All Forum Posts by: Michael S.

1. Learning while also having a full-time job. Can't quit as it's paying the bills, but also want to be more active than just passive investing so I can be in charge of my own destiny. My ultimate goal is to spend more time with family, though, so I have to balance hustling with actual having time with the family.

2. Deciding which avenue to pursue: Depending on the types of involvement, picking which path I should specialize in given no prior experience. I currently find multifamily or commercial very appealing, but there may be an avenue I haven't considered.

3. Education: Reading a few books, but ultimately feel a little too new to buy something because I'm not sure if it's a good deal. I feel like I need to know if it's good/bad/great before I can even make an offer. This involves actually picking an investment vehicle and networking to actually find things that aren't just Zillow/Redfin/Loopnet.

My goal is this: I need to select a property and buy it just to prove to myself that I can. Once that pressure is off, I can do whatever with the property. I can either fix it up and sell it, or I can hold onto it if it cash flows.

Money is important, but if you lose some on your first deal it's okay. Frank has told over and over how he lost $20,000 on his first deal. As my wife would say, "This is how we learn." So I guess I'm saying that losing money is inevitable. It's all part of gaining experience. I read a quote yesterday on another BP thread. It was: "Good judgement comes from experience. Experience comes from bad judgement." I don't completely understand why, but that quote really resonated with me.

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@Frank Patalano

Thank you for voting for me.

1 Vote

@Frank Patalano
Weird, the box with your name doesn't pop up when I edit my post to include you...

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@Frank Patalano

Once a month my church holds what they refer to as a "Men's Breakfast." I have been attending the last several months. The man who serves as the city manager for our town also attends, as does the county commissioner. The city manager would be a good speaker I think.

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@Frank Patalano I was thinking of doing it at my local church. One of our members does rentals. I've already spoken with him about learning the business. I know of two other people I would invite as well. The second guy is the son of one of our members. He has two rental houses here in town. I've offered to help him as well, but I haven't actually met him yet. The third person is a real estate investor/realtor here in town. I don't know if I'd actually get all three, but at this point, getting any of them would be better than the place I'm in now.

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@Frank Patalano

@Frank PatalanoThank you for replying to my post. Any hints on what my first step on this journey would be? Please and thank you.

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Originally posted by @Joao Cappellano:

@Frank Patalano I am currently looking in the Ocala area. I guess I have been trying to look at it as a BRRRR type deal where I would be able to pay someone back after doing repairs/improvements and refinancing after the 1st year to pay back the lender/partner. I guess also part of the fear with it is how much the seller is trying to get for the property considering the comps. His property is a triplex, 5/3 with 2066 sqft, asking price of 155k. I found 6 comps, that sold within the last 6 months. Most were larger by about 600 Sqft and newer by 20-40 years. Couple of quads with 2695 Sqft, built in 80's, sold for 130K and 145K. Couple of duplex 6 bed 4 bath, built in 04 and 06 sold for 160K. Duplex built in 60's with 4 bed 4 bath, 1531 sqft, sold for 128K. Only Triplex I found, with 2736 sqft, built in 85 with 6/3, sold for 154k. Even though the property cash flows I found it over priced when looking at comps. But I can offer less than he is asking for. Thanks for the help!

I realize I'm later to the party than you are, but if the deal is still available, offer less. It's okay. You never know how desperate someone is to get rid of a property until you offer to take it off his hands.

1 Vote

Originally posted by @Frank Patalano:

Originally posted by @Nick Thies:

@Frank Patalano

I feel the lack of time due to being “stuck” at my job for the majority of every day and the looming student loan debt that we’re chipping away at.

I understand completely. I worked 7 days a week for years until my real estate portfolio grew big enough to quit my 9-5.

I saw a quote recently. Something about the fact that a job holds you back from becoming wealthy.

Besides that investing will help pay off that student loan debt faster as long as you can get a better return on your money.

Robert Kiosaki says that job = Just Over Broke

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Originally posted by @Brett C.:

Understanding how any of this is worth it in 2019.

Seems like a LOT of work to have a couple hundred dollars of passive income a month plus the risk that your tenants might break lease. Add that to the rent control movement sweeping the country, already sky high real estate values, and it seems like a lose-lose-lose. Why not invest in a REIT, or in a Vanguard account?

Imagine owning 10 doors that net you $200 each. That's $2000 a month! In my experience, if one expects a tenant to break lease, they almost surely will. I have been reading this thread for a few months now. I'm almost done with it, and I've noticed something: a lot of people posting to this thread express fear of <whatever> as the reason they don't get started. I don't have that. Everything I've ever been afraid of has already happened. It taught me that fear is rather stupid. It's an outdated emotion that should have no place in a modern, enlightened society.

You probably should invest in those other things, since you suggested them. Having multiple sources of cash flow would do well for you. Build good habits.

1 Vote

Originally posted by @Elvin Tolentino:

@Frank Patalano

Analysis paralysis. Fear of getting myself into unescapable debt. Fear of hiring the wrong people (especially contractors). Fear of being unsuccessful once and quitting.

I am in the beginning stages. I have a RE agent that I am comfortable with. I have a CPA I am comfortable with. I'm working on choosing lenders and then I am going to attempt to find a contractor. Looking to maybe purchase a SFH for BRRRR or buy and flip towards the end of the year.

Any help would be appreciated.

What you expect to happen will largely affect what actually happens. Henry Ford said, "Whether you think you can or think you can't, you're probably right."

I'm not going to tell you exactly what you should do, but rather I'll point you in the direction that I think you should go. You should read what Napoleon Hill says about fear in his book, "Think And Grow Rich." That book really resonated with me. It confirmed a lot of what I've believed my entire life.

"There's nothing to fear, but fear itself." - Franklin Delano Roosevelt

1 Vote

All Forum Posts by: Michael S.

Michael S. has started 2 posts and replied 36 times.

Post: So what's holding you back?

Post: New-ish in Miami, OK

Post: New-ish in Miami, OK

Post: New-ish in Miami, OK

Post: New-ish in Miami, OK

Post: New-ish in Miami, OK

Post: So what's holding you back?

Post: So what's holding you back?

Post: So what's holding you back?

Post: So what's holding you back?