All Forum Posts by: Kyle Sutton

Thanks, guys.  I feel like you each confirmed what I was thinking to one degree or another.  I guess it's hard to know without getting a good look inside and seeing how out of shape they are.  I'm pretty sure most of them are already subdivided.  I'd be curious to see what it would look like to rent them out by the room or perhaps what parting with some sort of an organization that has a need for group homes might look like. 

In my general area there are a number of big, old houses ( 3 stories, 5+ bedrooms) that seem vacant, or are at the very least not being kept up very well.  I suspect most of them have been sub-divided in the past.  What are some creative things that an investor could do with these types of homes?  Are they just money pits?  I have trouble believing that there is much hope for a fix and flip on these sorts of properties around here since they would just take too much of an investment to fix up and there likely wouldn't be much of a market for the price range on the other end.  

What have you done or seen done in the past to salvage these sorts of once grand properties?  Group homes? B & B?  Some sort of specialized housing?  

I really believe in the recommendation to "practice analyzing deals everyday" when starting out.  

So how do you do that?  Would it be as simple as finding a property listed on one of the for sale sites and then plugging #s in to the bigger pockets calc?  Do you do it a different way?  Can you share?  

I'm trying to sort out how you go about building up your business, especially once real estate investing becomes your primary source of income.  

Ideally you are making money from whichever strategy you choose, but how do you figure out where that money goes?  Does it go back in to your business?  Do you live off of it?  How do you split that up?  I'd be curious to hear your stories about how you went about creating a self-sustaining business while also feeding your families.  

Thanks

A very positive experience. I sort of feel empowered to reach out to more people in this way to see if connections can be made. Being an introvert, I don't know that I would have much success at the big REIA meetings, but one on one with people "in the know" who are willing holds a ton of appeal.

I guess I'd encourage other new folks to just take a chance and ask.  Pick up the tab for wherever you meet and be ready to have a conversation.  

I'm meeting with an experienced investor tonight and I was wondering what you might recommend for some good discussion questions.  How do I best make the time productive and worthwhile for both of us?  

Experienced folks - what are some good questions you have been asked by rookies?  What sorts of questions would you like to be asked?

Thanks

Thanks @Ned Carey.  

Is this a situation where I want to be looking at one of the smaller, local banks everyone is always mentioning or is that more important when it comes to the mortgage later on?  

Where does it make sense to park that money for seasoning?  A business account?   A different personal account?  Would I be looking to only move what I believe I would need for that first deal or would moving a larger chunk make more sense?

As our primary residence is paid off (that was done a couple of years before I realized that real estate investing looked awesome) I'm thinking that I'd like to look at getting a HELOC for initial capital on my first (few?) deals.

What kinds of questions do I need to be asking going in?  What should I be looking out for?  What should I be trying to make happen?  

I've read that I should look to get this done now and let it sit in my account for a few months before looking to make my first purchase (bc if I end up going conventional mortgage for that they may want to know where this fresh money came from) but beyond that, I don't know much.   Any advice would be greatly appreciated.

Thanks @Linda Weygant.  I can wrap my head around that example.  Part of me says "numbers that work out like that are too good to be true", but I guess that's the point.  Go find a great deal.  

Just for my own clarification, when we use a HELOC for this sort of strategy (BRRRR), we are talking about paying the full purchase price and rehab price with the HELOC, allowing for the necessary seasoning, and then repeating the process.

We are not talking about using the HELOC for a 20%-25% down payment, and rehab, correct? I'm pretty sure this second strategy doesn't work, but can you help me understand why? Or perhaps why I'm wrong? Thanks