All Forum Posts by: Ray Johnson

@Cory Harris I agree with @Ericka Grant Do one yourself and maybe she'll become more comfortable with the concept of REI. I'm not sure if you have the ability to save money not allocated to your household expenses. I set aside a large portion of my excess income that I use for investing.

@Matt Taschner What are the details of the $11,000, is that the equivalent of 5 months plus late fees or 12+ months plus late fees? Where the debt is in the aging timeline plays a part in how you'd negotiate this transaction.

@Liz C. @Greg H. Pointed out the most important number, I've been renting my properties since 2002 and have never had to evict anyone, and everyone has satisfied their lease. If you're nervous about evictions and your property is located in a good area, use very strong minimum qualification requirements, it's what I've always done and it's work for me.

There are door collector's that will buy just about anything in order to add to their portfolio total so the Cap rate, Cash flow, etc are being overlooked. Every day I see a few really bad deals posted in the BP Marketplace then I'll see around 20 or so people asking if the property is still available for purchase and stating they're interested.

@Will Grabert I haven't found any good deals that fit my requirements since August, I will add that I have very high standards for my acquisitions so I'm probably not going to see many more opportunities in the current investment climate. I'm sooo looking forward to rising interest rates and the next Real Estate downturn.

@William Brown I think my post sums it up best, the Guru's and others are using the term as a marketing tool, simple psychology and nothing more. By the way Millineals get scammed out of their money more than the Senior population does because con artist and marketing teams have figured out how easy it is to use social media against you. The term House Hacking was created for the thousands of Millineals and anyone else who want to appear to be in a better position than they really are, it's just a part of our "Look at me" culture.

@Michael Peralta I'm not sure what area you're investing in, Where I invest there's too much competition to be able to get a Short Sale and still have room to profit on a flip, I've purchased Short Sales and REO's for my Buy-and-Hold portfolio which is more realistic for me. Investors is smaller less competitive markets may be able to see an opportunity flipping Short Sales.

@Holly Nielsen There are other things to consider beyond the $350 per month of cash flow, What condition is the property in? Will you have to update anything prior to renting or selling? How much cash will you have after Real Estate commission, and all other selling cost? Are you in an area that has steady property appreciation (not just during this everybody is investing in the Midwest phase)? This will have considerable factors as well. After assessing these variables if you're more than (XXXX) years of after tax income positive, I'd sell the property instead of renting, The (XXXX) number is different for each investor based on their business plan.

@Thomas S. Awesome description! Not sure if the Guru's will buy-in and use your new term but it's true.

@Jonathan Bowen There are a lot of catch phrases created by the REI Guru's created to make something not as appealing to become mor alluring, the term House Hacking is one of those catch phrases, at the end of the day nobody wants to be an investor who landlords via a connected wall, it's out of circumstances presented at that time in their investment career. I got started in the Private Equity sector and REITS, every time I see a post with the term Multifamily in it, I immediately think multifamily over 100 units, however on BP not knowing the exact number I'd probably guess 97% of the post titled multifamily are actually post about Duplexes, Tri-plexes, and Quads, which are terms the Guru's have steered away from since using the term multifamily will get you more attention. Think if you posted stating you had a duplex in Ohio and were looking for an investor to partner with, versus a post stating you have a multifamily project in Ohio and you're looking for an investor, it's the same $80k duplex just smoke and mirrors taught by guru's, these are simply tactics being sold during weekend seminars, books, and Podcast.