All Forum Posts by: Bill Plymouth

Well interest is essentially payment for the money that you are borrowing.  That’s why interest is charged.  Unless you have enough cash to purchase a property outright, you will be hard pressed to avoid interest.  One of the major benefits of realestate investment is that you can use other people’s money to purchase a cash flowing asset.

As the previous replies have said, generally as long as you can cashflow 1% of the purchase price, the property should be profitable.  You need to play with the terms to find out what makes your property profitable and what brings you into the red.  

I hope this helps.  Good luck!

@Andrew Angerer I don't think it is the emotions that come with property ownership.  I think it is the feelings of regret that come from making mistakes.  Venturing into new waters means a lot of potential mistakes.  Over-analysis is essentially a security blanket.  It gives people the illusion of productivity while saving them from making the mistakes that will inevitably happen when trying something new.  I believe that most people are over analytical. 

@Jeremy Hostetler Realtor should have attempted to schedule same day.  If you sent the property late at night, he should have called first thing in the morning.  In this regard, I do believe he dropped the ball.  

As an agent, there have been times where I have called agents/owners inquiring about a property only to see the property has pended a few hours or even a few days after my call.  Sometimes, people just don't feel the need to respond if they are already working on getting a deal pended.  I don't agree with this philosophy, but it happens!

I think the biggest issue people have is the inability to take action. They get stuck in a state of analysis paralysis afraid to move forward because of potential mistakes.  They constantly analyze thinking that if they prepare enough, no mistake will ever be made, but they are never prepared enough to move forward.

@Mandi Martinez I am new as well still looking for my first deal.  A strategy that I will Implement in my first deal I learned from listening to @David Greene.  After your contractor gives you a time-frame of completion, offer them a small bonus (about 4-5% of the cost of the work) if it is finished ahead of schedule.  Conversely, after each week the contractor is behind schedule, tell them you will be subtracting 4-5% from their quoted price.  

This should be included in the contract.  I hope this helps.  Good Luck! 

@Mo Farraj As it's been said in this forum, you will be hard pressed to find a deal on the MLS. But, as I've heard @Brandon Turner say, "Investors don't find deals, they create them".  

Each day on the MLS is a bargaining chip for you to use to your advantage. Make an offer that is just good enough to start a conversation, and move on from there.

I hope this helps.  Good Luck.

The whole reason I joined real estate was to build capital to invest, and learn about my market.  

Some people have different goals.  Regardless of how successful, some people just don’t manage their money well.  They might have a high income, but they could spend it all.  There is a potential that they chose other means of investing. 

Make sure that his goals and yours align.  As @Allan Bishop Jr. said, not all agents are equipped enough to work with investors.  

Questions I would ask: 

1.  Have you worked with investors before?

2.  Do you work with investors often?

3.  What kind of deals have you worked on with said investors

4.  Could you provide those investors as references?

5.  Do you own any investment properties yourself? (excluding personal residence).

6.  How would you analyze a property's cashflow

7.  How would you analyze a profit off of a flip?

8.  How do you find off market deals?

9.  Do you have experience in short sales/foreclosures?

These are questions that I come prepared to handle when I meet with investors. 

Hope this helps.  Good luck!

Network your *** off, analyze deals like crazy, acquire capital, and learn anything you can.  I dropped out of school when I was 19 to purse my passion in martial arts.  I unfortunately had to stop competing due to training to hard and never allowing injuries to heal properly.  The lesson there is know when to take a step back.  Or in real estate investing terms, if you lose money on a deal, learn what you did wrong and move forward to the next deal.  Don't keep making the same mistakes that lose you money.  That will leave you unable to continue to follow your passion!  I kept ignoring injuries and now I can't compete!  Don't let that happen to you!

If you plan on real estate investment as your full time career, I would shoot for a 300-500 return per door.  If it is just something you do on the side you could settle for a little less.  Maybe 250-350 per door.  I wouldn't go much lower than that.  But that is just me personally.  Everyone has their own strategy and reasons for investing.  A deal for me might not be a deal for you and vice versa.  The typical stock market return is 5-8%.  If you are doing this on the side shoot for at least 9% so you can beat out the stock market.  I think full time investors should shoot for 15% and higher. 

I hope this helps!  Good luck!