Chasing My Tail...Need Advice

8 Replies

Listened to tons of podcasts and read a few books and I’m beginning to lose my damn mind. I’m hearing all these stories of people quitting their jobs, zero money down deals and people barely able to walk because they’re tripping over amazing deals. I’ve always fancied myself a pretty smart guy, but am beginning to wonder?...”Dunning-Kruger effect?!!!” I’m interested in buy and hold properties, but my area is too expensive (Northern VA). I’ve branched out to cities within a 5 hour drive and have been scouring the MLS and wholesaler websites for days and running numbers on hundreds of properties. My criteria has been 25% down on a single family or anything that’s multi-family. Nothing makes sense on paper if I put only 25% down. $100/mo profit at best per property if everything goes right. At that rate I’ll need 100 properties to make a decent living. That doesn’t make sense. I’m thinking I need a mentor or consultation (which I’d be willing to pay for). Where can you find a deal? Can you low-ball a wholesaler? The deals I’m hearing on podcasts don’t come close to jiving with anything I see ...

Podcasts are full of guests who have had great timing. Don't fall for what they say. Most will say they just want to help. Truth is they want to boast or want to sell you something. Nothing inherently wrong with either. 

Having said that I do find podcasts useful. Just to remind one of things. Or to enhance knowledge. 

The seeds of vacation rentals may have come from a Bp guest. 

I followed through.... I'm one happy camper. 

No money down deals are very plentiful if you have great charisma, and can network with your Doctor coworkers to pool cash.  As for me I bought a bunch of 4 plexes in early 2016.  Then Phoenix became to expensive.  Tried Albuquerque and it was the same thing, "Attack of the Chinese Investors."  

I've tried to buy probably 7 buildings in the last two years.  The last one the seller wanted $190k when he paid $120k two years ago.  I'm going to just keep saving money until the next crash.  I know everyone says it's a bad idea, but there are no long term investments that look good at the moment.

Honolulu is getting close to becoming a .35 rent rule area. Hahaha. 

Do I think it's going to crash..... No. Went unscathed during the last recession. 

Do I think it's a buy..... No. 

👉 is not everyone is buying.Do what is right for you. 

at this time in the cycle it might be best to become the bank.. you have less risk because your loan is for far less than market value and your rate of return is fixed and generally as good if not better than owning the asset.

of course no appreciation but if you think the market is going to correct then appreciation wont happen.

in the mean time you can be collecting far more than 100 a month with the same cash investment while you wait it out.

keep in mind unless a property is sold in cash.. it takes two to tango  one Equity ( buyer )  one debt ( bank) you be the bank instead of sitting there doing nothing.. at least a small diversification.. I have investors that have been stacking notes for the last 6 to 7 years and now have 30 to 40 of them and live off the income with nary a worry of a tenant  LOL.

@Jay Hinrichs is right Also being in northern Virginia I don’t even waste a second of my time looking at deals in this area as even the off market deals do not fit my criteria I switched to being the bank and buying notes (performing and non performing), I also originate some of my own notes on some REO deals. I have also invested in a fund as well for additional mailbox money.

I have heard from many including lenders who like to retire early. $100/month x100 is $120K income per year.  Unless one works hard have ample savings the places one gets beaucoup rent is metropolitan east or west.  Personally it is tougher than one may think even in SFBA with stellar rents.