All Forum Posts by: Oliver Sparks

I have a country house I'm wanting to sell that has a cistern as its water source.  Inevitably some buyers will be turned off immediately because of that.  But it's only about 5 miles from the local water supply, where you can fill a 500 gal tank up with just a few quarters.  The end of the rural water line is about a half mile away and they quoted me about $60k to run it the rest of the way to the house.  There has never been a well on the property that I know of, but with the rocky soil it will cost roughly $5-6k to see if you can get water out of the ground.  There may be a local person who hauls water who can be for hire, but no one seems to advertise that they will haul water for a reasonable fee.

Are there any thoughts on anything that would help with marketing or negotiating with a property like this?  Should I take a $5-6k risk and drill a well?  The house will list for about $160k.

Thanks @Dan Krupa!  I didn't realize USDA did zero down. That got me thinking  perhaps I could convince my wife and kids to drag the camper over there and live in it.  Hmmm...

Have you done, or know anyone who has done, owner financing on a rural land purchase?  Or any thoughts on a good resource for how to lay out the terms for owner financing for something like this?  I realize I'd need to have an attorney spell it out in the end, but curious how something like this might look.

On another note, I saw that you've got a gathering in the Northland coming up.  I'm looking for local meet ups and I'll have to see if I can make that one happen.

There is a rural property in the Kansas City area that I have an interest in wanting to buy, and I’d like to pick you all’s creative minds to help find a way obtain it with the lowest risk possible.

There is an ~80 acre tract that is FSBO that I would like to be able to buy to enjoy as a getaway with my family, for camping or hunting, or possibly someday put a cabin or house on. They're asking about $2700 an acre, which is low for what other properties go for in the area (min $4k+/acre). There are no water lines or electricity on it currently, nor pond on it or fence around it. Without those things it can't really be good for livestock. It might be partly tillable, but there's a draw of trees that runs through the middle of it. But not enough trees for logging. Right now it just sits and the owner bales some grass off it, not producing much income.

With as much as I really want to own the property, I would want to know that there’s some sort of exit strategy without losing money in case I would end up wanting to part with it. But before I can get to that, I don’t know the best way to finance something like this. I’m currently building a team to work with me on house flips and rentals, and I wouldn’t want this land I want for mostly personal use to mess with those goals.

Some initial ideas on adding value to the property:
-build a pond w/dock, add a food plot, maybe a small cabin to attract hunters/outdoorsmen

-fence some or all of the area to make a small profit (enough to cover property taxes?) from livestock grazing

-split the land (gosh, I’d hate to), hoping a smaller section would bring more price per acre

-contact oil or gas drillers in the area to see if there might be potential for mineral income

Financing:

-no idea. It’s been in the family for generations. Some method of owner financing? The seller is not super motivated to get rid of it, but it’s been for sale for a while.

-Would partnering with someone be a bad idea?

Maybe the whole idea is too far-fetched, but I thought I’d reach out to the BP community for thoughts, in case there is a way and I just haven’t thought of it yet.

Yep, I hear ya about the bulbs.  I used to own a house that had the 4 bulb fixture.  And some bulbs aren't marked their wattage.  Then you're stuck wondering, "Was it the 40 watt or 60 watt again?".  So then you buy 2 bulbs just because one burned out.  Anymore, I buy led bulbs for everything in my personal residence since they're becoming so cheap nowadays.  I've got over 70 bulbs in my house and I think I've replaced just 2 in the last 2 years.

My other irritant is plumbing leaks that no one told you about and they "never noticed". Seriously? Spots on the first floor ceiling or sogginess under the sink you never noticed?

BP friends, I have a question on how I should best manage my scenario. I currently have a property having repairs done on it and plan to sell it once those are done, but it likely won’t be done for a couple more months. On that property I'll end up with $50+k in equity. Another property just popped up in my area that I am definitely interested in, and I could pay cash for once my other property sells, but I won’t have the cash on-hand until the other one sells. What’s the wisest approach to use here?

I'll just add that squirrels particularly like to bring in outside debris and make a mess, PLUS eat through things like wire coating and dig through insulation.  Rats, possum's and raccoons can also cause these issues.  As others have mentioned, any pest control company should be able to help, but getting it ASAP is important.

@Brad Noe, I thought I'd check in to see if you ended up with some kind of a "checklist" or if you found a good resource? What became of the property you had in mind with this post?  I'm in a similar position to where you were and don't want to end up with a lemon.

Although David's post can ruffle some feathers, I do hope that some will interpret it as motivation to do some due diligence before asking for assistance. At my normal day job I work with a lot of new people.  I expect them to work hard at what they do, trying their best to self-educate what they can.  And they are smart people so they typically figure things out with a little assistance.  All the while, I realize that I never know when I might need one of them to get me out of a pinch, so I try to start out by building up the relationship rather than knocking it down. I say respond with gratitude that they are asking for help, and guide them, but straight up answers with nitty gritty details could backlash if it's obvious they have no experience.

@Daniel O. Thanks for requesting more info! I won't deny that explaining what I bring to the table is a HUGE part of trying to convince others to be interested in dealing with me.  I've been reading through BP forums long enough that I should have done a better job with that to begin with.

First off, I have a very go-getter personality and hold high value of my integrity with everything I do. So no matter what I’ll be honest and forthright with everything I say and do.  One thing I'll mention is that I live in the KC area so I’m able to assist with anyone who may be looking for sweat equity in a property in this area. But I also have strong knowledge of technology as well as I know many who can and are willing to assist with anyone needing help. Also, I have close connections to people who can do professional-quality video recording and production/editing work. I have a broad skillset and because of my personality I have a large network of likeable people who know a lot. 

I’m entrepreneurial and relatively risk-averse, so as I’m building my real estate portfolio I’m looking to build my own network of friends/partners to walk with me as I find potential good deals in a manner that will be profitable but conservative. And as I also have a background in sales, I know the power of working a deal face-to-face when possible.  If you'd like me to elaborate further on any of that, please ask and I'll gladly do so!

Most of my interest in REI has been geared toward single family residences. However, I came across a building with 4 apartments that I have interest in. It resides in a college town with the asking price of just over $110k. It has a new roof, plumbing, electrical, sump pump, hot water heaters, flooring in kitchens & baths, sewer line from building to main all within the last six years. And the tenants pay for electricity and gas. They state that the current gross income is $1450 a month. I don't have any rentals in the area myself to compare with, but one single 3br/1ba family house I found is advertised for rent and asking $750 a month not far from this property. This would be my first experience dealing with a multi-family residence, so I'm looking for a mentor/partner to fund and who could walk me through the process in exchange for split profits. Any takers or advice?