All Forum Posts by: Tyson Dierschke

Anyone?

And now on to the deal mentioned above: My best friend has been wholesaling for about a year or two semi-successfully. He has the opportunity to purchase a property from a good friend of his for a killer deal, but he doesn’t want to flip the contract on this one. Instead he presented me with the opportunity to help him purchase it and then resale. He says he already has a few buyers interested in buying it from him, as is, for substantially more the we are getting it for. It could potentially almost double my investment at a 50-50 split. We wouldn’t even have to mow the yard. I would prefer not to publicly post the numbers at this time, but if you think you have some good advice, I can share that via PM. So, it sounds like a no-brainer to me. But as usual, I’m sure there is something I’m not considering. So a few questions regarding this deal in particular: 1. What type of agreement should we use for this deal? 2. How should it be structured once we decide on the split? 3. Should I start and operate under an LLC and business account for this deal? 4. What are the tax implications for a deal like this? (Due to recent events, I’ve become very leery of tax involved with real estate and income.) 5. Any other advice you may have would be greatly appreciated.

Hey everyone, I haven’t really been active in a while since I sold my rental property last year. However, my wife and I have since found new motivation and come into a little money and now we want to capitalize and make things happen. This will be a somewhat long post, so please bear with me. I have been on BP and learning about real estate investing for quite some time now and finally feel that she is coming aboard. I believe we are ready to make some serious efforts to realize our path to financial freedom. So now here we sit with a small, but useable amount of capital and the will to invest, but a little lost. There is a deal available to us as we speak which I will get into shortly, but I feel it is unusual in the REI sense a would like to see if I can get some guidance on it. Where I am seeking help and/or advice here is in determining what to do first. As of now, we have around $40,000 available to invest in a deal or deals. Possibly more if absolutely necessary. We definitely would like to eventually get back into rentals, both long and short (vacation) term, SFRs and/or small MF. But, I hesitate to use up what we have now on acquiring rentals and not have any left to acquire more or do the occasional flip for capital. So what we were thinking is to reverse that and try to get in on a couple of flip deals first to build up some more operating capital and then start buying rentals with the occasional flip along the way. Although I would love to try house hacking, it’s just not doable for us at this time. We are also very interested in commercial investments and possibly boat and rv storage down the road, but the focus now is just getting going. With that being said, I’m not sure we have the ability right now to take complete charge over an entire rehab project. With full-time jobs and three little ones in school and involved in extra-curricular activities, adding any more stress to our current schedule would spell disaster. We are really interested at this point in going into a deal or two as a money only partner and banking or reinvesting our returns. We are also not opposed to taking part in a syndicated deal as long as the returns are good. So now for a few questions: 1. If you were in our place, what would you do? 2. How do I go about finding investors / rehabbers who may be looking to work with someone like us? 3. Should we start an LLC and a business bank account for our real estate investment transactions? 4. Should rental properties be bought under an LLC. Thanks for your time! See the next post regarding the deal mentioned above...

Kevin, It is a savings based plan with a 7% compounding interest rate. 

I have a general understanding of notes, but I haven't gotten into to much detail. It's definitely something I would be willing to consider.

Thanks for the responses! I also think it would be pretty nerve-racking to take that money with that guaranteed return and gamble it on the uncertain. Dan, I would never consider a straight withdrawal due to the penalties incurred. I was thinking more down the lines of moving it to a self directed IRA from which I could use it to invest. I think I will leave it for now though and try some other alternatives. Thanks again!

I have a retirement account from a previous employer. It contains around $23,000. I was considering trying to use this money to help in purchasing my next property. However, this account, while I'm no longer contributing to it, is gaining 7% annually. So I have a few questions regarding this: 1. Should I even mess with this money, or would it be in my best interest to leave it alone and let it grow? I know 7% is pretty good, but I also know higher numbers can be obtained through real estate. 2. If the above answer is to use it investing in real estate, what is the best way to go about accessing this money for investing purposes? 3. What would you do with this money? I also have approximately $60,000 in combined equity between my primary residence and my rental that I could access via HELOC or cash-out refi if necessary. My planned strategy has been buy and holding a few small multifamily properties (if I can find any) until I can scale up to a small apartment complex or two. However, I'm not opposed to a flip if I could find the right partner. My work schedule would not allow me to oversee the day-to-day of a construction project. I've also considered tax liens.

Hi Mike,

Yes we have quite a bit of boat/rv storage down here; especially in my area (suburbs of Houston). Due to the never ending development of small lot residential subdivisions and the proximity to the coast, many people, if they own boats or rv's, have no choice but to utilize a storage facility. Most HOAs won't allow them to be kept in driveways, and the garage isn't big enough. So they would take their vehicle out of storage for their camping/fishing trip, and return it when they get back to town. I see storage facilities of all types around here from boats and rv's parked in a wide open (fenced) grass pasture, to a professionally built facility with units ranging from open, to covered, to enclosed and locked with 50amp outlets for batteries and water hookups. Most pay monthly rates and I've seen some where, if you pay a full year in advance, it would be less per month.

I have a lot on my mind and a lot of questions, but I'm going to try to get to the point as quickly as possible. I am new to investing and I'm still trying to figure out exactly what I want to do. I have a pretty good idea, but I'm still not to a point where I feel I'm ready to dive in just yet. So here I go, I hope this doesn't turn out too too long.

I currently own one SFR as an investment property (newly refinanced for better interest rate and cashflow). I have roughly $40k in equity in this property and it is currently in the second year of a two year lease. This was my first primary residence which I decided to keep as a rental property after scaling up due to a growing family. However, I think I've decided that landlording may not be the best route for me.

I also have a $20k retirement account from a previous employer that, even though it's gaining 7% annually, I feel could be put to better use. Those are my main assets in play here, with the retirement account being the first primary source of capital.

Through investing, my goal is to generate enough passive income to replace the majority or all of my current pay, which would then allow me to effectively retire from the rat race and focus on my own entrepreneurial goals instead of someone else's. I realize that this is a business and is not 100% hands off, but I am willing to put in the work to make this happen.

I was (and still am) originally interested in building or purchasing an existing boat and rv storage business. In researching this, I discovered the wider world of real estate investing which ultimately led me to BP, of which I've been a member and observer for almost a year.

After spending a lot of the previous year attempting to learn as much of the real estate industry as possible, I think I've decided to shift my focus back to the commercial / business side and begin a serious attempt to make things happen. I'm just not real sure how or where to begin.

I've considered buying a few acres of land and building a new facility, however, I don't think I have enough capital of my own, and it doesn't seem that most commercial lenders are very fond of taking risks on this type of business. I've considered looking for private lenders, but I don't even know who or how to approach them.

I've also thought about buying an existing business, but again I run into the issue of securing financing. Without a track record and with my limited funds, I'm not sure that I'd be able to get into something worth getting into.

Lastly, I've considered approaching a current owner / operator of an existing business to discuss the possibility of a partnership for a new or existing facility, or to discuss other possible investment opportunities. Although I don't have a world of money, I am skilled in many construction and maintenance related fields which could be beneficial to an operator. The problem is that I have no idea how to even approach this possibility.

I am an educated blue collar guy (with some white collar experience), but I am not a businessman. I am trying to get a good grip on my finances and make them grow so I can live the life I want to live and, at the same time, be the provider my family needs me to be. I have a good job and excellent credit, so I feel like I can do more. I am trying to learn as much as I can about what I'm trying to do here, but I always end up wanting to know everything before I take the next step("Analysis Paralysis" I believe this is referred to as). I know this isn't possible, but I guess it's just my nature. I love to learn.

So, first of all thank you if you've made it this far, I knew I couldn't keep it short. What I'm looking for is advice. Where do I go next? Am I even in the ballpark of being able to realize my goals? Does anyone have any real world experience in this business that they can share? I feel like I'm ready to move, but my feet are stuck in cement. Thanks again for reading! And thanks in advance for any guidance.

Tyson

Thanks all for the welcome. I appreciate it!

Dmitriy: Thank you for the tips. I plan to use bigger pockets to the fullest of its capabilities.

Maria: Nice to meet you neighbor. Maybe we can work together in the future.

Larry: I am undecided. I will most likely try for my first few properties near home, but I would actually like to branch out to some of the surrounding counties to see what they have to offer as well. Maybe once I get well established, I would even consider investing in some strong in and out of state markets further away. 

Again, thanks everyone for the welcome.

It's going to depend. On my rental properties, I will definitely be handling the maintenance and repairs for a while. As for the rehabs, I think I'm going to leave that to the contractors for a while; at least until I can go full time. I love getting my hands dirty, but I also love my family and my free time.