Chile/Israel new BP Investor
Hi everyone, I'm excited to join the community, after reading a few Kyosaki's books, made a Google search on the "Top Ten podcasts", so I downloaded "Stitcher" and started with listening to "The Dave Rampsey Show"
......but then I found #AskBP and the BiggerPockets podcast and couldn't stop following.
Read the whole BP guide for begginers already, and listened to a few BP webinars.
My name is Ariel Grass, a MD from Santiago, Chile, living in Jerusalem, Israel. I'm married with one little baby, enjoying my profession, It's beautifull to help people in their time of need, and also I see it as a way of obtaining a basal income and investing credibility. I understand I wont make fortunes out of medicine, and I'm not willing to do the Time/Family-for-money exchange, other than the amount that will satisfy my need to help the comunity and get me my experience, but either dont believe on a magical secret solution, rather I am looking forward to get educated and learn from you, more experienced people than me on how to make smart investments.
I started this journey by reading many of Robbert Kiyosakis books, and totally apply his policy of "get rich by getting educated", and escaping the "Rat Race" make total sense to me, and those are my main motivators. My intention is to keep learning from the present resources, and to meet you, and learn from your experience as real estate investors, learn out of my own and other's questions, and hopefully reach the point of returning knowledge and experience to other people.
My experience is basically one buy and hold property, rented actually to a first tenant, withouth a significant cash flow, but a nice expected apreciation, started while still uneducated. I would like to master the procedure of finding leads and applying the funnel and negotiate well a good deal, and to generate my first positive cash-flow property, that is my main goal. If anyone could contribute to this goal, would be higly apreciated.
I'm excited and ready to start asking you questions and learning from your experience. Thank you for this opportunity.
Ariel.
Most Popular Reply
Hi @Ariel G.,
Your main goal is to generate positive cash flows based from buy and hold. Here's suggestions as you already mentioned but more organized:
1. Generate or make your plan of action in the form of an excel spreadsheet. Type in your title of a task or project, type in your headings, sub headings, and sections, and subsections on the first column. On the second column, type in your task or description, the third column will be your start date, the 4th column will be your projected completion date, the 5th column will be your hours spent on each task, the 6th column will be your cost. On a separate sheet of paper, draw a network diagram. Your objective to draw your network diagram is to locate, calculate your critical mass or critical point. The importance of your calculated critical mass or critical point is that your are able to focus on a task ahead of other task that will make use of resources (time, knowledge acquisition, money) the optimum and most efficient way.
2. Learn/study what to look for in a property (need to know some construction terms, types or description, functions), documents required, learn what to look for in a title, learn how to do the math, zoning classification, permitting process, seeking financing, property assessment, Remember, you are in a tight bind, but you should seek help with a general contractor, CPA/Attorney, real estate broker and others when you have specific questions. Assign these tasks in your excel spreadsheet including its costs.
3. Locate houses for sale from local or online listings. These inquiries can also extend up to talking to patients as part of a conversation. Know from a friend or a friend's friend who may be able to help you locate properties. Once you identified, then apply what you learned.
4. Added values. Replace the cost of a realtor or broker, or insurance agent, or contractor, or other professionals if you manage to secure a signed contract with a friend's friend, then put a minus sign on the 6th column of your spreadsheet. Formula: (net investment) x (actual investment return - % capital cost)
5. Based form your calculated critical mass or critical point, you are now able to answer the question, which task is giving you the most return the most optimal way.
6. This exercise is also valid when you see two or more properties and assign them the timeline or projection based in your own math, comparison of two or more properties, which properties will provide the optimal cash-flow.