Sunday, October 27, 2019

How can I start a real estate business

How can I start a real estate business

Curt Sutherland started at 19, forty years ago, when his wife and he bought their first townhouse. It cost around $48K if I recall. they lived in it for seven months and sold it for a $7K net profit.

they moved and built a house. They sold that and built another house. In the mean time, they had invested in five acres on a major Austin highway, but way out of town. (They held that property a little over thirty years before we decided to sell it. By then, the town had grown out to where our land was. The property was worth approximately sixty-eight times what They had paid for it).

They sold the house that they were living in, had raised they children in, and loved dearly
 It was the perfect house for them, but they sold it, took the profits, put the minimum down on another home to live in, and started buying investment properties.
Before long they were buying commercial properties to add to our rent houses. Then they started selling off our residential units to acquire more commercial properties.

Now they pretty much just invest in commercial units. They bought a small shopping center in San Antonio, about 75 miles away, a few months ago. That was their most recent purchase.

They are currently trying to buy out the last remaining tenant’s lease on one of the other properties that them own. That should cost them somewhere between $270K to $400K, They hope. Once that is accomplished, and that tenant has moved, They can begin construction on a fifty-million-dollar 253-unit luxury apartment community with 5,000’ of high-end retail.
It all started with a thousand-dollar down payment… forty years ago.
Update:They ended up offering them last remaining tenant (a public company) $750,000 just to move out of the space they were in. They refused. It looks like they stuck with them for another six and a half years. They was really hoping to build that larger project in their space. They may end up just building above them and around them. It won't be as beautiful a building as I had hoped, but it also will feel alright to not have to pay them $750K just to move out. They used a standard Texas Commercial lease instead of my regular lease contracts and now They regretting that decision. Things can change so fast when you are working with real estate deals, but it's all good. They will end up paying them a little under another million dollars in rent during that time and the property will likely double in value during the next six years.


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