All Forum Posts by: Scott Hollister

@Nick K. I like the motivation! 

I just got done with Grant Cardone's 10X audio book. He says to word your goals as if you already have them. It has helped me. (I have/I am)

• "I am a real estate investor with a net worth of over 10 million"
• "I have no debt except that which is paid by others"
• "My passive income from Real Estate investments is $20,000 a month"

Just make sure you have a big juicy why for that goal, thats the engine and fuel for your purpose in life. 

@Sade McLean do you have any friends/family that you know of? Have you done deals before? 

If the deal still works with Hard money then check out RCN. I used them this year and they are nationwide.

• I have used hard money and private money this year. Hard money allowed me to do a deal and have it be a success. That way when I find people with money I CAN say I am an investor with success behind me, I think that is the toughest part in private money. Having people trust you and believe in you. As Grant Cardone would say, SHOW ME don't tell me what you're doing! 

Good luck Sade! 

@Nick K. welcome to the site! 

We have all been in that state of just thinking about real estate investing, its great to see you putting action towards it! 

• Education is key to your success! 
  • Have you filled your negative time with podcasts or audio books? (Work commutes, cooking breakfast, during exercise?)
  • Books: BP has some great stuff! @J Scott put out two books that will help you estimate/perform rehab costs in an efficient way. If you plan to do a BRRRR then these books will help you with your scope of work. (Something you can show your hard money lender)
  • BP Meet Ups! By far the best thing I ever did for my investing career! Check out your local one and go to every meeting, so much fun and you learn tons! 
  • Choose a market to invest in and set up your Zillow app to send you everything that comes up daily. Run numbers through the BP calculator so you can learn/become proficient. See what rentals are going for, in what areas, and with what amenities. (If renting is your exit strategy for BRRRR)
• Connect:
  • Start building your team now. That way when a house comes up, and it will, you will be ready to lock it down. Some people will tell you a different order but use your best judgement to create the path that makes sense for your investing. 
  • Start with lending. Call around for a money partner, most use HM because in my opinion its easier to get than private lenders. Unless you have the bank of Mom? Ha. (I used RCN for my loan this year, they helped me out and waived the number of investments needed BECAUSE I did what you are about to do. Study your butt off, know your investments, sound intelligent, and hand them the BP spreadsheet:)
  • Almost at the same time, find a RE agent that will help you find deals.
  • Contractors, unless you are doing the repairs yourself? Also build up your contacts on electricians, flooring, carpet, windows, roofs, pool removal/repairs, lawn care, etc. (Even if its just a quick excel sheet from a google search, it just saves you time during the rehab therefore cutting down your holding costs =$$)
  • Attorney for the closing. 

I'm sure other BP members can chip in to mention what I forgot:)

Experience will be your best teacher Nick! Keep up the good work! 

Welcome to the site @Account Closed!

I have some friends that invest in Hartford area that I can put you in touch with! 

Also, we are going to have a CT meet up on the 13th at 6pm, you should come! Its with a hard money lender so its a great time to make connections! 

Hello @Dolores Waldron,

Do you think the bank will consider a 245k offer? 

• Also, if you put ARV at 550, 425k purchase with 50k rehab. (You would force 75k appreciation unless I'm missing something about numbers?) That doesn't necessarily mean it will work as a rental though, or as a BRRR. You would end up leaving some money in the deal.
• Also, I have always lost money during a holding period on a BRRRR. But thats ok because I plan for that as part of the holding costs.
• Have you thought about the tax increases after the rehab? Does it still cashflow? 
• START making connections with local banks to refinance you out earlier than a year. I have found commercial lenders that will do it for me as soon as a I have it rented and based off the ARV. Shoot for 6 months after its rented or just ask around banks to see what they require.
• COC return hasn't worked for my BRRRR's because I exit the house with $0 out of pocket so it will always come up 0. Whats more important is factoring your time acquiring the property. Your return is the monthly cash flow after you have it stabilized. 

I can't tell you if its a good deal, YOU have to decide that. IMO if you can make a deal work and its worth your TIME and MONEY, go for it. If not, onto the next:)

@Michael Fischbach well said! To mirror Michael, start reading everything that is highly regarded on this site! I think that was critical for me in telling the difference between the two types of agents to look for. 

True education to become an investor involves you arming yourself with knowledge! 

Also true about gurus! You're on BP, which is the best place to be for REI:)

@Aaron Arnold welcome!

First off, when I see your name I can't help but to say A-ARON... (See video) haha. Sorry, as a teacher I get a kick out of this! 

Second, Congratulations on choosing the best way to start REI as a new investor!

My advice, as I chose the same path as you back in 2012 right out of college. 

• Get Pre-Approved. I'm assuming you're going FHA first time home buyer?
• Run Your numbers. Factor in PMI (Life of the loan now).
• Find a Real Estate Agent that is investor friendly. Rely on yourself to verify deals, don't leave this up to anyone but you. Train your mind to think and act like an investor. 
• What books have you read that will help you? (My first one was Buy it, Rent it, Profit) This gave me an idea of how to run numbers. But the forums will have just as much and even more to help you understand all the costs involved. Also, the BP calculators are great tools to use. 
• Have reserves in place. (Things will pop up, be prepared. Save the extra income you get from other unit/units)
• When you do your tax returns (Most likely 2017 now), don't show a loss if you plan on buying more real estate. This has hurt me when trying to refinance out an REO I bought this year.

I left out a lot of information because I forgot most of the little daily battles. Just arm yourself with information, do your due diligence, buy right and you will do fine. Stay positive and don't listen to people who tell you you can't do something. 

Good luck Aaron! 

Hello @Pavs Doychev,

Congrats on the dog and real estate investing! 

• Did you pay for the truck with cash? (My train of thought for this is the Total Money Makeover) 

As for the accident:

• If YOU got rear ended then its a good thing (As opposed to being your fault), especially just the bumper. My father was in the auto body business for over 30 years so I've seen my fair share of accidents. I also worked on a few projects, so this is an "easy fix". 

Some options: 

1. Collect the money, fix it yourself. (You have the right to repair it at a place of your choosing, so have their insurance company write the check out to you)
2. Cheap Fix. That looks like a plastic bumper over a metal frame. If you use a heat gun it will come right out. (Just warning, paint will most likely have spider cracks and it might lead to more chipping) But the dent part will be fixed. See this video for a reference. 
3. Use the insurance check to purchase a brand new white bumper off of ebay, CL, or local junk yard that matches. Install it yourself and use the difference for Real Estate Investing:)

Best of luck Pavs and Happy Birthday soon! 

Hello @Jamal L., 

Conventional

• Have you had it for at least 6 months? (Seasoning period) Some will say 12 months but 6 is possible, just know your lenders. 
• Do you have 6 months reserves?

Local Credit Unions

• Typically you can find a local CU that won't have the above time frames and reserves. However that doesn't mean you don't need reserves. It is wise to have something reserves. 
• My advice is get a list together of your local credits and call them all. Email, network, and find someone for an introduction. It will be well worth your time.

Good luck Jamal! 

Hello @Bryan Hull, 

Great question! My analysis has changed drastically in 6 months. (But two REO deals after that I have streamlined the process, like you quickly and efficiently as possible. 

I just started reading the Millionaire Real Estate Investor and it talks about the dynamic Trio of Real Estate Investing. Criteria identify potential deals

• You should determine/define what type of property you want, once you have this clearly defined then it will help with the quickly part. 
• As for actual systems and processes the BP calculator is a great tool! I use it, pay for it, and think it presents well to investors. However its hard to accurately fill in the calculator without seeing the property. And its time consuming IF you are looking at multiple properties per day with a job. 
  • An example I remember from the podcasts: Make offers before you see the house. (Have a inspection window or a 1 time walk through contingency) There is no need to check out a house if it won't work numbers wise (IMO)
• I have friends that fill in excel file sheets quickly
• I know investors that get a "gut feeling" and know how much an average kitchen, bathroom, etc cost. They do it on the fly. 
• Some have their own license which helps when getting in a house quickly

I hope you improve your systems and processes! I know there are other investors that will shine some more light on this topic!