All Forum Posts by: Steven Pesavento

With an answer like @Brian Burke's it's hard to add onto that. Tips from a true master right here :)

My recommendation would actually be slightly different...

You might want to consider moving into the property, house hacking it & getting the renter onboard paying the other mortgage. And then stay two years & plan to sell the property in year 5. 

Upside here is - you'll eliminate most or all of the capital gains tax and you'll then parlay that into the next property. Just did that on a $725k non-conforming duplex in Denver and was able to take a nice chunk of cash out at the sale. 

Of course the downside is you'll have to stay for two years - but if you think strategically, buy in a neighborhood with value appreciation and a house you can call home for a bit. The upside is great! 

It's going to be a great event @Chris Lopez. Looking forward to talking about everything from flipping houses to commercial multifamily. We'll see you soon! 

@Ross Carpenter that is great, because it can cost upwards of $10-15K to do this if you did it yourself... I just paid $5k two years ago but we didn't have to tap into the street. 

I'd recommend documenting the current condition of your yard. They are going to cut a big long slit in the ground, so it's likely going to impact whatever you have there. 

Once they do, document it and upload pictures here. So we can all understand the process :)  

There isn't a lot of contractors who are focused on this. Building anything is expensive, so to get a builder to take on a project like this, means they aren't taking on a $1M project, which will yield them much more. Impact and Permitting fees are costly too... but there's just not enough builders doing this to create competition to drive the price down. 

Would be nice to see that change. Simplifying the process with the city would likely lead to some cost reductions too. 

When I first read this I thought you said $500k liquid cash... which I would give a very different answer. You can do this business with no or low money, but you've gotta trade that in for time & partner with experience. 

It's something that's possible, but you've gotta understand your situation. I wouldn't recommend buying anything if you don't have the capital to securely pay for it if something shouldn't go as planned... so your focus now needs to be: 

Make more money. 

You can do that with real estate by flipping, wholesaling, brokering or something similar. Or you can do that in your full time job. But either way you look at it you need to create more income before you buy. 

The big kicker here, is that it comes down to starting with what you have. As @Brandon Turner says you have to have at least one of the three 1. Hustle 2. Money 3. Experience. 

If you're just getting started and you don't have any money, then you've got one thing left - And people seriously need it. So you bring that hustle to a group with experience and together you leverage that experience with your hustle to raise money. Having "skin in the game" is just a nice way of saying "I don't trust you"... because if you had enough trust, that they were able to "see without a doubt" that you'll come through with the returns promised, they'd invest. 

You've got this, just take the hustle to the next level until it turns into money & experience. 

If you're going to outsources something like analyzing deals, that would only be something I'd recommend as step 1. You yourself or another team member needs to get your eyes deep into the analysis before you're buying a commercial asset or even single family. 

When my investors capital is being invested into an asset - you can be sure that I've done the due diligence and likely had multiple sets of eyes on that analysis. 

 They are wrong... I know plenty of people with them.