All Forum Posts by: Scott N.

I've got a lead on a seller with two high end properties just outside of Durango CO 81301. Seller has two properties - 4/1.5 SFH on triple lot; and a much larger ranch/horse property, with barn, water rights, etc. Both in highly desirable Hermosa Valley area. Initial impression is that both need only minor cosmetic / refresh to be retail ready.

I'm still in initial stages of information gathering from seller and getting ready to present  written offers for each property by end of day Friday. Looking for assistance and guidance from more experienced investor, for entire transaction process, in exchange for significant profit percentage (negotiable). Also seeking equity partner or access to same. 

Please PM if you are interested. Thank you, Scott

"Water still leaking in" could be lots of things. Was there roof damage, wall damage, foundation damage, other? Where is the water coming from and where is it going to and what is it damaging along the way? Are there now mold issues or other contamination due to the water intrusion?

Have you seen the property yet and know the answer to any of these questions? Or are you looking at the deal "house-unseen"?

Foundation work is expensive, more so than other structural elements, but none of them are anything to be terribly scared of. Yes it's extra work and more problems, and more of a process to manage, but then again REI is the field of problem-solving so if you can address big problems then you can create big value and profits.

Yes I've run a couple of analyses on some properties they've sent me with mixed results as to value that I put on them. I'll post up in the Analysis forum for some input on a specific property. Thanks Matt

Any thoughts from anyone who has:

• actually purchased from them
• actually walked a site with them
• applied for their financing
• actually done any type of business with them

They require a $5k cashiers check, made out to them, to be in-hand before taking you to a site walk. Their explanation, and it seems reasonable to me, is to weed out tire-kickers and not waste their time. Contract to be signed on site (standard high-pressure sales tactic) and they claim most deals are gone in 24-48 hours. They also have a private/in-house/affiliated hard money company (212 finance). If you are "qualified" with 212 Finance, then certain deals go out to you for 24 hours before being offered to non-finance customers.

They are corporate and nation-wide and I'm sure their deal numbers reflect that, but I'm curious to hear from anyone who has had actual business dealings with them. I could care less about anything except "do the numbers make sense". 

Mike Cumbie That's a great idea and probably will help me expand my circle. As to business cards, what's a good way to brand myself? I'm thinking cards with a company name ( I'll have to come up with one) and what is a good title/position to introduce myself as? I've heard one way is to label myself as an "acquisition manager" and that's the way I'm leaning. Any thoughts on what an accurate description could be?

Yes self-improvement and reading are good tools. However as Bill S said, deals are made in person rather than cyberspace. I'm trying to cultivate a habit of taking one action every day rather than overwhelm life with trying to "do it all all at once." Looking at the properties available to me is the only way I have at the moment. If I could find off-market deals right now I'd be in a totally different place. But I'll start with what I got, continue to connect with people IRL, and expand and grow from here. Nowhere to go but up!

Good advice from all. Yes, expanding the sphere and finding off-market deals are definitely areas I need to improve on and am actively working. They will also take the most time to develop, or at least to "turn the corner" and get things in motion.

@Bill S. That's great info in RE to using Redfin to pull comps, I had no idea that was possible. And yes, the MLS is a horrible place to be looking for "deals" in this area. But I'm getting some practice analyzing and running numbers. That's an area where I need to be absolutely on-point. When I find an off-market opportunity at least I'll get some laughs by comparing it to what I'm currently looking at.

For a newb who is looking to:

1. Partner with 1-2 other people with whom we can assemble the 4 necessary elements for a successful RE investment (1 - money; 2 - knowledge/skills; 3 - opportunity; 4 - time)
2. Offer 3 of the 4 elements (except #1)

I am analyzing at least 1 property a day from the worst possible sources - MLS and FBSO sites; with no respectable way of getting comps. But it's a start and is giving me good practice at running the numbers.

I'm new to my local area; know very few people in person outside of my typical work circle and a few friends, none of whom are involved at all in REI.

My focus right now is on finding a property local to me (Denver metro area or Colorado Springs) that is a good prospect for a rehab with exit strategy of first selling as a flip and second, if that does not work out, selling as a solid buy-hold rental property.  Second priority is how to find a good partner who is at or near my level with whom an  opportunity can be shared. (Yes, I know, keep talking and meeting etc etc, it will happen. I'm not worried about that.) When I do find an opportunity, I know I can reach out for help with analysis, and if it is indeed a good opportunity, then the funding will be available.

What would you say is the one most important action to take on a daily basis? I am committed to taking small steps every day in a consistent habit; I believe this is the way to build a foundation for success. But I'm struggling to identify what is the best use of my time right now to build the most effective habit for a noob to be able to bring something valuable to the table.

If you had 1/2 hour every day to do ONE TASK or action what would it be?

We do. Currently renting on outskirts of Denver metro for $1460 plus utils = ~$1600 housing cost. In a large apt complex with terrible management, mediocre maintenance, and diminishing amenities.

• Reasons:
  • Location - work transferred me here less than a year ago on 2 weeks notice so rented a place for short commute time
  • Location - Denver market = not as bad as SF or NYC but expensive enough compared to income if you're not a techie making $75k and sharing a house with your 3 frat buddies
  • Down payment - We have owned before but in the past handful of years have moved a lot and started a couple businesses with our savings which were not successful so are re-saving up a down payment
  • Our credit would be fine for purchasing (good enough that we did not have to put down any security deposit at this complex) but we are lacking the down payment to purchase locally
  • Ease of living at the moment and fixed, plannable costs of housing. No major repairs etc to worry about while we get settled in, or taxes going up, etc etc.

The rental market here in Denver metro looks like it will go nowhere but up in the next year or two - Denver is still #4 or something like that in national rankings of "people moving here" and they're building like crazy. Don't know what the developers are pulling permits for 5 years out tho; I'd be curious to know that.

@Travis Sperr- if I could dig your sewer I would heheh. Thanks to you and @Arpan Patel for the encouragement. 

I am certainly more than willing to fix toilets or whatever else, or put in hands-on time during a rehab, but what I'm really interested in is learning the process of acquiring and managing a rehab. I would gladly put in time helping to manage the renovation process for someone who is pressed for time in that area. 

My mid-term goal (3-6 months from now) is to form or join a partnership with equity partners who aren't interested or able to be involved in the day-to-day and I can provide sweat equity in the form of making sure the process happens on time/budget/standard. But that's a big step to just leap into so I'm throwing anything out there in hopes of being helpful to someone and learning some practical realities - I've got a lot to offer, I just can't figure how to capitalize on it yet.