The 90 Day Challenge

48 Replies

Brandon issued an involuntary challenge, "How to Buy a Rental Property in the Next 90 Days". I'm taking him up on his unspoken challenge. You know, the one he didn't know he issued. Starting tomorrow 03-17-14 I will start my 90 days. Ending on 06-15-14.

Below is the video that Brandon posted on YouTube. I will be following his outline to the T, and hopefully he won't mind a few questions from me every now and then. Be sure to pick up a copy of his outline at Brandon Turner's Fileplace.

Within that time I will procure one rental property and create a passive cash flow. Step One will obviously be getting pre-approved by a bank or a credit union. That should be fun. It appears that tomorrow morning on Day 1 I will be contacting some Money Keepers and seeing if they want to share any. Stay tuned as I try to keep everyone updated everyday.

Now what I do need from everyone else that wants to help is to keep me on track. Hold me responsible. There should be a "punishment" if I don't succeed but I have no idea if I should have one and if so what it should be. I'm open to ideas and suggestions.

Thank you all in advance for your help / support / hate mail. :) Hopefully I won't get any of that unless it's to spur me on to do better and go faster.

Day 1 of 90 (03/17/14)

So far, I'll be honest, I haven't done much of anything other then fill out a bunch of online applications for loans to various big banks and smaller credit unions. After having spent the time doing that I'm starting to wonder if it would have been faster and easier to just visit them all in person.

Now mind you, my time is limited during the morning hours as I do have a full time job that I'm working 3 PM to Midnight Monday through Friday. I tend to not be able to fall asleep until around 2 AM and I'm usually up between 10 and 11 AM.

Now, I know, you're saying to yourself, "But Dan, that gives you a lot of time in the morning to do stuff." Yes, you are correct but I'm also fighting against years of extreme laziness and the incredible comfort of my bed. I have found it amazing that despite how much I want to do this, old habits die hard. Hey @Brandon Turner , is there any way I can blame this on my cat?

Thanks @Wade Sikkink , I'd be lying to you if I said I wasn't scared. I've been doing a lot of reading, participating on BP, and have fallen victim to "Analysis Paralysis". So when I saw Brandons video I took it as a personal challenge. I am aware that it wasn't and it was in no way directed at me personally, nor will I be upset with him if this doesn't work. I just took it as a, well, sign to get off my butt and do something.

I think you are not allowed to shave or trim the facial hair until you close. Unless that causes problems with the primary job :)

Bravo on putting yourself out there.

Call some agents today. Seriously, just call some agents. They will email you a list of properties, and you can be viewing them as soon as tomorrow.

@David C. that's just wrong. LOL And I say that because my new beard trimmer is supposed to come in today. I'm a machinist. No one of importance gets to see me during the day so I think I can get away with it. It'll be like No Shave November all over again. Consider it done, UNLESS for some reason it will screw with my Challenge (which I don't see it doing). Sidenote: I will trim the hairs that randomly grow up into my nose. They did that during November and it's quite irritating.

@Trevor K. , just randomly call some agents? I still don't know if I'll get approved for any money through conventional means and I don't know any Hard/Soft money lenders in the area. I mean, I realize I want cheap but I don't want too cheap if you catch my drift.

Do you have a down payment? A good agent will be happy to start sending you info via email. It takes them 5 minutes, and you may end up purchasing something. I wouldn't advocate wasting their time if you don't know if you can purchase just yet, but you should get the ball rolling. Tell the agent your situation, and if they don't want to work with you, they will tell you.

@Dan Holden

those annoying hairs are just the motivation you'll need to keep going. Maybe you can trim them when you have an accepted offer. But full grooming must be held off until closing. haha.

Day 2 of 90 (03/18/14)

Side Note: It's my brothers 31st birthday.

So today was by far the laziest day I've had. Although I did create a custom form letter to send out to potential Realtors. I'd love to do a customized for each person one but I know myself and I'd get bored after the second one. So I did a blanket letter instead. Must remember to send more out tomorrow.

Some of my laziness was due to a personal issue that had arisen. I was informed that I would have to have surgery on both my wrists for Carpal Tunnel. Being 33 that felt like a slap in the face. I wasn't expecting it at all. Doc said I'd be out for three weeks for one wrist and then work for a week then be out for three weeks for the other wrist. So now the question comes, do I hold off until after the 90 days or should I find a way to use this "time off" to my advantage? Granted I'd be down a hand during this time but I wouldn't be a complete invalid (did I spell that right?).

Dawn Anastasi (who it won't let me do a "Mention" with) made a comment and brought up a good point, I need clearer objectives. "One rental property in 90 days." isn't bad but it is vague.

The rental property I am looking for can be either a Single or a Multi (up to 4). I'd ultimately prefer a Multi but if the numbers look and run good, who am I to complain? At this moment I don't need to live on the property personally. I would like to cashflow $100 per door. I'd like to stay in my area here which is Spartanburg County, SC. I don't know it like the back of my hand, yet, but I do know it better than that town near Windsor, MI. I would like to be completely hands off with the property once it is rentable.

I don't know if I just made that clearer or fuzzier.

Originally posted by @Dan Holden :
So today was by far the laziest day I've had. Although I did create a custom form letter to send out to potential Realtors. I'd love to do a customized for each person one but I know myself and I'd get bored after the second one. So I did a blanket letter instead. Must remember to send more out tomorrow.
Dawn Anastasi (who it won't let me do a "Mention" with) made a comment and brought up a good point, I need clearer objectives. "One rental property in 90 days." isn't bad but it is vague.

The rental property I am looking for can be either a Single or a Multi (up to 4). I'd ultimately prefer a Multi but if the numbers look and run good, who am I to complain? At this moment I don't need to live on the property personally. I would like to cashflow $100 per door. I'd like to stay in my area here which is Spartanburg County, SC. I don't know it like the back of my hand, yet, but I do know it better than that town near Windsor, MI. I would like to be completely hands off with the property once it is rentable.

I don't know if I just made that clearer or fuzzier.

No worries, I use the Keyword Alert system on Bigger Pockets so that if someone mentions me without the @ then I still get notified.

I think it's best to get pre-approved BEFORE you start working with an agent. Why? Because one of the questions that an agent is going to ask you is what price range you're looking in. If you don't know, then you're going to look like you don't have a plan.

And you did narrow down your objectives. Because you can now tell a reator that you're interested in single families, duplexes, and multi-family properties up to 4 units. You are not interested in condos or raw land or larger multi-families. You've narrowed down your target market to one county. You'll need to let them know your budget (once you've spoken with a lender) and let them know that you will not be a cash buyer. (If you've decided to buy with financing.)

You know that you want to be completely hands-off which means you will want to make contact with a good Property Manager in your area.

I would suggest 2 more things:

a) See if there is a REIA in your area where you can network in person with other real estate investors. Then you can make connections and get referrals for investor-friendly realtors, property management companies, and if you're going to be doing rehab, some contractors.

b) Also check out the Bigger Pockets Meet link which allows you to find other members on the site for you to connect with. You can ask them for referrals as well.

Good luck!

Dawn Anastasi, Core Properties, LLC | http://www.coreprop.biz | Podcast Guest on Show #29

I got a better Challenge for you Dan. Try and buy the house without using a bank or your credit via a Lease Option or Subject to. Instead of sinking 20-25% cash down payment into your first property. Try reading Wendy Patton's Book on investing using lease options and subject to's for ideas and more info on that.

Medium 1Jesse Stephenson, Stephenson Property Group | [email protected] | 803‑220‑7405 | http://www.stephensonpropertygroup.com

Day 3 of 90 (03/19/14)

After I got off work, at Midnight, officially making it Day 3 of the challenge I sent out a few letters to Property Managers. Now, when I contacted Property Management I made those customized, unlike the Realtor ones, due to the fact that some were just straight property management and some were investors themselves and stated so in their profiles or on their sites.

I have gotten one positive reply so far and have a phone call set up for noon today. And I just had that phone call and they are a fellow BiggerPockets member! How awesome is that? I'm feeling really pumped right now. Speaking to a fellow investor. Wow. Excited.

Following @Dawn Anastasi 's advice I made my goal more clear and precise. Following @Brandon Turner 's advice I called a bank. I need to call more than just one but one is one more then I had before. I have an appointment set up for Monday at 10:00 AM. Let's hope I wake up early enough to actually make it.

@Jesse Stephenson issued another challenge (man, challenges within challenges) of doing Lease Option or Subject To. Now, as I know nothing about those I am not going to use them as options right at this moment but I will take his advice and pick up one of her books. Which it appears I will have to purchase online as the County Library doesn't carry any of her titles. Perhaps I'll donate it after reading it? That reminds me that I have a box of books to bring over there to help fill out their Sci-Fi selection.

So how did the first week go?

Originally posted by @Dan Holden :
Thanks @Wade Sikkink , I'd be lying to you if I said I wasn't scared. I've been doing a lot of reading, participating on BP, and have fallen victim to "Analysis Paralysis". So when I saw Brandons video I took it as a personal challenge. I am aware that it wasn't and it was in no way directed at me personally, nor will I be upset with him if this doesn't work. I just took it as a, well, sign to get off my butt and do something.

Think of how scary it will be when your older and never chased your dream of owning rental properties,

Analysis Paralysis can be a result of trying to find a great deal rather than acting on good deals. Find one your confident in and get er done.

If you have a goal of running a mile, and you only run a block, your far ahead of the guy still on the couch.

With all the helpful people here on BP Im confident in your chances. Let me know if I can give you some more direct advice.

Day 4 of 90 (03/20/14)

Nothing.

Day 5 of 90 (03/21/14)

Nothing

Day 6 of 90 (03/22/14)

Found solid evidence to end my long term relationship with my girlfriend. I was useless the rest of the day.

Day 7 of 90 (We are the Borg... I mean, 03/23/14)

Girlfriend denies said evidence and I move out. That was the fastest move I have ever done in my life. New roommates dog tries to eat my cat.

Day 8 of 90 (03/24/14)

Had my meeting with the local Credit Union at 10 am. Almost missed it. They pulled what she called a "soft" credit report and showed a 605 from Equifax. They only deal with 620 and up. TransUnion, as per Credit Karma, showed a 631. No idea what Experian says or thinks. Also found out that another Credit Union had a charge off for me from 2009 for $21.24. People it apparently only takes $20 to screw up your credit. I went to them and asked some questions and found it was an old insurance policy I had back in the day. I paid the $21.24 plus $5 fee and it's over with. I was informed that it would take up to 30 days to show up on my credit report but they couldn't tell me if it would show up as a charge off that was paid or if it would just go away completely.

After all that fun and excitement I headed off to Sam's Club to get my free tire rotation and I got a call from the Property Manager group I spoke about before. It's hard to park your car in a crowded parking lot while talking on your phone and trying to drive a stick shift. How do they make it look so easy in movies?

We are having lunch on Day 9 (03/25/14) to discuss a possible mentorship. I immediately texted my buddy Account Closed issued a No Shave Challenge but I'm trying to make a good impression here) but I did get my mop of a head cut down to something more respectable. Hopefully they won't hold it against me.

Side Note: I did get the book in that @Jesse Stephenson was talking about "Investing in Real Estate with Lease Options and "Subject-To" Deals" by Wendy Patton [AMAZON] and started to read it. It's an interesting idea but I think I will have to read more of the book to get a better understanding of it.

@Dan Holden , sorry to hear about the cat. I'm glad he's ok and he looks better than ever!

Day 9 of 90 (03/25/14)

I got to have lunch with my potential mentors today. I realize that I haven't said who they are and it's mostly because I don't want to have them get flooded with people asking them to be their mentors. They approached me about it. It's out of respect. Now if they later tell me they don't mind, then I'll let you guys know who they are.

Which happens to be very nice people. They also helped me realize that even after a year of researching and doing my homework I still don't know everything. (My father would love to hear me say that.) What was awesome was that I don't think I made a complete fool of myself. I mean, Mr. Mentor looked like he got bored a few times but Mrs. Mentor seemed fully engaged. But then again, those of you that actually know me, know I can tend to get a bit ranty. Especially when nervous. Big thing for me and fellow noobs to pull from this meeting is to get Pre-Approval first. That means to make sure you have some dough to make your pizza with. Pizza without dough is just toppings with delicious melted cheese. I had mentioned before that I was trying to get approval but without much success. They pointed me in a direction that will hopefully help out with a very creative Loan person. I'm not sure of the official title. Loan Officer, I looked it up just now. Didn't even notice I was gone did ya?

I was also recommended to read "The Richest Man in Babylon". I highly recommend it for anyone to read. Yes, it gets repetitive but it makes good points that it's trying to drive home.

I do know I was flying up in the clouds for the rest of the day, despite the sudden sleet / hail storm that showed up as we were leaving the local IHOP.

Day 10 of 90 (03/26/14)

Read "The Richest Man in Babylon" [Amazon] and "The Richest Man in Babylon 2" [Amazon]. I had not called the Loan Officer and I really should have (in hindsight).

Day 11 of 90 (03/27/14)

Contacted the Loan Officer via their website. Why am I being so secretive, if you're in the Spartanburg / Greenville SC area her name is Gail Nace [website].

Day 12 of 90 (03/28/14)

Today I answered a lot of Gails questions although I'm sure I wasn't much help. She said we might be able to do a USDA loan (yes, I thought about beef too) which is 100% financing. At least that was my understanding of it. If not then definitely I should qualify for FHA but where do I find that 3.5% ? I only have $125 saved up so far.

I also noticed this posting has become sticky. I apologize to everyone for that. I spilled soda and I'm waiting to borrow a mop.

I was listening to PodCast 63 today with J Scott (it won't let me @ him) while at work. I know I do this and I'm sure some of you do too but when the boys do the "Famous Four" I always try to figure out how I would answer those questions if I was the guest. Side note: I have an AWESOME answer for the Fav Business Book that no one has used yet. But on the "What sets them apart question" J made a good point. I was going to answer it myself with "Luck" but he said, (in a nutshell) "Get off your butt and do something. It will snowball from there."

I don't know if he knows how right he is. I thought it was luck that I ran into my, now, mentors. It wasn't. I got off my butt and started this 90 Day Challenge. Once I started that (and yes I update you guys poorly, I will work on that) other stuff started to fall into place. I'm 12 days in and I've hit a few bumps already but again, I don't know everything that needs to be done but I can't learn it all if I don't try. Sometimes life steps into the game a bit more then I'd like it too but I'm learning. I have things today that I didn't have 12 days ago. Some of the things I never thought I'd actually get. I have Mentors! And not the kind that want $5,000 upfront to help "coach" you. Did you catch the PodCast reference there?

I have someone helping me to get a loan. Who would have thought that I'd ever have someone trying to get me money? Usually people are trying to take it from me. I have a better sense of direction and purpose then I had before. I know some of you are reading this and going "You haven't really gotten far in 12 days." Perhaps not physically but mentally I've gone leaps and bounds. Would I like to have been further along than I am today? Uh, yeah. Duh, but I also didn't know where I should actually be at this time. I don't have a guideline set out. "I want this by Day 15 and this by Day 17. And it's now Day 4,235..." I'm just following the basic steps that Brandon outlined and doing my best from that.

I also just let my father know what I was doing. I haven't informed him before because in his protective way he tends to get very pessimistic. Usually to the point where he makes pessimists look optimistic. Because I haven't informed him before he automatically assumed that I was jumping in with both feet and this was my first day. In the course of explaining that I have done a little research I found out that he was going to invest with another gentlemen a few years back. He's very glad he didn't as that person has since filed bankruptcy. Perhaps if I could prove to myself that I can do this and that it is possible for an everyday schlub like me to do this, then I could ask him to be an Investor on my next deal. I'll have to figure out how that end of things works... great, more homework.

Dan,

I invest over in Clemson, SC but I don't do much in Spartanburg county.

I do have a couple of tips that might help you find your first rental:

1. Definitely do as @Brandon Turner and others have said - get the money lined up. You said FHA or USDA could work, but is that for rental? Sounded like owner occupant terms. Could your dad or someone partner with you and fund the down payment?

2. For finding deals, there is a wholesaler whose list I'm on who gets a lot of deals over in Spartanburg County. Here was a recent email I got from him:

_________________________

3004 Kelsey Creek Rd., Spartanburg, SC 29302

TMS# 7-21-00-066.06

1112sf, 3 bedroom, 1 bath, 74 acre lot, built 1959, central HVAC,

NEWER METAL ROOF

2013 taxes 1282 (May be reduced by appeal.)

77,350 > Last sold price 2004

72,000 > CRS retail comps

49,000 > Tax value

32,995 > Price OBO

Call for access.

Joseph A. Vollmer, Sr.

-------------------------------------------

You can get on his email list for more deals here:

If you want his phone number, PM because I don't think we're supposed to give out numbers publicly.

3. Come to Upstate CREIA on the 3rd Monday of every month in Greenville. There is a deal time at the beginning of every meeting and you can tell people what you're looking for. There are a lot of Spartanburg landlords in the room, and I bet you cold talk to some of them about buying one of their deals.

Best of luck. Keep making progress daily.

Medium logo   coach carson   whiteChad Carson, CoachCarson.com | SC Agent # 79709 | Podcast Guest on Show #141

Wade Sikkink- I think it does make a difference when you commit out in the open your goals. I do that when I'm ready to seriously concentrate on losing some weight.

I did make a very bold committment on buying a certain amount of sfrs in 30 days. I failed to reach the goal but it did make me use ALL my time on the endeavor and I came close. Many on here know that story. Good luck. Rich

I have a simple 90 day goal, to purchase 10 more SFR rental properties and to add two more states to my self imposed challenge of owning rentals in all 50 states. But, I have the feeling this may take as long as 180 days, but it will be done before the year is over.

Hi Dan,

With all due respect to Brandon, I would suggest put more focus on finding a great deal. From personal experience, every time I found a great deal it's easy to find the money to buy it. It is the deal that will bring the money.

For example you find a 4-plex with 2-beds each unit in Greenville, SC. Median rent in the area is $1k per unit. That's $48k per year GOI. If let's say expenses is 45% of GOI (including 5% to cover reserves & vacancy) this will give you $26,400 NOI ($2,200/month) If you pick it up for 10% CAP, your purchase price is $264k.

If you borrow 20% from a private lender ($52,800) and pay 10% interest/yr that would be $5,280 or $440/month (interest only payments)

The mortgage on $211,[email protected]% interest 30 yr. is $1,134./month. Your total debt service combined is $1,574. $2,200 - $1,574 = $626 net cash flow; $156.50 profit per unit per month.

If you get a deal under contract similar to this example, it will not be hard to find the money to finance it. Start going out there and looking at properties, calling FSBO, attending your local REIA in addition to working with Realtors.

When you walk in to a bank and say you have a property under contract, you're putting down 20% on a purchase price of $264k. They will leap at the chance to work with you.