All Forum Posts by: Justin Molzhon

Quote from @Paul S.:

Quote from @Justin Molzhon:

I heard a theory recently from a preparedness community that dead/dying cities such as Detroit are likely going to be revived and have manufacturing brought back to the U.S. due to current events. I'm sure we all know there are some bad areas there, but what are the chances it becomes prosperous in the near-mid term future? I see some properties that could be absolute gold mines if it were too go that way, and if not it's a small cost to pay as a gamble. I'm just wondering if the sentiment of it possibly coming back to life is more wide spread than preppers and other small pockets of folks. What's the likelihood of a cheap property now turning into a gold mine over the upcoming years?

 Due to what current events?

 Things going on around the world. I don't want this post getting political but with things heating up around the world, mostly Europe and Asia, there's talk that we need to not be so reliant on other countries. A sentiment I agree with and have for a while, but we'll see if anything comes of it.

Quote from @Muhammad Abdullah:

Not a bad idea I've heard similar conversation. The city is just so damn corrupt its difficult to get a straight answer from the people in power. I would want to know there desired revitalization area confirmed first, then I'll only purchase land no structures on it.

Best of Luck!!

 That makes sense. I'm glad others are hearing talk of it too though! I just feel that by the time those plans are publicized it'll be a little late to get a great deal because people with much deeper pockets will be jumping in. The other thing is all the hazards of buying there early on - I know some parts of Detroit are practically lawless but how far does that stretch, and is it worth the risk? I'd definitely like to connect with someone who knows the area and especially if anyone owns property there!

I heard a theory recently from a preparedness community that dead/dying cities such as Detroit are likely going to be revived and have manufacturing brought back to the U.S. due to current events. I'm sure we all know there are some bad areas there, but what are the chances it becomes prosperous in the near-mid term future? I see some properties that could be absolute gold mines if it were too go that way, and if not it's a small cost to pay as a gamble. I'm just wondering if the sentiment of it possibly coming back to life is more wide spread than preppers and other small pockets of folks. What's the likelihood of a cheap property now turning into a gold mine over the upcoming years?

Hello!

I am seeking a partner/investor to get started and be able to scale in fix and flips. I have done 3 total over the years netting ~$115k. These were done prior to looking at it as a business, however and therefore money from them was spent elsewhere. I have everything in place now except for funding. With separating from the service in the next few weeks I feel this is the perfect time to be able to jump in full-time. I won't have any contractual obligations preventing me from doing any of this. I have a W2 job lined up to make sure expenses are covered, but the challenge is getting the initial ~$40k for down payment. Once that is secured I have a hard money lender who will fund 100% of rehab and a team to complete it who are all master tradesmen and have been in the business for minimum 12 years, but most 20+. I have connected with a rockstar of a realtor who only sends deals after numbers have been ran and ran conservatively, and also presents minimum 2 exit strategies in case things go south very quickly and unexpectedly. I am 100% committed to this and plan to flip until I have enough in reserves to comfortably BRRRR. Once I have enough BRRRR single family or small multifamily units (2 years expected) I plan to move into commercial. By then our systems will be solidified and we'll have proven that we're capable. I would be more than happy to discuss sample deals or terms and go more in depth on anything else. Please don't hesitate to PM either!

 @James Wilcox That's the goal, the holdup is the down payment for hard money. I just need a partner who can cover that and then we're set. The builder got sick part way into renovations which is why they stopped. Some units are rented below market so they're due for about $100-150 increase, and the new units will go for $200+ MORE than the ones currently done.

@Jack Melton Thank you, I haven't heard of that podcast but will definitely be checking it out. I understand not pulling the trigger yet though! I just don't wanna get stuck in a spot where I don move forward.

Hey BP!

New investor here. Looking at a deal around the Louisville, KY area currently which is 2 separate buildings totaling 9 units that I intend to BRRRR. I have been doing some leg work to find some information on them but am looking for a mentor/partner or even just someone familiar with the area as a second set of eyes on the deal and my numbers. I plan to use my VA loan on the 4 unit building - living in one unit and renting the other 3. As for the 5 unit deal, it looks like someone started a complete renovation but ran out of money. The building was built in 2010 but its down to the framing, which according to the pictures, everything I can see looks new and has some plumbing and electrical done. I have family in the trades that work in residential and commercial who should be able to finish out the project. This takes us to the issue which is funding. With being a new investor I don't have much capital to use as a down payment to get this started. I welcome any ideas and would be more than happy to go into more detail. I have found out that the seller is NOT interested in seller financing.

Quote from @Chris Seveney:

@Justin Molzhon

Bringing on an equity partner.

I am definitely interested in bringing on a partner. How is a deal like that typically structured? I've heard a lot about partnerships and sharing equity but does that just mean the cash flow is split and if the property is sold it's split? Or is there a different way that's considered the norm?

Hey Bigger Pockets!

I believe I have found a potential very nice deal in Kentucky. The quick rundown is 2 duplexes being sold together, all occupied for the past 3-4 years and tenants seem to want to stay. The properties have been on the market for 170+ days so I feel the price can be negotiated down a bit, and rents raised slightly especially if we are able to update some of the cosmetic aspects. We already have a GC and people who can do whatever work we'd be doing - the only holdup is funding. Since this would be my first deal we have very little capital. I am happy to share details and discuss it further or even look into partnering if that's the best route for this.

@Scott Mac I have talked over the idea with her dad who's a master in HVAC by trade and well versed in electrical. He oversees several others and would fit more into a supervisory/general contractor role for our purposes. Her brother is a master plumber. He's also got other contacts from his 20+ years in the trades that are journeyman/master certified in their respective trades. We intend to use the going rate until we prove that we can provide them steady and consistent work and then negotiate from there.

@Taylor Dasch I definitely love the idea of a MFH but they're pretty difficult to find in that area. We 100% would jump on it if we found a good deal though. I appreciate the more big-picture idea and sort of rough guide. I keep finding myself focusing on getting a deal and I zoom in on that instead of looking at how it will scale. Do you use hard money for flips, or is there another funding option you'd recommend if funding is the concern?