All Forum Posts by: Jeremy Karja

Hi BP MN,

Is anyone going to Ron Legrand's "Fast Track To Wealth" Minneapolis, MN this Saturday August 12th?  I know there will be an up sell and I won't be buying that as great as Ron is but I wanted to see him while he is in town, network, and get some great ideas from him I am sure.  

I would love to connect with you or if you haven't purchased it already even split the cost of $100 because the guest is free and my REI friends are tied up on Saturday.

Here is the info, should be good: https://www.ronlegrand.com/products/live-training-...

Happy buying out there :)

Jeremy

Thanks @Dani Beit-Or.  I agree

How should I structure this partnership? My father has about 1 Million in different properties he purchased over 10 to 15 years ago. Some of that land has doubled or tripled and some he is even. The properties are as follows: is a cabin next door to his home, chunk of Land on the highway, hunting land, and some land he could develop on. He does not receive income from these properties AT ALL. The problem is he owns a construction company that only has a couple employees and does not see a retirement in sight at age 60.  My solution: sell these properties and turn them into income producing properties. 

With some multi families we could produce around 7500 of income at  $250 a door per month net of expenses. 

My thought was a partnership like: I get 25% of the income and ownership and put in 10% the investment with my money and he puts up the 90%. I would do the set up and he would do most of the maintenance.

Is this a good deal for both of us?  Other things to consider?

Thank you,

Jeremy

How should I structure this partnership?  My father has about 1 Million in different Landon he purchased over 10 years ago.  Some has double his money in appreciation and some he is even.  The Land is a cabin next door to his home, an antique shop that does not have a shop on it for years, hunting land, and vacant land.  He gets no income from these properties AT ALL.  The problem is he owns a construction company that only has a couple employees and does not see a retirement in sight.  Working 6 days a work VERY long hours and is about 60.  I don't see a way out for him unless he takes some of these properties and turns them into income.  

So to solve his problem I was thinking of suggesting sell off 500k and I an leverage this into may 15 duplexes or 7 fourplexes to produce around 7500 of income a month for him Assuming around $250 a door per month net of expenses.  With my partnership I was thinking I could invest 10% of my one money and for my work I get 20% of the income and ownership.  We would both manage but I would do all the set up of the deal and he would probably pay to fix them all by his own hand.   

My question is, is this a good deal for me and him?  Is 20% enough for me to do the deal?  AKA $1500 a month with these numbers or the process to do all of this?  Or is there a better way to structure the deal with upfronts fees like to 2 or 3%, do a 50/50 deal and I use 30% or 40% of my money, etc etc?

Love to hear any and all thoughts.

Thank you,

Jeremy

We are looking at building and developing some storage units on raw land but had some questions.  I am new to this arena but this deal fell into my lap for a decent deal with family that own it.

1. What is the average vacancy rate we should use in a suburban area?

2. What are the insurance costs?

3. What are the other costs involved.

The VERY rough numbers we have right now are:

Land: 200k

Building 50 units: 160k

Average rental for unit in area: about 100 to 120 a month

Right on a major Hghwy

Right across from a boat launch on a lake

Units could be large enough for indoor and outdoor boat storage.

What other questions or things should I consider here overall with storage units?

Thanks all!

Thanks everyone!  Great points @Brent Coombs.  If someone else is paying the dollar amount does not matter as much at all long term.  But I also want some short term income as well and I don't want my Cap Ex expenses to eat up all the profit each year.  I work in retirement for my day job so I get the power of real estate is FANTASTIC for the longer term as well.

@Jason Hirko and @Sean Blomquist - Thank you both.

That all makes sense. My question for you guys after speaking to some seasoned guys in MN they said it is nearly impossible to do that BRRRR strategy in MN and cash flow 300 a door right now with how competitive it is. Do you believe these to be the case? These were active investors with a good amount of properties.

I know this is a basic question but my wife asked me and I did not have a solid answer other than I know it is the process in everything I have seen. And by hard money I also include other cash methods such as personal cash/HELOC to buy the home then get another loan on it later VS just taking that loan out up front? Just to get you cash back from fixing it up right?

@John Woodrich - Thanks for your insight!

I agree, thanks John!!