All Forum Posts by: Scott Johnson

That's red flag numero uno. Real estate is a marathon, @Victor Baronich, not a sprint.

"I have a big circle of wealthy friends and they know I know business (obviously not rentals, lol) so they lend me money for whatever I want to do since I have a history of returning."
Red Flag number two. Overconfidence.

"No section 8, I would say mostly B. They are nice houses in nice areas. One or two are C's in low-income areas."

This tells me that the money you're borrowing has to be prohibitively expensive. The properties may also be older. 

People get caught up in the "get rich quick" mentality and use professionals words (in this case Robert) to try to justify their misguided decisions. If your rentals aren't providing the return you expected, you're doing something wrong. Stop... Think... Reevaluate... Execute. Or just keep doing what you're doing, trying to justify your decisions, and piss your tenants and your investors off. Totally up to you. 

Oh:

"I understand. But I also read on these forums, people making huge incomes from rentals. Or at least that is how it seems to be presented." 

More proof if a "get rich quick" mentality. 

Tough love, but I hope this helps!

 Truth

Hey, @Greg Moran! Welcome to North Carolina! Many more to come!

To the free markets! 🍻

Wholesaling 101, @Jack Dugan

We do not market properties. 

Think about it. 

@Manuel Salce,

I may be a bit confused. You're stating that someone will seller finance to you at 30% down and then bringing up lenders, who don't have much to do with that. Can you explain a bit more, please?

Even 30% on a seller finance could work. 

I believe you're misinterpreting Robert's point, @Victor Baronich. He's also very clear that:

- Doing the same thing over and over again is insanity (shown by purchasing more like-kind rentals that eventually lose money due to repairs

- Debt is like a loaded gun (When you say "investors" I'm guessing you're using very expensive money)

He also speaks of how good Cash Flow is, but one primary use of the real estate for him is offsetting taxable income.

It looks to me like you need to change your approach. Are you investing in A, B, or C properties? Are you renting to section 8?

That's totally market dependent, @Jack Dugan, but a buddy of mine in Raleigh, NC won't do a flip unless it's $25K+, preferrably $30K.

My advice, @Richard Forton:

Stay the course. That's a free property and it'll provide capital for another acquisition. Real Estate Investing is a marathon, not a sprint. 

Hope this helps!

 I do exactly what I recommended, @Alyssa McEwan, but I contact my usual long-term lender. 😜 

BRRRRR's are for my Mom & Dad's retirement. The only exit strategy I have is to help them 1031 into a larger multi-family property or syndication.

 You've got this, @Taylor Gaylard. Just do one thing that <1% of all investors do. Read the tax code related to real estate. There are a lot of opportunities there that people never learn about. Cash flow and appreciation are sexy because it's easy. The easy road often becomes hard, and the hard road often becomes easy. 

On a recent Rich Dad Radio Show, Robert Kiyosaki was discussing his Carbon Sequestration business he went in on with Marin Katusa. He stated "We're making millions! Now, I need to buy more real estate." Fill in the blank: to reduce his taxable income. Reflect on that. 

That's a key insight into how the rich use real estate.