All Forum Posts by: Shiela R.

Hi @Greg R. I'm new to BP but not new to REI. OF course, no one knows what the market is going to do exactly. But by studying economic trends and considering market cycles, I do believe certain markets are going to slow significantly. Some may even crash. I'm already seeing it in certain areas with price reductions and DOM increasing. However, I take issue with your question in that there is no national REI market forecast just as there is no national weather forecast.  I mean, here in CO it is not uncommon for it to be sunny and clear skies in the front yard but raining in the backyard;) Just as it's not uncommon for one property to sit on the market where another still is sold with a bidding war. 

We must be experts in the markets we are investing in.  I do believe there will be some reckoning with those not using the sound principles of investing - particularly buying right aka buying at a discount.  And you are correct in that so many (60%+/- is coming to mind but can't recall the source) do live pay check to pay check.  If you just listen, the Fed raising rates and increased inflation, reduced consumer spending is building a recession. And that will be an opportunity for the rest of us.

@Rachel Mellies.  Much of my business is built on rent-to-own (lease options) for both buying and selling.  PM me if you want to know some ways to minimize your risk.

@Andrew C. - I've had much success with direct mail and knocking on doors (I went with a partner, would not recommend doing solo for obvious reasons). You have to go for the low hanging fruit - are these people distressed or is there any evidence they might need to sell. Is the property distressed, do you have NOD list that tells you who is behind on payments? What messaging are you using? What will you say if they call you?

@Eric W. okay, you don't like paying taxes.  Who does? I know 2 very successful investors who live and invest in DFW. Sounds like you need to open your mind to the possibility of a deal near you (however "near" is defined for you). Investing is not just about taxes. Go to your "zen place" (hiking, golf, back porch, etc)  Journal and get clear on what you want.  And why you are embarking on a REI journey. If REI were easy, everyone would be successful at it;) An objection to taxes or the like is just a block you are putting up to start your REI journey. You sound like you could learn a bit about the tax benefits of owning real property and investing where it makes sense for you.

For example, if I listened to the general consensus, I'd never have what I have. I hear all the time that my city is "sooo expensive" and "untouchable for average people". The median price of a SFH is about $I.1M. Yes that is median for a mid century home around 2000-2800 sq ft., not necessarily remodeled. But there is a housing cap which limits supply but the amenities of Boulder keep a steady, if not increasing demand. The economics of the Boulder RE market made it appealing to me for so many reasons.  Plus it's beautiful with great weather. When I started, I intentionally invested outside of Boulder in less expensive markets to build up my cash reserves. Then my husband and I bought and now own properties in the City of Boulder, including our primary residence.  Get creative. Get educated.  Get experience.

@Don Konipol. Yes, I have formal education as follows:

1) Paid nationally known investors for a year long mentorship course with an upfront fee AND splitting my first 2 deals 50/50

2) Real Estate License in CO since 2005.  CE annually

I continue to educate myself through reading, taking courses and doing deals!  I learn on every deal - wether I'm doing a fix and flip or brokering.  The quote :"If you're not growing you're dead" is a mantra of mine.

@Eric W. good question.  Where do YOU live?  If you are just starting out, you want to keep it simple. Focus on an area that is a reasonable drive time (this is a personal thing). When I was first starting out, young and hungry, I drove an hour each way to some of my properties.  Both flips and LTH.  But, I managed everything myself bc I wanted to learn and am a bit of a control freak;)  Even if you live in an area that is saturated or prices don't make sense to buy for you, there is always a secondary market near enough. Become an expert on that market.  Drive, walk, bike and notice what is what.  Once, you learn how to correctly identify values, you can apply it to any market.

@Michael Mastantuono, it is common for renters to pay utilities in Columbus.  BUT, I'm posting bc my dear friend who is an investor and agent in Columbus, OH got a $2500 water bill after a tenant moved out.  Water goes back to the owner upon no payment. So I totally disagree about paying for other's utilities.  I was taught to pay water bc if not paid it can be a lien on the property and water usage can tell you a lot about what's going on.  Suddenly, usage is way low. Did tenants leave the property abandoned?  Too high?  Do they have an additional person living there? A pot garden?  a leak?

@Mahmuda L., I agree with @Bjorn Ahlblad - no evictions, period.  Unless your rental market is in dire straights, you should not have to accept people with evictions, bad credit or trouble with the law.  It's worth it to wait for a qualified tenant, IMHO.

@Nate Mur hello! It's hard to say without seeing the site but one time it took 5 months for the bank to agree to the price I offered for their REO.

You are right, they don't want the property as they are in the business of lending, not property rehabbing.  Time is on your side;)

@Lauren Quest hello!  So I have spent a fair amount of time in south Florida.  My BFF from college used to be the city manager of Ft. Lauderdale.  Now she works in the private sector.  I don't know south Florida like my area but I have heard there is a lot of development.  Also, a lot of mitigation for rising ocean levels.  The best thing you can do is buy at a discount (20%+).  If you can't get a discount, don't buy. Period.  You'll have to choose an area to farm and become an expert on values so you know just what is a discount.