All Forum Posts by: Tanner Johnson

@Bryan Beal 100% agree... as Ben Franklin said, “Those who would give up essential liberty, to purchase a little temporary safety, deserve neither liberty nor safety.” If we give up some of our liberties now the government will know we are willing to give them up in the name of “safety”. Agreed it is morally wrong to not consider the safety of our American brothers and sisters and as Americans we should be careful and considerate, but when the government tells us we can’t go out and we let them, we are going down a dangerous path.

@Merritt S. 100% agree with this. I’ve been told many times that I’m leaving a lot on the table by not constantly leveraging. The most attractive way of re investing for me is save buy save buy and once you get a couple of doors the saving starts happening pretty quick. It’s always made more financial sense to me to have a few full cash flowing properties before you use leverage to greatly greatly reduce your risk. I won’t let the bank own my fate. No doubt brrrr and other creative financing options can grow your portfolio faster but your chances of getting bit are much higher.

@Greg Dickerson so my goal is to own these free and clear as fast as possible. Right now I’m going to college and working full time and living with my parents, my college is paid for so I practically have no expenses. I feel like now is a time where I can really throw everything I have at this. So with my goal of owning these as fast as possible change your advice at all or still finance from the beginning?

@Greg Dickerson Thank you, you have given me something to think about

@William Coet, yes I do all general as well as skilled labor myself with guidance from grandfather. For us the key to keeping cost down is permanent wood foundations. We have many homes with wooden foundations raging back to 50 yrs and they have proven that if you can keep moitsture away that they are they way to go in terms of cost and maintenance. I can put in a wood foundation for 1000$ give or take while a slab is quoted from 13000 to 17000

@Arlan Potter Let me provide a little more info that I didn’t provide, yes all the work will be done myself and a few employees under a class a contractors license. Me and grandfather just built an identical house out of town (32x48) w connected insulated garage for 62k including septic and well which was about 12k on its own. I do all the work so only cost outside of materials will be permits, utilities hookups, part time labour which I calculated in my estimate. Please ask for anything else you need to help me

Hello, I am 18 and getting into the world of investment real estate. My grandfather is a large rental real estate investor, he and his crew built many apartment complexes when he was young and still owns them today, I’ll keep it simple. I have 2 large lots in the same neighborhood with enough space on them to build 2 1500 sqft sfrs on each lot. I’ve made all my blueprints and details and they’ve been approved by inspector just need to submit for permit but I’m waiting until financial plans are confirmed, and that’s my question. Priced out construction should cost about 50-55k and will be worth around 150-175k when finished. I have about 60k saved and am earning about 2k per month. So here’s the question, should I just build my first house with cash and finance the other 3, or keep the cash sum and finance all 4. Personally, I really like the idea of owning the first one as a safety net while financing the other 3. I feel this will be a safe choice because the first one will be generating about 1200/m and facing any vacancies or unexpected incidents that could be very helpful. I would appreciate perspective on how an experienced investor would handle this if they were starting out in this position.

My situation- I have plans to build multiple sfr in my city and have a few very generous lots in lower- middle income communities. My first project is on a large lot sitting off one of the bigger streets in my town. Going to build 2 mirrored single story 1500sqft 3 bed 2 bath houses w garages mirrored exactly lock each other. Currently the property holds a older small house on one side of the lot witch I will demolish after I finish the east side house. All building work will be done by me as I have a class b contractors license, under supervision and mentor ship by my grandfather who has built and held to a very large real estate portfolio. All building plans have been completed and approved by the City now

just need to apply for permit. Here is the financial plan, for the past year or two I’ve been buying materials when there is a good deal or prices are low .after completing my material list and hookups permits and all I should be all on for about 55k. The first house is all cash. To cedar finished I am planning to proceed in to the second through financing. And should be similar cost. I think this is a pretty safe bet even in a situation where one is vacant I will still be able to pay the mortgage easily. Each unit will rent for 1000/mo and shouldent have any problems being occupied.after these are finished I have another similar lot that I plan to do the same thing on. I want opinions, personally I feel it is very solid expecially since the first will be paid for when it’s done, but like I said I’m new to to this and only 18 so advice or things to look out for would help out a lot. My grandfather is an amazing mentor who built all of his own apartment complexes and I think it would be silly to not take advantage of his great knowledge and he is super exited to teach and go through this process with my. Thanks for reading as I love to share this stuff, please leave advice experienced investors.

Thank you bob, He is a very smart and generous man. I was planning on doing almost all of the work myself. He actually just finished building a house from the ground up all himself for my sister to live in for about half of what it ended up appraised at. I am very excited to learn from him and I can tell he is very excited to pass on his knowledge in this business. 

I am 18 years old living in a town of about 30,000 give or take. Grandfather is decently big in the rental business and he very generously gifted me a lot located in a lower-middle income area. Lot is 168x150 (feet) with a little house generating 400/m at the moment and the lot+home is valued at about $55,000. I actually took a loan on it but I am just keeping the money to pay back to build solid credit for future real estate business. The lot is easily capable of holding 2 residences. So my plan is to build 2 symmetrical single family homes doing almost all of the work myself (Holding general contractors license, and very capable in housebuilding grandpa  that will help me every step of the way) and this should keep cost well below what the houses will be worth when I am finished. This is definitely something I am looking to build off of, he has other lots capable of holding houses in which he has no intention of building and is very willing to help me through everything. I currently do not have much capital so will likely be doing a lot of banking. So my question to you guys is, is there anyone here who started their portfolio by building themselves and then renting, if so, what problems did you run into? Is there anything that i am not considering that I should expect? I am new to the business and I am so thankful to be blessed with the opportunity my grandfather has gifted me and I really want to do this right so I can grow my portfolio quickly for more freedom in the future. Any input, advice, recommendation is welcome, and I thank you all for any help you can give. Excited to learn. This seems like a great platform.