All Forum Posts by: Ali Boone

Originally posted by @Robin Gravlin:

@Ali Boone

Hi Ali,

Let’s connect. It’s business, but hey, gotta have fun too or it’s not worth it.!! Venice Beach?? Where do you invest?? Yowza!

Not in Venice Beach! Actually that's a lie.. my last investment was here. But it goes against everything I usually preach-- don't buy anything with negative cash flow, don't buy at the top of the market, and don't be a landlord. We bought at the top of the market, it's negative cash flow, and I'm the landlord :) Everything else, I buy out-of-state to stick to my guns. Yeahh let's stay in touch, you sound fun!

Just be sure to run the numbers. Like it's already been said, Nashville is a tough market, and years ago the prices got so high there that there just isn't much in the way of cash flow. That was specifically on the long-term rentals, but it's likely a factor for short-term too. If the previous poster who lives in Nashville and is an investor but is investing out-of-state, that says a lot. Bummer too, I love Nashville!! Went to school there.

For me the answer relies in a couple of "if"s. What are the numbers, exactly, on the option where you have a network, as compared to the other option? For the market you aren't familiar with, do you have any access to good teams there? What's the appreciation potential there as compared to the other one?

Need more info. What are the numbers on both, generally, and what are the two markets like? Solid, growth potential, strong rental market, etc.?

Congrats!! You're absolutely doing it. I volunteer in prisons in California all the time (in non-covid times, at least) and I'm really close with a lot of the inmates, and a lot of them are now getting out. To see everyone coming out and accomplishing the things they're accomplishing... not only is it a huge congrats to you, but you will be such an amazing influence to everyone around you, and other people who are either already in the shoes you were in, or could end up there if they don't make some changes. Huge props to you. I love it!

It sounds like they're violating the lease, which means you can take steps to get rid of them. I don't know how it works with roommates... like I assume you can't evict roommates... but you have grounds to get rid of them. The COVID moratorium, in theory, should only be for COVID-related reasons, and I assume they don't fall into that category. Might be worth a call to a local real estate attorney just to make sure you know exactly what you should do and the process.

Before I read your whole post, I assumed this was going to fall into the category of the current on-going issue with turnkeys right now, which is that COVID has everything delayed in a lot of states. Rehabs are taking longer because contractors are swamped and trying to socially distant, and the whole mess, and then lenders are also taking forever because they're so swamped with business because of the low interest rates, their heads are barely above water, etc. But after reading your post, doesn't sound like those are the issues.

I would say your first step would be to just reach out to your main contact there... keep trying until you get him/her... and tell him/her your concerns. Find out more info on the rehab status, what's left to do in their eyes, etc. Have you had a property inspection yet? That should be considered a necessity and will give you more intel as to the exact condition of the property.

If they haven't held up their end of the deal, and the property is not in the condition it was advertised to be in when you close (assuming you've given them the chance to get it to that condition), you should have no problem getting your earnest money back.

I never want to encourage someone to bounce from a turnkey too soon, but it sounds like in your case there may be some stuff going on. The delay in the electrical permit alone should warrant you being able to switch properties.

I would absolutely not include the 1% rule in any top 5 guidelines. If you're looking for guidelines of that type... like 5 of that kind of guideline... you're essentially wanting enough guidelines to tell you how to succeed or be profitable, which completely skips actually knowing how to profit. If that makes any sense.

If I were to come up with 5 guidelines I would say every new investor should know, I would say: (these cover all strategies, not just rentals)

1.     Know exactly how you expect to profit. Sounds obvious, but few people I hear starting out have any clue how they actually expect to profit on a property.

2. Be able to intelligently explain to someone why you think a certain property would make a good investment... before you invest in a property.

3.     Only run actual numbers, not estimated! There will only be a couple numbers that have to remain estimated. Everything else- get actuals. And ditch those 50%, 1% and 2% guidelines. Actual numbers.

4.     Don't pursue an investing strategy because it sounds great or someone told you that's what you should do. Take the time to learn about all of the strategies, and dive into which ones actually accomplish your goals and fit your skill set, personality, interests, etc.

5.     Understand, in depth, the following for any strategy: what makes that strategy successful, what makes it unsuccessful, what are the risks, what are mitigations to those risks, and how do I run the numbers?

I realize none of those may be what you're looking for, but my guess is you haven't gone through any of those learnings yet. Once you do, and you select a strategy to pursue and start learning, then you can learn about things like the 1% rule and what is means and how to properly use it. But if you're trying to start your investing career just going off a random splooge of guidelines, you're going to be in for a wild ride.

I'm late to the thread and everyone else probably has better ideas than I would come up with, but you sound absolutely hilarious and I love your wording! We would most definitely get along in person. Lol. Good luck!

The lender you use has to be licensed to lend the in state in which you're buying the property. Where you are doesn't matter.

Originally posted by @Chris Coleman:

@Alain Haug check out Hipster Investments with @ali boone.

https://www.hipsterinvestments... brings a wealth of information and experience about turnkey investing. She also has a Facebook group.

Thanks for the shout out Chris! Alain, happy to help in any way I can.