All Forum Posts by: Account Closed

Excited for you to jump out of the analysis paralysis stage and into your first property. It's allowed me to quit my job. You can do it!

I use Tammy Kister. She's fantastic. 

Yes, there are hundreds of them across the US. This is my entire business model. Remember that getting into a house at less than $50k doesn't guarantee it will cash flow. Perfect to BRRRR and get all in for low/no money in the property.

@Audrey Burke Are you sure you mean 'fastest' and not 'best'? Because it is 100% FASTER to have a coach. That being said, whether it is the BEST option for you depends on a number of options (some helpful thoughts above from Shiloh). You can start out on your own and pay tuition at the school of hard knocks (this is what I did - I loved it and learned a TON), or you can hire a coach to teach you and walk you through the process. There are costs of both doing and not doing both of them. 

On Your Own
Cost of Doing: You'll pay the fee of mistakes, misjudged rehab, hiring the wrong contractor, etc. For me, I misjudged my first rehab by about $10k and then my contractor walked off with $12k of my money without doing the work. 
Cost of Not Doing: Depends on what your other option is. If it's doing nothing at all, then you miss out on the cashflow, equity, and tax shelter that comes along with the property. If the other option is hiring a coach, then the cost of not doing 'on your own' approach is the course cost. 

Hiring a Coach
Cost of Doing: Course cost. There are a TON out there but in my opinion you should expect a few things from your course: 1) Actual interaction with the coach in a Q&A format (at LEAST once every two weeks for an hour). If they just hand over a bunch of videos, you're better off finding someone on Youtube and consuming all the free content you can get. 2) Your course should cost less than $5k. There are a lot of courses out there that cost $6k, $8k, $10k+ and, in my experience the sweet spot is between $2500-$5000. You get what you pay for, so you don't want a course that's $50, but you also don't want to have to sell an arm or leg to get into it. 3) You should know what you'll get out of the course. Ask, "With your course, will I have ALL the tools I need in order to get my first property within 30 days of course completion?" If they're not confident here, find a different course. 
Cost of Not Doing: Speed and Money (in 2 ways). You give up moving faster because you have guidance that is curated to your situation. When I hired a coach I went from a couple of properties a year to 6 properties in 6 months. Then, you also lose out on the monthly cashflow you'd make. If you think you'd cashflow $250/mo/property (the lowest end of what I take) then you'd be at $3k/yr which would almost cover the class. You'd also miss out on the equity, which in my experience (for the properties I work on) is between $18k-$23k per property. 

All that to say, it depends on whether you mean 'best' or 'fastest', what your priorities are, and whether you can find the right course. Happy to help more if it would be valuable. Feel free to PM me.

@Swaroop Vanteru Agreed, numbers will help on this one. Will you send them so we can be more helpful? All in all, it will depend on what's more valuable to you: cash-in-hand or monthly cash flow. Ex: If you spend $15k on the rehab, is it more valuable to you that you get that $15k back by taking out a mortgage, or would you rather $700/mo cash flow instead of $250/mo? I personally would take out a mortgage in that situation so I could use the $15k on another property. Feel free to PM me if you want help with specifics. 

@Madigan Tumilowicz You might be able to find a market outside of Denver that piggy backs off the Denver economy but has a lower entry point and better Rent-to-Price Ratio. Characteristics to look for are 1) Ability to cash flow (I target R/P=1.5%+) 2) Future appreciation 3) Rental demand (ie - don’t invest in a town with few people).

Lots of numbers put out publicly on markets that help you evaluate those numbers. 

@Madigan Tumilowicz There are some good markets in Colorado but the beauty of remote investing is that you can pick the market to your own personal goals. Appreciation strategy? Larger expending cities. Cash flowing / low price entry / moderate appreciation = there are hundreds. What is your main concern?

@Cammie Lewis There's only so much that theoretical/intellectual/book learning can get you. At some point you have to cut your teeth on stepping out to do that. You've got 2 options at that point - 1) take the risk and try to avoid mistakes but likely costing yourself money in the process, or 2) pay someone to walk you through the entire process and validate your deals so you have a coach that helps you avoid the landmines. Your question then becomes: Do I think I'll save $1500/$2000 in headaches if I have this person coach me? I don't do the note business so I can't give you much specific advice on that front but I do know that when I hired a coach my costs in BRRRR investing plummeted and I avoided some real headaches - and I'm confident the same is true for my students.

@Michael Olawale Lots of good questions - you're lucky to be in TX, there's lots of great deals/markets here. What are your end goals in real estate? Your next steps should be in line with getting you to the future state/lifestyle you want and are working toward. Happy to give more direction once I know what you're trying to achieve. 

Degrees in Aerospace and Mechanical Engineering. Quit my engineering job once I replaced my income with passive income.