All Forum Posts by: Christopher B.

.

Extreme Ownership. It is your deal, your loan, and your money so your responsibility to ensure the loan was correct. You admitted you may have not done a good job of clarifying what you want. You admitted to not reviewing the loan documents closely enough to notice the correct box was not checked. Take it as a lesson learned to ensure you trust but verify and review the details before signing in the future. I would recommend to not burn the bridge. People make mistakes, it happens. The banker could turn out to be a great asset for you in the future. The industry is also small, you never know who people knows and don't want to get a bad reputation. 

If it makes you feel better I've done the same thing. I once negoited a property down from $30k to $20k with a brief stop at $25k along the way. I wrote $25k on the contract. The seller said "Chris.." then stopped, signed it and handed it back to me. I didn't even recognize my mistake until I was sent the closing statement and it all clicked. I was pretty mad but at myself, you can be sure I double check all documents and contracts now.

I would think it would likely trigger capital gains but talk to a CPA, I am certainly not tax expert. If you own it free and clear and are not able to get a LOC against the property then there must be an underlining issue besides the LLC structure. I don't see were a two member LLC has any bearing, think about all the partnerships out there that buy assets. Why are banks saying they will not lend to a two member LLC?

I don't know anything about your individual market but housing inventory is at an all time low nationwide right now. So it seems the demand for the lots would be there now more than ever. Saying that, if you know the value of the lot and can get it under market value then it is a viable option but I wouldn't bank on market demand alone to make your profit. Buy I am sure there are people that are more experienced in land flipping that can chime in as well. 

Terry Adams- The Adams Law Firm / Admiral Title 

Scott Pearson - The Pearson Law Firm / Paramount Land Title

Kramer Rayson

As an investor I want someone who is: Self-driven. Trustworthy. Has sincere market and industry knowledge. Knows their product. Excellent communicator and at networking. Smart negotiator. Professional. Consistent and reliable. A team player. 

A retail buyer/seller may need some different/additional things. Many agents aren't full-time so lack drive and consistency in their agent business. If you are driven and professional there is a lot of opportunity for good agents imo. 

Good luck with your journey and feel free to reach-out anytime. 

I like the idea of getting the mentor involved. Use this opportunity to determine the true expertise and value of the mentor as well. Not saying he has done anything wrong, I have subs that are great for me that don't answer calls for people I call. Unfortunately it is the nature of the business. But ask if he truly is good at this game or if this is just the contractor. 

Here is the hard truth though. This likely isn't going to end pretty for you. The project is going to cost more money than you expected and if its a flip may sell for less. One positive is you have a strong market in your favor. Let's hope the market bails you out here. But you can turn these lemons into lemonade by learning and growing from the experience and putting things in place so it doesn't happen on the next project. 

Rule no.1 Never pay for anything more than the materials currently being used to a contractor. 

Rule 2. Never let them make your selection decisions for you. Giving you options can be ok, this is done, but never let them design a house themselves. 

Rule 3. Let the contractor go as soon as you realize they can't get the job done, are not trustworthy, or it's just not going to workout. This is a tough one, I struggle with it still after 10yrs in this game but will say every time I go against my own rule it burns me. 

Good luck.

We had a similar issue recently. 5/8 fireboard on the wall and interior ceiling passed 2018 code. We had a masonry footer to the dirt and 4' fire rated sheathing on each side of the peak so checked all the other boxes. 

Most agents are not very good at their job and don't have formal sales backgrounds. Your sales background and drive could catapult your agent career faster than you think and keeps you in this industry directly. I have that most of the information shared about jobs and careers online is geared towards the average person. High achievers are not average people so the challenges and limitations expressed by others in starting a career are not always accurate. David Greene here on BP very quickly became a top producing agent in a highly competitive market. In 10yrs I have met maybe a handful of truly good agents in my market and I work this business every single day. I actually wish I had become an agent when I first got started years ago. It is a very scalable business model and once the foundation is built can generate income into perpetuity with a proper team in place without being a time vampire. 

1. You need a primary revenue generator that pays the bills and throws off investable cash. This can be a W2 you enjoy or you can be full-time REI. Either is fine. Good real estate careers

- Agent (the good agents make a LOT of money and 95% of the agents are not good) 

- flipping (tough biz to scale, a lot of headaches, inconsistent income but money can be good if you are good)

- Some form of service provider to the industry. Fill in the blank 

2. Once you have established your primary revenue driver choose an asset class that matches your goals. SFR's are wonderful investments but many find them hard to scale. Are risk averse? Would you rather have a smaller, simpler portfolio that is focused on net cash flow or maximize ROI through scale and consistent reinvestment. Asset classes you can pursue are endless, no need to list.

3. Focus, systemize, and process. As Brandon and David would say, build your first bridge then work on another. Or, don't squirrel too much.  There are so many ways to play this game it can get overwhelming. In this stage done is perfect. 

4. Perfect the machine here. Now you can start to open yourself up to all these unique opportunities you are seeing all around you. You can grow or let go by handing things off and relaxing a bit. Maybe both.