All Forum Posts by: Khaled El Dorry

@Bryan Feik do you know if this tenant has long term prospect where he can stay 4-5 years? If that’s the case adding the toilet to accommodate a customer of yours may be a worthy investment long term. If he doesn’t like it he can always move to a more accommodating situation if that makes sense.

@Tucker Cummings I took my 401K and rolled it into a self directed IRA in March when Covid hit the stock market hard and it was very simple. However that was my ex employer who I don't work with anymore and haven't in 3+ years. I don't know if you can do the same with current employer 401K or not but I do know there are a lot of people who use their IRA's (and I may as well) to invest in real estate. Good luck!!

has anyone ever tried completely outsourcing their marketing and deal findings to 3rd party and took over the process from due diligence/run the numbers and then close and operate?

As an example you pay a company or someone X or a fee to run your marketing campaign, find the deals, negotiate and get them under contract then the investor takes over from there?

@Caleb Brown which programs do you use?

@Jason Baker I think with $400K you can do a

Lot of damage (in a good way). If you have time and can invest it into a marketing campaign you may be able to get something on the cheap in a good area, add value to it and then keep it or sell it as you see fit. I’ve heard of some

People making excellent returns on these 15-20%+. There is also the complete opposite side of it where you can put that money into a syndication and it will be headache free but returns will likely be in the 7-10% range.

With real estate I learned that it all depends on how much time you can afford or want to put into it. I personally went the turnkey route because I have a 80 hour a week job so can’t afford to find the real hidden gems the pros do. What I’m working on right now is partnering with people who can do that and get in on some bigger/more profitable deals where they have the time/ expertise to find them and I have the capital and data analysis ability.

So at the end of the day it all depends on what you’re looking for. Best of luck on your journey!!!

@Bhavin Doshi there is also the turnkey option. If you find the right team it’s almost exclusively hands off passive except the due diligence piece and a visit to the properties to check on them from time to time. The catch is your returns will be lower than what the pros do when they find a distressed property and a motivated seller as they trade their time and system costs for the large down payment you may have to put down. For $60k you can get something in the neighborhood of $190k (ish) worth of properties in turnkey assuming 25% downpayment (which is what I do) assuming some closing costs and a little fudge factor.

So again just like almost everything in real estate. What do you want and what are your long term goals.

@Charles Carillo I haven’t personally done any no money down strategy and do find it a bit too risky for my taste but curious why do you call it a recipe for disaster when a lot of people you read about have done it so successfully?

@Brandon Fuhrman it’s very hard and speculative to control appreciation as anything can happen and a property value soars 20% or tanks 10%. If you are looking to get in and out very quickly you are taking a risk this early in the game and you are better off flipping or wholesaling in my Opinion to make a quick cash turnaround. If you hold a property 10 years the odds greatly increase in your favor that it will appreciate and cash flow will self sustain it. I would advise to look for cash flow but at the end of the day it all depends on what your long term goals are.

For me personally I want all my income from work to be replaced by the time I’m 45 so I buy and hold and look for good cash flow. That generally means I don’t consider appreciation at all in my math and despite that my 3 properties have appreciated cumulatively about $80K in the 3 years I’ve been investing. So I think as long as you buy in a good area appreciation in the long term will take care of itself. So 3 down and 37 to go for me (I have a duplex under contract)

Welcome to the game and best of luck.

Hell BP community - I am looking to expand my portfolio and recently joined (but haven't attended yet) one mastermind group for people with W2 jobs and really looking forward to it. 1 is good but more is better and wanted to get a list of other groups that help people with W2's navigate the market. I have 3 SFH's and closing on my first duplex with a goal of buying 32 doors in the next 3 years. Any info would be appreciated it. I'm not interested in the $20K groups as I feel that's overkill for me. I would rather put that in a good deal.

I have been going the turnkey route and it has gone well but it doesn’t scale as fast as

I would like thus looking to network more to see

If I can have a good team to partner with.

Thank you.

@Dean S. I break it down into good debt and bad debt.

Bad debt = credit cards, car loans, etc... these I try to pay off at all times (and not have them in the first place)

Good debt = mortgage on a rental property. In this department at this point I’m still building wealth so I’m not using the cash flow I make off my rentals (roughly $1000/month) to pay off any of my properties until I buy all the real estate I want to establish my goals. I’m at 3 doors now and will be at 5 in 3 months and want to get to total 33-35 doors. Once I hit these I will use 50% of the cash flow to pay my lowest debt investment and work on the next one, etc...

After all that - I’ll pay off my own house and then call it a retirement. Of course I have to execute all that first :)

My 2c