All Forum Posts by: Tucker Cummings

As a general rule of thumb, the more active you are in your investments, the greater return you’ll make.

In real estate, if you're the one who finds the deal, rehabs it, manages it, etc. you'll have the greatest return. But you'll likely not have a lot of time to do much else. If youre shopping on the MLS, using an agent, a contractor, mortgage broker, property manager, etc, each one of those steps gets a pay out in some capacity, eating into your returns.

In stocks, if you spend a lot of time studying patterns, fundamentals, projecting growth, using options or other active trading strategies, you’ll likely find greater returns than someone who just throws it into a mutual fund.

If you’re looking for passive investing, my advice would be to complicate it as little as possible. You could look at being a private lender or a limited partner on a syndication. If you actually want to own the property, you may want to network with an agent or two in your market and find a good property manager. That’s what I did on my first investment and it’s very passive.

@Patrick Flanagan

All of my investments are in one city, Fayetteville, NC. It's fantastic for cash flow. But I'm looking for additional markets to start spreading out to, which is why I asked what kind of data you might have. I'll definitely do some more research on these markets, I appreciate the post and response!

I think with these things it's an opportunity to bring humanity to business. Have compassion, but also remember you're running a business, not a charity. 

If I were in this position, I'd work directly with family and express that you want to give empathy, but at the same time you have mortgage to pay, utilities, future repairs and vacancies to budget for, etc. Could you work out an agreement to say "hey I can cover this for 60-90 days (whatever you're comfortable with), but in exchange for foregoing rent for a few months, I need to know if and when you're relative might come back. If at the 90 day mark I haven't heard anything, I'll have to move towards an eviction, but if you let me know the situation forward prior to that time, I'm sure we can work something out for both our benefit."

Just playing devil's advocate.... by what criteria are you selecting these markets? Anybody can throw out a few cities and say they're good areas to invest. But what makes these markets a wise choice?

Very interesting... and exciting. Hopefully this means if they're letting more inventory flow into the market, it might bring the housing prices back to normal. We shall see...

If you're just doing your first deal, I would stay away from the marketing side to get a wholesale deal. I assume this is direct mail? It's a very crowded market and most people get these postcards and throw them away immediately. It's not a bad source of deals, just wouldn't be the first source that I would advice.

Honestly it sounds like you're trying to take on a lot, wanting to get rentals, also do a flip, also do a wholesale, also build the relationships needed in RE, also building a direct to seller business. I would say just slow down and take it one step at a time. Maybe just a down payment on a normal MLS deal that you can still cash flow well on. It's easy and will get you in the game quickly.

Awesome! Love to hear about other's success and I look forward to hearing more about your success in future deals :)

I recommened batchleads or Batchskiptracing. they tend to have the best data. Yes you pay a slightly higher price, but it's worth it considering you'll have way more hits and you won't have to skip your data a second time because the first round was bad.

Time Intensive but Money Non-Intensive: Driving for dollars, door knocking, cold calling, networking (wholesalers, investors, agents, property managers, etc.)

Money Intensive but Time Non-Intensive: Direct Mail, Paid Ads on Google, FB, TV, etc

I'll reiterate what many on this thread said. I would encourage you to rethink paying off the debt prior to investing. Yes, paying off the debt can give an incredible peace of mind. But I think you'll find that the sooner you invest, the better you'll be. 

If you're planning on doing BRRRR as you mentioned, you'll still have a lot of the capital left over after each deal. You may leave 5-10% of the ARV of the home in deal, but with that 5-10%, you might have picked up several properties. Those properties are going to pay down the principal and cash flow, and you can use the cash flow to more aggressively pay down your student loans.