All Forum Posts by: Dane Peterson

@Rich Cee haha no. Just was my highest property taxes out of the ones I owned/picked up from the tax deed auction years ago.  Was getting too close to a break-even and I never planned to live in that area.  If I were to have any rentals in Lee county it'd be south Ft. Myers from Daniels Pkwy south. 

@Rich Cee

There was progress but not in the way of building. Just closed on the the sale of the vacant land about 2 weeks ago.  Put under contract for a month with nothing to lose but listed time. Buyer assigned the contract to a local builder.  I'm  happy though no more Lee County land owned! 

Appreciate the quick reply @J Scott

why didn't your book go over this! I guess that could be an entire book alone.  I read your book beginning of the year and plan to re-read once I'm under contract for a rehab! Loved it.

They are not a licensed Contractors as of yet. They currently do random jobs such as flooring, carpentry etc.. if the job requires a permit and a licensed contractor we'd probably have to hire out or at least get them to do the work under someone else's license if that trust is there. The main point is there aren't many jobs they can't do and it's quality work.

These people are close friends and a rehab with their vested interest would become their sole focus being that it's what puts food on the table. They usually just schedule one job at a time out.  I know they say to be careful working with friends and family, but there is a close trust level and you live and you learn.

I like the separating the rehab work from the equity partner part.  I'll now have to weigh this out and it sounds like more of a per deal decision.  Thinking long term though if this went well on the first it'd be nice to have a standard formula for what we do.

This is going to be a very broad question and I'd love to get some feedback from people who have direct experience with this.

Tomorrow I'll be sitting down with a friend and his brother to discuss a potential partnership for rehabbing.  We have both been starting to  look for rehabs and with this market, I think we'd be better served to join forces. 

1st Scenario)  I purchase the property, they put up the rehab money, and handle the rehab?  

With this scenario, I feel 50/50 is the fair and smart route.  Cost of money, holding costs deducted before profits split. 

2nd Scenario) I purchase property, they put up the rehab money, and get a flat weekly pay for work

This scenario, I'd say 50/50 less the total pay for the work?

3rd Scenario) I purchase property AND put up the rehab money, they don't take any pay for the work.

70/30?

Just throwing out some random ideas.

What have you guys done or had success with in the past or present?

@MIKE HOUSTON right...

https://www.biggerpockets.com/forums/79/topics/426...

for anyone listening to this guys response there seems to be a theme of Mike Houston trying out all the programs!

Dilemma!

Been using Vista for over a year. Have spent well over $15,000 on postcards  in that time period and average around $.44 printed/shipped so an average 1000postcard campaign is running about $450 with my own list uploaded.   (cards are double sided/color and 4.25"x6"

Over the weekend I had an item not arrive on time so I pull up my account to see they have had 3 batches of postcards going back to mid August just "PROCESSING". Customer service had no explanation besides something happened on their end with my account and I never got notified. Hour and 1/2 of my time on phone, email & password change to account and they tell me they can now place my orders. TOO LATE! I ask for a discount on the printing of the Postcards for money I've spent and the time/leads lost. NOTHING! time to move on...

So.. this leads to the BIG question. Who is everyone using with success?  I know the VistaPrint, Click2Mail, Postcardmania (have a call with this company in 15min) are a few names but any companies or suggestions could be helpful.

Thanks!

@Zeshan Choudhry

Zeshan, WOW... Amazing how many replies actually answered your question! This got quite off topic.  Just curious how your results were from the mailing. Has been probably 3mo since your mail hit.  I'd be curious to know what % of equity you went with and how the results were based on the number of mailers.

I personally have never had the option (I create my own lists) to filter by equity and I could be missing out! I like how you picked the exact size property and square footage that you want. It means you deal with less junk that you don't want!

The only tip I'll offer is to be careful on getting too narrow.  When you say 1000sqft 3bd/2ba you could be missing out on bad information. I bet that 20% of the 2bedroom properties in my town are 3bedroom either permitted or not. Also, don't forget a 2bedroom with the right layout/sqft can become a 3bedroom and really add some equity/value.

@Alan Faitel If you know they are all landlords then mail to them all! But ....

banks aren't typically landlords...

Trusts are used for structuring (I suggest removing trust from the mailings and send to the owner/family)

Property Management is too broad and will most likely end up in the trash. You should spend time face to face with a property management company to explain how if they have a landlord looking to sell that you'd be interested in buying and possibly keep them as management... My property manager puts in their management contracts that they to list if they want to sell while it's managed (clever!). 

Churches in my town use houses to assist those in need and I'm sure you can find some willing to sell.

IRA will be difficult because most of the time you are mailing to the "custodian" and they'll probably toss in the trash.

LLC's (or other corporations) are up to you. I like to go one step further when I mail to an LLC & go to the state corporation site and look up the owner's name and address and mail directly to them so that it's more personal.

my rule of thumb when mailing to anyone not titled personally is to limit the mail to those properties that I have a real interest in and not a blanket mailer. When it's a giant list that I'm filtering I just remove them all.

@Cody L. Hey Cody, going forward there are a couple points which people have hit on.  1) Have a mentor/partner that is willing to close on a good deal you have under contract should you not be able to find a suitable buyer within your contingency period. 2) Require a non-refundable escrow deposit in the form of cash or cashier's check from your buyer and get this when the contract is signed. 3) With a buyer, you've never done business with before you can ask for proof of funds, but this goes back to the escrow deposit requirement.

@John Thedford What Florida rule changes are speaking of?

Thanks !