All Forum Posts by: Tim Jones

@Mark Henry,

At a minimum you must replace this PM. Hi maintenance bills are a dirty PMs method....IMO.

I would look at that market and determine what you could sell this 4-plex for. Can you break even or make a small profit. It might be a good time to sell (it's a seller's market in most places). Maybe look at investing locally where you have more control and are hands-on.

Food for thought....

TJ

@Betty Cruz,

So many good things already written....I really do love BP!

One additional thing you can do to strengthen your position is to get a HELOC on your personal residence. They're cheap and really flexible. This can put you in a better position as a buyer and you can repay it upon the sale of your home.

Best of luck to you!

TJ

Welcome!

I recommend that you immediately read The Richest Man in Babylon. Use the lessons in the book to get your financial house in order (savings, debt, credit). Once you have a decent financial foundation then you'll be in a strong position to start investing.

Best of luck to you!

TJ

@Jay Hinrichs,

Love what you're doing and can't wait to be in a similar position to help others!!!!

Happy Holidays to all of BP!

TJ

Team up with an investor in the area & have them/their team do the flip. Nothing out of pocket for you & everyone makes $. The key would be structuring the money and responsibilities. One of many, many possibilities.

Gen,

I think that you're on the right track...investing in a business that you already know. Your idea of MF apartment buildings in the Central Valley is also smart. That's where I'm currently looking. 
You posed the question, what am I missing? Maybe I'm a pessimist but I feel that we're near the top of a market cycle. Better deals may be found in the not too distant future.
I saw that your parents are investors. What is their take and how does it compare to all the advice that you've been receiving here?

Happy investing!

TJ

@Gen Young,

Good evening from Carmel Highlands! :)

As you can see, there is a ton of great advice on this site. @Jay Hinrichs is spot on, as are many of his posts in many other threads.

"If I were you", I'd look to leverage my money at these low rates as a hedge against the impending inflation coming as a result of Quantitative Easing. How you do it is a matter of preference as many others are indicating. 

Be patient, don't invest in anything you don't fully understand - slow is smooth and smooth is fast!

There was a recent REIA meetup in Carmel Valley a few weeks ago. I was working so I couldn't attend but perhaps you can enter 'Monterey' in the search field and find those group members.

Best of luck to you,

TJ

@Kevin Godinho,

As our grand poobah mentors (Brandon and Josh) have said in a recent podcast, you must get your financial house in order prior to investing. Personal financial planning is at the forefront of everything. Anyone can win the lottery and then end up broke through mismanagement. For the record, I am not implying that you are bad with money but rather that there are some important priorities one should have in the investment world.

Here's my two cents to newer investors:

1. Read everything you can get your hands on! Learn as much as possible. A financial education is like obtaining at least an Associate's Degree in terms of the hours spent. Podcasts, webinars, audio books, forums, etc are your new best friend.

2. Read "The Richest Man in Babylon". Regardless of your income level, you MUST begin to pay yourself first. This is your source of funds for investing. Even if you get into a property with no money out-of-pocket, as @Aaron Mazzrillo properly pointed out, you will need reserves for so many other things. Are you already familiar with CapEx, vacancy rates, maintenance, and other NECESSARY reserve accounts?

3. Focus your attention on your DTI levels, credit score, cash savings, etc. Properly position yourself ahead of time so when you find a deal you'll be ready.

4. Start analyzing deals today so you'll have a good basis for decision-making in the near future. Be patient...you have some time. IMO there is a market correction coming and that is the ideal time to strike. As Warren Buffet said, "Be fearful when others are greedy and be greedy when others are fearful". I think we're approaching the top of a market cycle that bottomed out following the Great Recession.

I hope I don't come across as too negative. I would love to see you succeed (and maybe post your story in the success story thread one day! This is a fantastic site and there is a lot of positivity here. It's easy to tell newbies how easy it is, but sometimes we must realize how much time and energy that we've put in over the years and that what is easy for one person can be very mind-boggling to the new investor. Take in all the great advice but then filter it to your own situation. 

Good luck,

TJ

@Melissa N.,

Great advice here on BP! 

Points to ponder:

1. Multi-story building? If so, don't wait too long to replace. An ounce of prevention is worth a pound of cure.

2. You could buy as many as it takes to offset this year's profits (play the tax game).

3. Maintenance: Shut down the water heater and drain with a garden hose. Pay attention to the sediment that comes out. This should be done periodically (depending on your local water) as a preventative maintenance. 

4. I love the Black Friday and other quantity discount advice others are giving.

Best of luck to you!

TJ

@Aaron Bry

As you can see Aaron, lots of good insight here! 

You mentioned comps, but have you had a local realtor come and see the condition of your home and prepare you a proper CMA? You mentioned that improvements were made. It would be best if you had some more concrete info before making a decision. Also, it's not too hard to sell it yourself through a title company and save yourself 6%. We're in a strong seller's market here in the Central Valley.

Another thing to consider is both your local and national market. I feel that our prices are approaching 2004-2005 levels, just before stupidity took over and banks gave loans to dogs, cats, etc. If you feel that you're possible in a bad investment now, how would a 10-15% market correction affect you? I can't say if or when it would happen, but are you prepared? 

Just some things to consider along with all the rest...

TJ