All Forum Posts by: Brad Gordner

I second what the other guys have mentioned, Good, dependable, economical, contractors are very hard to find.  Tenants, in comparison, are a dime dozen.   

If he is as you say he is then I would just let him know that you know and you would rather it not happen again.  Or, as Mike says be better at hiding it.

Of course, it may be easier for us guys to look over something like that, it is for me.  I'd be curious to hear some of the other lady landlords/flippers thoughts.

Congrats.   It is awesome to see people sharing their stories on accomplishing their goals.  

As Matt said, it's awesome  how fast you accomplished this.     I may need to focus on the mid west!  Been hearing alot of good things.

In my mind they should be trying to convince you, not the other way around.  They are there for a reason and if they are motivated they will because they have to.   Always strive for a win-win.  You want to be able to pass these sellers on the street years later and be able to say hi and them remember how you helped them.

Jack,

Each situation is unique and each should speak to you. Some investors use the general rule of thumb of ARV * .7 minus repair costs. It should be used as a guide and not a rule of thumb. Listen to what others have said in regards to listening to the seller and what their individual motivations are. Those motivations combined with your numbers will get you, or should get you, a number in your head. Use that number to create a target purchase price and range around that target that is acceptable. Let the seller tell you their selling price. Use follow up questions to get them to further reduce their own price.

If you want to learn more look up Michael Quarles  BP podcast.  He is the king of those phone calls IMO.  Also has articles as well on the subject.

Congrats!

When I was taking my courses for my RE license I went and took them all online.  Each lesson was extremely repetitive but it burnt the information in my brain.  Tests were a breeze.  

Point is, I'd recommend online vs in person.  Both have distractions but with the online, if you don't pass they quizes/test perfect then  you do it over and over and over  until it is before you are allowed to move to the next lesson.  Then every so many lessons they go over the previous few lessons and then to move on, again you needed to pass 100%.

It is easier to retain this way vs in class IMO for those reasons.  

Alexis,

If you are already looking at RE at 21 you are well on your way to financial success.    As Brian mentioned, getting your RE license would be a HUGE start to.    That gives you the opportunity to network and please do network all you can.   As a new RE agent lawyers, bankers, title companies, accountants will all give you there time FOR FREE, or at least that has been my experience, to potentially get your business down the road.   

It may not get you your first deal, or it just might, but it will at least give you a solid base you need to move forward with deals once you actually find them.  

Then actually selling/buying places as a Realtor will get you first-hand experience with transactions.   You can also, and it is recommended, to sit in on closings.  If you hear of some creative closings, try to sit in on those as well.  

As you grind along as  Realtor you will come across deals that you might be able to parlay your commission into a piece of the project (commissions can really add up).  Or you could have some cash saved and not only parlay your commission but add in your own capital to make it happen for a larger piece of the pie.   Or just put the cash in and collect your commission at closing like usual.  

Keep grinding but always keep reading and adding new strategies to your tool belt.  If you find a strategy that works, mine the **** out of it but me mindful to keep learning and exercising other strategies so that you are more diversified and well rounded.

Just some food for thought.

PS.  This is the route I took and it has snowballed.   

PSS Patience, Persistence, & Perseverance is needed in RE.  

Jim, just keep doing what you are doing and make sure to tell EVERYONE you come into contact what you do, that you are looking for places to buy, and you will be surprised who might just come to you with ideas on partnering up or loaning you money on deals.

That is something I do not do enough, though what I have done so far has generated me great partners, but I if I want to get even more, and I do,  I need to get more proactive on informing everyone what I do.    Referrals from existing partners/lenders are also a great way to get more private money.

Congrats.  It looks great.   I love it when a plan comes together.  Keep it going.

Are you saying the term for the LC is 10 years with an amortization of 30 years? I ask this because if you do not need to pay extra, then why would you? I understand your 7-10 year plan but I think you can still reach that goal without grinding your ROI to the ground on this property.

Everyone is different.  I like leverage.  My dad prefers cash and hates debt. 

Why not ReFI (assuming you don't have a 30 year term with the LC and are just paying extra to pay it off) with the bank and pull out 100,000 or your 200,000 and use that 100k to purchase another apartment building? 

Then use your cashflow and day job to save up for another.    I think you would be well on your way to your goal given your position in life at the moment.

Just a thought.