All Forum Posts by: Ken Breeze

@Pat Noyes lifelong learning is inevitable and fun if you ask me. You will need to invest a decent amount of time before you can seal your first deal. Or would you have a guy who just read two books on dentistry get close to your teeth? Nope. 

So make it a point to learn everything there is on this website. It's truly the best real esate place on the planet. Start with the free stuff then start buying the books. Watch the webinars, listen to the podcasts. Make a daily appointment with yourself to create an irrevokable learning habit. At some point, you will have gained a ton of knowledge and ability to make educated decisions on what you'd like to focus on.

Since the "guru topic" keeps coming up in these forums, I'll say that I'll naturally have to disagree a tad with   peeps who generally say all gurus are bad or liers, cheats and thieves. Courses, coaching and mentoring paid or free can be extremely helpful and can speed up your learning curve and timeline. The most successful people on this planet don't have one but many mentors who helped them get to where they are today. 

The challenge is that the definition is vague and the ability to evaluate the guru is, as with all things in life when you're new, meager. There are good ones and bad ones. You need to learn to recognize the difference (or bring a coach along who can point out the difference). Some are genius and worth their weight in gold, some are just holding motivational rah rah events upselling their next event which will do nothing for you. Come Monday you're stuck again and your million questions just got babies.

Having gone through many boot camps, courses, events, meetings, bad and great coaches, mentors and "gurus" in the past decade or so, I found that "you get what you pay for" is still a truism. That said, this topic seams a bit like politics, you either stand on this side or on the other. Trying to convince anybody of anything other what they already believe, is a waste of time. 

Yet, I think we can all agree on never jumping into an RE project and spending money on something you don't understand. Be sure to have all the parts together that you need to succeed. If you feel uneasy or don't know the answer to a question you have, well your question has been asked here hundreds of times, therefore, there is already an answer waiting for you.

That doesn't mean you'll ever feel like you know it all when you make your next steps. I believe this is called managing your risks and growing. If you don't feel some fear, your not moving forward strong enough. You just staying in your comfort zone. Be bold. Stretch!

Finding team skilled mates or professionals to do the work for you when talking about smaller projects, might be your way to go if the numbers work in your analysis. It will stil take project/peole management. I hope you love it ;-)

As a commercial size multifamily syndicator, hiring others to do the various jobs is a given and line item in my spreadsheet, since the scale prohibits any type of hands-on work from my side, plus it defeats the goal of becoming an investor with a passive and residual income. So perhaps your stance of not being able or willing is a good perspective since scaling is your focus not building a kitchen.

As @Mike Dymski pointed out, joining a syndicator might be your best bet to leverage your time and funds. Just make sure you learn how to vet them.

@Dan Deppen points out another RE strategy: notes. There's a new book out here on BP that might get you started on that. I just bought it myself. The need to quench my thirst of leaning.

Research crime rate on Zillow or Trulia. You can lift a house or apartment complex but not the area.

Do your numbers and be VERY realistic. Make a "ridicloulus" offer and see what comes back.

How hard can it be to be your own PM and save the 10% for yourself until you buy a few more and outsource the job? Or have a handyman as a tenant and offer incentives.

Have residents pay for all utilities. This increases your NOI immensly. They will suddenly pay 40% less by changing their behaviour real fast. This also changes mindset. It ebgages and makes for a more resonsible resident.

What we believe, feel or think is irrelevant for the financials of a real estate business. Get sales and rent comps to stop the guess work and gain clarity. Let the numbers speak not your emotions.

Make sure your offer and LOI spell out favorable terms ofro you to have enough time to do your due dilligence in order to pull back or lower the price should a skeleton pop out of the closet ;-)

Send me a DM if you'd like to bounce off a few ideas. Cheers, Ken

Hey @Steve Rozenberg Rich Dad once said: "There's good debt and bad debt". So eliminating expenses that don't create positive cash flow helps. In addition to what @Ryan Blake said you could get rid of one or all of your car debts entirely and get a long-term rental which is always new, always running, needs to expenses on repairs because if something happens you get a new one at no cost. Allow me to elaborate a tad.

A car is arguably the worst investment mankind has ever bought into. It loses value as soon as you drive off the lot. So paying for usage time or access makes more sense. Thus the birth of the "sharing" economy.

With the rental, the longer you rent the lower the monthly fee. We tried this back in the day after someone totaled our car - it was a blessing in disguise, what a relief. This was before Lyft and Uber.

This strategy works in metropolitan areas better than sub-urban of course. I have never bought a car since and use public transportation or Lyft. Best thing ever. Cost less saves time and stress and adds value to my life. It's like having a chauffeur. I gained thousands of hours of my life back to put to better use, such as learning everything there is about real estate, working, making calls, resting. Try it out for a change. It's relieving to get rid of stuff.

Another wise man once told me: "Own nothing. Control everything."

I wouldn't have bought our condo if I had known better - this was before the crash and before I met Robert Kiyosaki and read Cashflow Quadrant book.

"Sometimes you win, sometimes you learn.", yep, Rich Dad ;-)

Enough about cars and other cash burning toys.

@Brian Garrett mentioned wholesaling and flipping but that doesn't check off as a passive residual strategy on my list, it's a job, even if it pays well if you do it right.

IMO multifamily or self-storage value-add real estate are probably the most tangible and accessible (passive, residual) strategies for the laymen to generate wealth and high net-worth, "fast", whatever that means to anyone. Once you know all the pieces, it'simple, like anything we learn in life, but fast? I don't think so.

So @Marisa R. points out that timing is everything. She's absolutely right on that one. Don't we all wish we knew when and where that happens? Data helps on sensing growth markets. Equity and debt capital are currently readily available. Good deals not so much. Right out of the gates think big and other people's money and mortgages (OPM) otherwise you'll be limiting your growth to what you have on your bank account. Grow that network of lenders and capital investors, you will need them sooner than later. What's the saying? "Dig your well (way) before you're thirsty."

I'm not sure I like the whole idea of flipping multifamily properties as so many did with SFR which lead to speculation of enough appreciation and the lovely tidal wave (it wasn't a crash, it was silent like a thief at night) of 2008.

I spent a decade in the startup space and one of the many conclusions on what makes or breaks a startup was the realization that timing before all else is the most important factor - then team. Money last. Ideas didn't count for much either. They are a dime a dozen. Execution matters.

To finish off with the words of @Alina Trigub, "it depends". It's up to you (and all of us wanting the same) to study and practice more to find the truth and gain the skills and network to find "Ways to Build Networth.

@Darren Mesibov lenders are giving out capital anywhere the numbers work. Check out @Omar Khan blog and a few other cool cats in the field to help you zero into your zones of preference. 

My choices depend on a variety of factors such as market fundamentals, job growth, demographics, what can residents pay for rent based on their median income and much more.

I, for one, don't invest in areas with a population less than 250K and we're about to raise that number soon. I also look at the Starbucks map to measure the amenities factor and so much more. Study your markets thoroughly before you zero into a sub-market and property. Looking at out of state markets is a good idea . From my perspective, having access to all the tools available on the internet, it's not much more difficult than doing it in your own neighborhood. The spreadsheet needs to pencil out in both scenarios.

Hit me up with more questions if you like.

Cheers, Ken

1) See @James Galla

2) A very close partner, friend, the family member might be your best bet. There are so many risks and questions investors will have who don't know you from Jack, that make it very unlikely for them to throw money into a deal. Who's doing property management and if it's you to make or save some money, how do they know you can handle the investment better than a professional?

3) That depends on your NOI minus debt service which depends on a variety of factors such as market fundamentals, job growth, demographics, what can they pay for rent based on their income and much more.

I, for one, don't invest in areas with a population less than 250K and we're about to raise that number soon. I also look at the Starbucks map to measure the amenities factor and so much more. Study your market before you zero into a property. Invest out of state if you have to. It's not much more difficult than doing it in your own neighborhood. The spreadsheet needs to pencil out in both scenarios.

Hit me up with more questions if you like.

Cheers, Ken

Hey @Faysal Alam I'm glad you're starting very early and please know that you're to be in that position. When I woke up to real estate, Bigger Pockest nor podcasts exsisted yet - and mind yiu all for free!

So as many have mentioned here before, read all the free guides, books and podcast here on BP over the next few months and process all of it. It's a marathon not a sprint. 

Revisit the forums every now and then to get answers on the tough questions you might not find in books etc. 

Start networking with everyone out there - grow your rolodex. You will need to work and partner with a varity of talented and passionate professionals out there, but many are inexperienced as we all are when we start, so be aware.

Once you have a solid understanding of the basics and find the niche or strategy that aligns with your type of genius, you will know what to do and who to contact.

You will need patience, focus, persistance, dilligence and passion. Never give up. Ask for help. Surround yourself with energetic, positive awesome people. In other words, may the force be with you ;-)

Feel free to send me a DM for more help. - Ken

It was great meeting you yesterday @DeWitt Gibson at our lounge & offices at the CenterPoint towers in Tempe and learning all about financing our next four plex. I’m looking forward to your event and to working on  bigger multifamily deals with you soon.

As promised, I will invite you to our next week’s Multifamily Investor’s event as well.

@Kenny Breeze @Christine Breeze @Elena Breeze @James McCreary @Dovid Staples @Price Paramore @Rick Tanguay @Aaron Gaffney

Hi guys & gals,

I'd like to extend our invitation to @Houston Garcia @Aaron GaffneyIf you're in town, feel free to sign up and join our get-together. See details above. 

@Daniel Amberg thanks for being dense ;-) and pointing that out to me. Yes, it’s noon to 7pm. Lunch to dinner or drinks.

@Steve Trang

@Steve Trang

Hey @Account Closed I sent you a PM. I'd be interested in receiving docs to run our underwriting analysis. I also sent you our general buying criteria. Best, Ken

What @Cody L. said +2. Use the  Bigger Pockets Calculators or one of mine, to realize that the relationship between what comes out of how much you put in, is truly what matters. Feel free to message me if you're interested in scribbling a few numbers over coffee or lunch. My team and I are having a get together soon.