All Forum Posts by: Luke Holcomb

Hey guys and gals,

       I just locked up two properties in Chattanooga, Tn in a Bish neighborhood. They have to go together for 80k. One is section 8 and rents for 650 a month (utilities included). the other is not section 8 and rents for 625 a month. The section 8 tenant has been there for 2-3 years (by the sellers account). The other property the person is on a month to month and says he wants to leave, just not soon.  

      There is a trick: It has to close before Dec 23.

This is someone with a foreclosure who is going through a divorce. The foreclosure itself was not a great deal, but she had another property that she could throw in that made it work (better). I was upfront with the homeowner that it will be difficult for the sell to go through, but that I was going to try. We will need cash at the closing table. I am calling the bank today to try to make sure that they are good with the deal.

Give me a call or email if you would like more info.

[email protected]

706-218-6958

thanks,

    -Luke

Hey gals and guys,

     I need a little help. I am trying to put together a deal where I buy a lot, bulldoze the house, subdivide the lot into three lots, and build houses that are around 2800 sq ft and worth around 150/sq ft. I know local developers can get an 'all in' cost of 80/sq ft for houses of that value. I am figure an all in cost of 95/sq ft. (*I am saying all in, to say including lot). This is in Chattanooga, TN.

    Does anyone have a good resource for construction cost as it correlates to sell price value? I believe this will help me. The homeowner is ready to sell if we can settle on a price. I am 85% sure I have an investor lined up, and I have 10 yrs construction experience, so that part isn't too bad... I am just accustomed to remodeling cost to consumer for per sq foot pricing...

Cheers,

  -Luke

Melodee,

     Thank you so much for the double feedback. I am very interested and want to get going. When I say I have a budget of 5k that number is pretty flexible. If I can turn 5k into a deal, then my budget is 10k. An important lesson that I am learning is that you can turn money into more money, you just have to know how.

    On the subject of Michael, I think if he had to pay out every time his name or website was mentioned on BP, he would be in a bad place.

One question that has come from the answers I am getting is, "how many mailings does it take to hit the law of averages?"

     From a business model perspective there has to be a reliable point where you can project a minimum return.

Do you know of anyone that has the experience to chime in on that?

Thanks!

   -Luke

I have worked in the construction industry over a decade. Figure out what it's worth to you to not deal with that and pay it. Professional contractors are rare and pricy. You get what you pay for. If you want to go the cheap route, practice the phrase, "I'm making an extra 10k to deal with this..." And the day you wake up and say, this isn't worth 10k, go find someone else. I love crafting things with my hands and hate to say it, but the construction industry (specifically in depressed areas/the south) is full of good technicians (hopefully) and horrible business people. The people who do understand business are expensive (comparatively) it's your job to figure out what the value proposition is and go with your tolerance. Once you figure out what that is, you can make sure the deals you pick up have enough to cover your tolerance... Best of luck! Luke Ps- if you ever need help or have questions with managing contractors, feel free to contact me.

What would you do. What's the expected return: response>qualified>leads>deals? What does your list look like? What does your 1st,2nd,3rd,4th... Mail piece look like. Current goal is to get to 1 wholesale deal a month, then work to two, then start flipping them myself. Thanks BP! - Luke

Thanks so much guys! Thomas, I will call tomorrow. Jimmy I want to eventually get to buy and hold. I am interested in using the cash I have now to build more working capital. So, wholesale, fix and flip are more of a means to an end... I do have a personality that likes to keep working on something so only passive income will most likely never be part of my life...

Hey,

     My name is Luke Holcomb. I have been in the construction industry since 2005. I started my own company in 2008. I have been through a couple of manifestations/brands and just sold the last one in September of this year (2014). I am 100% into getting into realestate. I have been listening to BP podcast for the last month like my life depends on it. I can't get enough. I have really been digging into episodes 81 and 91, but am interested in it all.

     The Proceeds I got from my company isn't enough to outright by most houses, so my plan is to start marketing and wholesaling to build up cash to get to that place. I hope to start with assignment contracts and move to just buying properties out right. I have my life and income streams structured where I don't need the money to live off of (with about 20-30 hrs a week going to other things). So I am very excited at the possibility of taking the money I do have and getting it to turn into more money via real-estate. I am a sponge and am very excited to learn from most anyone.

    I am looking for a mentor type person in my area to get on with to learn from. I can bird dog deals and run numbers. Math is one of my strengths and I like doing it...

Hope this helps you guys get to know me!

I look to be adding more to my profile in the next week or so, sorry it's sparse at the moment.

Thanks,

     -Luke

Seems like you haven't done this yet. I just joined and would love to!

I haven't seen a drastic change in realestate, feel free to give me a buzz when you get to town or before I would love to give you the low down on different areas. Send me a message (I think that's possible) to get my number.