All Forum Posts by: Allie K.

oh no, I'm just seeing this 20 minutes before start 🙃 

Will there be a playback option for those who missed it? 

@Account Closed , thanks for that info, I'm saving that spreadsheet you provided for future reference! 

Subto is a great way to go, I'm glad to hear you have had success in it as that gives me more confidence in the process! I am feeling a bit intimidated by residentials. I'm in a situation right now where I'm selling my personal home and it's been... interesting to say the least which has been eating at my confidence towards residentials in general.

I started doing some research on some hard money lenders in AZ, I have personally decided that I don't want to go that route until I have more solid abilities to continue payments if something goes awry. 

Right now I am working on a deal for vacant land in Northwest AZ as it's something I have done in the past for personal use. I am in the midst of negotiating a deal now, and the seller has been a tough cookie but has agreed to owner carry with a large downpayment. I plan on doing a landlift and selling with approved site build plans for a self storage facility to make a large profit margin. I have all the first steps together and have already verified with the county that the rezoning can be done. There's several other avenues I can take this, and those other avenues are areas where I feel I need the most hands on help/contribution. 

Hola BP forums, 

I am at a turning point in my life where I am pursing real estate in a more professional approach versus my light experience to acquire my own personal properties. I worked in banking, specifically consumer lending finance for nearly 6 years in the operations and underwriting side. Additionally, I have founded and operated my own small businesses in the past. I have a passion for operational success and a desire to learn the gears in everything I can get into. I've had my fill on reading and listening and doing independent research on REI topics and I'm ready to apply it and learn in the real world.

If there's any investors in Arizona looking for some extra help and willing to mentor, I'd love to connect and learn the ropes of REI on a deeper level and get more hands on. I'm hoping we can both learn a lot from each other! 

Hey Matthew! 

Apologies in advance for the winded response.

Your strategy is not a pipe dream - I've done this twice and am currently doing it again now. I've done this to build my proper suburban home, and now I'm swapping this one for my dream home. I can tell you that I would have never been able to get into my first home at 26 years old and trying to figure out my place on earth without this strategy. Your position is a little better than mine because you have the ability to rent your previous one out and pull a HELOC, I took on the route of creative financing on both my selling and buying end. I was able to sell my previous properties with significant down payments and I owner carried, which I am still receiving payments on. I am currently making owner carry payments on my new property, and when my home sells I am also starting my build. (all without a bank being involved)

Initially I planned on making my dream home totally off-grid, though I have now opted to have it on county power since they agreed to bring it in 700ft for free which helps offset a huge chunk of building costs. (check your town and county programs - they often offer perks for rural development). I also ended up wanting a home that was just going to be too dang big to realistically run it offgrid. Anyway, if you are not particularly driven on what type of structure it needs to be, seriously consider modular. No, not manufactured, modular. Modulars are built with 2x4's (Cavco offers the option to upgrade to 2x6's and IMO is the best modular home maker). just like a house and can be placed on a pad. They look no different than a house. They are turn key, but made in a plant with high standards of quality control and are delivered via semi. They do all the hookups, and they are completely off grid ready give or take a few minor changes. You probably know this, but keep the square footage 1300sq ft or under if you want uninterrupted power and full size appliances. Off grid is amazing when done right, and it doesn't feel any different than being on the grid. It's such a great way to eliminate nearly 80% of your living expenses because you're independent! (this is the house hack option for people who do not like sharing ;) And of course, if you go full solar, most localities and power companies offer many kickbacks if you do decided to have the main power connected as well.

Modulars are insanely affordable, quaint, and built well with tons of options. If placed on a pad, they gain appreciation and can have a HELOC pulled on them just like a standard home. They are also accepted in most towns/cities/counties if placed on a pad (do your homework on this), but you need to check the property's CC&R's too. These also eliminate a lot of those variables you are concerned about. You can even shop around and get quotes and pricematch. They send you a transaction breakdown of what everything costs and offer inhouse services for most things you will need. 

I have some ideas of turning several of these into AirBnB's/Vrbos or glamping because they truly cut away all of the BS of any other type of residential/vacation style building when it comes to development. 

Do your research, cross your t's and dot the i's and go for it!

@Hamp Lee III thank you!! 

Hola!

I am an inspiring REI with a little bit of personal experience in acquiring and flipping properties, I started this in my early 20's and the decisions blessed me into early homeownership. I am now looking to start moving into it in the better sense of a profession to keep the momentum going!

I have had a deep-seated interest in self storage for the past several years ever since I learned about it through my husband's prior occupation of being a storage District Manager for the Southwest region. But like many, we have been stuck in the "where/how do I start?" phase. Over the course of 2023, he lead the charge in some attempts to secure a deal, one privately and one through an investor, but they never really left the "analysis" stage very long story short. So I consider them practice rounds ;)

We are also part of the Arizona Self Storage Association which has been a massive plethora of valuable insight and information; several connections we made through the Association have been absolutely near-endless of resources and so helpful! (Fun fact, we ran a local moving company together and had originally joined the ASSA for business development and lead generation purposes)

I just started analyzing (and am very much on the verge of proceeding with!) my first deal of 2024 and trying again in self-storage. I'm looking at a raw property as I am okay with doing some hoofwork (and frankly, I am trying to be as budget-conciuos as possible). I'm currently in contact with a realtor on one that is loaded with potential - immediately off of a major freeway exit ramp with the ability for signage facing the freeway with the potential of being a medium-sized facility. It's in mixed zoning, and I have already confirmed with county I can rezone it to commercial and received all the instruction on how to move forward with that process. I already received the flood reports and the risk is low (nearly non existent). It's priced right, and I will be owner carrying. 

Quick stats without oversharing, it's in a small low-density residential area and there's a U-haul self storage with motor vehicle storage nearby. The vicinity has projected mid and high density growth of 30,000 people in the next coming years which for this area, is quite a boom. 

Now. The are some avenues I am considering with this deal. 

1. Rezone it, obtain site plans and permit to build the facility, and flip it with the approved plans. (short-mid term)

2. All of the above but instead of selling, move through with construction, fill vacancy, then sell

3. Same as #2 but continue holding 

4. Same as #1 but working with an existing large company in their partnership programs to complete the project and collect royalties (basic research and industry knowledge, could take anywhere between 2-4 years before royalties are received)

I know all are profitable, and obviously in these scenarios (or REI as a whole!) committing long term yields more results. With where I stand now, anything beyond #1 I will need some financial backing from an investor and generally speaking, a good team to fully and properly execute (which I am 100% open to)! I'm feeling the most with #1 as I would love a quick ROI and frankly, the least amount of risk. However the rest still sound great, too and I haven't written anything off.

I'm going to pop into the ASSA and see what I can conjure up there, but I definitley wanted to introduce myself on BP as well! I'm feeling really excited about this no matter which avenue I take with it, and I fully hope I meet some amazing people along the way! I'd love to hear your thoughts and pick some brains as I'm always willing to learn ;)