All Forum Posts by: Account Closed

Hello?

@Scott Brafford - both #2 and #3 are the same size (3700 SF). The parcel I have under contract is the large one (6700 SF), and I discovered yesterday that I can build 6 units on it.

Thanks for the suggestions everyone!.

@Account Closed

Market value of properties is approximately $60-70k and rent for between $750-$900/mo. We purchase with about $10k equity in each.

That makes sense, Travis. An extended close on the adjacent lot works better for the seller anyway.

I'm working on piecing together 3 lots with 3 different owners in a hot neighborhood in Denver. Each lot has an existing SFR on it. Zoning is higher density, so the more dirt I get, the more units I can build. I've got the largest lot locked down and I can put 4 units on it, so I dont *need* the additional lots, but having them included will make this project a lot more attractive.

The owner of the adjacent property to the one I have under contract expressed an interest in selling because they are moving next month and had planned to keep their home as a rental. Their asking price is reasonable.

I have not spoken with the 3rd owner yet, who's property sits adjacent to the first neighbor. I've been told his potential asking price, and it is $75k more than I am willing to pay.

My question is this: what are some things I need to consider when negotiating with multiple owners on the same block? If they start speaking with each other it could potentially blow up the deals. Do I include an NDA in the purchase agreement? What are some approaches or tactics that I can use to help navigate this situation more smoothly? 

To be clear, I don't need the other two lots to make this development project work and I have let the first neighbor know this.

@Account Closed @Spencer Brennon

Please continue the discussion in this thread. My original question was broad, but now that I've narrowed my focus I am still very interested in your perspective.

A follow-up for those interested in Wichita market data, I called around and found this market data through the board of Realtors - this is what I was looking for.

http://www.sckrealtors.com/market-statistics.html

Great input, everyone. This is exactly the discussion I was hoping for.

A couple more ideas now that I've had some time to consider what to do with the capital once cash flow begins:

1. Redirect $24k net cash flow to max out my Roth Solo 401(k), plus $6k into my regular Roth IRA. I'm over 60 and I have an existing regular Roth so the five year waiting period doesn't apply.

2. Roll the Solo 401(k) Roth into the regular Roth and avoid the five year wait. Contribute the remaining excess cash flow into a profit sharing plan. After 7.5 years I have the option of withdrawing my Roth tax free and applying it towards the debt, or not. 

I can self direct the investments in all of my IRAs. This is for retirement, but I don't want to be overly conservative. Liquidity is important to me.

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Note: I'm writing this in the first person, but the advice is for my father who is reading this thread and has been impressed with your knowledge and incite. The wheels for this plan are already in motion.

@Brandon Hall @Account Closed @Andrew Syrios @Spencer Brennon @Jason Miller

@Shane H.

The properties are in 67201. I have 6 there that I have never seen, so I cant speak to the neighborhoods. I'll look up the addresses later today. I purchase from a turn-key provider whom I've known for 25+ years. He's also our property manager and we have been very pleasantly surprised at the performance of the properties we've already purchased through him. I'll PM you his info if you like.