All Forum Posts by: Corey Hawkinson

@Jerry Stevenson My first investment purchase was a 3 bed, 1 bath condo in a suburb of St Paul in July 2012. It had positive cash flow right away. My advice to people looking today would be to build a time machine and go back to purchase property in 2012. I look smart because I started in 2012. I would look smarter if I stayed aggressive after that.

My serious advice for those that can’t build a time machine would be to jump in when the numbers make sense. Understand that this is a long term investment. It is ok to just break even on your first investment IF you learn from the process. I still own that condo and the cash flow has increased since that time. I am considering a 1031 exchange in the future on that property, but I have to find a property that I like more.

@Lawrence Cersosimo After re-reading my post I realize I worded that very poorly. Sorry about that. I did not mean you were asking for a mentor.

I meant that as encouragement. I think you are doing great to get started. I think that experienced investors genuinely want to help. Continue to seek out people to show you what they do in real estate.

@Nathan Christensen you’re moving from Hawaii to Minnesota? Don’t do it! Ha. If I were to live in St. Paul I would personally go with the W 7th area from that list. But it’s all personal preference. You might see better numbers in the Payne/Phalen area or even West St Paul. But for house hacking I personally would pick W 7th, Highland Park, Como, or Macalester-Groveland. Maybe a few other areas. I’m not a St Paul expert.

@Aaron Fletcher I believe I remember your previous post, or I’m crazy. The property is somewhat neglected and the owner previously used it almost as a cabin? But they haven’t been up to the property in a few years? If that’s correct, I’m happy to see that you’re taking further action.

I would keep all interaction professional but friendly. If they have not been to the place in years and the son is primarily in charge they likely do not have an emotional attachment to the property. It is possible that they just want to get rid of it without much hassle. Offer a fair deal, but something that will obviously leave you plenty of room for profit.

@Lawrence Cersosimo It is awesome that you want to get started at such a young age. I wish I got started younger and that I was more aggressive earlier. But hindsight is 20/20.

Great advice above. I would add that you should go to local real estate meetings and approach people who are active. If you are interested, ask someone if you could tag along while they look at properties and if they could walk you through what they look for in a property. I believe you will be far more comfortable if you can see the process happen from beginning to end. Sit at the closing table and watch. It is boring but it will give you experience and comfort. I believe that the mental hurdles are the toughest to clear with your first deal.

I think that a lot of us with experience (generously including myself in that category) would love to help out but I never know what someone wants when they say they want a mentor. If someone wanted to follow along with me on my next property search I would gladly let them. I would give my thoughts with each property that I analyzed, explain who I am reaching out to including agents, but with that said, I still don’t know what being a mentor means.

@Jamie Oliver Congrats on getting started! The first step is physically the easiest but mentally it is the hardest. Congrats on getting past that. I also think you found your mentor. Stay in touch with that agent!!!!!

@Sarah Sparks Do you have the option to take a loan against your 401k? I took a $50k loan from mine for my last investment purchase.

@Aira Alcantara Multiple offer situations are very common and lead to the “highest and best” scenario. I’ve won 2 of those and lost others. No one here can tell you the magic number. In my case, I went with the number where I was comfortable saying “if someone offers more... they can have the house.”

Try not to get emotionally attached. That is difficult when it is your first purchase, but remember that there are 95 million homes in the US.

@Jenny Kuzet With that information I would lean towards selling but make sure that you can exceed the $300 per month cash flow on the new deal. And make sure you’re comparing apples to apples specifically with the amortization. When you combine the $300 with the fact that it is a 15 year mortgage that becomes more impressive.

Selling to buy something better is great. But there’s nothing wrong with staying on the path you’re on with a positive cash flow property on a 15 year loan.

@Mike Paisley I’m impressed by what you have already accomplished. You have set a great foundation towards financial freedom. Hopefully I see you at some of the Twin Cities meetings.