All Forum Posts by: Michael O.

@James Wise

I see what you're saying, properties that wouldn't make the brrrr qualifications I could list and sell as a regular agent and make the commission on the sale. 

Agree, my buddy with the brokerage claims to have over 400 realtors yet said many of them are housewives or people who do it part time selling one or two houses a year through their friends etc.

Thanks for the insight. 

@James Wise

Well I guess it depends on how many leads I get out of my direct mailers. If I can more leads then I can handle I rather form a team to handle that then work for someone else. 

I'm not looking to replace me current company or sell it to start something new, rather supplement or diversify my income stream from multiple areas. Sort of like yourself with that laundromat you own. Btw, we are sort of in the same industry!

Thanks,

@Kyle McCorkel

Well I plan on doing the direct mailers anyway and if I get a few leads and close 1-2 of them in the next year I think that would be a success.. I see that you're from PA, I have good connections in real estate in the greater Lehigh Valley area where this sort of strategy seems to be better suited so I am looking there as well. 

On a side note Kyle, I have a friend In Montoursville Pa who inherited a house from his grandfather because they need to put him into a home for assisted living, its a little far from you but if you're interested I can connect you. 

Hasn't hit the market yet needs cosmetic upgrades, only thing that was touched was the kitchen.. 

Thanks for your input though.

Hello Bp!

I guess this will be an introduction and also a question.

Little about me:

I have been lurking around this website for months reading forums, webinars, podcasts, etc. and it has been very helpful. I do have a strong entrepreneurial background, I am the owner of a textile company in a very niche 30m market. We have two warehouses with about 40 employees and in the past 5 years we have become the biggest player in this space.

1).As for my real estate experience, it's a bit limited, although more then most starting out. I have a townhouse that was pretty much a turnkey investment traditional money down and it cash flows about 300 dollars a month but only because I put more then 30% as a down payment. 

2). Bought a 32,000 sqf office/warehouse space back 11 years ago. This was a better deal, I didn't know it at the time but he was a "motivated seller". It will be paid off in 4 years and the net cash flow with be 27k a month!

3). My wife and I wanted to purchase our first home 3 years ago however, we could not find anything that fit the bill even over the 1m mark. So we decided to purchase a house in a area we liked and build a new house. When working with a realtor and nothing came available after months of searching, I decided to take action. I made hand written notes and put it in neighborhoods in which we wanted to build. Wouldn't you know it? got a seller with the first batch I put out. 62 year old couple was getting divorced and wanted to sell. Looking back I pretty much paid retail price for it, but wasn't thinking like an investor. 

Ok enough of my background.

So as the title says I want to use the Brrrr method to acquire homes and rent them out for positive cash flow. I set a marketing budget to 2k a month for the next 6 months. I have formed a list of the type of people that would be motivated sellers and some where I saw property that looked like they were not taken care of. 

So last week I had dinner with a friend who's whole family is in real estate. They as a family, own one of the largest brokerages in the state. So I laid out my plan and he pretty much said it's not possible or going to be very difficult. DREAMS CRUSHED! 

Now, I live in a very expensive and highly competitive part of the country. I watch these podcasts where people buy a dozen homes a year using this method but usually in markets that are not quite as expensive or competitive. I paid 450k for a house that I was just going to knock down for an example.

So, I would love to hear from my fellow Jersey people or anyone that as a comparable market that this is possible and my realtor buddy was incorrect. 

Thanks,