All Forum Posts by: Matthew Koch

Isn't there a way to own property out of state that I could use as an Airbnb or VRBO or HomeAway program? After that's established in theory couldn't I utilize credit cards that offer frequent flyer miles to then be able to make purchases earn miles and then travel for free to go check on set properties for inspections or any damage that may be done to the property and such to then write it off as a business expense for tax purposes? If so and that is true then technically in theory couldn't I earn enough frequent flyer miles to make enough trips for free, that compensate for the amount of money that taxes would need to be paid for by owning that property in whatever state I'm investing in for that Airbnb or home away property? 

Investment Info:

Single-family residence wholesale investment in Shoshone.

Purchase price: $105,000
Cash invested: $200
Sale price: $115,000

Long description and info in marketplace.
https://www.biggerpockets.com/real-estate-listings/for-sale-by-the-owner-a-single-family-home

What made you interested in investing in this type of deal?

It has the potential of a value add opportunity for a 4 bedroom 2 bath home when rehabbed and fixed up like new with relatively low rehab costs.

How did you find this deal and how did you negotiate it?

On Facebook, negations had not been on price as the home owner would not budge, but the sale to get it sold at asking price with a incentive to hold off on final payment for 8 months, was the bargaining tool

How did you finance this deal?

Earnest money

How did you add value to the deal?

Video walkthrough to show rehab scope of work. Also incentives to the owner of $500 a month for 8 months to allow the full payment be delayed until rehab is complete and appraisal can be done afterwards.

What was the outcome?

TBD

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Asked questions to a fellow real estate, investor friendly agent, Austin Davis and yes I would recommend him.

Hey leAnna!

What I have found is if you go to the title companies like title one or alliance title, like here in Twin Falls, then they have purchase and sale agreement contracts there and someone at the front desk can help you and sometimes they're free sometimes they're pretty cheap. The idea is to get the contract and send what it says and how it is setup for what works for your business strategy on how to acquire said property from a motivated seller, then scan the contract into your computer and use an editing program like Microsoft word or paint them modify and update it with your business and company information then print it out and take it to an attorney or lawyer and have them verify it and he honest as to where you got the contract for your own use then, go get those deals done! 

More info on how to use those contracts here>>>>https://www.racinelaw.net/amp/...

To save a trip to the title company then use this>>>>https://eforms.com/purchase-ag...

I would point it though to not worry about the realtor contact unless you happen to be getting the licence otherwise we can't use it.

Good luck to you and wish you the best

Well hello there and welcome to the BiggerPockets community! 

I would suggest to set up your BiggerPockets profile with keyword alerts in regards to your specific area for California and your specific zip code so that you would like to learn in so you cannot only know the market but also put in keywords for the term rental property and do some searches through the podcast and find out who is investing in California and then reach out to one of those members. My personal experience as I've gone over 356 episodes of the podcast I've learned so much until I have an opportunity to apply that knowledge it's not doing me any good but I've reached out to some investors here where I'm from in Twin Falls Idaho and I've connected with some very interesting and helpful people that in my personal opinion is best for me learning all that there is to know about rental properties then I might ever find in a book. However you should definitely check out David Greens book for long-distance real estate investing which should help you with exactly what you're looking for 00s. Hopefully that helps a little and I'll look forward to your success and if you happen to have any other questions I'll do what I can to help you out

One thing that I can say in one thing that I do know in regards to my strong why to even listen to these podcasts and learn anything and everything about real estate is the same reason behind the idea for the opportunity zone. I want to be in a position that allows me to make my carbon footprint on this Earth as huge as possible however environmentally friendly as possible be able to help people 2 mm true that 20% of the bad that is out there in those neighborhoods that has to be a niche market to allow for the 80% to thrive and grow and improve for a market on any level on any Street in any City or for any part of the country at least that's my somewhat naive opportunistic ideas and I cannot be the only one that shares that idea or vision. 

well I have to admit that I'm definitely proud of myself for when I started this post in regards to what I was trying to talk about and convey is exactly the same type of concept that has been mentioned and talked about on episode 337 for the BiggerPocketst real estate podcast side of things. it absolutely blows my mind in regards to the theme in all the books that I've heard mentioned on the podcast and all the people that have been interviewed the very simple thing in life in regards to making it better for yourself and for those around you is simply the theme of giving. It can start on a small micro scale and something as simple as a smile that can turn somebody else's attitude or day around can affect other people in various ways. a relationship can get better if a little time and a little more effort is spent on improving that father to mother relationship child to parent relationship for spousal relationship just giving a little more time of yourself giving of your efforts and of course the monetary aspect of it also applies in a little bit that you can afford to give back to those who need it will eventually come back to you not to be expected but to know that it is the good and the right thing to do. this episode 337 talks about the micro movements of an opportunity zone that starts with the people that are in a medium marginal area that have money that are not the government set shoes to focus their efforts in one particular spot to revitalize places and homes in one market to the next and they get a reward for it from the government that is considered that opportunity zone that is what this episode is talking about. The entire premise is based on the simple fact that a little effort concentrated on one particular area such as people coming together and helping each other out can significantly affect the rest of the market and the rest of the other people which helps with prices which helps with attitudes which helps with other places to go despite the crime despite the drugs despite the gangs and the turf wars there is hope and there is an answer that would allow everyone to thrive when this opportunity cost type of procedure is implemented. 

Was looking into this property here in twin falls, Idaho, for the hope that our family can move in with a FHA loan and use the underground garage to create another 3 bedroom 1 bath space within that garage. I need to get more info on the additional dwelling can or can not possibilities but, was hoping that once a down payment is scrounged up then also a construction loan was successful then it would be a 7 bedroom 4.5 bath house. The issue is the arv and what else it can be compared to for confirmation of price for a resale value after we are able to move out after 1 or 2 years. The seller would consider financing but only with a sizeable down payment. Property is 570,000. I would also think that the other space on the land would be good for another duplex to be built as well and even more valuable for the land. So. My hurdle or issue is knowing what it can be valued at after the garage is made into another whole unit fully furnished with all electrical and plumbing. Also what the remodel will cost. This place is huge inside also that could be made into other additional bedrooms and being close to the airport might be a awesome air b and b outfit or just a good sale after the additions made. Any suggestions are helpful and look forward to hearing from ya all.

It is certainly unfortunate that those types of things happen to somebody's asset that they paid good money for to try to help a person out and get them in their place. I can also look at it from that survival perspective that you had talked about which translates to me they still need a place to live so if they have a chance to move into these rental properties and the finishes inside are built for a war zone type of situation although cheap materials maybe that would be the answer for the insides to be made almost literally bulletproof so no matter what goes on in the home the turnover might be fairly low if and when they do happen to move out so that alone would cut down on the costs and if those neighborhoods can be section 8 housing then part of the assets already protected by the government and that individual even though they may not be able to pay rent on time perhaps the turnover or vacancy rate wouldn't be as much or as high. Yes I am still new to this and I am definitely learning but I'll take all the knowledge that I can get so I appreciate the reply. I will definitely keep that in mind and consideration for the expectation of the possibility of having c or d class tenants in ruining the asset that my I might own one day, to focus a little more on The upfront cost in trying to tenant proof the inside as best as possible. 

I guess I seen it as a good move to try and help those who need a second chance it better reason to get out of the good and into a better place. My whole goal for being a real estate investor is to be that generous person like some of the big names from the podcasts like Grant cardone, Arron mazzrillo, Matt Faircloth and others I look up to because they're still people no matter their bad choices and they do need a place to go. That's another thing is to ask everyone, where is the niche that caters to those bad people like who have been in jail or murderers or drug dealers?  Not to be seen as the act for what they did but yeah a reason for the houses to be filled or the apts rented working with section 8 housing to maybe cut down on the vacancy rate and keep the people off the street in hopes they take care of the property and or able to pay the rent in the first place. The point is I get the business side of it that it hurts a bottom dollar amount to help these people who are into the bad stuff. That however is the literal point for becoming wealthy financially is to either give to charity for tax benefits being an entrepreneur or give it to the folks who can get a place or rental or some kind of dwelling that gives them a place to go even if it's temporary. If I've learned anything from anyone whom I've listened to on the 312 episodes of the podcasts is that when you get to a financial position of strength then money is not the problem and or a concern if your needs and personal financial house is in order and met then helping others is kind of the goal in the first place or am I missing something? It's solving a problem that benefits everyone no matter that poor person decision on how they choose to live or spend their money or ruin and wreck their chances of being In a nice home.....

None the less thanks for the reply and wish you the best in your realestate journey! 

Absolutely right and I appreciate the reply but I also looked at it from the angle in perspective of when that whole block is taken care of and those people who are currently living in those places no matter where you are in the country no matter what market you looking in when that one block of 10 or 15 or 20 houses is taken care of then naturally I would think that market is going to increase its value and then you do it to the other side of the market on the other side of the street and do what to the other 10 or 15 houses so potentially you have one entire square block of 15 or 20 places that are completely redone fixed up and taken care of by these higher net worth individuals helping each other out getting rid of their crime getting rid of the sad looking houses in the neighborhood that helps increase the values for everybody over all the only hurdle that I could possibly think of is of course the cost for all of this to happen as well as the tenants not wanting to sell and finally the protection that would need to be there so renovations and work can happen on those places that need to be fixed up.