Got great advice from my Property Manager this week.

[Mark Fagan]

I introduced myself a few months ago with a short story on my BRR GRAND SLAM property in a neighborhood that became a hipster paradise shortly there after. The house cash flows nicely with a ton of equity with little out of pocket cash.

That was my first property purchased as an INTENTIONAL INVESTOR. Since then, about 5 years, a few of my childhood friends have kicked around the idea of starting our own REI company. This January it became real. The three of us started an LLC, opened a bank account, and each started contributing $1k monthly since. We will hit $30k come October 1st.

WIth October being just around the corner, I have reached out socially to my property manager to ask for some advice on neighborhoods, strategy, finance products, ect. Also spoke with a couple of other small time investors to prepare myself for the "HUNT" of our first deal as a group. 

The meeting with the property manager, his right hand man, and his money man, lead to the perfect advice that comes right out of Michael Lewis' book Money Ball. He said "just get on base." 

BP podcasts are exiting, and the stories of the wealth generated by the members here are incredible, 2% rent to value, free equity, BRRRRRRR home runs, and insane flips are absolutely amazing. But I am not that good and not all of this HARD EARNED money is mine. 

Since speaking with Ralph, Matt, and Moneyman, my irrational exuberance has dwindled, and my friends and I have all agreed that we need to practice on simple properties first. We are going to look for a simple single family home a decent neighborhood, habitable in need of some simple repairs $5k or less, and cash flow more than $50 dollars/month on a 15 year fixed rate mortgage. That is our simple plan. Nothing spectacular, just a "Base Hit" 

We need the practice negotiating, dealing with small projects, and dealing with lenders before we start taking bigger bites with riskier deals. 

I am forever grateful for all of the advice that I have gotten from experienced REI's in this forum and on the podcast, look forward to sharing stories of my baby step successes!

-Mark