All Forum Posts by: Kyle McCorkel

Alan Pederson Rich Dad poor Dad Automatic millionaire Abcs of real estate Tax free wealth Loopholes of real estate Brandon turners book of rental property investing Brandon turners book how to buy properties for low or no money down

Learn how to analyze properties quickly and make offers quickly. Hesitation will lose you a deal in a competitive market.

@Daniel Ortiz

Yes, pretty much.  Just make sure the balance stays at $10K (or ideally above $10K if you are cash flowing positive).  Ideally this account would kind of operate on it's own...meaning it shouldn't require more capital from your "personal" account (i.e. shouldn't require more money from your "real job") and also when you're starting out I'd recommend just letting the cash flow build up for awhile (don't use it to go buy a car or something).

Daniel Ortiz I’d figure $10k for immediate reserves. Rent should be deposited in same account and mortgage/expenses paid from same account. Maybe your 401k would count as a backup but it is significantly less liquid and obviously would incur penalties and taxes if you liquidate it. Banks, however, do consider your 401k as reserves, which can help you qualify for a loan.

Taft Love Well the first thing you can do is stop paying extra principal payments on your triplex. In your same post you say you are cash poor but then you go on to say you are tying up your cash flow in equity in that property. It won’t be a lot but at least let that cash flow build up in a liquid side account.

Paul Comer Good luck Paul. I’ve invested in Indianapolis and had some success there.

@Max Briggs

I agree with you partially.  I do think that the book was poorly written and is very repetitive.  However Kiyosaki introduced some pretty amazing concepts pertaining to personal finance, mindset and attitude through Rich Dad Poor Dad and his other books.  He might present it in an overly simplified and crass way at times, but it's still good stuff that you can learn from.

It's like a slap in the face...but some people need that to wake up and look at the world a different way.  Apparently you did not really like being slapped, and that's OK, you're not the first. :)

I personally re-read Rich Dad Poor Dad once a year.  There are a lot of little concepts and nuggets that I take away every time I read it.  I look past the tone and the repetitiveness and dig out the lessons.  They're in there, I promise.

@Neel P.

The two properties you described are apples and oranges.  The more expensive property is larger and newer.  But, I would almost guarantee if you did a cash on cash return analysis on both properties, the $99K turnkey one would give you a higher return.  The situation would be different if you found an identical property to the turnkey one listed for LESS.

The main questions you want to ask yourself are (after first vetting and getting comfortable with the team) if you are comfortable with the returns on the turnkey property AND will it appraise at or above $99K.  Good turnkey companies will sell it to you at or slightly below "retail" value.  As long as you are buying at or slightly below retail, it doesn't really matter how much of a "premium" the turnkey company is making.  

Turnkey companies are essentially flippers with a property management department.  So they make money on the equity gain after the renovations, then they make money off the property management.  

Ron Quinn I think it sounds great if it could be offered at the right price. I struggle a bit to envision how you would fit in the puzzle with the actual PM. Aren’t you kind of doing their job by checking out the property and tenant? And isn’t the PM technically supposed to be “working for the investor” as well? At the end of the day it just matters whether the investor trusts that person.

Neel P. It would juice up returns if: 1) you can get a property for cheaper AND 2) if your team or network is better than or equal to the turnkey team. Not saying it can’t be done, but #2 is definitely harder and will take more time. But, I’d say this is a viable strategy and I think others have done it. Good luck.