All Forum Posts by: Steve Rozenberg

There are a lot of great networking events and meetups here in the Houston market and great investors that can help guide you. My advice is figure out what you end goal or outcome is as a result of real estate then figure out the strategy you are going to use to get there.

Then seek out the experts in that field that use the strategy you are wanting to learn. Mindset is key to all this, knowing your WHY is the most vital thing I can tell you to learn first

Not knowing what to do is not only common but it is part of the journey you are on. I would suggest that you have to first figure out your end goal and end strategy. What you want as a result of owning real estate, its what real estate gives you as a result of it all. Once you have that defined as a goal then you figure out your strategy to reach that goal

For example you may say your goal is 20 houses in 20 years (paid off) earning $20,000 per month.. (20,20,20 goal).
Now you know where you're going and the timeframe for this to happen. From here you can build out your strategy, for example here you would want to have the 20 properties purchased the first 10 years so that they can use the final 10 years to pay themselves off. This means that you have to buy 2 properties per year which means you have to close on a property every 6 months which means that you have to find a property in 3 months to have it on the market and rented the following 3 months.
And the properties need to have a final cashflow of $1,000 per month after all expenses are paid. This will dictate where you purchase and look for properties based on that number alone.
My point is that you always start with the end in mind and work it backwards, this creates the strategy (Buy and hold, flip, Wholesale, Notes) which will be driven by the tactic (SFR, MFR, Mobile homes, Short term rental etc)
I always coach people and explain that the property is actually the last piece of the puzzle not the first.

I would say that it depends on your goal and your strategy. If you are looking to have a property that the end goal is appreciation then counter to that is negative cashflow. You are not normally going to have both in general.

If going negative is not something you can do then I would suggest that it is not the right strategy for you and your goal.

Always ask yourself if the strategy you are doing is going to get you to your goal. If you buy the property know the end goal

First thing I would do as others in here have stated is figure out "WHY" you are doing this. Once you know that and you know your end goal then you work backwards. The goal has to have a finite destination and time limit on it.
For example you may say your goal is 20 houses in 20 years (paid off) earning $20,000 per month.. (20,20,20 goal).
Now you know where you're going and the timeframe for this to happen. From here you can build out your strategy, for example here you would want to have the 20 properties purchased the first 10 years so that they can use the final 10 years to pay themselves off. This means that you have to buy 2 properties per year which means you have to close on a property every 6 months which means that you have to find a property in 3 months to have it on the market and rented the following 3 months.
And the properties need to have a final cashflow of $1,000 per month after all expenses are paid. This will dictate where you purchase and look for properties based on that number alone.
My point is that you always start with the end in mind and work it backwards, this creates the strategy (Buy and hold, flip, Wholesale, Notes) which will be driven by the tactic (SFR, MFR, Mobile homes, Short term rental etc)
I always coach people and explain that the property is actually the last piece of the puzzle not the first.

Hope this helps

I 100% agree with @Nathan Gesner. You are running a business not teenage friendship circle. How you to the little things is how you do everything. There is no shame or nothing wrong with being a landlord. Now adays in technology I would say assuming someone can not find the owner would be absurd. 
I do like the partner (higher power) comment. I would further suggest that you run your business with standard policies and procedures that do not bend. When you accept a tenant give them a tenant handbook that explains your policy. This is the same if you got hired at a job, or any other company. Have rules and policy that YOU follow and expect the same from them.

This is where so many self managing landlords get in trouble with fair housing violations by not have strict adherence to their policy and treat one tenant different then the other or they are not consistent with the signed contract (the lease)

I think being a business, upfront honest and having rules, policies and procedures is key for long term sustainability.

Not sure how I got brought into this one :-) but thanks @Steve Shaffer. I agree that everyone is right and wrong at the same time. The only way that works is your way. Mine is correct for me but quite possibly wrong for you. Depending on our different goals and different strategies to reach those goal. That goal is broken down into time frames, cycles, frequencies, volume of revenue, return expected, exit strategy etc... There are so many different variables there is no way it is possible to say one works and one does not. I know very experienced sophisticated investor friends that own over 500 properties. I can assure you they are passive in their role.

Coming from owning a Prop Mgt company that managed over 1,000 properties I can tell you first hand EVERYONE has a different way of looking at their investments. Some I have learned what do to do and other the exact opposite.

Figure out your own end goal and work towards that by defining what strategy works for you, your timeline, your exit, your family is my advice.. Not that anyone was asking :-) 

Great to meet you, there are many place in Texas as well as out of state that are great and bad at the same time.

You always have to start with the end in mind, ask yourself why are you doing all this?

What is the end result of what you want to accomplish and how will your life look as a result of all the success you will soon have?

This is called your Destination or End Goal

Once you know your end goal, your strategy is what will take you there.

The tactic is the type of property you will use with your strategy this is actually the last piece of the puzzle not the first like so many people think.

I have spent thousands upon thousands of dollars and sleepless nights full of stress and frustration because I did not set a goal.

When you are investing in real estate you MUST set a goal its that simple

Congrats on starting this journey lots of great information and people here on the BP forums. My suggestion is to take this time and make sure you realize what it is you want as a result of owning real estate look at all the different goals that people have and what strategies they're using to achieve those goals.

Once you know what you want as a result of owning real estate then you can go and start looking at what kind of deals you can actually purchase that will get you those goals. Many people buy a property first and then they try to understand what to do with it that's backwards thinking

I would say that it is best to figure out what your strategy is based on your goals. 

First thing I would do as others in here have stated is figure out "WHY" you are doing this. Once you know that and you know your end goal then you work backwards. The goal has to have a finite destination and time limit on it.
For example you may say your goal is 20 houses in 20 years (paid off) earning $20,000 per month.. (20,20,20 goal).
Now you know where you're going and the timeframe for this to happen. From here you can build out your strategy, for example here you would want to have the 20 properties purchased the first 10 years so that they can use the final 10 years to pay themselves off. This means that you have to buy 2 properties per year which means you have to close on a property every 6 months which means that you have to find a property in 3 months to have it on the market and rented the following 3 months.
And the properties need to have a final cashflow of $1,000 per month after all expenses are paid. This will dictate where you purchase and look for properties based on that number alone.
My point is that you always start with the end in mind and work it backwards, this creates the strategy (Buy and hold, flip, Wholesale, Notes) which will be driven by the tactic (SFR, MFR, Mobile homes, Short term rental etc)
I always coach people and explain that the property is actually the last piece of the puzzle not the first.

Hope this helps

@Sandeep Majumder

Being in real estate for the past 20 years locally here in Houston I would say I probably know most everybody both good and bad.

I would say you really want to be careful asking people advice because this is all based on what your definition of a good deal versus what a bad deal is. There may be deals that I think are great deals from a wholesaler that you may think are a bad deal based on what your goal and what your strategy is.

I would say you really want to be careful asking people advice because this is all based on what your definition of a good deal versus what a bad deal is. There may be deals that I think are great deals from a wholesaler that you may think are a bad deal based on what your goal and what your strategy is.

If you’re looking for a good wholesaler on your own I would suggest you make sure you have clearly defined goals and non-negotiables what type of property you will except and what you want to except. Then sit down and have an expectation meeting with them and let them know exactly what you’re looking for and what deals you want to see. If you just say bring me deals they don’t know what is a good deal what is a bad deal for you based on your goals and based on your strategy if you don’t tell them