All Forum Posts by: Adam Juodis

Nice! Can certainly tell this flip was done with quality work, Brandon would be proud. Care to share the numbers on this project?

@Brian H. It's all about opportunity cost. $150 cash flow per month is undoubtedly more than $102 per month, but how much of your own money are you using? Is there obvious risk between the two properties you described above? 

As an example, lets say you put a downpayment and finance a property that is $200k(40k downpayment), which gives you a 10% ROI. If you could find a property that is $100k (20k downpayment), which gives you a 14% ROI, you could take the money you saved and put it towards another similar property and elevate your returns.

Now you also want to assess the security of your investment.

Following my example above, maybe the $200k property is located in a great area which will attract great tenants and support potential appreciation. This can mitigate your risk by avoiding more tenant turnover and having lower vacancy rates. The cheaper $100k property might be in a less appealing area with a lower quality of tenants, and high tenant turnover or missed rent payments could affect your ROI outlook.

Personally, regarding the situation above, I would take the deal that is a little less ROI, but gives you better security on your investment. Maybe in your case, both properties are comparable in terms of security of investment, but I wouldn't go for a 8% ROI unless the property was in a very good market where appreciation is expected. For that kind of ROI, you could stick your money into low risk stocks/bonds and see similar returns without having to do any work.

When buying a property with a real estate agent/broker, you pay them a commission after the deal closes. I was wondering, when buying a property from a wholesaler, is the only difference in closing costs paying the wholesaler's finders/assignment fee in lieu of the agent's commission?

Typically the agent acts as a middle man for handling the title info/inspection and other closing paperwork. Do you handle these things yourself when working with a wholesaler?

@Gino Barbaro I am not saying all coaches/gurus are a scam. There are a select few from the majority that mean well, I'm sure you are aware of that. Anyways, who says you have to pay for a mentor? Go find an experienced investor, and offer them your skills and time for their knowledge. If you have the money and have a trusted source, then go for it.

The point I am putting across is, be careful of who you are paying for the education. As you stated, you need to make sure you have fully vetted the person/organization that is providing the service. Ask them for referrals of previous participants, etc. 

Some people are not capable of putting together all the knowledge they have gathered and translating that into action. For those certain people, a legitimate coach may be worth their while.

PS: I enjoy your podcast with Jake. Lots of good info and would recommend alongside the BiggerPockets podcast, would recommend.

@Seby Rubino Not familiar with the program, but I'll give you my 2 cents. Honestly, all the information you need can be found on BiggerPockets. From the blogs to the podcasts to the posts, and the ability to ask specific real estate questions and receive fast answers, the resources found here can turn you into a well-versed real estate investor.

Most real estate courses, coach sessions, guru seminars are scams, people using their marketing skills to pocket the everyday person's hard earned money. How much are they asking for the program? If it's a weekend event and they're asking for thousands, turn around and run. Personally, I would never pay big money for somebody to 'teach' me about REI. Everything you need is right here!

@Marquis Ephraim I'm curious, where is this property at? I can't imagine a 40 mile radius within Bolingbrook where a property could be that cheap, even if it was in the rougher areas of Southside Chicago.

@Chad C. A couple things you need to look out for when investing in Condos:

#1. Make sure the condo allows owners to rent to tenants. You'd be surprised how many people have tried renting out a condo just to find the HOA doesn't allow it.

#2. You need to account for special HOA assessments. Some HOAs are crazy with this, so this could hinder your cash flow.

#3. Just read all the HOA rules, regulations, terms and make sure there are no other hidden caveats.

Personally, $104 cash flow per month wouldn't do it for me. Even if you're all cash, 7% CoC return isn't much different than throwing your money into low risk stocks/bonds. Especially in Louisiana, I think you can find better cash flow returns. I suggest you keep looking!

@Greg P. That is the BiggePockets BRRRR calculator. You have to be a PRO member to use them, but they're a wonderful tool for quick property analyzing. There are also calculators for Buy and Hold, Flips, and wholesaling.

@Vincent Parello That's interesting, because my girlfriend lives right off of 30 in Joliet (Crystal lawns neighborhood) and her house has well water. Let me know what questions you have, and if I don't know the answer, I could probably ask her father since they have lived in that house for 15+ years.

@Vincent Parello I have never had to replace a well, but it would run around $1,500, probably less if you shop around, looking at some quick google searches. 

If you find a solid deal, I wouldn't let this hold you back. Well water pumps have a typical 10-15 year life, so I would just account for the pump in your Capital Expenditure savings.