All Forum Posts by: Hugh Nelson

Most people would agree that it's a good idea to invest in real estate because it is a tangible asset and you have control - compared to the stock market, where you have very little control. If you agree with that, how "in" are you" with real estate? Have you liquidated all your stocks and bonds for real estate? What's the mix between real estate and "traditional investments" in your investment (& retirement) portfolio, and why do you think that's the right mix?

Hi Curt - I'd like to think I'm the kind of partner you're looking for, but you'll have to decide that. Your team looks impressive, and you make a case for the NOVA market new construction. I would have a lot of questions, if you would indulge me, as I figure out whether this is a good fit for me. If you'd like to get together sometime for coffee, I'd welcome the opportunity to chat and explore possibilities. Merry Christmas Hugh

Hi Stacy - I live in Ashburn. When we went overseas, we used McGrath Real Estate in Herndon. They kept the place rented with good tenants for two of my houses for probably 20 years - maybe a couple of vacant months during that time. Good maintenance on the property, too. Jim McGrath is the Principal and sold us our current home. Tell him I sent you! PM me if you'd like more. Hugh

Just an idea: If you're going for damages, talk to your attorney about a contingency fee.  He gets a part of the award.  Otherwise, that's about the going "union rate" for attorneys.  Good luck!

Welcome to BP, Jacob!  I'm from the capital area, and have family in Saratoga now.  Our other fellow investors here have all given good advice: you should be learning (you can get it all here at BP), and getting excited about real estate investing.  Starting with the beginner's guide is the perfect place to start.  That will give you ideas of other areas to pursue.  There's so much to learn about how to find and finance deals.  You can get a million-dollar education on the BP Forums and the podcast, but I also recommend you read outside BP - books like Gary Keller's "Millionaire Real Estate Investor," and the obligatory "Rich Dad, Poor Dad."  

BP has a strong anti-"guru" vibe, and that's good, if by "guru" we mean someone who will take a lot of your money and provide little you can't learn for free here.  On the other hand, there are a lot of strong (often diametrically opposed) opinions on BP about the "right way" to start and run your real estate investing business.  Once you know enough to separate charlatans from people who will really help, I think you should not completely discard the idea of paying someone to teach or coach you a little.  Hold off, for now, though.

I wish you the best of good fortune in that beautiful area where you live...keep me in mind if you find good deals in Saratoga!

Shirley, you speak eloquently for a million other people who are dissatisfied with their future, and are mustering the courage to do something about it. Congratulations to you! You are proof that courage is not the absence of fear, but the presence of determination! I hope you will press through the challenges and reach your success.

Hey Chris - You may be on to a good deal, but we need more information to see whether there is a creative financing solution you (and the seller) can take advantage of. You said half the property is in an estate - is it correct to understand that this means one brother has passed away? Does this mean the surviving brother will now have $100% ownership?

Assuming now that you're dealing with one brother who is the decision-maker and 100% owner now....how much does he owe on the property? If it's paid off (or nearly), you have seller-finance options. You may be able to offer him full price, or even above, if he is willing to accept a seller-financed transaction. The surviving brother could sell you the property for some down-payment (if he needs it), and you could pay him interest-only payments over a period of years while you cash-flow the property rental, or (better) you could do a principal-only loan (think: installment payments) while you cash-flow it, where your tenants pay down the principal on the mortgage over 10 years, or so. You should probably have a balloon payment at a reasonable point down the road (6-10years?), so the brother doesn't have this money tied up too long...if you have a principal-only loan, you will have paid down the loan significantly after 10 years, and can probably re-finance the balance; you'll have a good amount of equity in the property after 10 years (or whatever you negotiate) of renting it for positive cash-flow.

Lastly, it looks like you're looking to buy for cash, essentially, when perhaps you should consider leverage - you could probably control this property for $5,000-10,000, which would provide some cashflow while building equity and enjoying tax advantages of property ownership).

Thoughts, which I hope spark your creativity....best of good fortune to you.

Hey Isiah - Here's a stab at it: So maybe we don't know if you have a deal yet - does the seller have equity (is it free and clear maybe?)? It does sounds like the he would want some cash. So work the numbers, and you may find a creative financing solution. For example: propose an attractive cash down-payment, and seller-finance the balance with a principal-only loan, maybe amortized over 30 years, but limited by a 10-year balloon payment (so the seller doesn't have to have everything tied up there forever). If the numbers work, you may get a property that cash-flows for 10 years, pays down the seller-financed principal significantly during that time, and (hopefully) you'll also see appreciation - you'll likely have a big chunk of equity in the property after 10 years, paid for by your tenants. In fact, if the numbers work, you could even make money in this situation offering *above* market price - imagine how happy the seller would be to hear that, even if he doesn't particularly like the terms (it comes down to exactly how motivated he is....if he really is not motivated, drop him like a hot rock, and move on. It's a numbers game.). If you don't have cash required for this deal, maybe you can market it to someone who would be interested (make sure to have "and assigns" after your name in your contract with the seller, as well as clauses that allow you to cancel the sale if it doesn't work in the end).... It might sound like a lot of work, but it would be a huge and valuable learning experience, and it'll keep you occupied until you are no longer snow-bound! Spring's coming, brother!

John - I am out of the area overseas until next May, when I'll return to Ashburn, Virgina. I would definitely like to be part of this group! Please put me on your list. Thanks for doing this, and when I get back, I'll be happy to step up to helping organize things.