All Forum Posts by: Jameson Hooton

+1 for @Collin Schwartz’s meetup. 

I’m going to try to attend the newbie meetup on the 8th, too!  We have to drive to North Platte that night, though, so it depends on the time.  Have you and Heather talked about a time yet, @Peter Vazquez?

I’m curious about the various approaches to analysis out there.  Every book I’ve read describes the math a little bit differently, or focuses on different elements. 

For example, Brandon Turner's book says that ignoring maintenance and capex is one of the main reasons that people fail, but David Greene's BRRRR book's section on analysis (if I remember correctly) didn't mention maintenance or capex in the numbers.

Or, another example:  Brandon Turner loves cash-on-cash return, but Paula Pant doesn’t like that metric and prefers to look at Cap Rate. 

Some people, like Paula Pant, seem to imply that hitting the 1% rule should guarantee decent cash flow and a property worth buying, but other analysis methods make me think 1% is too skinny of a deal. 

I’d just love to hear about what approaches work for you.  What do you include in your math.  What metrics mean the most to you.  Thanks!

@Collin Schwartz, awesome!!  I sent you a PM.  And I’m looking forward to your meetup tonight!

Hey @Andrew B.!  It's funny you should mention it - I was planning on going to @Collin Schwartz's panel discussion tonight!  Maybe I'll see you there in a couple months!

And I'd love to chat with you about Benson and contractors.  I just sent you a connect request!

Nice to meet you, @David Frost!

Hello everybody!  I'm new (gearing up for my first deal in the next year or two).  But I'd love to take the time to get to meet other investors in the area, or to look for quality recommendations for people to work with, like wholesalers, contractors, or portfolio lenders.

I'm interested in BRRRR investing and the Benson area. I'm looking forward to meeting some new people!

Hey @Collin Schwartz, did you ever find a good wholesaler in Omaha? I'm hoping to follow in your footsteps and BRRRR some properties, but up in the Benson area. :)

Hiya!  I'm still new, haven't done any deals except buying my house (that I'm living in) and I'm a bit confused about how you get funding for your very first deal.  From what I understand, banks don't loan to investors who don't have two years of real estate management experience (which you can't get until after you've done your first deal) and won't count the rental income towards your debt to income ratio.  Is this correct?  

So, what are the options for first time investors?  Move into the new place for a year so that you can get a loan as your primary residence and rent out your old place?  But will the bank count the rental income from your old place towards your income?

Hard money?  Private lenders?  Sure.  But if you want to refinance out of those, do the same loan requirements apply?

I'm very interested in trying to do a BRRRR deal - I'm just not sure what to do to make that first deal happen.

How did you do it?  I'd love to hear your thoughts and advice!  Thank you in advance!

@Ola Dantis, I understand what you're saying.  These precise calculations might not be a good use of time.  (I think that was @Joe Villeneuve's main concern as well.)  But I think some people in this forum are taking my questions more literally than I intended.  I'm not overly concerned with getting an exact return per hour calculation, or tracking it over time.  What I am asking COULD be calculated that way, in a very precise way, but doesn't have to be.

My real question, deep down, is "how much time does real estate investing take?" in a broad sense.  More specifically, "how much time does self-managing a property take?"  Not so that I can calculate an exact hourly rate for myself, but so that I can know what I'm getting into.  Does real estate make more sense for me than other types of investments?  Does self-managing a property make more sense than outsourcing the management?

For example, I assume most people get into real estate instead of stocks because they think they can get a higher return.  But how much higher is the return?  And do they feel the extra work they need to spend is worthwhile?

I'm just trying to get a sense for what I'm getting myself into.  Some people here have said that they spend, on average, a few hours a month managing a property.  That doesn't sound so bad!  Other people say, "I live and breathe real estate and spend every waking moment working on my business."  Now, that's great! (I've also been passionate about the research) - but that sounds more like a full time job than a passive investment.  Is all the effort worth it?

And, since there's such a wide range in the answers, I still feel like I have no idea how much time all these specific activities will take.  I'm afraid I might not know until after I own a few properties.

But, that all being said, I think I have learned a few things so far:

1)  Hours spent on a good rehab will be worth thousands.  Definitely worth it.
2)  Hours spent self managing might not be worth it.
3)  Hours spent "front-loading" (buying properties, networking, building systems, etc.) will pay for themselves over time in exponentially increasing ways.
4)  People in these forums have a wide range of opinions!  haha

EXACTLY, @Marcus Johnson. It’s a cost of doing business.  If you have to account for paying someone else to do it, you should account for paying yourself to do it.