All Forum Posts by: Andy Brown

@Brad Hasseler

Communication. I'm in a business where I constantly have to keep people updated much like PMs do (or should). A PM could be a rock star if they just texted back "I'm looking into it and will try to get back to you on this in the next few days." It's the zero response that gets me.

But PMs are still worth it. I spend my free time with my family instead of installing toilets, listing/showing units, chasing rent, evicting tenants, renovating units, etc. I can't really complain about the 10% when the most "work" I'm doing is monitoring things from my phone. But we all have different priorities and reasons for structuring our businesses the way we do. To each their own if the numbers work.

@Maxwell Milholland

Prepare your pep talk now that when a ridiculous surprising scenario happens, which it inevitably will, you can say to yourself, "Relax. Solve the problem. This is part of the service I'm providing and I knew something like this would happen when I signed up for REI. This is still a good investment vehicle."

(I had to tell myself this two days after closing on my first property when my PM sent a video of water pouring down from the third floor unit into the second)

Similarly, keep 5-10k handy for the initial surprises.

Best,

@Christian Becker

@John Morgan

I agree, John. An LLC is no deterrent to lawsuits.

I represent and defend LLCs all the time in litigation. Plaintiffs (those bringing the lawsuit) always look for the deepest and easiest pockets to pick. An LLC may actually draw more attention to a potential plaintiff because there's often a larger liability insurance policy associated with it. Lawyers want to get paid as fast as possible and it is harder to collect on a judgment against someone's home or assets than it is from an insurance company that simply writes a check. So an LLC probably won't be any less attractive from a lawsuit standpoint but it certainly limits potential exposure when set up and maintained correctly.

@Russell Redford

Hi Russell,

In addition to the great comments already in here, I would highly recommend your wife listens to BP podcasts 276 and 238. Each episode is about teachers who are doing exactly what you guys are trying to do. 276 especially is about being broke and on the ropes with a family and using REI to break out. Highly recommend.

For me, I "saw the light" listening to whatever podcast it was that explained that though real estate has risk, the real risk is relying solely on your W-2 for your income.

My two cents.

Good luck!

@Bruce Runn

Ha! That's such a great way of looking at it, Bruce!

@Mo Farraj

Only been in this for about a year. My two triplexes were both poorly marketed MLS listings. The MLS is still a good source (with some deeper digging) in many cities. I set it up so I'm getting Zillow updates throughout the day and give them a glance on breaks or sitting in long boring meetings. I also will jump on the computer for an hour or so after the kids go down and peruse. I estimate I'll save one house for every 100 I look at. Don't forget craigslist. It's a game for me. I spend a lot less time reading the news (things I can't control) and more time looking at houses (things I can control). Feel free to PM for more details.

In addition to the great answers above, I would also emphasize the decisiveness required for REI. Most people just like to travel the well-trodden W-2 path because it takes very little thinking. RE investors however have to make a lot of big and small decisions all the time (that's essentially why the forums exist--to help navigate the many decisions we face) and most people hate making decisions.

@Mo Farraj

I work full time and invest out of state.

The real question is WHY the house is on the market for a long time. There is a reasonable presumption that the more days on market the worse the property/deal is. However, this is not always the case.

I saw a triplex on the MLS that looked solid--though overpriced and had been on the market for 300+ days. Tried on multiple occasions to see it with my realtor but listing agent was awful and the owner was even worse so we could never get a showing. Eventually I talked my realtor into cold-calling the house, met all the tenants who gladly showed us every room in the house, and told us the landlord was in and out of rehab, going through a divorce, and would come asking for rent in cash in the middle of the night. Most importantly, the listing agent later told us that we were the ONLY people of all who inquired who were able to actually see the place in the 300 days on the market. Knowing the seller was likely highly motivated, I was able to get the house for 88k instead of 130k+. Nice house that cash flows like a champ with good tenants. This is likely the exception but illustrates a few points:

-You need to find out why it's been on the market for a long time;

-Some homes on the MLS are listed so poorly that they're doomed from the start;

-Sometimes you have to go the extra distance when others might be deterred;

-keep an open mind when looking at properties that generally meet your criteria but have a bad MLS picture, high days on market, or other "flags", you usually have nothing to lose by digging a little further and you might get lucky where others just see a flag and immediately move on.

Hi William! Welcome to REI and BP! The forums are great and the podcasts are life changing. REI is a great way to supplement the 1099 or W-2. The real risk is relying solely on your job for your income. So you're in the right place.

I'm also an airline transport pilot and flew for the regionals and a charter gig overseas (think Air America). Now I'm an aviation attorney in Tampa handling aviation litigation, aircraft sales, state and fed regulatory issues, and anything else where aviation meets the law.

I got the REI bug two years ago and have a few triplexes in PA and im looking to keep expanding.

Keep me in your roledex for any of the above.

PS- the chutes on the Cirrus can be great---when you use them correctly. A lot to talk about on that topic but that's for another time and place.

@Brandon Turner

We always listen to you guys ask people about their portfolios, and I'm always curious about the details of your own portfolios-- number of units, types, financing, etc. Would also love to hear what both of your current REI goals are for this year and long term.

Always appreciate a good David Greene cop story if you can fit one in.

Love the show. Thanks guys.