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EXECUTION Real Estate Brokering to Fund Fastlane

Discussion in 'Progress/Execution Threads' started by Paul Weese, Apr 29, 2018.

  1. Paul Weese
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    Paul Weese Life is about living Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER

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    It’s taken me a long time to figure out how to compound my time and energy after being squashed by the Recession. I first read TFM in 2011 and have been referring back to it ever since. The years of 2010-2016 were unusually difficult - I can’t even put a finger on why other than my crappy mindset from being distracted by health and family issues.

    Two books that got me out of my funk were You Are A Badass and Ninja Selling (Ninja Selling can be found here in the Fastlane bookstore). From these books, I executed two strategies: one to get my mindset right and the other to get business in the door. Within 60 days, things turned around for me.

    When the Recession hit, I didn’t believe real estate would come back. If I hadn’t moved to a new town with greater population and industry, I’d probably still think that way. Real estate brokering is something I really enjoy and find I’m good at it. Many people have increased their quality of life and/or their incomes from the help they found in my work.

    I don’t consider real estate brokering itself Fastlane. What I find Fastlane about it is the opportunities that come from accessing a community of smart, wealthy, and happy people. From being persistent and keeping connections flowing between myself and others, plus connecting those who have resources that can help each other, I’ve found myself with a cash flow and in the midst of two real estate developers who need help.

    One developer is liquidating his portfolio of 50+ parcels over 400ish acres. The other had a good idea for affordable housing for a handful of people and my work increased this to hundreds of units. Finding opportunities like these to grow my real estate business and create Fastlane opportunities is what I’m mostly journalling here.

    Having been around the block, I've become a minor master of swing trading and small business marketing/development. (I really, really want an online cash flow machine! But this is a distraction right now.) I use real estate as a venue for creating cash flow to feed stock trading and small business growth. So far, it's worked in my favor. Cheers to that!
     
  2. Paul Weese
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    Paul Weese Life is about living Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER

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    My first development deal in my area came from talking to a person I was just meeting.

    It was an odd encounter where, after a tense conversation relating to HOA’s, led to a coffee meeting. At this meeting, I found this person was starting a small development in a town near me. The town is a bedroom community to Steamboat Springs and real estate is relatively inexpensive. The development currently is for six tiny homes.

    This immediately intrigued me. The guy I’m working with, M, had done more than half of the work required to submit a development application to the County. The project filled a need that is well-documented locally: workforce housing.

    What I saw was an initial project that was laying the groundwork for further projects. M, now my friend, had only thought of just the first project. M is very passionate about tiny homes and has come up with a project that eliminates the problems associated with wheels and axels. The solution is essentially built on site homes without axels, however the homeowner could add them later if they chose.

    Secondly, the homes would be developed on space that would normally have two larger homes on it. This seemed like a problem until the County Planning Director gave guidance. The Director suggested trying a PUD (Planned Urban Development) instead of using traditional subdivision processes. The problem this solves is that the homeowner isn’t renting, they will own the ground the home sits on.

    With these concepts in place, I found that the need and solution was greater than six homes. Without going into deep calculations of demand, I found it safe to suggest that the need and demand could be as high as 200 homes in my local area.

    With this in mind, and an understanding of Colorado growth, my local area was found to be an initial testing ground for building small tiny home communities around the state and southwest Wyoming.

    As a real estate broker with a knowledge of development and investment property, I have been able to provide M an expansion of his idea, plus how to capture property for low out-of-pocket monies, partners to build multiple projects, and a concept on how to do pre-sales and eliminate most brokerage costs.

    More on this later.
     
  3. Paul Weese
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    Paul Weese Life is about living Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER

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    The past week was cumbersome. Typical in development, we had a large delay come up, and also a great new partner join the team.

    Our project was set for Planning Commission review on May 3rd. Our General Manager asked for another three weeks before closing. The owners of our lot, now in their early 80’s, who have an lawyer about the same age, said no way. Not only did they say no way, they personally went down to the Planning Department and made sure our application was pulled.

    That alone is a set back of two months. After having made it to a meeting date, we were pretty positive. Now, we’re still with a good attitude, but funding was awry.

    Funding the project, we are $185,000 short of our needed amount to buy and develop.

    Real estate has a powerful aspect to it - people. I haven’t been in my new hometown for but three short years and I have met people with numerous different bank account values. For this project, which the total value is less than $1m, many people won’t take on a project this small. I had to find someone who wanted a starter project.

    In less than a week I had two sets of people ready to take on the project after they saw our cash flow projections, as well as demographics related to demand. What a good day!

    At this point, a syndication is started and partners get comfortable with each other. One set of partners wants to be silent, while the others want to be included to a degree with the General Manager running the project. At this time, we have all green lights to move ahead.

    Now back to buying the land. The price is $140,000. The listing broker said they would reject anything below this number. We offered $120,000, close in 2 weeks. A couple days later, the rejection came back. In my experience, $120,000 with no contingencies and all cash would make me think that I had a pay day coming, if I were a seller. Today, we’re rallying around another offer, and due to a set of partners being out of country, a bit of waiting is going on.

    For me, this looks good. Even if this property is unavailable when we move forward again, there are many open lots available for our model. The deal of a lifetime comes by once a week. If we can get our first choice, it will save time and lots of money from having to start over in some ways.
     
    Real Deal Denver likes this.

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