All Forum Posts by: Tyler Jahnke

Hey BP,

Today's random update: this Morris Invest property that I USED to own and sold in May 2018 is officially back on the market FOR RENT at $790 per month. Looks like the investors that I sold the property to put some nice work into it. I've included pictures from the condition it was in when I sold it compared to now. Best of luck to them in turning this investment around. I wish them success!

BEFORE Front

BEFORE Side

NOW Front

BEFORE Dining/Living

NOW Dining/Living

BEFORE Kitchen

NOW Kitchen

NOW Hallway

BEFORE Bathroom

NOW Bathroom

NOW Bedrooms

-Tyler

Hey @Brian Bertsch - I don't have all the details, but boils down to me buying in an asset class that I personally believe has a slim chance of holding up long term, poorly run property management company, false promises from Morris Invest, lack (NO) communication. Best of luck and let me know if you have any questions!

-Tyler

Hey @Account Closed - sorry to blow this post up. But, I actually saw that property the other day. Couple things:

-It's in a pretty good neighborhood with little crime. The new library being built right on Michigan and 63rd is a plus

-Interior rehab looks good from the pictures I've seen

-I'd be a little concerned with the roof and brick siding as it was built in the 50s. So definitely get an inspection

-Do a little more research on rents as it's been on the market for 30+ days. Maybe a sign that the rent is too high, especially since it's under 1,000 square feet.

-Tyler

Hey @Darrell Spencer - props to you for being motivated to get into real estate!

Now, I'm not trying to be harsh, just telling you how it is: as @Brandon Turner and @David Greene say on the BP podcast all the time...the quickest way to NOT find a mentor is to blatantly ask "will you be my mentor?"

Instead, I'd suggest you start connecting with as many people as possible that are accomplishing what you want to be doing. Meet them for lunch, offer to help them for free, go to meet ups. A mentor will probably COME NATURALLY at some point if you really focus on networking. Also, that "mentor" will probably be more like a good friend than anything.

Think of it in terms of dating. You'll never successfully ask someone out if the first words out of your mouth are, "will you be my girlfriend?" you've got to start with a real conversation, build trust, and foster the relationship.

Best of luck!

-Tyler

Hey @Account Closed - your calculations look pretty good on the vacancy, capx, repairs side of things. But, your property taxes look a little low to me if the assessed value is right around $100k (but I could be wrong). Shoot me a PM and we can walk through the analysis together if you'd like. I've purchased a few properties in Indy in the past couple years.

-Tyler

@Dean Letfus - People will always look for the quickest and easiest way to make a quick buck and reach "financial freedom." And they don't want to take the time and effort to learn the basics of a market and build the proper relationships it takes to invest from afar.

I fell into the trap a couple years ago...went the turnkey route...was tempted by the "amazing" and quick returns on a $37,000 property....got burned.

But, I'm trying to grow, improve, learn more. I'm here sitting in the Indianapolis airport waiting for my delayed flight home to SF...after spending Labor Day Weekend...working...on my next real estate opportunities.

It takes real time, effort, sacrifice, and money to be successful in real estate.

Hi @Cassidy Farnsworth,

David hit it on the head right there. As you're experiencing right now, the toughest part is actually JUMPING IN!

I'd recommend getting in the routine of analyzing properties EVERY day. Once you get comfortable analyzing properties, then start putting in offers EVERY day. If you're looking in a good market and are quick on the analysis and offering you are bound to get something before 2019.

Fear is probably a big factor right now. Fear of failing. Fear of picking up a nightmare property. Fear of losing all your money. SO, to increase your chances of acquiring a quality investment property, here are some pointers:

1. Make sure you understand the neighborhood the property is in. A SAFE neighborhood with little crime and good schools is a really good start.

2. Completely understand the numbers. Know how to calculate all expenses, income, and cash flow. BE SURE to factor in future repair/maintenance expenses too

3. Have a QUALITY inspector lined up to check out the property when you get it under contract.

4. Have a QUALITY property manager lined up if everything checks out to manage your property. Even if you plan on self-managing, I'd always have one in your back pocket for the future. After all, I imagine your vision is to scale up through the years. And you can't do that without a property manager.

There are never any guarantees, but if you follow those 4 tips, your chances of having a cash-flowing property are greatly increased! Best of luck and let me know if you have any questions!

-Tyler

@Drake Dillingham - Yeah, I'm a little confused too. If I'm reading it right, you have no downpayment or closing costs. Also, 4% interest on a multi-family mortgage seems a little low. You'll have to clarify a little more

-Tyler

That's quite the ask @Abhay Sachar!

I'd start by connecting with as many people as you can here on BP, having transparent conversations with them, and building strong relationships. You'll need a team of people you really trust if you decided to invest out of state and it's not as easy as just asking for what you want on the forums.

I'd recommend to start by talking with agents, property managers, and wholesalers. Some will be more willing to help you out once they know you are for real.  It's like dating...very difficult to walk up to an random girl and ask them out straight up...you need to form a connection through conversation. The last thing these people want are someone demanding they go check out 45 properties a week and not close.

Best of luck and let me know if you have any questions!

-Tyler

100% @Courtney M. - not only does one need to eventually jump in and take action, but WHEN they hit some rough spots (because everyone will at some point), they need to be able to overcome the challenges and move forward to be successful. 

-Tyler