All Forum Posts by: Jim Kalish

@Bonnie Low hit the nail on the head.  Start now.  Do your research.  Analyze each deal.  Make business decisions, not emotional ones.  Take any personal bias out of it.  Just because it's not the house or apartment you would live in, everyone deserves affordable, clean and well maintained housing.  So look outside your comfort zone.  Remember, building equity is long term.  Check out this site: https://www.visualcapitalist.c...  On average real estate has increased in value significantly over the last 20 years.  
"At the turn of the century, the average U.S. home value was $126,000. Today, that figure is at a record high $259,000 – a 106% increase in just two decades."

And while I'm on the subject, every property you buy should always be top notch.  It might not be in the most prestigious neighborhood in your city but never say its good enough for this neighborhood.  If a tenant is paying 400/month or 3,000/month they deserve the same respect and attention.  Take care of your tenants and they will take care of your property.  I don't mean to preach but we all hear about the landlord who let's their properties sink into disrepair because they put short term gains ahead of doing what's right.  Be that landlord that get's Christmas cards from your tenants, not complaints to the housing board.

Wow, this hit a chord. To be honest I did not read all the posts. Let's keep in mind the lines they are pulling are unsecured lines, not HELOCs. At least that's what the press releases say. Don't get me wrong, I'm not a big fan of Wells. I had 5 notes with them a few years ago but have either refied with others or paid them off. But the real issue is does anyone do HELOCs or business lines secured by properties anymore? Someone mentioned US Bank. I spent several weeks negotiating with them and the loan officer kept telling my partner and I we were perfect and promised all kinds of things just so we would go to underwriting. Then underwriting offered us a business line that was 10% of what the loan offer said and wouldn't cover the entire refi on our properties, which would only have been at about 30% LTV. So they are all the same. Negotiating with TD Bank now. Let's see how that goes. I'm not holding my breath.

Since I'm always telling people to get as much education as possible I put my money where my mouth is.  OK @Cody Sperber let's see how this goes.  I just plunked down $97.00.  No, I didn't opt in for the extra 97/month for the special access to your insiders group.  My first comment, after spending the $97.00 you immediately tried to upsell me 5 times before giving me access.  That's a typical guru strategy.  And no, guru is not a good thing to be called.  Let's see how this goes.  And I'm hoping you aren't goin got pull the training videos or access to the users area after 30 days.

I hate to jump on the bandwagon here but there is something about this that just doesn't pass the sniff test.  I realize housing in your area might be priced differently than in others but material costs are material costs.  And labor doesn't differ that much.  So 20k is nothing. Roof, paint in and out and carpet will eat that up.  And why isn't he paying you interest only each month.  I realize its not much but that's part of the game.  And in this market if he is offering 10% then you should get at least 1 point on top of that.  If you decide to go forward don't just rely on being on the deed.  Get a promissory note.  Its basically a mortgage that he can't get out of and you can foreclose if he defaults.  And when he sells you get paid before he gets a penny.  Proceed cautiously!

Good luck

Hi @Tyler Boykin.  Welcome to the world of real estate investing.  I'm not going to second guess the work you've already done.  It all depends on what the rest of the neighborhood looks like and what sells.  So what I think you should do doesn't matter.  But I would suggest as others have, a window A/C doesn't cut it.  There was a time when homes in the north could go without central air but even there its become the norm.  But again, what's the rest of the neighborhood look like?  As for the efficiency of the unit, most buyers today are well indoctrinated in what SEER means.  So they will be looking.  I'd go middle of the road.  Its going to be 4-5k.

But the bigger issue is the fundamentals.  The old saying you make your money when you buy has never been more appropriate.  As @Ronald Allen Barney said, all of this needs to be resolved and put on paper before you even offer.  You and your partner have to agree on every step up front.  And a rough estimate is fine when you are weeding out the loser deals.  But when you are getting ready to make the deal you need to know just what you are going to do and what it will cost.  If you go into a deal hoping to figure it out as you go you will almost definitely lose money.

So in this case take a close look at what has sold in the area over the psat 6 crazy months and use that as your go-by.  Not just the price but what was done to them.  There is a good chance you can still pull up the ads that were listed on sites like Zillow and Realtor to look at the pictures and descriptions.

One more thing.  Get rid of the old knob and tube.  You will most likely have to disclose that and since most people won't even know what it is they will google it and walk away.

Good luck with this one.  I hope you see a profit.

When I started in 2008 ( stop laughing) I simply jumped in with both feet. I had no idea what I was doing. I did absolutely no self education. so step 1 as the Jason said I would tell myself to learn as much as possible about what I was about to do. 

After I got started and was looking for the next rental property I was overly cautious. But I based on gut feeling. I missed a lot of really good deals. I look at neighborhoods I passed on 10 years ago that turned out to be gold mines. And the signs were there. I just didn't do the research. So step 2 I would tell myself to actually analyze each opportunity and not go by but feeling. And there is no perfect deal. 

Had I done these 2 things I have no doubt I would have significantly more equity and higher cash flow now. 

Great question. I hope newer investors learn from all of this. 

Good luck in your journey!

Welcome @Yousef Diab to this exciting and very profitable career.  I wish I had the foresight to start when I was 18.  First off, @Bruce Woodruff gave you great advice. Run with it. And check for a Real Estate Investing group in your area, or a REIA. If you find one, join it. If you can't afford it go as walk in and pay a small fee, maybe $15.00. The ones I go to start off with vendor showing off what they have and than there is a meeting with a speaker. Both the vendor booth and the speaker are great learning opportunity. And don't be shy. Tell everyone you talk to that you are a newbie and want to learn. Find mentor. Maybe work for them for free for a couple of months bird dogging (you'll learn about this in your readings) or making cold calls for them. They may even pay you a small fee when you find them a deal. Personally I would stay away from the big dollar guru courses. But that's your call. BPs offers so many learning opportunities for free at the very least start here.

Good luck and lt us know how you are doing.

@Gerald L Biggs you've got the right attitude.  But now its time to do your homework.  Education is key.  You have to develop your plan in detail and follow it. Driving for Dollars, that's what you are doing, is one of several successful strategies.  But you should look at a few to see what works best for you.  When you ar DFDs you should have a specific list of what you are looking for.  When you see a house that has those traits you feel make it a good candidate; long grass, needs a roof, generally run down, etc., write down the address and list why you wrote it down.  When you call have a script.  But don't sound like you have a script.  And be ready for a lot of no's.  @Austen Mueller hit the nail right on the head about your team.  You can't do this alone and reach your goals.  And @Jon Kelly is right.  200 calls is just a start.  So read everything you can and develop a strategy that works for you.  And it can be more than 1.  BPs has a great list of books.  And join in on the webinars.  But whatever you do, be willing to take a little well thought out risk.  You will never have all the info you need.  Listen to one of @Brandon Turner blogs for the rest of that statement about perfect info.

Good luck and let us know how you are doing.  One of the best things about BP is that everyone is willing to help.

Not to be disagreeable to some of the other responses but if you want to be successful the simple answer is YES!  This is not a business you do by yourself.  And this is a business.  There is a really good book by David Green titles "Buy, Rehab, Rent, Refinance, Repeat" that has a section on this very topic.  You can get from Audible or from BPs.  But the bottom line is you need people around you to support you.  Contractor, realtor, lawyer, accountant to just name a few.  And as for tenants don't jump at the first one that comes along.  Check the laws in your state to see what you can require and what kind of background check you can do.  But requiring a certain level of verifiable income for the 12-24 months as well as verifiable rental history (not with someone's relative) for at least 12 months with no evictions is perfectly reasonable.  Tenants are not your best friends.  Don't treat them like they are.  Treat them with respect and take care of their needs as quickly as possible.  But don't let them slide and don't get too close.  Remember, a lease is a legal and binding document.  Treat it that way.

Most importantly, education is key.  Read everything you can.  BPs has great webinars and books.  The webinars are free.  When you are ready join as a pro member.  And as @Account Closed said join your local REIA if there is one.  I belong to one in Charlotte, NC.  I think a single membership is about $200.00/year.  If you are in a larger city they should have one as well.  And they usually have smaller group meetings you can attend for free if you are a member.  Go to the meetings and network.

Best of luck!

@Ivan Casale

Yes, NC requires an attorney. See the opinion  by the NC bar

https://www.ncbar.gov/for-lawy...