All Forum Posts by: Joe S.

OK first off you were once broke and living in moms basement or garage thats a must.

Also no real Guru can go to market with out pictures in a private jet preferably in the air.. One can rent one for about 5k an hour so book and hour get your photos and off you go.

Now Ask Kevin actually bought a phenom  3 I think and now every video he does he mentions he is now a JET PILOT with a whopping 300 to 400 hours.. he started in the Cirrus same plane I had. But I dont come off as a Jet Pilot expert like him and I have 5 times the experience he does. So Now Kevin is jumping into the Aviation crash U tube scene like commenting on Air India flight like he knows LOL  Sell the sizzle.

Also keep mind Guru's are only as good as the Utah fulfillment company they hire to market them and run the back end..And really good fulfillment companies ( they manage all sorts of trade shows and different speakers on tours) These guys make Bank the ones that own those companies  I mean BIG MONEY

You've got to pull on your student's heart strings. Remember you're not really selling real estate knowledge; you're selling freedom, the ability to quit their job, and spend more time with their family. 

@Joe S. I'd say you've got a pretty solid set of ideas here. One thing I did notice was missing is a story about how you went bankrupt with a previously wildly successful business as a septic tank cleaner but were able to pull yourself up by your bootstraps with a set of breakthrough real estate investment techniques you invented.

You need that 'common man' appeal since your students will all have terrible credit and be working dead-end jobs or businesses that they hate. They need to be able to identify with the old failure you in order to be inspired to pay to become the new successful you.

Hey I am Joab Kirk,

A new investor looking to start my real estate journey. I currently live in Adelaide South Australia. I have always wanted to invest in real estate as my day job and my passion, firefighting doesn't allow me to have the financial freedom that I want. I started my education journey listening to the early episodes of BP podcast and reading many books that have been recommended through the podcast. After nearly a year of education i have been able to come up with a business plan on what i think would be a good place to start. I would love any feedback anyone could give even just a thumbs up would help let me know I'm on the right path. 

Buy a house in Mt barker or in an Area that is showing good signs for investment. To buy an average house in MT barker it costs 700k and I can get a first home buyer grant for 5% deposit (35k). Then I want to house hack my house and rent out 1-2 rooms for tenants. I will try to find a good deal and get a house that I can confidently say will gain equity in the next 5 years. I will then try to find an investor to help me add to my deposit not sure how much but maybe 50k in exchange for a guaranteed return (e.g 50k investment and 25k return in 5 years). This will bring down the monthly mortgage payments and I will be able to sell the house in 5 years for a profit for me and the investor.

Financials:

Purchase price: $716,900 (Mt barker median)

Deposit of 5% from my personal funds and 50k from investor for a total deposit of 12%. $85,845
No lenders mortgage insurance with First home buyer government incentive

Loan amount: $631,000

Interest rate: 5.0% (owner-occupier, 30-year term)

Monthly repayments:

=$3,385/month

=$40,620/year

Rental income from House Hacking

2 roommates paying $280/week → $560/week

Total rental income = $29,120/year

Out of pocket (annual) = -40,620 + 29,120 = -11,500

Negative Cash flow but still cheaper than renting and building equity in my property

Assume 6.5% capital growth annually (conservative for Mt Barker):

$716,900 grows → $981,000 in 5 years

Equity gain = $264,000

House value after 5 years $981,000
Loan remaining –$562,000
Equity $419,000
Repay investor ($75k) –$75,000
Your profit ~$344,000

Private Investor (family or friend) will give me the 50k as a gift 3 months in advance so the bank considers it as genuine savings. 

Will need an atorney to structure my investors contract but looking at something like the offer below.
Offer 8–10% annual return (simple interest) = $20–25k over 5 years.
Structure: Gift
Security: Put a caveat on the property to secure their funds

Location research:
In Mount Barker, rental demand is strong, with a median house rent of $570 per week, reflecting a 4% increase over the past year. However, the rental vacancy rate is low, at 0.81%, indicating limited supply. This tight market can make finding rental properties more competitive. Mount Barker is experiencing significant growth, with a projected population increase to over 55,000 residents, positioning it as South Australia's second-largest city. This expansion is spurring substantial infrastructure and employment developments. For instance, the Mount Barker City Centre Project is a $100 million initiative aimed at revitalizing the town center, including new community facilities and business opportunities. Additionally, housing developer Cedar Woods has acquired a 64-hectare site to create a master-planned community with approximately 860 dwellings, contributing to local employment and economic growth. These developments are expected to enhance Mount Barker's infrastructure and job market, presenting promising investment opportunities.

I know this is very rough but would love some feedback before i put it all into a package. 

Kind Regards,

Joab Kirk

Curious, you can consider this market research, but what's holding you back from hiring someone else to manage your STR(s)?

I know the obvious answer, too costly? 

But what else? Do you just enjoy it? Maybe time isn't an issue? You don't think anyone could do it better? 

We just started with S8 Acquisitions, which is not S8academy. S8 Acquisitions does state that they offer an all-in-one experience. The acquisition of the property, the PM and it can be section 8 tenants if you wish. Thus far, you pay up front the wholesale fee of $15,000 for three properties. The properties will be sent to you via a portal. We started back in late May and received 6 properties to make offers on. Most were MLS properties and not meeting our requirements. Our loan officer said to keep it at a DSCR ratio of 1.2 or higher for the DSCR loan. We are having a hard time finding that DCSR Ratio without having to lowball the offer to almost half the asking price. We choose to use the Affirm payment plan because we did not want to pay the wholesale fee upfront. However, S8 did mention over the call that they would refund us the fee if not happy.

I am a new real estate investor, I have two properties. Both tenants have their lease up and I gave them new leases. Tenant A received the lease and did not pay or acknowledge she is going to sign. Tenant A has been a problem with not paying in the past, I went to the eviction office today and filed an eviction for Tenant A. 

I just bought another property for a house hack and gave lease agreements to all the tenants. This one tenant is giving me some serious problems (tenant B). Tenant B is on Month to Month with the original seller, I gave Tenant B the lease agreement for month to month, I signed it and was waiting for her signature. Tenant B signed it but added an additional clause. The contract is now void. I am going to give tenant B a 30 day notice. I may have to file for eviction.

My question: Even with eviction notice or 30 day notice, does the tenants have to pay for rent? If they do not, how would I get the rent from them? If they do more damage to property than security deposit, can I go after them for rest of payment for damages? What would be the next step?