All Forum Posts by: Kurt Heise

So I have been working with a fairly successful local investor as of recently, and am looking to invest myself. He owns a lot of buy and hold SFR's and Multi's but I have noticed that they are kind of in war zones.... but that is beside the point. I also just joined a smaller local REI club and am looking foward to going to my first meeting next month.

so let me get to the point...

I have around 12,000 saved up. now I know that's not a lot of money but it is all i can do I have a house at the moment and am not going to even try to get a loan on equity yet. thanks in advise for any insight.

Is 12,000 even enough to be taken seriously? This guy handles a lot of property and does quite a few flips as well I would be looking to make an attractive deal but why would he accept my help when he is perfectly capable of doing it on his own?

I am a HVAC contractor so past the initial investment up front i could purchase and install the equipment for free.

I don't know his numbers so i would like to see the past 2 or 3 flips on paper and analyze them with a very successful investor I know to see what hes doing.

I would try to team up for a flip by the way and just some local market info for you most of the rehabs around here sell for 30k-50k and need roughly 15k-35k in work to retail.

I guess my major question is that if i came to one of you guys with this to bargain with would it even be worth your while. how would you further take my deal so far and structure it so that it is more attractive to accept.

thanks

Thanks for the fast responses. Karen I've noticed a lot of systems these days are installed with speed being a major concern, and both of those issues being passed over. I am going to include balancing the system with price since it is relatively fast to do and provides a much better end result. And John it sounds like your brother in law has a very good niche I am hoping this is one as well. I have seen quite a few contractors focusing on this area do quite well around Richmond.

I have been coming to BP a while now for advice, which has always helped me steer in the right direction. I am in the heating and air-conditioning industry and am currently in the process of starting a residential business. I have alot of experience in doing "retro fit" installs in houses being rehabbed and or flipped. While the last time I checked this side of the business was running a little slow I figured it would better to get a start sooner than later. I am basically looking for any insight on your experiences with contractors in the past, positive and negative both appreciated, as well as any ideas you may have as to how your HVAC contractor could better serve you ( completing the job on time, accepting payment for labor when the house closes etc.) any and all feedback will be very welcomed as I am looking to eventually serve the real estate professionals in my area in the best way possible.

@tinotenda I haven't had the chance to look into any courses at the moment I actually just closed on my first property about a month or so ago after I posted this, and while I am still looking into it down the road for now I have a lot on my plate to deal with. There is definatley a lot more than I thought time wise going into this property, which is fine I expected it to be like this, but anyways I lucked out and a good friend of mines dad owns a pretty big company in the area so I have kind of been going to him with any questions which has worked out well so far. Honestly I believe a good mentor and a lot of time spent reading can match any coarse equally. Finding a mentor has been the hard part for me thus far even with my friends dad as he is a pretty busy guy and it can sometimes be a hassle to get a simple question answered by him, which is really why I was looking into a solid starting coarse of some type. One website that is pretty cool that you might want to check out is globalpropertyguide.com if you browse through the home page at the bottom they have a learning section with a lot of articles about how to speculate the market, which is how my friends dad did so well and the path I am trying to follow ex. Gentrification, anyway check it they have a lot of good articles. Just make sure you have a coffee around you because they will put you to sleep haha.

Why do so many succesful real estate rehabbers use hard money loans when they buy a home to flip? I'm wondering why they don't use their own capital to avoid costly interest rates.

John, I to live in the Richmond area and have noticed the same thing. Everyone so far has made good points. I have seen quite a few people do well by buying in gentrifying areas in Richmond ex. Old Manchester, Jackson Ward, Oregon Hill, and I think it's a good plan. The house everyone on here is using as an example of a bad low income investment would be anything in the Jeff Davis area and alot of parts of church hill still. You can go in and buy but what is the area going to do over the next 5 years? The answer for the areas I just listed is probably nothing. I agree with everyone on here that these properties might be more headache than they are worth. If you want a strong investment in an area that is on the rise my opinion is parts of the northside ex. Barton Heights, around brookland park blvd. The closer to vcu the better.

Thanks I'll be sure to get both question though... With Steve cooks rehabbing for big cash 2.0 I found a copy on amazon that doesn't include all of the audio and video CDs but it's $280 less than the whole package on the other websites. Anyway would you recommend just the book or the whole package, money is not to tight for me and I do not mind spending it to learn I just don't want to waste it.

I have read that ccim classes are the best. I have visited their website and it seems like they are a commercial real estate school. I am focusing on rehab and renting for single family homes and maybe a flip. I was wondering if there was a school out there for me with ccim's credibility or will ccim coarses even work.

Thanks for the tip about meetup.com I just looked and found several groups in my area to join. I really appreciate the help I get on BP from experienced investors, you all have sure saved me a lot of headache.

Thanks for the fast replies guys. I appriciate the insight and will be sure to give it a try.