All Forum Posts by: Andrew Ware

I’m not a wholesaler but I know marketing. Think of your marketing efforts as a hierarchy. The more personal and focused your efforts are the higher the probability of a response (not necessarily a sale but that is typically correlated.) So here’s the basic order mass mailing - phone contact - in person contact. It depends how you do it but web is down there in mass mailing to phone range. And of course their are different levels of each because showing up on their doorstep has a different level of engagement than going on a trip to Europe with them. So here’s why I say all of this. You use focused attention on small numbers or high value leads like you have. You use things like mailing to cast a wide net. I would track down the owners and talk to them in person if they are local and on the phone (repeatedly) if they aren’t. Then you should cast a wider net and start mass marketing houses that are less obvious.

So I don’t know the market you are interested in. I see median home price in Orlando area at at $181k. So $350k seems pricey or at least the wrong use. I can’t comment on the investment company. It might be a speculation play or just garbage for people who don’t know any better. If you want to start right as an investor, figure out how to get the house you buy at a 20% discount against the market. Impossible? Investors do it all the time. The numbers run way better at $280k. Based on my very limited knowledge of your situation. I’d read Millionaire Real Estate Investor. You seem to be learning to analyze deals and that is critical. You are saying this looks bad. And it is. Or at least it is for you.

So the reason property investing does not look appealing to many is exactly what you just said. But this is just the surface level. You are paying the property manager out of what is basically cash flow. And yes you’d still like it to cash flow which can be tricky or impossible on a SFH (in some markets and deal dependent). But cash flow is only part of the calculation. You also benefit from leverage, loan pay down, and tax benefits. This the property management does not impact except to count as an expense for tax purposes. When you factor all of this in you should be able to easily outpace the market. If not, you would not consider the extra effort.

I’m not 100% sure I understand the question. If someone has a bad credit report you politely tell them that their report did not fit your criteria. If there is an error that’s their responsibility to deal with it. Then it’s just a matter of picking from the two qualified candidates.

It’s not realistic to be concerned about it. You will find some that have their own baggage. But I have just said, “oh I will be one of the good ones.” Of course what I really mean is to be fair, consistent, and hold the tenants to their responsibilities.

I’m not shy to tell people at work because it’s where I know hundreds of people and one of those may network me a deal or finance. The concern is burning bridges a bit. But it’s not like having another business where you are trying to get out. Many people across the country have properties and work their job forever. That said, most of my coworkers are blue collar. I have not got 100% enthusiastic response. Many just aren’t in a financial position and lack the imagination to see beyond their situation. Others have been fearful for my financial disaster. Plenty have groaned at the extra responsibility of fixing toilets (why is it always toilets?) And a few have reacted quite negatively about how landlords are evil and proceed to tell me how the mean owner wants his money on time and in full. It’s important to have some sensitivity and back off when it’s a subject they aren’t interested in. But I have found a few who know people or have or had their own. Including one who has 5 small houses free and clear. I figure that I may need to kiss a lot of frogs. But the return on investment for talking about what I’m interested in is enormous.

I just saw this today and I’ll be there. I’ll try not to fanboy too much on Brandon or Ryan. #IWannaMeetRyan

Sorry my post was muddled. My point was that a bank is going to want stable currency to do a deal that will take a month.

People just trade bitcoin they don’t use it (yet). And how would that transaction go? The bank says oh we’ll accept 57 bitcoin. Oh that’s worth half what it was two weeks late? Yes you could have significant gains... or losses. My other point is. Tulips

Jay Hinrichs a I totally agree with everything you say there. And I’ll go a step further to say that there are some advantages for a beginner having A+ tenants. @Alex K. shows my chief complaint. Someone who doesn’t know whether they like it or not may be stuck landlording for ten years while the property rebounds. Significant cash flow or specifically having wide margin has a way of covering a lot of mistakes. You can’t take out an equity loan or sell to pick up better deals if you are operating on very thin margins and bad stuff happens. And from his analysis he allocated 1% for property management so that’s his job whether he likes it or not. This lack of flexibility ties up $60000 of his cash and he may make little or negative money off it for a while. That hits pretty hard early. When you have numerous streams of income you can take more of these bets and let them play out with time. Varun may be ready or maybe not based on his other financials. I’m just advocating caution. If it’s an acceptable risk for what may be a long time reward then go for it.