All Forum Posts by: Michael Lewis Lee

One of my biggest mistakes was when I took something for just assuming somebody else would take care of something without my daily update phone call.  I was ultimately responsible for it's completion.  You need to check up and motivate others regularly and never assume anything will get done by others on anything you are ultimately responsible for.  Be in control.

Hello Matthew!  That can be a good place to be and allow you a more flexible schedule to spend as much time with your kids while they grow up and help facilitate their extra activities.  There's always stuff like gymnastics, piano lessons, softball, etc. that keep you busy6 in the afternoon after school.  Learn about how you can block your time and let others to know when to contact you.  If you go with wholesaling, I tend to like the "reverse" method where you contact purchasers and find out what they are looking for.  That seems better than the traditional way where you have to seek out a buyer for what you are trying to sell.  i also like driving for dollars looking for distressed homes that have non-occupied owners and dealing directly with the owners.  Start it off by doing everything that is average including the home price and its finish out in that area.  Choose an area that is experiencing growth in population and jobs available.  Keep everything within an hour's drive from where you live.  Count on spending some money on marketing.  Some things are cheaper than others and do what works.  Count on having 2 closings on each property.  I do not know where you are so I can't give any geographical recommendations.  Good luck to you and your efforts!

Hello Uri! Talk to that area property managers, check on demand, or call area Agents.  There are area online makers for that area depending on where it is.  Maybe the seller knows.  Good luck!

Hello! If you have already found out and that is great. My answer is to do an evaluation and make an offer that works for you. ARV {market value} less repairs and the amount of profit you can live with depending if you are planning a wholesale or fix and flip. Always assume that is upon inspection, so you can walk away. And always make the buyer is you and or assigns. Good luck!

Hello Daniel!  It depends on your goals and game plan.  Right now, many hands are "up in the air about our future.  The future is hard to predict.  Make sure if you sell your existing home, get a rent covers all of its expenses.  You are in a probably a good Austin area and it's demand is usually good. Figure the worst situation with the future home evaluation and it needs to be in a growth area.  

Our future is hard to predict.  What will your job will pay for or support without taking more debt.  Your existing home will probably still appreciate.  I would look for a smaller floorplan, cheaper, and make it rentable too based on the current demand.  Do not assume anything will happen in the future.  Are there any need for any capital improvements or repairs.  

What do any immediate family members need or desire?  Target a new area with many good retail nearby, amenities nearby, and the school district involved, and other family needs or desires.  There are several more considerations like nearby highways, parking, storage, and public transportation.

Good luck with any considerations!

Hello again Adrien!  Just be aware of all you do and make all decions and hope those will not come back and haunt you in the future.  Good luck and best wishes!

Hello Money!  Don't give up on me.  My favorite is Brandon Turner and the BP owner when they use to give a weekly podcast.

Hello Brian!  with what you provided, this looks like a good deal but there is so much more to consider.  Other things to consider is location, demand, all expenses including loan terms, an exit plan (long term or short term), an overall game plan, can you raise rent, can you improve that property to increase its rents and value, maintenance, any major expenses now or later, reserves, seasonal expenses, it's proximity to you, the management cost seems a little low for a good property manager (it may be more like 10-12% plus other expenses and depending on their positivity of keeping it occupied and their ability to raise the rent), any school district news, public or school transportation and local stops, amenities, the competition in that area and how are they doing, etc..  I am not trying to be hard on you and you may have already considered this stuff.  Your asking for an opinion was a good one.  With all of that said it might still be a good deal.  It looks like a good deal but I do not know anything about Minnesota except what is on the TV news and that could be biased.  You may have already looked at these alternative things.  I am from and still live in Dallas, Texas which is probably much different.  Thanks for joining and asking your question.  Just so you know, I was a licensed real estate broker and in construction for about 30 years around Dallas and wish you lots of of best wishes.  Good luck to you!

Hello Jesse! I just went through this situation on my house when my wife died from cancer. In the beginning, my brother had me convinced to lease my house out, which was free and clear and had an ARV of about 400K. He thought my return would be over 20% with the money borrowed for the needed repairs. One thing I did not anticipate was his heart attack. Thankfully, he survived but spent a couple of months in a hospital and I was handicapped and could not even walk. Since I could not count on his assistance, I ended up selling and "walked" away from closing with $224,000 after all debts were paid.

The bottom line is that you can never count on the future or that it will be good to you and it is hard to predict.  At 54, I never imagined that I would have a brain anneurrism and a stroke two days before my planned surgery to correct my problem that my head surgery would correct.  That was almost 10 years ago today and in some ways I am happy and in some ways I feel cursed.  I still cannot walk and have not worked since 2010 when I owned my own business.  I'm lucky I paid off my mortgage in 1996 but was unable to be involved with my daughter who was in high school.

  I was not able to see her graduate at The University of Arkansas.  The good thing, was that she turned out fairly intelligent and graduated with zero debt as a chemical engineer.  She now works for a Ft. Worth company that prints US money and she cleans their air and water.  Just to give you an idea, is that the employ about 1000 people and they are very busy right now.  I was lucky that my wife took care of me for 9 years and her employer was so good to both of us.  She was a computer programmer and made pretty good money.

Again, you cannot predict the future and you need to try to prepare yourself for anything that may happen.  If you can have a positive cash flow that covers all it's expenses including the debt.  You can zlso profit from its' inflation and where it is at.  Is it be in a growth area, a good school system,  in a low crime area, nearby amenities, its' ability to be used as a new virus change that is allowing for office or exercising.  What is the demand in that area?  Can you keep it leased out?  Can you build maintenance reserves for minor and major repairs? 

Can you afford any out of pocket expenses that may come up with repairs or debt payments?  My intent is not to scare you but you need to consider everything to take that extra possible burden.  It might just be better to walk away and forget about it.  Does your present employment easy or hard to get away from?  There are many things to consider.  Is the possible maintenance cost look good or bad?  You are hearing from a person that was a licensed broker and into construction for about 30 years in Dallas, Texas.

Good luck to you!