All Forum Posts by: Scott Mac

Hi Cameron,

Read Rich Dad Poor Dad and follow the advise about borrowing.

Go to local Real Estate meetups and make friends.

Good Luck!

@Joe Fairless

Hi Joe,

1.  Did you guys walk every unit before you bought it; and
2. how long did the walk through take on 400 units (and how many people)?

Thanks,

Scott...

Hi Breanna,

Just a pointer since you are still learning.

When you post details on a potential deal, be careful to not post so much info about it that people can figure out it's address.

Because if it's a good deal, tons of people read these posts and some will be deal sharks and try to swoop in and buy it from under you and your Aunt, meaning all of your hard work and dreams will be gone.

Not that this one tells anyone that, but an MLS listed property might be pretty easy to find with those details.

Good Luck!

Hi Dorian,

If you had $40,000 cash money (in the bank) it would be easier than if you only had $20,000 in the bank.

$10,000 in the bank seems like not enough for most areas.

It depends on the price of what you want to buy. 

If a house in your area can be had for $30,000 (though this may be a troublesome rental), you will need a lot less than if they sell for $200,000.

Investor loans can be 20% down cash + closing costs.

House hacks are less down, but you have to live on the property.

Hard money loans for first timers require you to have cash in the deal also.

You should focus on Educating yourself on this business while SAVING money.

Good Luck!

Hi Russell,

If you think you can replace your current income, yes this is possible (not guaranteed) but not without WORK (which means time).

It's not a something for nothing game. Nothing is.

The more effort you put into it, the more you (may possibly) get out of it.

Just my thoughts on this.

Good Luck!

Hi Paul,

Possibly a Tenants-in-Common offering, which might be a Security, meaning you should run this by an attorney who does SEC work for Real Estate Deals.

There can be a lot of negatives to the TIC method that are not present when using the LLC method though.

If this is something that seems to make sense for your deal, I'd strongly advise running the whole thing through a securities attorney before making any decisions on it.

Good Luck!

Hi William,

Be sure to talk to a few local property managers and ask about the:

• Vacancy rates in that neighborhood for studio units
• Average length of stay for residents in studio's; and
• what your possible "Tenant Profile" might be with the units as-is and also with them fixed up.

I like the close to a ski resort thing, it might makes the units seem more desirable to some (but not all).

Also, be aware that in many areas studio's tend to have more turnover than 2br units (more turn costs) and possibly less financially stable potential renters to choose from than 2brs.

Good Luck!

Hi Corey,

To me, it seems like they should have a business bank account at a legitimate bank.

Good Luck!

HI Larry,

Strange they won't permit a new house since it increases the tax base?

Maybe increase your own home value by petitioning the local government to close and abandon the alley and deed it over to you and your neighbor, (though it would still probably remain an easement).

Then fence the whole of your property as one unit, and sell it as a large lot property in the city.

Also, most of these empty older city lots had a home on them at one time that either burned or was condemned.

When they razed a structure in the old days they would just push the debris from the house into the foundation and level the foundation to just below the dirt.

Meaning there might be a full basement there just below the grass (full of debris), that might qualify as a rebuild or an addition of sorts, instead of new construction.

If they allow this, you can look for the old basement by driving a rebar at a 45 degree angle into the dirt after it rains. Start from the front of the lot and go backwards.

Good luck!

Hi Michael,

That seems like it might move the investor out of the passive investor role????

Also, it seems like locking in a vendor like that might have some conflict of interest issues, if not for you then possibly for the property manager????

If you have not run that by your Syndication Attorney yet, it seems like a best first move on this.

Good Luck!