All Forum Posts by: Jon Kelly

@Giovanni D Midili I was in the same fork in the road as you 5+ years ago (except for the child :) ). I decided to invest in real estate and continue paying the minimum student loan payments for two reasons:

1. I assumed I could earn more from real estate investing than my interest rate on my loans. My weighted average interest rate on my loans was around 6.5% (I’ve recently refinanced down to 4%).

2. I didn’t want to delay my real estate journey any longer. I had the bug, just like you, and didn’t want to find another excuse not to dive in. I could’ve paid off my student loans in full by now, but real estate investing is much more exciting!

5 years later, I continue to pay the minimums and use all excess $$$ to fund my next deal. It’s the best decision I made.

It’s not just about the number of properties, doors or monthly cash flow. It’s the extra 5 years of experience, knowledge and relationships gained.

@Tina Lee what is your minimum criteria? If you don’t have one then create one. Make it black and white. It takes away (1) the time wasted in making the decision and (2) the emotional aspect of making the decision.

A minimum of 650 is often acceptable, but that can increase or decrease depending on your market.

@Kaylee Walterbach write down your goals, repeatedly. It starts with the mindset of committing to your goals. While this isn’t a tactical answer (many have already provided fantastic tactical options), it’s a great place to start. If your goal is to buy “X” number of properties within 12 months and you remind yourself repeatedly, then your focus shifts solely on the goal. You don’t allow the temptation of buying the new car or a new piece of jewelry to sink in.

@Maxxwell Crowley I hope you're not paying anyone to build tenants' bed frames or dressers... 

$75/hr isn't unheard of. Make sure you're aligned on timing expectations to complete a task. You don't need a formal proposal for minor tasks, but the handyman should be able to say it will take "X" hours to clean gutters. 

@AJ Holt you are already trying to limit yourself. "starting late" "32" "wife and 3 kids" "can ONLY save $500/mo."

Adjust the mindset and commit yourself. Reduce expenses or increase income to save more $$$ for a down payment. 

I would suggest networking with local real estate professionals while you continue to save. Can you become a real estate agent? Can you assist a local contractor and repair some properties? Can you find deals for a local investor and get paid? 

@Alix Cassagnol you targeted a motel for a reason. Did you originally plan to stay with a motel or convert to multi-family? 

If you truly didn't know what you wanted to do then why pursue motels to begin with? 

@Jack Perfett I move all funds out of the deposit account and into the withdraw/reserve account.

It’s mostly for safety reasons, although not sure how much it helps. My PMs have my deposit account number, so I try to maintain near a $0 balance in that account in the event my number ever ends up in the wrong hands.

@Brittany C Spragins an agent is probably the most logical place to start. I would suggest you define your criteria first before speaking with your agent. Even better if you bring 3-5 potential deals to discuss with your agent. Doing this leg work up front with drastically improved your communication and relationship with the agent.

That said, there’s no reason you can’t also look for a local lender.

You can do both at the same time.

@Yuzi Stha why would you put that limitation in your lease if you aren’t going to stick to it?

What if their rent is $1,400 and they come to you and ask to pay $1,200? Would you allow it? Silly example, but the concept is the same

@Jamie Bsales as @Bruce Woodruff said, I was going to say never a bad time." "It's a bad time" is such a poor excuse for people to give up before you even start. What happens on a macro level can play little to no part in what's happening in your local markets.  

You won't know until you start looking. You should post your potential deals on BP and get feedback on your analysis