All Forum Posts by: Robert Williams

@Jim K. Doing “ugly” things is not a guarantee for success in any niche including being the master of doing ugly things. While watching and hearing about people doing horrible things to get to the top may make us feel like we should change our plan, it has never been worth it if it is out of your character.

Some people are just known as a**holes all their life and nobody expects anything better from that person. I learned a long time ago that people only do what you allow them to, and it is a shame that a lot more of us don’t stand up.

In my journey to become a real estate investor, I get daily reminders that if I don’t know who I am, What I stand for, what I want, and how to do it, I won’t succeed.

I have a buddy who was probably the nicest person I had ever known. He had a unique idea for a business, but in order for it to succeed, he had to be a jerk or hire jerks. Day in and out he would embody this, and that became his mindset. He reached his goals, but lost a ton of respect and friends.

I said all of this to say, know who you are, figure out what you stand for, what you want to do, and how to get there. If how you get there requires you to not be who you are, you are faced with the decision to either adopt that mindset, find another way to succeed, or pick a different goal.

Anybody can learn to do anything, so figure it out and reach for the stars! Wishing you the best!

@Stefan D. You win some, and others you don’t meet your goal. You deserve a Pat on the back. Some of us have yet to land anything, so you are still ahead. The goal is to keep pushing. All the “horror” stories are more inspiration than anything. Knowing it could happen and still having the courage to do it, makes you a winner.

@Rubin Thomas, My initial thought is that you cannot do a 515.5. LOL.

I would say do a buyout, then do your 1031.

Here is an excerpt from an article I found http://www.exeter1031.com/arti...

"...1031 Exchange Structural Solutions

The partners may either sell their individual interests in the partnership, or the partnership can sell the real property and distribute the cash to the underlying partners so that each individual partner can go their separate way. There is no 1031 Exchange completed here. Neither solution is particularly desirable, as both have undesirable income tax consequences.

The sale of partnership interests are specifically excluded from tax-deferred exchange treatment under the rationale that a partnership interest is a personal property interest and not a real property interest, so more complicated structural solutions are required when partners desire to go their separate ways and some or all of the partners wish to structure and complete a 1031 Exchange."...

I have not read this book, but I can see a ton of reasons for selling, but I think it comes down to 4 major categories 

1. Cost of Holding: Buildings eventually need repairs, so getting out before all the capital expenditures hit you at once. Troublesome tenants, property management.

2. Value of the Investment: Although it may be plausible, I have yet to hear of an instance where by refinancing, you get to cash out 100% of the value. By selling, you get hopefully 100% of the equity minus closing costs, and can continue on with your ventures. As long as that number is more than you would get doing a refinance, it is a win. With all of the "appreciation" that has been happening in the past year or two, It makes sent to me to sell and pocket some extra cash. Sure it is a gamble as prices may continue to go up, but I would want to get out before a crash happens. You are still ahead.

3. Passivity: You could sell the building, and put all of your proceeds into being a Hard Money lender. If I had a few hundred thousand to invest and could get 10-12%, I would definitely be doing it. 

4. The End Game: Using the example you gave from the book, It seems that the fix-n-flip strategy is the strategy. We see all the time with big businesses. Troubled company, Fires CEO, Hires New CEO, Company Thrives, New vision, Troubled company, Fires CEO... I feel like being able to do this type of RE on a grand scale is AWESOME!!!  

All-in-all It is abut your goals and having multiple strategies. You should always have an out so your property does not become a money pit.

@Nicolas Bajner Congratulations on post#1! If you have the funds to invest, there are always people looking to go in on a deal. I live in Joliet and have come across several deals that work for me, but I do not have the funds and in the process of trying to find them, I lost out. @Jonathan Klemm said it pretty well, "the most important is to just get it done and not worry so much about the cash flow.". It may be best to partner on Deal #1 with someone already doing what you want to do. You'll learn the ropes, get your bearings and hopefully be compelled to keep going. All-in-all it's a process. Pull that trigger, and see what happens. Wishing you all the best!!

@Kar Sun Since it’s A class and underpriced, you shouldn’t have any problem finding the perfect tenant. Since you see red flags, give it a hard pass. Judging by the fact that you are even dealing with this, makes it seem like you don’t have many applicants. If this is the case, it may not be as sweet as you think. Maybe try doing some intel to get a true picture of where you stand. Definitely hope you find what you are looking for!

@Kyler J Sloan Put it on Turro and tell your guests they can rent it there if they need to go up the hill.

@John Jackson Jr my first mind says Don’t do It John! If they don’t meet your requirements, there should be no bending of your rules. I understand having a soft spot in your heart, but at the end of the day, unqualified is unqualified. Why not try to help them find a place that will accept it? Make it a win win. You don’t have to go through the evictions process, and they have a place to live for a year.

My second mind says Don’t do it John! For the same reasons mentioned in number 1.

@Kevin Howard If you want to have it for future use, why not try a HELOC. That way you can pull it when you want/need or find your next investment. The way I see it, money that's just sitting there is totally worthless. If I had those amounts available to me, I'd be putting them to use so I can get a return. What about being a Private Lender or HML? You'd more than likely get more in interest there than what it'd cost to pay the bank back.

Giovanni, the key is knowing what you want to invest in, and how much return will work for you. I learned from Mitch Messer. You can find him on BP and Facebook. He’s got an incredible story and is willing to help. There is a ton of info, but once you understand how the numbers work, you’ll be rolling. I’m pretty much always available and my info is in my BP profile if you ever have any questions or just want to chat! Be patient, and diligent!