All Forum Posts by: Chris Kendrick

There are tons of properties in my market. But yet i  still do 4 to 5 meals per month I’ve done 500 overall. it’s all about your network. And I never buy anything online all deals are off-line.

@Chris Kendrick
Your premise (tons and tons of real estate) neglects the fact that there are tons and tons of buyers as well.  Just like there are tons and tons of cars (usually) on a car lot.  That gives people choice.  The 'catch phrase" I learned a long time ago from a friend of mine in the used car business was: "There is a butt for every seat."  When you look at the stratification of houses... be it by house size, house price, house condition, house location, and so forth... each of those strata appeals to a different segment of the market.  A Class "A" person isn't going to usually buy in a Class "C" neighborhood. 

There will always be supply, and there will always be demand.  In between those two things is the price of the property, the location, the caliber of the house, the neighborhood, etc.  Just because you see a lot out there doesn't mean you can't get into the game.  Eventually everything sells at a price the seller was willing to take, and the buyer was willing to pay.  The reason things sit on the market is because of differences in expectations between the buyer and seller.  If you price a house right (read: at a price the market thinks is a fair price), it will sell quickly.  If you try to squeeze more out of your property than the market thinks it is worth, it will sit there.  Eventually those two figures will merge either through price appreciation in the market, or the seller reducing their price and then the  property will sell.  It's just the way pretty much every market works.  

Your perspective is one from a position of doubt.  You should listen to the position of all the players who are 'in the game' and take it from them that real estate is a great business to get into.  In 5 years we have managed to acquire over 45 rental units.  We have sold some of them for great gains while the market was hot, and we now have 37 remaining units.  Our portfolio value has gone from $1.5 million to over $6 million in 5 years - and we are 'mom and pop' landlords (ie. just myself and my wife, who self-manage all those units, while doing a flip here and there as well).  We went from working two full time corporate jobs, to full time landlords at the point we had about 20 rental units.  Point being that we self-managed 20 units while still working regular 8-5 jobs.   Managing properties is really pretty easy on a day to day basis.  We can manage 95% of it from our phones.   The market is tougher right now, but that doesn't negate the fact that it is still a great business to be in, and when interest rates calm back down, the market will start to rev again... whereas I see it as sort of idling right now.

All the best!

Randy

@Chris Kendrick
my oldest for 7 years, the rest 5 years or newer

why does it matter how long i've had them?

The answer is to learn how to do market analysis correctly.  Not all areas are the same.  You need to learn how to find the micro-markets within the markets you are looking at.  Markets are more than just geography.  They are based on the common size of properties within that geographic area where the inevitability is based on a lot of numbers with $$$ in front.

The answer I just gave you, based on some of your earlier replies, probably isn't what you're looking for. The complete answer involves learning how to find the properties, not a quick answer of where and what is available. The competition you observed isn't just happening now. It's been around all the time since the beginning of REI. Most REI spend their time looking for deals and come away with the same observation, or make bad deals just to make a deal, and then rationalize it into a good one.

The best answer is to stop looking for deals, that's where all the competition is.  Start learning how to make deals out of opportunities.  Those opportunities are all around you, right in front of you, and there all the time...with very little competition, because most investors don't see them.  You want to avoid the bad deals, the competition, the frustrations...?  Learn how to design deals/offers by learning as many strategies as you can...and never stop.  The more strategies you learn, the more opportunities (without competition) will fall in your lap...because you're one of the minority that sees them.

@Chris Kendrick

no, I actually have rentals in 3 states - PA, CT, VA - and there are lots of rentals in all 3 markets where I own.

My rentals are freshly rehabbed, I price competitively, and I allow pets.

@Chris Kendrick

that's why i asked you to clarify - you said "how in the world can someone get in this competitive space"

i didn't know whether you meant buy, or sell or rent

my rentals are rehabbed, high quality, and priced competitively, and I allow pents - so they rent quickly

i don't flip so can't answer that for you

@Chris Kendrick

you've posted a bunch of variations of this question.  i'm not sure what exactly you're asking here - can you clarify?

here's one simple answer.

a lot of us on BP don't buy off the MLS. we buy off market.

The way you compete is with creativity, hustle and consistency. 

Can you figure out new ways of doing things? Can you find ways to be better than others and see what others don't see?

What are you willing to do that others won't?

Can you show up and do the work every day for months, years, decades?

Digging deep, answering these questions and putting the work in will undoubtedly set you above the rest. Maybe not today, maybe not tomorrow, but it'll come. Best of luck

How can you have 131 posts and just be starting out and not have a deal already?  That is the question you need to ask.

There are always deals in REI. Even more when starting out.

You need to regroup. Forget everything you have learned about REI.

Don’t answer:

1.  How much cash do you have or collateral at 65%?
2.  Do you have your financials and spending habits buttoned down?

3.  How secure is your job?

4.   What is your family status?  Single, married with kids? 
5.  Can you get down and dirty?  
6.  Are you a runner chicken?  Can you take a “lick in” and keep going?

7.  How many deal analysis have you done?  How many offers have you made?

8.  Look for starter situations versus the 3/2 everyone is looking for

9. Apartment hack, trailer hack, BRRR, free watchman housing, free housing for live in help, etc.

There are more angles when you are starting out that aren’t in other peoples toolbox.  

Start small and make your big mistakes Early. 

Rather than looking at how many there are, look at how long they are listed for.  Some areas may have higher turnover (lots listed, but only for short periods of time).  You need to look at the numbers, how much will a home cost, how much will it rent for and what are the costs associated with renting it out.