All Forum Posts by: Sam Smith

@Sean McGrady

With the $5k you might have luck in San Antonio. I live in the DFW market and used to live in Austin, and you likely won't be able to get a place until you've saved up a little more. You'll probably need to be employed for a while to get a mortgage as well. If you'd like some more detail feel free to PM me.

Good luck with it!

@Gina Nicolas

If worst comes to worst, consider telling the client that you'll reimburse them for a styrofoam cooler (the super cheap ones) and some bags of ice (also cheap).

Drew is right about not opening a can of worms with the food reimbursement. By stating the parameters and specific dollar amount for the cooler and ice you can control the costs and provided a fair solution. All-in it shouldn't be more than $20 for a cheap cooler and some ice to last 5 days. Plus, you don't want a tenant moving a big piece of furniture like this. It's a recipe for dinged doorways and scuffed floors.

Good luck and please let us know how it turns out!

@Courtney Haynes

I have friends in Brownsville and they have been amazed by the appreciation (not in a good way). It's made it so that they can't get cash-flowing rental properties. Not that you shouldn't in vest there. If appreciation keeps going up, that would be good for anyone who buys there!

Knowing your goals would be helpful. Are you looking for appreciation or cash-flow? Are you looking for short term or long term rentals?

@Nick Seginowich

I'm not sure what you mean by "common sense" being what separates those who succeed and those who fail. Are you saying that people need to be good at running numbers, or good at reading people?

I'm not sure a catchall term like "common sense" is that helpful for new investors. It's pretty vague and not actionable. It's a term you might use after you've learned a lot and feel familiar in the space. I might substitute "common sense" for "curiosity" or "hunger for knowledge". This would tie better into #3, which I completely agree with.

Anyway, thanks for sharing and have a good one!

@Sean H.

Congrats on getting out there and asking questions! 

From where you are, I think you are more than ready to start talking to lenders. Your questions are very specific and only lenders will know that they can do. You shouldn't sign anything or give them your SSN, but you are definitely ready to start asking some questions of them directly.

Good luck with it!

@LaTonya Clark

What are the numbers?  That might be the best way for others, like myself, to give their perspective

Good luck either way!

Hey @Duane Hill,

How did you mind this deal and how do you know it's good? If it's off-market have you considered wholesaling it for some extra cash? If it's on the MLS then, as JD said, it'll need to be a partnership or seller financing.

I know it's hard to be patient and move out of "buy mode", which you were probably in for at least a few months. But, it might be good to take a beat.

The best thing might end up being trying to network with other, more experienced, local investors by letting them know about this deal and asking for nothing in return. By doing this, you've created a relationship by trying to provide value. It might be a doorway into a great long-term partnership!

Good luck with it! And I hope you let us know how it goes!

@Joey Llamas

Just to clarify on what Roarke said, a 401(k) and Roth IRA are two different retirement vehicles.

I would say you are doing great! A 401(k) is important to have, especially if you have employer match. I've never taken out a loan against my 401(k), so I can't speak to that, but no matter how bullish you are on real estate, you want to have other sources of retirement funds too, if only for piece of mind.

I hope you let us know how it goes!

@Jared Adam

I would suggest taking a step back from forcing yourself to do a rigorous routine every day. For me, that would be a recipe for burnout. In reality, this is one of those rare times when you can really let your curiosity drive you! Ask on the forums about different markets, listen to podcasts you find interesting. Is an episode boring? Skip it! You can always listen to it later, but at this stage you shouldn't force yourself to do anything any certain way. There is no money involved yet and you don't know enough to make yourself focus on a certain strategy.

What do you like? Do you like listening to experts? Crunching numbers? Visualizing repairs? Putting together project management plans? Making spreadsheets? Whichever you like most, start with that. They are all important skills and pieces of the puzzle. 

Since you have a family, you want to go a little more carefully than a single guy. Of course, the riskiest thing you can do is not to do anything (inflation will get you). But, spending a year or two learning and researching is probably the best thing you can do before jumping into an investment.

Good luck with it!

@Jorge Morales

Have a property manager walk the property as soon as possible and ask their opinion. Ask what they think it'll rent for and if there is anything you need to fix to make sure it is legal before you get tenants in there.

Good luck with it!