All Forum Posts by: Tyler Jahnke

I've been a fan of Ally for awhile now. They had a very respectable interest rate of close to 2% awhile back, but things have dropped to 0.60% as you mentioned.

At the end of the day, the interest you get from a savings account isn't going to create any real wealth anyways so it's not a big deal. Best of luck!

-Tyler

Hey @Alex Keedy - it's tough to get over the hump and feel completely comfortable/feel like you're ready to invest. The truth is, at a certain point, if you feel that real estate is a strategy that can impact your life positively, you'll have to jump in without being 100% confident.

I will say, there will be some factors that can at least help you feel more comfortable and confident in taking the leap:

-Soak up as much information and education as much as you can. Listen to podcasts, read books, etc.

-Define a strategy (buy and hold, flip, BRRRR, note investing, wholesaling, etc)

-Pick a market

-Build connections in that market + build connections in the industry in general. Message people on BP, talk with people in Facebook groups, follow blogs, use social media to connect

-Embracing the fact that you will make mistakes and it won't go smooth. But, you HAVE to learn from every challenge.

-See this as a long-term game. Start now, so in 10 years you'll reach success.

And shout out to you Alex, a fellow Bay Area native!

Best of luck!

-Tyler

Hey BP! I want to get a thread going about KEYS to SUCCESS.

For those that have found success in the world of real estate investing, whether that's getting your first deal under contract, flipping your first property, analyzing your 100th deal, renovating your 50th house....whatever your version of "success" is...

I want to know what lead you to this point!

It's crazy, I stumbled on this site about 4 years ago and found so much value in it. Some of you know me as the guy who stupidly bought a 2/1 house sight-unseen in the middle of nowhere. That deal didn't turn out as expected. But it lead me to invaluable learning moments that have propelled me to where I am today.

My KEYS:

-Train your brain to see EVERY challenge as a learning opportunity

-Never stop networking. Always be open to starting a conversation with someone. You never know where that conversation will lead.

-Don't invest with the fear of losing all your money. If you do, you'll never take action and will be sitting on the sideline for years.

What are your KEYS to SUCCESS?

-Tyler

Awesome! What did the renovation budget look like?

-Tyler

I personally created a diverse portfolio of:

-Units I own that cash flow

-Syndications I'm a passive Limited Partner on

-Syndication I'm an active General Partner on

There's a lot of value in having multiple strategies working at the same time! But I will say, it is often very nice not having to lift a hammer on those LP deals I'm in haha!

-Tyler

Hey @Dustin Perkins - congrats on finding a deal! The asset sounds to be in good shape considering the new roof, water heater, and newer AC unit.

You'll notice that better cash flow and ROI will be found in rougher neighborhoods, as the acquisition price to rent price ratio moves further into your favor as an investor, the more risk you take.

I've never personally invested around housing authority developments and you know the market/neighborhood better than me, so only you can guage how "rough" the nighborhood is. If it's working class, relatively low crime (no homicides or shootings), low drug activity, I think it's worth considering. You have to make your first investment at some point, and there's no better education than real experience.

Now, as I've grown my investing experience, I personally will never invest in F neighborhoods so that's my personal opinion and strategy. If this neighborhood is an F neighborhood I'd recommend skipping it. But...that's me. There's no one right way to invest in real estate.

Best of luck and I'm always free to answer questions. Just shoot me a message!

-Tyler

Hey @Kaylee Walterbach - My best deal EVER has to be the first one I ever did. Nope, it didn't create financial freedom overnight. Nope, it didn't even provide double-digit returns. In fact, it didn't even beat the inflation rate over the hold period!

It 100% provided more headaches than anything...with a flaky tenant that left...a property manager that didn't communicate (literally)...a squatter in the garage....a $16k repair quote to get it back to a rentable home....

Anyways, its all been well documented on BP with over 800 replies now: https://www.biggerpockets.com/forums/92/topics/392727-morris-invest-case-study-20

So, how in the world is this my best deal EVER?

BECAUSE IT GOT ME STARTED.

The first deal is the best deal anyone will ever make. 

It provides momentum, it provides education, it prepares you for the future.

Only because of that first deal, was I able to move on to my second, third, fourth, fifth, and sixth deal.

Only because of that first deal, was able create my own real estate educational platform, get interviewed on podcasts, write blog posts, create a brand, and partner on 100+ unit deals!

*I realize this is more than 50 words...I'm not always good at following instructions. It's a double-edged sword. Be different, right? ;) *

Hi @Joseph Vu - I can give you my perspective on Indy, however, my portfolio is small so it's not the best sample size. Most of my tenants continue to pay-in-full and on time. But, I do have one tenant that's been only giving me partial payment.

I believe the issue here ISN'T the fault of the market, it's a factor of the tenant. This is me reiterating the importance of finding the best tenants and attracting a quality tenant.

Let me know if you have any questions about the Indianapolis market. I'm very bullish on that area and acquired a few properties out there.

-Tyler

Hey @Vilena G. - it'll come down to a number of factors:

1. Rental demand in your neighborhood. As you mentioned, a 4 bed/3 bath is pretty big, so that requires a specific type of tenant. Maybe you're in a heavy homeownership type neighborhood.

2. Biggest thing: do the numbers work? Can your property pull in enough rent to cover your bills when you refinance? You must know your ARV, market, expenses, etc.

Best of luck!

-Tyler

Hey @Simon Obas - I'd say it's OK to waive it only if you are experienced and you have trusted connections on the ground. If not, I'd ALWAYS recommend an inspection. You never want to get caught off guard with a large expense that hits you out of nowhere.

-Tyler