All Forum Posts by: John Hyatt

Hi Eric,

I got this ebook on Amazon for free (not sure if it’s still free) called “No BS Real Estate Investing How I quit my job, got rich, & found freedom flipping houses…and how you can too” by Preston Ely. He was a wholesaler, I read the whole book in about 3 days or less it had some good stuff, easy read. I am more of a buy and hold so I didn’t really pay much attention on how to wholesale the property as far as items needed etc. As far as making offers, I would just make an offer and get it under contract with a contingency that you can re-sell it for more etc.

-John

Hi Zach,

I use a few different sites for my neighborhood. I downloaded the "realtor" app and just click the near me function and you can search for active and sold listings around you (really cool when you're traveling and just want to know how much homes are going for in the area). I am a real estate agent and use the MLS, but I have to say in my neighborhood Zillow is within about a 3% error margin. I would list my house for $170k and Zillow has it estimated at $171,800. The reason Zillow can be way way off is if their info is incorrect, such as 0 bed/2 bath or 900sqft when its really 1200sqft. Zillow doesn't take into account pools, remodels, etc (unless you own the property and go in and make the updates which most don't know how to do). Another reason Zillow can be off is if a Hedge fund or private investor buys several properties for $2m let's say it will show every house as $2m. That being said you can look at Zillow and look at recently sold comps or Realtor does the same. You should be able to get some idea of the market in your neighborhood from that or like you said ask a realtor. The nice thing about Zillows mistakes is that if you do find a 0 bed house usually the zestimate is low…so you might want to scoop those up. Depending on what you are looking to do with the house, I would also drive the neighborhood.

If you are looking to rent the houses out or sell on a rent to own I would recommend rentometer, Zillow, and realtor as they are usually within reason.

-John

Hi Angel,

I think “local” is a relative term. I know people who drive 2 hours to work and another 2 hours going home each day. To me that is insane, to them it is no big deal! I think there are several factors to take into account. For example, if you were planning to flip a house then you might need to go at least once a week if not more to the property. If it is a buy and hold of a commercial property then it might not require as much time at the property. My dad manages mobile homes that are over 2 hours away each way and travels to the properties once every several years. It all depends on how, what, and who you manage. That being said I consider local within a 15 minute drive or 8 mile radius from my house. If I found a great deal outside of that of course I would take it, but I am focusing on single family houses near my house that way if I have to show a house to a potential tenant I can be there anytime. If I were buying a mobile home park I would say anywhere within a 6-10 hour drive each way, because you won’t have to go that often.

-John

I hear all the time in seminars, books, and even talking with mentors to write down my “Why”. They provide the example Darren Hardy uses of walking a plank for $20 anyone would do it easily. Then they say if the plank was at the top of two skyscrapers then there is no way you would do it for $20. If however, you child was on the other skyscraper and the building was burning you would run across and save them for no money at all. They ask what changed? And the answer is your “Why” (Darren Hardy says it much better than me, but hopefully you have heard the story or similar). I have a why statement and its true its all the reasons why I would do something, but when I read it I don’t get all passionate. My main why is financial independence so I can spend time with my wife and future kids (none yet) and help those less fortunate (My actual Why statement is several sentences – this is just a summary). I feel like my “Why” statement isn’t that powerful, although it is the true reason why I work so hard and never give up.

I tried searching online for some good “why” statements, but I couldn’t find any, only mission statements.Hence, the reason for this post is, do you have a “why” statement that you would like to share? Is it supposed to make you feel passionate every time you read it? I am reading it every morning and night, but feel like I need to change it to make me more passionate when I read it. I would love to hear your thoughts.

Thanks in advance!

-John

Hi Jered,

I used to work for Equity Residential (Sam Zell's company) several years ago as an intern and the way they do it is they have a site that people can sign up for automatic deposit or pay immediately or people can drop off checks in person (similar to what you are already doing). The thing is that if they bounced a check two times they were no longer allowed to pay with checks, it had to always be a cashier's check from then on out. The website that people can pay on immediately had a timer and if it was a second late they were charged a $50 late fee. Basically, I think this is a problem even the big guys have to deal with, the unit I was interning at was 316 units and that was one of the smaller properties. I think the best way to prevent this is to make sure you have quality tenants by pre-screening, which I am sure you are doing already and setting guidelines and rules up front so they know you mean business. I once read a tip that I thought was priceless, they said not to have them write checks in your name, but the LLC name and don't let them know you are the owner (if possible, dont lie though). When they write checks to a person they feel as though they can take advantage versus a company.

-John

Hi Jordan,

Congrats! I love hearing stories like this, I admire your persistence! I started in Real Estate at 13 too and my favorite Bible verse that helped me get through some of the constant "Advice" about me being too young etc was 1 Timothy 4:12 "Don't let anyone look down on you because you are young, but set an example for the believers in speech, in conduct, in love, in faith and in purity." (NIV)

-John

 Hi Wayne,

These are all very great points to consider, thank you! My dad is my business partner and my main purpose is to find deals and then sell them on a rent to own. My dad is a John Burley black card member and has his contract that states if the seller notifies the bank and a DOS occurs they owe him a large amount of money. John burley has done over 1,400 deals and only had 1 called. My dad has investors lined up, not worried about money for deals or if DOS is called. We are currently paying $90k to $150k for houses and rehabbing them. I want to find Subject To's that way I can get in with little money and if it is an expensive one then my dad or investors will get involved. The reason I am trying to save as much money as possible is because I am putting every dime I have into paying off student loans. I think the handwritten letters or home made postcards are very cost effective though and will start implementing that with craigslist posts.

 That's a great idea Brian! That should give me a larger amount of homes in my area. 

 Great idea David about script!

 Thank you Christy! Those are some great ideas! I will post on Craigslist today and get supplies for letters as well. I will keep you posted :)!