All Forum Posts by: Luka Milicevic

@Ward Hubbell

FYI if it's the front of the unit the city might actually fine YOU the owner for junk/trash/debris

I had a similar situation with a tenant. I actually had a neighbor complain about the mess outside. I had someone clean it up on my own dime. The situation was that the tenant became disabled and couldn't clean it up himself and he was a good tenant overall - 7 years+ now. 

I paid for the cleanup and he agreed not to let it get like that again.

If you get cited by the city, it's going to cost you dollars, time and frustration. I would definitely address is with the tenant before it becomes a bigger problem for you. 

There is a report that somewhere around 150 pages long that takes the historical returns of stocks for the past 100 years and compares them to RE over the past 100 years. 

Stocks average 8%

RE averaged 7.7%

Based on that the return for stocks is slightly better.

However....those are unleveraged returns and don't factor in the many tax benefits of owning RE. 

This answer really depends, but technically the BRRRR method is a temporary investment. Meaning the money you invest is refinanced out and put back in your pocket whereas the stock investment stays in the market until you sell.

Overall, the BRRRR method for me is basically like owning RE for free. I don't have any actual money in the deal so any and all gains are not measurable as an ROI because I have no dollars to measure it against.

Either way, I invest in both. Invest wisely and invest often!

Hey @Gleason Jones welcome to the forums! 

I owe a large part of my success in RE to the BP forums and podcast. 

As mentioned above, you are entering a tough market BUT that doesn't mean you can't succeed. If you are willing to put in the work, make the right contacts and hustle you will achieve your goals. 

In terms of brokerages, it's going to depend entirely on what you want to do. I switched to a flat fee brokerage because it made the most sense to me. I don't need a name brand brokerage that takes 20% of my commission and makes it hard for me to invest. 

Don't just settle on a brokerage, make sure to interview several and see what works best for you and your goals. 

I'm so glad this thread is here now so that I can bookmark it and show it to potential investors that reach out to me.

I've been telling investors that reach out to me that I can't find them anything close to the 1% rule and they get upset with me, so much so as calling me negative. They just finished bigger pockets podcast episode 6 that was recorded in Circa 2015 and are expecting to find 1% deals and fix/flips at 70% ARV minus repairs. Have you tried going back and investing in 2018? That's the best advice I can give.

Yes, they exist I'm sure of that, but if I ever found a 1% deal in my market I will pull money out of my children's college funds to buy it if I have to. There's no way I'd give that deal to anyone else. 

Probably in the midwest you can still get them, but speaking for my market it's just highly unlikely. 

Forgive me if I'm not seeing it, but what about points? Do you have an origination fee? 

 Yes, I'm interested. Depending on price

@Ryan Baron Happy to connect and see how we can help each other out. 

As someone that was in the thick of the legal battles in 2016 to save Nashville STRs I can provide a lot of insight into this issue. I attended all of the city hearings on STRs and proposed legislations. 

I heard home owners speak out about their experiences living next to STRs and I too would be very upset and want them all gone. 

A mother was talking about how she had a new born baby and between Thursday through Sunday they never slept due to the parties happening next door. She started full on sobbing while describing her experience. This is not a once of STR experience that she was describing. This was a common occurrence. There were blow up dolls in the windows, beer cans on the front lawn, etc. No one...and I mean no one wants to live next to that.

One can argue that's just a result of a poorly managed STR, well if that's the case then almost all of them are poorly managed since that's such a common experience. I personally managed my STR and did vetting like crazy for guests. I looked through facebook profiles, etc. I still had instances of parties happening and I called the police on my own STR to shut it down.

The other issue here is the affordability factor for long term renters and home owners. Back when Nashville was a free for all STR location, for every house I built 100% of the pre construction interest was an investor looking to buy an STR. It is such an incredibly lucrative market that every single house would be turned into an STR. I saw it happening in 2016. The cost and availability to LTR and home owners would be greatly diminished. Sure...you can make the argument that the market would regulate itself at some point.

As someone that supports STRs being allowed to operate, I 10000% understand the concerns people have and I too would be very upset with the stories I have heard. I also fully support some restrictions that have been put in place to protect homeowners. 

@Jeremy Colwell

Bigger pockets is an incredible resource, probably the best resource out there for investors to connect. It is NOT however, a place to find deals. 

The deal marketplace is not really kept up to date. There are deals there from years ago that are still active. 

Get connected with investor-agents in your area. Wholesalers, do door knocking, text messages, cold calling. 

It takes a lot of work to find deeals in today's market. 

Good luck out there and stay persistent! 

I am curious on how this deal turns out. Please keep us updated and really hoping it all works out and you can at least recover initial capital.