Investor Real Estate
by Jason Kuczmarski
My Project: Before and After
My Project and Investor Real Estate Plans.
I am currently working on finishing My First investor real estate home (owner occupied), which was a bank REO, that I bought in Cleveland. I plan to buy my next investment property and embark on my journey to riches by the end of this summer.
I plan to execute my investor real estate investments via lease purchase meaning I plan to acquire deals, most likely REO, and sell via lease purchase for the Benefits for Tenants who intend to buy a property and will take better care of the property.
I expect better monthly rents, a better selling price on the back end, not to mention alleviation of typical landlord 'maintenance headaches' after a brief warranty period... typically 3 months.
Lease purchase appeals to me due to 6 'profit centers':
1. Property acquisition at a discount via purchasing REO
2. Monthly cashflow: (monthly rent) minus (Principle, Interest, Taxes, and Insurance)
3. Writing off tax, interest, repairs, and other charges
4. Principle reduction on mortgage by tenants via monthly rent
5. Appreciation on property (eventually once market correction has run its course)
6. Option money, at lease signing, from tenant for exclusive right to purchase the property
Source: Buy Low, Rent Smart, Sell High by Scott Frank and Andy Heller
(this book was recommended to me by an investor friend and I would highly recommend it to anyone who is interested in, doing what I intend to do, generating wealth through real estate investing)
Presently, I am finishing a little bit of landscaping in the yard. I have to dig out some wood chips, in a few spots where I had trees removed and stumps ground out, and bring in some top soil and plant grass.
I have also decided to excavate about 1000 sq ft of my back yard and put down limestone (concrete later), to make a couple parking spots next to the garage for a boat and truck :-) I'll rent a Bobcat and dump trailer for that project.
I also plan to build out half of the basement as a very nice bedroom for myself with a gas log fireplace and a big screen tv, concrete overlay floors and a fifth bedroom in the basement to be used as a guest room.
I have hardwood and tile on the first floor and, as I said, I intend to do the concrete overlay floors in the basement. Hard flooring is preferable for me as a result of the durability.
If you are not familiar with concrete overlay flooring, google it and have a look, it is beautiful.
The house is a ranch with 3 bedrooms and 2 baths, one bath on the ground floor and one in the basement. One bedroom has been dedicated as a home office for my real estate business. I plan to rent out two of my bedrooms on the ground floor once my rehabilitation of this house is complete which will easily cover all of my monthly expenses on this house with a little room for monthly cashflow freeing up money for my dream of a home in Florida which I plan to structure similarly for now. My rentals should cashflow as well, so they will facilitate my overall cashflow investor real estate plan.
I grew up in a construction household, around concrete work, and I have a limited background in commercial construction doing mechanical work so although I wear a uniform, I have some knowledge of the trades and I am eager to learn much more about rehabbing.
I want to pursue some remodeling work on the side with a contractor to learn the trades better and make a few extra bucks.
I plan to buy a winter home in Fort Lauderdale as soon as possible... With travel benefits as a pilot, I hope to spend a lot of my winter months in Florida.
I currently reside in Cleveland, OH. I lived around Belleville, MI for about 4 years. In that time, I belonged to the Wayne County, MI REIA for about 3 years after being turned on to real estate investing.
I met Joe Trometer (Joe-the-Rehabber) at the REIA and he has been an invaluable resource and a friend. I am a regional airline captain for Northwest Airlines, now Delta. I am very interested in building a real estate portfolio and excited with the opportunities abound in the market right now. I believe that now is the opportunity and time in my life where millionaires will be made and I intend to be one of them.
I hope my story may offer inspiration to some. I intend to join a REIA in Cleveland, OH to network. They are great organizations of like-minded individuals, a great place to learn, and an invaluable resource for investors.
Best of luck in your endeavors.
Your questions, comments, and suggestions are appreciated,
I'd be thrilled to hear from you!