All Forum Posts by: Jon Kelly

@Mike Schorah It's doomed! DM me to sell your properties to me, I'd be glad to pick more up :) 

@Mike Schorah you don't even believe in yourself and your deal(s) what makes you think your uncle will? 

You mentioned, "I don't want to put $35k down on a hard money loan and risk my house if I'm not able to make the payments (especially if I blow out my reserves and have to pay $350/month in HELOC payments)." 

Your girlfriend backed out. Your mom backed out. You need to give them (or any other person / lender) a reason to trust and believe in you. Experience is a very valuable thing. I would suggest trying to invest your owns funds on your first deal. After you prove to yourself you're a successful real estate investor then start reaching out to scale up. 

@Kyle Wagner There's no secret to this. You get 24 hours in a day or 168 hours in a week just like everyone else. You need to prioritize what's most important to you. You should write down your daily schedule to see how many hours you devote to each category. If your day/week is truly filled up then BRRRRing probably isn't for you at this time. You can consider other forms of passive real estate investing (e.g. becoming a limited partner in a syndication). 

I would suggest creating goals and a more short-term plan. You mentioned you want to invest in real estate to be able to retire after 25 years... That's all great and admirable, but what does that actually mean? Reverse engineer your long-term plan into actionable steps you can take today. How much money do you want to live off of? What do you have to do now or within the next 3-5 years to be on track? 

The best advice is start sooner than later. 

@Sanjeet Dighawa Are you concerned about not following the law? Maybe you should use a property manager if you have any reservations on following the law. 

You generally expect lawyers to be strong tenants. They have a strong income and their reputation means everything to them. I wouldn't expect too many raging parties until 4am and breaking doors/windows. 

Interesting post in a real estate forum... You want real estate people to tell you other non-real estate related businesses for you to invest in? There has to be better places for this. 

@Derek Nemec I love the fact you took action without even knowing the steps. So many people are afraid to act because they consider the countless "what if" scenarios and never get all the answers. You will learn so much in this process and will be even more confident to purchase others like this. 

Don't be afraid to call a closing attorney in your area. Explain the situation and ask for a little guidance. Most won't charge anything if it's a simple 15-30 minute conversation. Worst case they charge you a small fee. 

@Nicholas Adams You listed 5 different potential strategies and there are countless other options. Most new investors hate this answer because they want someone to tell them what to do, but you need to start with defining your goals. You can set goals related to: cash-on-cash return or IRR per month/year, cashflow per month/year, # of properties/units, time involved, etc. From there you can narrow down the investment strategy that works best.

For example, if your family member wants it 100% passive because, "she is young and still wants to be able to pursue other things," then she can consider becoming a limited partner in a real estate syndication. She can earn 8-12% per year for the next 3-5 years and then rinse and repeat. 

If she's willing to do a little leg work she can consider buying a turn-key single family property. This property will be completely renovated and can come already rented. 

Or, you can teach her how to house-hack. Or, she can invest in your house hack... Opportunities are endless. Define your goals and pick a strategy.

@Stacey H. it's all market dependent. What do you believe the market rent is? Zillow can give you a decent ballpark but I wouldn't rely completely on it. You also have to factor in the property condition. Is the property up to market standards? Or, is there a lot of deferred maintenance? 

If the property is up to market standard then don't be afraid to raise rents. 17% or $275/mo is a moderately high jump for a tenant. Be prepared for them to leave if they can't afford it. Then, be prepared to rehab the property and be able to list it for $2,335. 

If there's a fair amount of deferred maintenance then I would try to leave the current tenants in place. I would give a low or moderate rent increase (5-10% or $50-100). This allows you to build up reserves to address the upcoming repairs. 

@Brian Plajer I would at least network with potential partners ahead of finding deals so you aren't starting from scratch. It's good to know "if I find a deal I can contact "X", "Y" and "Z". You don't need to formalize an agreement before finding a deal. 

The deal is always the most important. A great deal can attract a lot of investors/partners

@Marci Stein Why not pay their moving or additional living expenses for another apartment for a short period (3-6 months)? 

I think you'd want to take possession of the property and get started with repairs ASAP. I wouldn't let them continue to live there and have the property deteriorate AND likely have a battle to evict them in 12 months.