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All Forum Posts by: Isaac S.

Isaac S. has started 19 posts and replied 551 times.

why not negotiate to move into another better unit in their portfolio, maybe you get more apartment for same money or same apartment for less money?

Clearly the biggest mistake anyone can make is not checking Bigger Pockets before starting!

Hey @Nick C. , yeah that makes the most sense to use the DST proceeds as a secondary income and just keep 1031 exchanging as each DST matures over time. From what I have heard, if you stay with the top 3 sponsors they have enough ofofferings at any given time and have pretty stable performance records in general, as long as you do your homework.

Look forward to hearing about what DST you choose.

You just got the combined experience of about 100+ years in the replies on this thread. Please listen to them, they are absolutely correct!

Can you rent the units for market if the current tenants move out? Nothing is wrong with turnover, especially if their is upside involved.

Originally posted by @Nick C.:

This is a great thread with tons of information.  Just found BP by doing a search to learn about 1031's and thought I'd share my story.  I would appreciate any comments/suggestions/criticisms.

We purchased a vacation rental cabin outside of Pigeon Forge, TN in 2012 and have utilized a management company since that time. Never thought we'd sell but the value has more than tripled and I want to utilize the profit to invest in a DST through a 1031 exchange. I would then use the money from the DST to purchase and pay the mortgage on another cabin in the future when prices come back to earth and I won't have to put it on a rental program. I'm not an active owner in that I use a management company but I spend a good deal of time fixing/improving things myself so I don't have to pay someone else.

We still owe just over $100K on the mortgage and expect to have approximately $500K to invest in a DST. Is a DST a good strategy? Is it reasonable to expect 5-6% annually? Should I put all the proceeds into one property or split?

I had never heard of a DST until my financial advisor mentioned it. Looking for additional recommendations and suggestions. Thank you for your insights.

Thanks for posting! I started this thread a few years ago, when I first heard about this sort of 1031 investment.

I eventually decided to pull equity out of the asset that I was contemplating doing the 1031 with.  Now I'm using the capital to grow/diversify the portfolio. 

IMHO, the main issue with what you described is that the disposition of the DST property, may not coincide with your next upleg acquisition. However, their are structures like reverse exchange, that could potentially give you some more flexibility with your acquisition window, the reality is that you are at the mercy of the DST sponsors management timeline. If the future vacation property type is abundantly available and can be easily acquired at any time, the aforementioned concern is less of an issue.

Please post your experiences when you do it.

Best of luck!

1. cashiers check money order or zelle(once a zelle is sent it can not be cancelled), avoid credit cards because they different laws regarding consumer protection that allow for chargebacks....avoid cash, you don't want to be known for having thousands of dollars on you

2. I don't do airbnb, but from what i have heard, short term tenants will tend to be either easy on your place or really hard on it, your neighbors probably won't be happy about it, your whole model could be shut down at any moment because of the HOA, so there's plenty of expenses involved in remedying any of those issues

3. you should consider reading the AirBNB terms of service, as I believe it specifies the insurance requirements, along with consulting your mortgage holder

4. Liability is always your  major legal consideration

5. it's all challenging at first

6. mistakes to avoid: making exceptions to your criteria, not running full credit/background check EVERY time, renting to friends or family, not raising the rent a small amount every year, not doing my homework on current market rents, etc, etc, etc....

good luck!

Post: Handyman wants to move in

Isaac S.Posted
  • Posts 563
  • Votes 561

everybody is right....bad idea

OH, and I almost forgot to add....some so called "investors" on BP are just selling for coaches or syndication ....but, don't take my word for it because according to them, that's a "hater" with a negative mindset, blah, blah, blah...always be skeptical when people are gonna show you how "easy" and "rich" and are only charging you because it weeds out the not serious people because now you have skin in the game.... more, blah, blah, blah

Reality check: zero real estate investors were successful, due to a paid for coach or guru, who after becoming successful, didn't say I would have got there with or without them....also, zero competent and successful asset managers or investors need to or want to have side gig being a mentor/coach, there's not enough time in the day!!!!

Originally posted by @Chris Collins:

This is a great Q.  I've seen quite a few gurus out there, some great, some not...  I think @Charles Carillo said it very well above.  

I'd point out that coaching is only as good as your focus on the path, and the action you will take from it.  

(I've seen many people pay for coaching to feel like they're 'doing something' and 'taking massive action' when in reality, they're kind of just delaying taking action, and like to talk about how they're in XYZ program.)

I've also seen people jump into coaching programs, and take direct and coached action, and skyrocket in their careers.  

I think that the successful coaching students will take any coaching, and apply the knowledge and networking, and DO something, like go buy a property.

That being said, if you're looking at coaching programs, I'd suggest:

1. find a coach/mentor/guru that is personally where you want to be in X years.  They are your literal goal, not just 'an idea.'  "Coach JOE has 10,000 doors under management in a syndication model.  They personally cash flow $XYZ per year.  THAT is exactly what I want."   or   "Coach JANE personally owns 300 doors to their name, no investors, and cash flows $XYZ per year. THAT is exactly what I want."   

2. Once you find that person, I'd personally suggest going after them wholeheartedly, and once you're on board, stop listening to other gurus/experts on social media/blogs/etc.  They will simply cloud the path you have clearly chosen.  (If you are being coached by one guru who is teaching you how to own your own doors using hard money, but also listening to a syndicator who partially owns their doors and brings on investors and promotes that model, those are different game plans/paths and will only cloud your focus).

3. If you are assessing if this person is the real deal, ask the hard questions until you feel you have a good answer.  This is tough, because the sales process will make you feel rushed, or like you're wasting their time when they are in such high demand, that you are LUCKY to get into their $XYZ program...  This should be a life-long path you're going down, so stick to your guns until you're satisfied.

4. don't be woo'd or glamorized by flashy sales techniques.  Real estate is boring, and not always cute, why should the coaching be?

5. be aware if you're being coached by the guru themselves, or a coach 'below them.'  If being coached by someone below them, THAT is who you should really be sussing out.  I've seen gurus hire coaches with very little experience. Then people pay the guru based on the sales tactics, but the coach they're getting is definitely NOT worth (any) money, in my opinion.

6. Once you sign up, and fork over any time and money, please please commit to take action on your coaching, preferably as you go. Don't wait to 'know it all' from the coach before you start working. Most processes have action steps along the way, you'd be well off to just get moving in this game.  The next steps will present themselves, and your coach should be able to hold your hand and guide you as you progress.

Hope that helps! Feel free to ask any Questions.  

 Do you mind if I ask: Have you ever paid for coaching or sold your own coaching service?