All Forum Posts by: Jeff Rabinowitz

@Eric Reichelt , My early re activities were focused on acquiring a portfolio of rentals and I still have a dozen though I only manage ~ half of them myself. I never limited myself to one avenue. I did some flips, a couple notes, etc. The more I learned the more I was able to recognize a profitable deal. I am currently a partner in a new home construction. I still enjoy the beginning of the month when rent checks start to appear. The cash flow can truly change your outlook on work and life.

You should still have time to make an appearance.

@Aaron Yates , how long is an afternoon shift? I didn't check the closing time at Copper Canyon but I rarely leave real estate discussions early, @Tom A. and I used to have regular meetings after two different REIA's a couple times monthly. I suspect at least one of us will be there until just before the lights are turned out.

I will attend either night and will be happy to stay as long as anyone else cares to. No longer have any reason to rise early in the morning.

The 50% rule is just a rule of thumb that states about half of your rental collections will be consumed by expenses. I do a little bit better on some of my properties, at the moment. These are properties with long term tenants (property turnover and vacancies are some of the biggest expenses) and properties that had been very well maintained when I bought them (the month you have to put in a new water heater, furnace or roof will be negative cash flowing months). If those stable tenants move out and repairs start piling up that situation will change. If your calculations show that you will be cash flowing at significantly more than 50% you may want to reexamine your assumptions.

Is $250 enough? That is up to you. If you have properly figured your expenses (including vacancies and maintenance) and are putting $250 profit in your pocket every month that can be maintained just about forever. Did you remember to include property management in your expenses? If not that $250 is really just going to pay you for the time you will put in on your new part time job. Is it enough for you? What will it cost you if you want to hire someone else (a property manager) to do it?

The class is just a hurdle you must clear to get the license. There will not be anything so complicated that you cannot learn it on your own. Most classes focus on laws so the State can be sure you were exposed to them if they decide to cite you for something. You may get an interesting instructor and you may make a contact in the class, then again, you may not. Those potential contacts in class are just starting out, as you are. Most of them will do very little with their license. Choose the route that gets you to you goal most efficiently. Your real education comes later.

The best way to learn how RE investors speak is to interact with them. This is a great site to do that. My learning curve accelerated when I actually met some investors and started hanging out with them. It wasn't long before I did some deals and built a group of advisers and colleagues I could turn to for advice.

The best way to meet investors in person is to go where they go. Are there any Real Estate Investor Associations (REIA) in your area? If so, go to some meetings. It doesn't matter what the topic is, just go. When you are there your job is to meet some people, as many as you can, and start looking for ways that you can help each other. You may be surprised at how willing the people attending are to share. After all, they are there for the same reasons you are.

You need three things to be successful in real estate: money, knowledge/experience and time. The nice thing is you don't have to have all three things yourself but you have to bring something to the table if you want someone to help. Most new investors think money is the hardest part. It really isn't. If you find a truly great deal you will find partners or lenders. If you have time think about how can you help an investor with some experience. Can you go to some prospective properties and take videos? Place signs for them? Do some internet research? Prove yourself to be useful and you may be amazed at how much knowledge someone will share with you.

He is agreeing to carry seller financing at 5%. Assuming you are sure about the price point that seems like a very nice offer. He wants the extra money down because that makes him much more secure. I don't see how showing your credit report is a negative for you, especially if it is good. You say you are planning on rehabbing the property. What do you think that will cost? $3K-$4K? If so, why not come up a bit on the down payment (maybe $1K) to show you are listening and offer to set up an escrow account to hold most of what you are planning to spend on rehab. You will need an escrow agreement that allows you to take draws to do repairs. If you are making the property more valuable that is also increasing the seller's security. You could be getting very close to the what the seller is looking for this way.

If anything changed from the sample contract you should keep looking. If this is how they behave when they are trying to get your business do you really think they will magically become ethical later on? Has that generally been your experience?