I have multiple aims in mind when I write articles. One is to deliver actionable and motivational content – this is why you keep coming back. Another is to keep the posts of a certain minimum length because the search engines like “EPIC” content, as my friend Brandon Turner likes to call it.
Well – I am busy today, in light of which this particular post is going to be short, real short; the shortest I’ve ever written. That’s OK, isn’t it? After all, it’s not how many words we write – it’s what we say with them, and I just don’t think that this particular subject needs or deserves anything more than what it’s getting. As to search engines and SEO, Josh Dorking may have to cut my pay on this one… 😉
You know what your biggest problem is?
You have too many options and you are dazed and confused by them – that’s it! I could elaborate, but I could never say it as well as Albert:
“A perfection of means, and confusion of aims, seems to be our main problem.” ~ Albert Einstein
Got it? Focus and quit being confused…
How to Estimate Rehab Costs!
Estimating rehab costs accurately can make or break your real estate business, and it takes years of experience for even the best rehabbers to master the art. However, you can expose yourself to less risk and get more accurate with your projections by learning how the pros think when estimating construction costs.
Simple – what do you want? Decide what you want and go after that – and nothing else! If you want to flip houses, then go do that. I think that you are nuts, but I respect your commitment. However, if what you want is passive cash flow from rentals, then why don’t you just go get some and be done…
And yet – every other day a newbie jumps into the BiggerPockets Forums saying he is going to flip houses in order to generate investable capital with which to buy long-term holds. What kind of backwards logic is that? First of all – do all of you have any idea how freaking difficult it is to flip one solitary house for a profit, let alone be consistent at it? And then there is this:
Why Do You Need Cash Anyway?
Brian Burke just closed on a 140-unit complex with exactly $0 out of pocket. I guess when I called to congratulate him last week I should have remembered to ask how many houses he had to flip to get this bird tied-down. Although, had I asked Brian would have said “none”, seeing as he had ZERO MONEY IN THE DEAL!!!
While not as sexy as Brian’s 140-unit, in February of this year I bought a 10-unit with a bit over $5,000 out of pocket. This was the first time I’ve ever brought money to closing – EVER!
Sure – you need cash to close on real estate. Yes, you do!
But it does not have to be your cash. How many different ways do you need to be told? Listen – of the billions of dollars of investment capital floating around this economy, if you can’t get a few hundred thousand to buy a few units then you are either not looking in the right place, which means that you need to be educated, or you don’t even know to look, which really means that you need to be educated. Which is it?
“Capital isn’t scarce; vision is.” ~ Sam Walton
Some people call it Synergy of Means, and certainly there is room in a sophisticated portfolio for flipping, assigning, and a lot of other techniques. However, if what you ultimately want are long-term holds, then learn how to get some. Don’t confuse yourself – you will lose money. As my wise mother says from time to time:
Stop looking for brains up your butt!
I am supposed to ask you a question now to encourage your engagement. However, realizing that you are either peeved at the moment because I just popped your pimple, or are falling out of your pants laughing, I won’t ask…