liquid cash, for is the material, I bring the labour (kinda like a traditional partnership)

2. They know I'm not going to bail on them, because now my paycheck is tethered to the property, and not saying I will do this, but if something happens to me all the investor is out is the material that they would of already had to pay for and they're back at square one finding a contractor to either demo and restart what I did, or finish up what I started. But let's be honest a contractor will squeeze every ounce of the job so the demo is a must LOL. And I DON'T get paid for the work rendered since I didn't complete the job. 

3. The job will get completed in a timely manner, once again, my interest is now tied up in the deal so it is also in my best interest to finish timely. 

4. The investor could potentially save on interest payments from the bridge money by taking out less money, again saving money on the labour side, and not worrying about the contractor splitting.  

some of the Cons: 

1. sounds kinda sketch...hmmm a little...

2. Investor gives up some equity 

3. ould take a little longer than normal, because I am a one man riot!  

again this is one of the many ideas that keep me up at night when I think of ways to do real estate. 

and we're talking like basic renovation stuff, not remodeling stuff like moving walls or relocating kitchens or bathrooms. that's only because it's just me.   (however there is potential to expand my little operation)

would love some feedback from my fellow houstonians and houston investors. 

@Marcelle Abel If you have a worry, then 'zoom out'. There are 320+ million people in the US im sure you can find a way to attract some of that money your way! I know all of us like BP but Ken McElory also has some great content out there on STRs. So listening to him is a great resource too. you have the author of a book on this very topic in your response @Avery Carl and her husband @Luke Carl. I would say make a move and react. because just like in chess  not making a move is a move. 

 i will have to look into this, but this seems like it just screams Section 8, but thats my ignorance speaking. 

 man i like this idea. that's some serious low hanging fruit! 

Yeah, of course, because I was in the same boat as you of not knowing how to reach them and then the idea of using a direct mail strategy, but instead advertising my STR. I'm not looking for the perfect property, but rather a solid base hit to build off.

Hey Bud, 

im real interested in how your venture faired! care to share how and what you did? 

you know honestly i think i am going to try and use a mailer service like list source or something and target a certain age group in some northern states and see how this fares out, if this is something my wife and i decide to move forward with. 

 man this is gold thanks a ton! 

 awesome! I greatly appreciate it i did not receive e-mail responses from BP that someone responded to my post. I was getting ready to repost this! 

how does this look as you flip between STRs and the month-to-month. like the utilities? do you just keep the utilities and configure the cost into your lease agreement? and what amenities do you find popular that mesh well with both STRs and the Snowbirds? and most importantly price ranges. it looks like youre in different markets im just looking for like ballpark figures.