All Forum Posts by: Ronak Shah

If you get the property within 4-6x annual possible rent or replacement cost (land, land prep and construction) then it will be good purchase.  Hope that helps!

@Paul Evans  What @Joshua Watts said is the typical cost post- land prep.  Also, you might want to check out self storages in the area using some rules of thumb (such as 7 square feet per person within 5 mile radius or if in rural may be 7-10 mile radius).  You can check existing storages using google map search "self storage near ...." and then visiting places to get an idea,  google earth looking at the roofs to estimate self storage use and estimate square feet, using tool such as radius plus and of course if want to pay for (which you should depending on how much money you are planning to put in the project) is get the feasibility study.  Hope that helps!

P.S. you can also look at converting existing buildings (think of closed shopping centers, grocery stores, etc.) as that will save both time and money (if zoning will allow it).

@Justin Onyeador good thing you are looking at self storage!  As @Greg Dickerson rightly said what sort of return you are looking for is based on your situation.  You can plug in numbers in Quick Calculator I have created which might help you decide whether it is good deal or not (based on your situation).

https://www.dropbox.com/s/v2j6...

Let me know if you want to discuss self storage!

@Joshua Watts this is almost like a new house you are making?  I know you are also in self storage so any reason why not to move on from this property and put the proceeds in self storage?

@Paul Bommarito some very good information by some accomplished investors above.

Gist of goal setting workshop by BiggerPockets recently might take you out of analysis paralysis (with Harold a made up character following along to see how this translates):

1. Define Your Why? - Why do you want to work on whatever it is that you want to.  Have your vision (so I can spend more time with family, take more vacations, financial freedom whatever it is) and keep it in front of you to look at anytime you feel lost with all the shiny objects. (Harold is tired of working his 9-5 job, and wants to spend more time with his kids. He wants to see them grow up, and also wants to spend more time traveling the world.)

2. Commitment - Desire and commitment are different (Harold doesn't just desire freedom.  He's committed to it. 100%. There is no other option.)

3. Define your 5 year vision (In 5 years, Harold wants to be generating $5k per month in passive rental income from rental properties, as well as doing two-flips per year for a total income of $100k per year.)

4. Set your 1 year goal - Only after defining 3 to 5 year vision in step 3.  It's not simply 1/5 of the goal as things will compound (This year Harold has committed to purchase his first 2 single family houses.)

5. Set up a quareterly goal - If deadline is always near enough, you don't lose sight of it. We procastinate less, we reduce or eliminate avoidance activity, and we focus more on the things that matter. (By end of Q1, Harold plans to have one property under contract.)

6. Define your weekly process - This is similar to Brandon's LAPS (Leads, Analysis, Pursue, Success) funnel. (Each week, Harold will analyze five real estate deals that he gets from the MLS and will make offers on at least one of those. He will also listen to 2 real estate podcast episodes each week and will read The Book on Real Property Investing.)

7. Plan your week (On Sunday night, Harold spends 30 minutes looking at his calendar and time-blocking his weekly process.  He will analyze deals each week day between 12-12:30)

8. Execute Daily - You can't change what you get in life unless you change what you do - and even more so - who you are. So rather than just identifying goals: identify habits and traits that will turn you into the kind of person in which those goals would just be part of normal life. (Harold ends up analyzing 2 deals a day - greater than his goal requires.  He also is submitting serveral offers a week, sometimes just verbally.)

9. Track Your Progress - What doesn't get tracked, doesn't get achieved (Harold tracks his progress daily, noting the number of deals he has analyzed and the number of offers he's made.)

10. Be Persistent (Soon, Harold gets his first offer accepted: a single family home that he estimates will produce $300 in positive cash flow)

11. Stick close to BP to fill the holes! (Although Harold didn't know exactly what he was doing, he asked questions in the forums, met local investors and asked for vendor recommendations, and even found a partner willing to fund the deal… all through networking on BiggerPockets.)

Hope that helps.

Congrats @Danté Belmonte on launching your podcast and launching it with AJ Osborne!

Hi @Alex Ojeda welcome to world of real estate investing!  Good thing that you’re aware of the terms like House Hacking when starting out!  Small multi-family is good With goal of getting to larger size as quickly as possible as scale will help make life easier (think self-managing vs property manager managing).  You can also start educating yourself about other commercial real estate asset classes which can keep you out of tenants, trash and evictions.  You will need team for these things and good way to do that is by being engaged  in meetups and BiggerPockets.