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All Forum Posts by: Rich S.

Rich S. has started 18 posts and replied 143 times.

Post: Why push the BRRRR so hard

Rich S.Posted
  • Central, MN
  • Posts 145
  • Votes 180

@Steve Vaughan and @Jay Hinrichs and @Jim K. are bringing what folks really need to read in this thread. None of them are saying it is a terrible idea, but they are all making sure you SEE every side of it. BRRR can be a great strategy, but like most other things in real estate, the property and the people screw it up often. If you don't buy it right and don't rehab it right, it doesn't really matter what strategy you are using, it will likely fail. @Shiloh Lundahl lays that out perfectly.

BRRR is so popular because folks see it as a path to get started that has a "splash" but also a long road cash flow in the same model.... the "splash" is I can pull money ALL my money out to do another deal and the cash flow is even with pulling on the money out I make money each month. The new age is "I want it and I want it now" not.... i'll buy this or invest that to get return in 20 years.... it that is all it was about, people will just invest in the markets the old fashioned way, or god forbid, just SAVE money instead of spending it.

Any effective REI strategy involves strategic partnerships, money and work. I could invent a new QRGBF strategy tomorrow, but without those three things, it is just a bunch of letters. Build a plan, vet it with people you can trust, find a low risk entry and put it in action- you still might lose, but you will most definitely learn- one way or another- you'll find your real estate path or you'll find a different path.

Post: From $200 to 70 Units at 24 Years Old

Rich S.Posted
  • Central, MN
  • Posts 145
  • Votes 180

Kudos on your hustle.... also, interesting to note you had to take the leap of faith multiple times and turn over control to someone else- many would not be able to do that.  Congrats on your success.

Post: How do I get my wife on board!!

Rich S.Posted
  • Central, MN
  • Posts 145
  • Votes 180

In my opinion it is about finding common ground in regard to goals/what you want/what you each value. The emphasis needs to be on what real estate can provide, not real estate. It is the vehicle. My wife doesn't like real estate either, but you know what she does like- knowing the kids are fed, clothed, have options in life. She likes knowing if one deal goes wrong, we will be fine. She likes knowing REI is a vehicle to allow us to travel, retire early, help other family members, breathe easy when others around us are scraping by. My wife also needed to see the model proven by someone else to "believe" it could be a good thing. I am pretty conservative by nature and REI is an "extra" that adds to our W-2 income. Our kids would be taken care of it we dropped all REI today as our W-2's provide what they need, but our life is better with REI, opportunities more and greater and the flexibility it may provide some day exists as well.

I don't think the key is convincing her or twisting her arm. The key is just showing her REI in terms of what the vehicle could do for your family. How it could benefit things she holds near and dear/things that are important to her.

I think most taking the $10k/month are assuming they will live to at least normal life expectancy and value the freedom of just getting $10k/month provides if purely passive.  Unfortunately, I've seen too many folks in my life save and plan for retirement, have a health issue or sudden passing and really get nothing out of years of planning and saving.  I'd take the million, because at certain parts of life a bird in the hand is much better than two in the bush.  

I do wonder about the psychology of $10,000/month- without lifting a finger that shows up in the bank every month vs. $1M right now you can do whatever you want with... I imagine most folks who took the million would squander much of it, but I don't think that is the case for most on BP.

Post: How are you handling non-paying Tenants?

Rich S.Posted
  • Central, MN
  • Posts 145
  • Votes 180

I understand you can't evict, but if on a month to month, you can just not renew their lease, correct?  However, if they don't leave, then I suppose you are stuck?  Weird times....   

@Scott Benton  Kudos to you for doing it differently and finding what works for you.  I also should offer kudos for sharing it with everyone and most on here can attest sharing your method opens you up to scrutiny.  

These forums can be funny.  It is often the case that every thread turns into one of the common debates.  Leverage vs. not... , hard money or not, partner or not, etc....   The irony is, some folks kick and scream numbers, numbers, numbers and buy a $5 coffee everyday.  Their argument is "I have to have it or my choice".... but financially you can argue it is a horrible decision.  Not every decision is purely money/dollars and cents/etc.   

I'd argue all of us are looking for the way things "fit" for each of us.  For some it is purely numbers, for others it is purely time, for some it is peace of mind and for many it is all of the above in different amounts.  The biggest key is making it work for you.

Post: Driving for dollars

Rich S.Posted
  • Central, MN
  • Posts 145
  • Votes 180

@Jerryll Noorden I find it so funny that someone so wildly successful cares so much about what average Joe's think.  My point is simple, but you are so stuck in proving your point, you just don't want to see it.  My point is, everyone's skill set and business is different, so they need to set it up accordingly.  I'd say the same about everyone's life/family/etc.  The reason we marry how we do, live how we do, work how we do, is because IT WORKS FOR US!  I'm pretty confident you want nothing to do with living how I do or how others do and that doesn't mean that anyone is wrong.

Nobody here is trying to tell you that you are wrong, but you seem adamant about telling everyone else they are wrong.

Here's the deal... let's say I'm a working professional with a different 9-5 job.  I want Real Estate to provide me something else to do and want to acquire one property per year.  What STRATEGY fits my END GOAL the best?  What fits WHO I AM the best?  SEO might NOT FIT THE BEST in the current scenario, in my opinion, but driving for dollars might?

If a person is just starting, do you want them to outlay all the capital they have to get going in SEO... remember they have no staff, no systems, no process..... what are they going to do with the deals they have?  Do this fit their model and work for them?

I wish you all the best and I think it is great your system fits you so well.  It doesn't mean it fits everyone just as well.

Post: Driving for dollars

Rich S.Posted
  • Central, MN
  • Posts 145
  • Votes 180

I think the key is to find what works for YOU.  It doesn't matter what method, as long as it works for you.  You need to find what works for you with what you want in your business at the current time.  For some folks, driving for dollars, grabbing a few deals once in while, works.  For others, website leads, works.  For others, direct mail works.  I very much believe you need to find what works for you in your current state of the business.  As has been mentioned on this thread, all varieties work, just how effectively depends on who you ask.  If you can only handle a lead or two at a time, drive for dollars or SPECIFICALLY market to a small target group.  If you have a growing company in an area that SEO works, it can be very affective and you may have the capacity to handle the leads.  

Post: 4 Million Dollars in 4 years - Thank you BP

Rich S.Posted
  • Central, MN
  • Posts 145
  • Votes 180

@Shiloh Lundahl. Great story, thank you for sharing.  Also thank you for all of us much more "pedestrian investors" as you are always making positive contributions to the threads, which is so valuable to this site and the success of others.

Two questions:  Your access to your $300,000 to get started, where was that from?  And number two, how many units do you own and are all of them lease options?  I'm curious to the structure of your business, 100% lease options?

Thanks again for sharing.

@Steve Vaughan I'm surprised you aren't getting more traction here.  I know many investors who have switched to month to month in the past few years in order to have a bit more control over their units and to be able to nip a problem tenant quickly if needed.  It would seem your idea goes against the grain a bit, but it makes perfect sense.  I'm curious, is the primary motivation to be able to have some leverage to collect some funds during COVID or to create some accountability during a period of time when you cannot evict?  

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