All Forum Posts by: Kai Van Leuven

@Muoki Musau 

I like your questions so here we go. I have dubbed myself the "King of Driving for Dollars", lets see if I can add some value.

To give a perspective. I only buy in areas that are middle to upper class. The average value of my homes is probably in the 500K range, probably comparable to your market.

Q. how do you approach this practice in areas where there aren't really any borded-up properties or "visibly distressed" properties?

A. This is probably a good thing. To not find boarded up houses signals there is a ton of demand. When I drive through a new area to invest in, if I see tons of vacancies I usually run for the hills. I look for small things. It is usually the roof. I am in the Northwest, if you don't take care of the roof, your house will soon be wrecked. Also, look for houses that just look vacant, and have been for a long time.

Q. my investing strategy is buy/hold and BRRRR which I think works in this market because I'm making more long-term plays.

A. Great!

Q. have you found a deal/deals in a high priced market and can share the details?

A. Sure, I am not really one to "kiss and tell" but here we go. I just bought 2 houses across the street from one another. I felt like the owner was trapped by her tenants (if you want to call them that) and needed a way out. Oddly, this is a common occurrence. The non-visible sign, was that she was constantly behind on her taxes. One of the houses had not been lived in for 10+ years and the other had 15 people living in it. I just sold on of them and the other I am doing a BRRR'ish type deal and keeping it as a long term rental.

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I feel like people telling you to chase other markets are really misguiding you. Honestly, there is a reason why markets have boarded up houses. My strategy is to pick an area that has old homes, increasing values, and tons of demand. You will find houses all across the new, depreciating, junky, rejuvenating spectrum. 

Hustle and good luck!!!

@Mason B.

You have to really learn the business. Have you ever looked at just investing in the stock market. If I had no idea what I was doing, at 28, it would probably be my #1 choice.

Stock Market:

At age 65 your 100k will be worth 1,200,000 (7%/year)

Real Estate:

Not knowing anything and wanting to invest “ASAP” gets you fleeced of 100k and have a cautionary tale to tell your grandkids.

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There are a lot of folks out there who would love to roll the dice with a little OPM...

@Jeff S.

I would probably lean a little more your way than mine. It’s just hard to know what his brother-in-laws intentions are. That is something Jan will have to feel out.

Goodwill goes a long way on handshake deals but I will tell you. I have heard some crazy stories.

At my last job a guy and I were talking about investing. He was flipping houses and trying to make it happen. He confided in me that his mother in law owned her condo free and clear but put it in her daughters (this guys wifes) name. He talked his wife into doing a cashout refi for 250k. He blew the money. MIL has know idea it was refi’d. I asked him, “what are you going to do?” He shrugged his shoulders and said “I don’t know”. I

@Jan Styrczula

This is a balancing act. You can’t push too much but you want to know what is going on. I would ask to meet with him in person. In that meeting stress that the arrangement is not going as planned. Seek to be put on the 14 plex and when he refinances he can cash you out. I would take this strategy first.

If he laughs at the idea. Tell him you are going to start the foreclosure process on the vacant property. The terms are not being met and you have to start the process. I would phrase it like this.

“I know that we are family and I trust that you will pay me back. But from a business perspective you are breaching our contract. I am going to start the process of foreclosing on the vacant lot.”

See what he says. If the dude doesn’t want to put you as a lienholder on the 14 plex then there is something up. You will get paid at the refi. There is really not a problem. If he told me no I would start foreclosing his other property.

*not an attorney. Seek one out.

@Armani Tate

Sounds like you are doing well. My strategy has been pretty simple. I try to know as much as possible about an area I am interested in investing (apartments, single family, mobile homes, ect.). I always take the best deal I can find or create. Sometimes that is single family, sometimes it’s bigger. Right now I am pretty well positioned for a decent sized multifamily but I am getting deals on houses, so I am taking them.

The worst thing you can do is make bad buys. It will not happen overnight but eventually you will have a nice portfolio if you only buy the best properties that you know you can win on.

@Kristen Williams

You may want to read the “4 hour work week”. There is a section in there where Tim Ferris talks about dropping all of his trouble clients and the benefits associated with it. Folks who don’t value you, probably never will. I love to negotiate, even to a fault. What I don’t mind is when people push back. It actually makes me respect them more.

@Dalton Dykes

My advice with any sales job is for people to go “all in”. There are too many overly conservative people in this world. Tell everyone, advertise yourself, create some good/useful content, soak up what good agents are doing, answer every call, and take every appointment.

I think that it’s also good to have some structure. When no one holds you accountable it can be hard to push yourself every day. Come up with a routine where you can be the most successful.

Really what you are attempting to do is have the folks who already know you, use you. If you do a good job they will refer you. It’s that simple.

@Steven Robillard

I was just giving the top end for my area. The guy that did the install was really fast and did it in a day. It was also for my personal new construction house.

It shows you are a flipper. The first step would be to have a “septic designer” give you a design. After you have a design you can take it to an installer and figure out real costs. The period that takes the longest is getting approval on the repair/new system. I think repairs (drain field) go really fast relative to new construction.

Usually when a listing says “septic system failed” they are talking about the drain-field.

Pm me any questions.

@Nathan Smith

When the market was tanking my brother was in school. When it was at 50% of the peak price I was buying property.

Right now Property is at an all time high. Will it go higher? Maybe. I think getting an education that is worth something is a good idea. Going to school to booze, party, and wake up with a degree one day... not as worth while and probably hurts you (student debt and losing 4 years of life).

@Kyle Robertson

I was the same way, for too long. This is the thing, I am a hustler. If I needed to, I could get my old job back. I could do something else. You have already proven you can make it happen. Bet on yourself.