People looking to sell their property have another outlet to do so through Gemini Properties II LTD. A locally owned and operated company formed by David Falter in 2013. Gemini Properties buys houses in all kinds of condition and for a multitude of reasons. Some are due to divorce, have back taxes and facing foreclosure. Others are tired home owners and landlords. And some individuals want to sell but can’t because of the condition of the property. Each person and situation are different. It’s not all about making money for Gemini Properties, it’s about doing the right thing. One of the major challenges is finding a property to rehab. There are certain criteria that I stick to before I purchase a house. For the first time this year I ventured out of Tiffin and purchase a property in Bellevue. I came across it and the numbers worked so I bought it. Tiffin is my market and I know it well, but I will go up to a half hour drive from Tiffin.
There are a lot of people out there that get into this business incorrectly and lose a lot of money because of not doing their due diligence. A lot of moving parts go into this business. Accounting, financing, continuing education, networking, marketing managing the project and the workers. It is not easy by any means. I use a variety of financing depending on the specifics of the deal. My investors will receive a certain dollar amount if the rehab will take only a few months. If it will take longer than that or is a larger project, I will offer them a double-digit return. Once a year I invite people I think that would be interested in learning what I do, and I also inform them of other options of investing that many never have heard about. For instance, many do not know that if you have a self-directed retirement account that they can invest in real estate with it. I talk about it strictly as an informational meeting. I don’t pressure people and I don/t give them a sales pitch. I just want people to realize that there are alternative. I hear many people stating of their poor returns that they get form savings or CDs from their bank. I can give returns that are double digits typically and is usually a safer option. Think how volatile the markets are on Wall Street. If someone sneezes the market change overnight. The market in real estate changes in weeks, month and years, not by the hour like the stock market.
I really enjoy this business. Its extremely challenging and frustrating at times but its also rewarding. I get to help people get out of their situation; it improves the housing stock in the immediate area. I make money, my investors make money and my workers make money. It’s a win - win. I started this business by myself and I did 1 – 2 rehabs a year. I started hiring out more and more of it to speed up the work and was able to do 2 – 3 rehabs a year. Then this last year myself and another individual formed Dukeshire Construction LLC. I don’t have a tolerance for poor workmanship and poor ethics. We treat our workers well and they are expected to reciprocate. Having good workers on tap, the sky is the limit on how many homes I can rehab.