All Forum Posts by: Kenneth Shultz

Hello everyone,

I run two companies in the Richmond, Virginia area. One company is a property investment company, and the other company is a professional services firm (Architecture and Engineering). They are both side projects now and I run them while working full time for another company as an engineer. However, my 'side projects' are picking up very quickly. Last year was my first tax year for the AE business, and we really did not have much cash flow, so I handled the taxes myself. 

This new year, the AE company's revenues have already exceeded six figures, and the real estate investment company is working on its second (potentially third) deal. 

Needless to say, I am going to need a tax professional and a legal professional with experience in real estate and professional AE services. Does such a thing exist? Are there other people in a similar situation? I'm looking for ideas on how to find the right professional with the right experience. How do you start this hunt? Just looking for some advice or clever strategies to make sure I start off on the right foot!

Thank you,

Kenny

I need some help with thinking through the self directed 401k. I have two side business: (1) professional service firm, and (1) real estate investment company. Both are new companies, and in their infancy. I do not take much out as compensation, because I want the companies to thrive.

I am also a licensed professional engineer, and work for a company and receive a W2 from that company. I use my income to fund and start my other businesses. My question is: am I able to use my income from my employer to make contributions to a self directed 401k plan that is set up by my side business?

Thank you!

Kenny

For some reason, I have been driving this area in Petersburg. Any thoughts on that nook?

Mike Shay - do you see potential in some of those homes bordering Old Town / Ettrick being multi-use? I'm wondering if an interesting arrangement of apartments and shops might be in the cards for that strip? At the outset of the development along the river, it seems the sprawl would head in that direction. Just curious what other local folks have on their radar.

So, just wanted to share this 'deal finding' story: 

I heard on a podcast recently that one of the guys finds many of his deals by calling numbers on the 'for rent' signs when he passes them. Landlords are his sellers. So, I tried this when I got home yesterday. The house across the street from my home was for rent. 

I called the number and said, "Hi, my name is Kenny. I am an investor in the area, and I am was interested in buying this property. Would that be something you would be interested in?" 

The answer? "Yes." 

The landlord said, "I've rented this for years, and I'm close to retirement. I've considered selling it many times." So we set up to meet this Saturday. 

It works. This may or may not end up being a great deal - it depends on his expectations, and my negotiations skills. But it definitely works. 

Next week, I'm going to try "driving for dollars" in the Petersburg area. I'm going to get a list of strong off-market properties and generate some leads. It's fun - I'm hoping this kind of work will help generate some wholesaling interest, or perhaps even a little bit of development partnerships. 

Who knows - all I can say is that I've never been so happy to have a 45 minute commute to work. It's a perfect reason for me to digest one BiggerPockets podcast every day! haha

Has anyone else had success with the rental-seller / driving for dollars strategy?

-Kenny

Old Town Petersburg (right over the bridge coming from Colonial Heights) is an interesting area. A lot of new commercial development, heavy loft development. I would imagine something on the periphery of that area might see some future value. I've been curious about that area myself. For now, sticking to north of the bridge, in the Ettrick / Colonial Heights area, single family rental. 

Good luck!

Hey guys, 

This is my first post on BiggerPockets, and I'm very excited about this website and this industry. I started a company with my brother in Richmond, Virginia. We picked up our first property for $55k, plan for $30k in rehab. It's 3 bed/2 bath that should rent for $1,100 when complete. We hope to refi, cash-out and do it all again soon.

We are looking into a second deal now, and I wanted to get a gut check here on our thoughts. This is the property: http://www.trulia.com/property/3231048825-220-W-31...

It is a duplex, listed for just shy of $170k. It's marketed as 'turn key' rental (currently has tenants). I don't consider this property worth anything close to $170k. I see a house built in 1975 that will need a new roof soon, and likely new plumbing and electrical at some point too. There is no central HVAC. 

Other than that, the house appears to be in great condition. Our plan is to duct the unit and add heat pumps, replace roof, and update plumbing and electric, as needed. Our budget for this is assumed to be $30k. For this to be a successful BRRRR, the numbers that make sense to me are:

$80k purchase price + closing costs

$30k renovation

$110k total invested

$160k after repair value -> $110k cashout refi

Rent for each unit would perform at around $800 / month - $900 / month.

Basically, my numbers tell me the current asking price is a non-starter. And an $80k offer would likely get no response from the seller whatsoever.

What do you think? Should I let it be, move on? Should I approach the seller? Are my quick calcs accurate, or way off? Just looking for some feedback from some folks with more experience in this realm.

Thank you!

-Kenny