Just wanted to introduce myself, I am Rodney Buford and I am from Lee's Summit, Missouri which is a suburb of Kansas City. I have some past experience in Real Estate but unfortunately not good experiences thus far. Previous experience went in with some partners on 9 units (4.5 duplexes). They managed the finances and I took care of the property management for many years. Long story short, we sold just recently and lost money because they wanted out and we did a poor job of running numbers when we bought them. I am licking my wounds but ready to get back on the horse, I am really hopefully I can learn lots more on bigger pockets and try make another go at this on my own.
I am hoping to get some advice on how to get back started looking for SFH or duplex. Hoping to get to some local events around K.C. as well.
Thanks for your time,
Do you know exactly what mistakes were made when you ran the numbers initially? Why did they end up wanting out? Welcome to the forums, it's a really great place to learn.
@Rodney Buford Good for you that you're willing to get back on the horse again. Kansas City is a great market so there is no reason you can't do well your second time around. Be sure to check out the MAREI that is run by @Kim Tucker . I believe there is an event this Wednesday. Feel free to reach out if I can be of any help.
Get comfortable with how the numbers work then it gets easy to mess w/ them to see the impact of different scenarios.
@Mike D'Arrigo Thank you so much, I may reach out to as I have seen you have property here in K.C. so would love to pick your brain. Definitely will look up the Missouri REI club.
@Matt K. I appreciate your feedback and advice, I am trying to soak it all up and learn from my past mistakes
@Account Closed I think I know some of my mistakes and will list a few here in hopes someone will learn from my mistakes
- My Biggest Mistake - I let my emotions get the better of me. What I mean is I was excited to close our deal on the duplexes and I made the numbers work!!!! (ie. cut back on % reserved for minor expenses and ZERO for capital expenses, didn't allow enough for vacancies, etc...) I made the #'s work in order to tell myself it was a good deal.
- Partners can be good and bad. I had two other partners on this deal and those two became enemies which caused this venture to go south and they both wanted out. I still thinking finding a partner or private investor is very doable just have a bad taste in my mouth right now.
- Didn't do routine unit inspections just to make sure things were being maintained
@rodneybuford Welcome back. There’s an event this Wednesday evening put on by crossroads lending at nick and Jakes near the plaza. I plan on attending and think it would be a great place to network. If I know anything, it’s that the more people you can call friends in this industry and market, the more opportunities will come your way. Either way, I’m always open to connecting. Glad you’re here! Maybe you could write a post on how we all can fall into the trap of rationalizing why our deals make sense to ourselves. I always try and get 2 or 3 people’s opinions on my purchases-and I bait them into why they wouldn’t do the deal to try and hash out the reasons that they might have kept to themselves beforehand.
Thanks @Mike D'Arrigo - MAREI meets the 2nd Tuesday of the month - WinVestors is on Wednesdays - both good groups to connect
Nick and Jakes is the House Traders event hosted by Crossroads Investment Lending and the Asbells
@Kim Tucker thank you for the information will get this on my calendar. Look forward to meeting other investors.
@Rodney Buford MAREI, as Kim stated, or Winvestors is the place for you. Happy to see you try again. Analyze, get comfortable with your numbers, your area, and then go back after it. If the numbers work you can't go wrong but don't force the numbers to work or hope for the best. Always be conservative.
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