All Forum Posts by: Kyle McCorkel

@Account Closed

You will get some good feedback from the BP community - some will be more critical than others, but 99% of people on BP are just trying to help.

I think due to your age and inexperience, you absolutely must do the two following things: a) educate yourself about EVERYTHING by reading books and listening to podcasts and b) network your @$$ off.  Find people who ARE experienced in certain parts of the deal who you can get as excited about this as you, and partner with them.  Find people with money who you can get excited and who you can convince to trust you.  Find people who are smarter than you that you can learn from.

People WILL judge you for your age (not saying this is right, it's just the way it is) and you must overcome this by becoming an expert and being ridiculously professional AND by surrounding yourself with partners who do have the credibility and experience.

Be humble and yet confident - realize that you have much to learn and be willing to listen to others' ideas and feedback.

Be bold but not reckless in your actions - after receiving the proper education.

It would probably be prudent to try to do some smaller projects first to build up your reputation, but if you are dead set on doing this then by all means go for it, you just have to be willing to work hard (I'm talking 80-100 hour weeks), be humble and be bold.

Andrew VanCura Wow, awesome vision dude. My main questions are about your team and first set of actions. Who will design it for you, who will build it for you, how will you raise money? What is your exit strategy? Sell? Or hold and collect cash flow?

@Joe Ruggiero

I’m not sure how it would be frowned upon. Just be up front with your intentions at all times and you should be fine.

Joe Ruggiero Most agents in my opinion are not that good in general. Even fewer understand real estate investing - and those agents are usually investors themselves who are busy finding their own deals. I would suggest trying to reach out to each individual listing agent for each property that you are interested in. Find the properties on realtor.com, Zillow, etc. Then email the listing agent asking for a showing and tell them you would like them to represent you as the buyer for that property. You will get a lot more urgency from the listing agents since they will have the potential to earn both the buyer and seller potion of the commission.

My simple system is that all utilities that I pay (for example my personal utilities) I put on autopay. Then when I buy a new property I very deliberately sign up for utilities and elect NOT to do autopay but ensure that I am getting an emailed or paper bill. Then after the tenant moves in, if they don’t switch something to their name, I keep getting the emails. Then I just scan a copy of the bill and ask the tenant to reimburse for that utility, as well as ask them to move it to their name. The annoying emails that I keep getting serve as my reminder.

Dalton Osmanski Absolutely you can. I use my cash to make the purchase, then use private loans to fund the rehab. Then refinance and repeat. The banks (in my experience) just worry about what funds you use for the purchase.

Joe Ort I only have 2 data points... One beat projections and has cash on cash returns of about 25%. The other has had all sorts of water issues in the basement and overall has been cash flow negative. Overall I am cash flow positive between the two. Berate of probably around 10% return.

Does anybody have any book (or podcast/blog) recommendations that mainly focus on all aspects of direct mail? I'd be looking for something hopefully recent (within the last 2-3 years) that would include recommendations on tools and resources (such as list building sites/services) as well as different strategies: driving for dollars, pre-foreclosures, probate, etc.

Thanks in advance for any recommendations!

Agree with John Acheson Real estate is a pretty terrible investment WITHOUT leverage. Just run the numbers... cash on cash return of a $100k property renting for $1100 a) purchased all cash and b) purchased with 80% leverage. Keeping all expenses (except debt payment) equal. You can crush the stock market using leverage. You can at best keep up with the stock market without leverage AND it’s with an investment that takes a lot more of your time.

Michael Kiley 30% is achievable realistically by applying the BRRRR method over and over. The downside of that is that it takes time to buy, renovate, and refi. Maybe you do 2 at a time, and it takes you 4 months to complete the process. That means 6/year. And that’s a lot of work! If you invested that 170k all at once into turnkey properties you’d probably be lucky to get 15%. And now all your cash is tied up. But, less work, less time to scale up.