All Forum Posts by: Lee Ripma

When I started I didn't understand construction ages and how that impacts rehab and functional spaces. I had no idea the differences in rehabbing a really old building (1900s) vs newish construction (1980s). I also didn't understand commercial lending worked. It is amazing to think back on my first project about 4 years ago and remember just how little I knew vs what I know today. 

Don't confuse living in RE with investing in RE. I don't think the MF house hacking thing in LA is not suitable for most aspiring investors due to rent control. You can do it with a SFH and rent out the rooms. Or you can just get going on building your rental portfolio out of state. That's what I did and many others living in high-priced markets have done.

I would go in this case. I have bought sight unseen but I would not do that on my second property. 

I find apartments come in on the low end of your range, 20% is my back of the envelope calculation. 

Well I don't have something nearly as poetic as the excellent post by @Jason E. Smith

but a few thoughts: 

Property location above all else 

Cash flow is a hedge, equity is what I'm after 

Equity is what allows you to build wealth and endlessly 1031 exchange 

Understand how to get commercial loans and influence the appraisal process 

I sometimes say that I would have bought more, but I am glad I took small steps so that could learn lessons and find my niche. Now I know my ideal property, when I see it, I jump on it. 

Time is way more valuable than money 

Don't be cheap about saving money, you'll waste a lot of time 

Treat others well, all businesses are relationships businesses and people make or break, even in a digital age 

....and lots of other things that are hard to really explain until you've been through them! 

@Alexander Palomares this is exactly what I did/do, feel free to have a listen to my BP podcast where I discuss it. You are a bit more likely to buy on the MO side, that is where most of my investments are. However, I do have some on the KS side. The taxes are a little higher in KS but not a huge difference. I would say consider deals on either side. Property is certainly pretty hot right now so be prepared to jump on deals that come up. 

You forget the most important part, where you fall in love with CSS and buy buildings just to do them! 

@Christian Deaton

David Robinson is spot on! You need to know how to cost yourself without a GC. 

I’d use deals on LoopNet for this. It’ll expose you to how you get something a little (or a lot) different from everyone! 

@Amy Hatcher consider local partners and consider PM companies. Rehab takes oversight.