All Forum Posts by: Zach Westerfield

First step is education. The best thing about real estate, there are unlimited resources for education, for little to no cost. Start with podcasts, make a list of the book recommendations you hear and start reading. if you listen to enough podcast your will notice a theme - most people who started with no other relevant experience and found success took 6-12 months to first get educated before they attempted their first deal. 

One book i highly recommend for every young person is Set for Life by Scott Trench. 

The other piece of advice is to network. Attend REIA meetings and meet/talk with other investors. Good Luck!

Defuniak Springs is a town, the County is Walton County. Walton is a large county, and the south part includes lucrative beach areas such as Grayton Beach and Seaside. Defuniak is farther north on I-10. it is a more middle class area. 10 years ago it was considered "the boonies", but has seen growth recently. Basically the entire area continues to grow, and as Freeport to the south expands it pushes into Defuniak Springs. I like the area, especially since the finished the expansion of 331 from Defuniak to HWY 98. It makes Defuniak a natural stopping point for travelers on I-10 headed to the beach. 

i would recommend the "update only" for your first flip. What sort of experience do you have? other renovations or construction management? In my opinion, the best deal for a first flip would be something build post 1980, that just needs updating or minor repair. There is usually less unkowns that show up on these properties. good luck!

Thanks!

What is your long term strategy with this first property? I'm assuming you hope to eventually move somewhere else. Mobile homes don't typically have much appreciation, in fact they tend to depreciate. On the flip side, they can be excellent cash flow assets. If you find something needing a little work and get it for a good price, it could be a good first property for a long term buy and hold strategy. In my experience, there limited loan products for mobile homes, so you may not get as good as financing as a single family. If you are handy and can do some of your own work, you may want to look for a house needing some TLC. You can have much more appreciation potential here, and it gives you more options down the road. you can hold as a long term rental, or if the market is right you can sell and put that equity toward the next investment. If you are there more than 2 years, you probably wont have to pay taxes. This is how I did my first "deal". I bought a foreclosure straight out of college, renovated it and 4 years later sold for a $50K profit, which I did not have to pay tax on. That provided down payments for several other investment properties. 

@Briana May i am currently researching this topic as im looking to purchase a commercial asset currently held in a non-profit. The original owners set up the asset in a non-profit to take advantage of some of the programs you are mentioning. I dont think they fully understood the long term implications. They now want to retire, and it will be very challenging for them to "cash out" or receive any lump sum for their asset. Basically, from what i understand you cannot sell a non-profit (Caveat, im not an attorney). You actually dont own the non-profit, its a public entity. As such you would be the manager, or board member, and entitled to a "reasonable" salary. Failure to abide by the rules can result in heavy tax/fine implications. If its something you decide to pursue let me know, i would definitely like to network with others going down this path. 

Hello, I'm looking for a good attorney in the Atlanta, GA or Macon, GA area who is familiar with Non-profit entities, especially transitioning them. Any recommendations are welcome!

you can start with home depot prices, or google window contractors and ask what they charge to install windows and doors. be prepared to give rough sizes and types. 

I would look for a good local bank in the area you are looking to invest. Are you holding properties in an LLC? you dont necessarily have to have a business account, you can open a personal checking account and use it solely for your business. these accounts typically have no fees. by opening an account, you can start to form a relationship with that bank. My advice is first find a local bank that has good loan products, then make sure they have no account fees and open an account there.

i invest in rural areas (although not that rural). the advantage there is typically less competition, but deals will be few and far in between. Most likely you know that area very well, so use this to your advantage. Set criteria, and be patient. Deals will not come along as often, but if you believe in the underlying fundamentals of the area, then when they do jump on them. It also depends what your long term goals are. if you are looking to scale to a larger business, then you can start in your area but will need to branch out eventually. 

Check out David Green's book on long distance real estate investing.