Anyone want to buy my house? - Page 4 - PeachParts Mercedes-Benz Forum

Brian Carlton · #46 10-07-2009, 11:33 PM

Quote:

Originally Posted by TylerH860

His reputation is on the line. Whoever his backers are won't be so willing to support him again, unless its Mommy and Daddy perhaps. Rarely do I see anyone solely backing their own ventures anyway. Most find investors, partners, or banks willing to take a chance. Maybe you have a little more insight into what Hattie is doing, but it seems to me he is risking his reputation and the future of his career.

You've been awfully hard on the poor guy recently. There are other forum members that can't differentiate their family's success and money from their own. It seems Hattie is trying to take his fortunate background and working hard to get to the point when he no longer needs it. Unlike others, who define themselves by it and think they can just live off their successful parents forever.

My father wouldn't be anywhere near the success he is without my grandfathers help, and connections willing to put money on the line for his ventures. I still have a somewhat connected umbilical cord, but don't plan on making it permanent, nor do I think I have any less concept of the value of the dollar because of it. I understand how fortunate I am, don't choose to live a lie that I have anything to do with anyone else's wealth , and plan to become less and less dependent with time. Does that bother you?

You've had a connected umbilical cord for years and, therefore, you're in no position to state the value of someone else's money.

I definitely take the position that you have less of a concept of the value of a dollar until you risk your own money.

It absolutely does not bother me that you have resources other than your own, however, you cannot state that the risk is yours when you use those resources.

My father had nothing.........earned a maximum of $20K in his last year of work..........

Medmech · #47 10-07-2009, 11:39 PM

Quote:

Originally Posted by Brian Carlton

Somehow, I cannot fathom those figures. It would cost considerably more to build that house than the current selling price.

What would an identical house that is brand spanking new sell for in the same neighborhood?

Fathom them its for real, on the super high end 8400 sq/f 5 acres on a pond and private lake nothing spared in workmanship.....$365,000. Of course you cannot build a home for what they are selling for now, that is why I have not seen a new house start in a few months...but the thrill seekers are still out there.

If you have a decent job in Michigan its a great place to live most people are nice, *******s are a rarity, the air is clean and as long as you stay away from detroit and flint the rest of the state is very nice. I was thinking about leaving but as long as I have a decent job I'm going to enjoy the cheap rent.

Edit disclaimer: pawnsd lives in GR and I'm East Lansing/Okemos which are both two of the nicer cities in lower Michigan.

but the winters do suck.

Hatterasguy · #48 10-07-2009, 11:40 PM

Well it is different when its not your money, but it doesn't mean their is no risk for you.

Personaly I look forward to the day when I do it on my own and only need partners if I want them. I am very grateful of the help I have gotten, and if you look at the background of a lot of successful people in real estate they did have a little help getting started and along the way. I still would have done it on my own, but now I can skip 10 years worth of hard work to save up the initial capital.

Next year I plan on buying a multi family in conjunction with my dad, but I'll be a 50% partner putting half of the cash up, and having my name on the note.

Medmech · #49 10-07-2009, 11:40 PM

Quote:

Originally Posted by iwrock

Damn.

In my area, the houses in the 'hood are like $125-175k.... :/

Decent homes in the hood are selling for about 20K.

Hatterasguy · #50 10-07-2009, 11:43 PM

Quote:

Originally Posted by Medmech

Fathom them its for real, on the super high end 8400 sq/f 5 acres on a pond and private lake nothing spared in workmanship.....$365,000. Of course you cannot build a home for what they are selling for now, that is why I have not seen a new house start in a few months...but the thrill seekers are still out there.

If you have a decent job in Michigan its a great place to live most people are nice, *******s are a rarity, the air is clean and as long as you stay away from detroit and flint the rest of the state is very nice.

but the winters do suck.

Interesting, with those prices it doesn't sound like your going to be seeing any building for a very long time.

Just for grins, and if you want you can PM me this, when you were building what was your cost per SF?

I'd be interested to see if it varies a lot between our states.

Brian Carlton · #51 10-07-2009, 11:45 PM

Quote:

Originally Posted by Medmech

Fathom them its for real, on the super high end 8400 sq/f 5 acres on a pond and private lake nothing spared in workmanship.....$365,000. Of course you cannot build a home for what they are selling for now.........

If you got the land for free, it would have to cost over $800K to build that house???

.............$365K........???

Amazing.

Medmech · #52 10-07-2009, 11:50 PM

Quote:

Originally Posted by Hatterasguy

Interesting, with those prices it doesn't sound like your going to be seeing any building for a very long time.

Just for grins, and if you want you can PM me this, when you were building what was your cost per SF?

I'd be interested to see if it varies a lot between our states.

Cost is a wide range but a good figure to charge right now is $85-95 sq/f excluding land. maybe a tad more I haven't priced a home in a long time. The guys that are building homes and making it are the sole proprietor builder that do most of the labor themselves, and I mean almost everything but the basement...they are doing pretty good right now.

Lansing was featured in Moodys week as one of the top 10 emerging RE markets, there is a lot of scientific money coming in right now plus some people are moving data farms and IT here.

Medmech · #53 10-07-2009, 11:51 PM

Quote:

Originally Posted by Brian Carlton

If you got the land for free, it would have to cost over $800K to build that house???

.............$365K........???

Amazing.

yip land included it was $1.3 mill, it was my old next door neighbor I will dig up some pics. and thats COST he was a builder.

Brian Carlton · #54 10-07-2009, 11:52 PM

Quote:

Originally Posted by Hatterasguy

Well it is different when its not your money, but it doesn't mean their is no risk for you.

Personaly I look forward to the day when I do it on my own and only need partners if I want them. I am very grateful of the help I have gotten, and if you look at the background of a lot of successful people in real estate they did have a little help getting started and along the way. I still would have done it on my own, but now I can skip 10 years worth of hard work to save up the initial capital.

Next year I plan on buying a multi family in conjunction with my dad, but I'll be a 50% partner putting half of the cash up, and having my name on the note.

I agree with your approach.........you can gain a lot more traction with help and resources from others.

My only comment is that the pucker factor when others are involved is simply not the same as when it's all on your shoulders.

Someday it will be all on your shoulders, and, hopefully, at that time, one single empty house won't be an excessive burden.

The worst thing a builder can do is overextend himself..........because he's supremely confident that he can sell anything that he buys or builds.

Hatterasguy · #55 10-07-2009, 11:53 PM

My uncle used to do everything in house, even pour the concrete. Now he subs just about everything else, and while it hurts your margin a bit, you have more time to do more houses.

When people ask me I usualy tell them $90-$100 a SF, which is very fair for a higher priced market. But my actual costs are quite a bit lower than that.

Brian was quite surprised when he did the math on my last house.

Medmech · #56 10-07-2009, 11:55 PM

My old crib is back on the market

http://www.fsbomichigan.com/details.asp?ID=3882

Brian Carlton · #57 10-07-2009, 11:56 PM

Quote:

Originally Posted by Hatterasguy

Brian was quite surprised when he did the math on my last house.

Most definitely.

I must say that your uncle has those subs under his thumb............!!

iwrock · #58 10-07-2009, 11:57 PM

Quote:

Originally Posted by Medmech

Lansing was featured in Moodys week as one of the top 10 emerging RE markets, there is a lot of scientific money coming in right now plus some people are moving data farms and IT here.

Interesting...

Got any info you can pass along?

Hatterasguy · #59 10-08-2009, 12:01 AM

Quote:

Originally Posted by Brian Carlton

I agree with your approach.........you can gain a lot more traction with help and resources from others.

My only comment is that the pucker factor when others are involved is simply not the same as when it's all on your shoulders.

Someday it will be all on your shoulders, and, hopefully, at that time, one single empty house won't be an excessive burden.

The worst thing a builder can do is overextend himself..........because he's supremely confident that he can sell anything that he buys or builds.

Your right, the plus side of having it all on your shoulders is the profit is 100% yours as well. Do well or fall to hell its all in your hands.

The overconfidence is quite deadly and I know a builder who is marching into it right now. You start to think you can't lose or make a mistake, I have to watch this.

Right now I'm going to take a page out of my Grandfathers playbook. He made good money throughout his life and never got in trouble. He just found good deals and built a few houses a year. Never putting up more than he could hold if he got stuck owning them. Thats what this house I'm doing now is, if we got stuck with it, we can afford that. Their is not *that* much money tied up in it.

Another problem builders run into is they make all their money at once so they spend it on stupid crap....cars, boats, vacations, planes, etc... Than when the markets get bad and they can't sell anything, they go belly up. Starting next year I plan on putting most of the company's profits into multi family's. Taking only the bare minimum out to live on. I plan on buying at least one a year and eventualy trading them up for larger multi unit properties. Hopefully I can set up professional management before the tenants get to me.

The idea is that I can live on the cashflow which would be very nice getting checks every month, as opposed to a couple times a year.

Fulcrum525 · #60 10-08-2009, 12:23 AM

Quote:

Originally Posted by Hatterasguy

Personaly I look forward to the day when I do it on my own and only need partners if I want them. I am very grateful of the help I have gotten, and if you look at the background of a lot of successful people in real estate they did have a little help getting started and along the way. I still would have done it on my own, but now I can skip 10 years worth of hard work to save up the initial capital.

The best partners are the silent ones who let you handle getting the job done