All Forum Posts by: Josh Walker

Hello Bigger Pocketers! Please chime in with feedback and experiences of your own. I am a home builder and currently build spec and custom homes. No investment excites me more than real estate. My “paycheck” is building new homes, but the long term goal is wealth through rental properties. I do not currently have a rental property and have a plan to get the ball rolling, so please feel free to provide feedback. 

The plan is BRRR (Build, Rent, Refinance, Repeat). My plan is to utilize this plan initially with four plex properties to maximize the potential return and utilize the opportunity to refinance with conventional mortgages. The construction would be financed by a construction loan with my current lender or by a private investor. This would allow coverage of construction and lot costs to be covered 100% and zero money out of pocket. Construction costs would equate to approximately 72% of the appraised value. This is higher margin than a typical build and is accomplished by higher density with a comparable lot cost as well as economy of scale in the construction process. The plan from there is to then maximize occupancy and repeat the process.

Here are a few questions I have...

1. Thoughts on BRRR (my thoughts above) vs. traditional BRRRR with rehab on existing properties?

2. What LTV, rates, terms are you all seeing for multi family four plex properties?

3. What KPI’s do you all look at for investment properties.

Thank you for taking the time to think through this with me!

Josh

Thank you Dave Foster . A bunch of solid and appreciated information to mull over. One scenario I have been curious about is building rental properties for him. My understanding is there is a 6 month window after the initial transaction to reinvest. Would that mean the new constrictions would have to be completed and closed within that window?

I am looking for advice and ideas from those with experience with 1031 exchanges. I have a family member in the process of selling their business and was recently advised to consider a 1031 exchange for the portion of the sell of the business which includes the land and building. They have a good cpa and attorney, but I am more interested in strategies to invest the money with them. For discussion purposes let’s say the total to re-invest is $2M. I build new homes and deal in flips and holds. Any ideas of angles where We could both benefit in this situation? The recommendation of a good real estate cpa and attorney are already being utilized. Just wanting to get other ideas and maybe feedback from any of you who may have already lived through a similar situation. Thanks in advance!

The land is in Bridge Creek

My family has around 60 acres of remaining land that we are looking to finish developing just south of Oklahoma City. We have sold several lots to developers a few years back and the completed spec homes sold very quickly. We are very interested in building and selling homes on the remaining lots rather than selling the lots to other builders. We do not have significant experience in new home construction, so I am curious if anyone here has suggestions that could help us to complete the development ourselves. Is anyone willing to share any resources that helped you or experiences you may have had similar to this? Thank you. 

@Jaren Woeppel I just sent a connect request with his information. Let me know if you don't get it. I'll check my settings to see if I can fix that issue with my profile. Thank you. 

@Trevor Shettron do you have any more information on this property? Images?

@Jaren Woeppel I have a guy that may be a good contact for you. Connect with me if you would like his contact information. He works all over the greater okc area. 

@Scott Meyers @Ralph C. Thank you both for taking the time to help me here and I appreciate you watching out for guys like myself. 

I certainly would never only rely on information from here. To me this is a place where I can gather some of how others have succeeded and failed and see what I may get from it. Some of the resources @Scott Meyers provided are new to me and I will be checking those out. 

I was also looking at feasibility studies and honestly do not know much about locating consultants to do these. Do you recommend a specific firm or individual or are these typically local guys that you should work with? 

Thanks again.

I am very interested in developing a self storage business on some family property in Oklahoma. I have done a decent amount of research, but I am curious if there is anyone here who is actually doing it and is willing to provide some advice. I am open to anything and everything you could throw my way. Thank you!