All Forum Posts by: Ari Hadar

My husband and I just closed on our 3rd rental property.  What are different "end game" options?  I understand how to look for cash flow, things we will need in 5-10 years. However, what are different long term options?   In 20 years when our properties are paid off, do we just live off cash flow? Sell them and take advantage of appreciation?  Right now we both have W2 jobs and are focusing on reinvesting our rental profit into more properties.  However, in 5-10 years we may decide to "retire" from our W2 jobs and have more flexibility. I feel like I'm missing something and need to know what our end game is while we are planning for the near future as well.  If it makes a difference, we live in the midwest (Wichita, KS) - decent cash flow without crazy appreciation.  

Pick the market, then find the team. If you cannot find a solid team and back up options, then move on to the next market. Don't start writing LOI's until you feel that you have a good team in place and really know the market.

Check out this article on what I look for: https://www.biggerpockets.com/...

Pick the market, then find the team. If you cannot find a solid team and back up options, then move on to the next market. Don't start writing LOI's until you feel that you have a good team in place and really know the market.

Check out this article on what I look for: https://www.biggerpockets.com/...

Dan, Thanks men, for taking the time, you make a very good point that I was completely overlooking, the loan costs, specially the origination point, I just contacted my lender about this.  Also, I was trying to calculate the 10% underwrite a little differently but it always came out to be 7.5 to 9%. Now that I know the 10% is a common practice I feel more comfortable plus it will save time in my analysis. This really helps.

I think you need to do higher level market analyses of a number of markets, narrow the list to a handful, then dig deeper and narrow it down to one or two. That'll keep you from feeling too committed to one market before moving on to the next.

Say you make a list of Indy, Huntsville, Memphis, Columbia, Atlanta, Richmond, Pittsburgh, Louisville, and Lexington (names just for argument, pick whatever you want). Start with numbers. Look at job/employment growth, net migration, rent trends, industry diversity (is it just one employer or industry propping the market up?), and compare each market on your list on a pure numbers basis. No emotion. Dig into them and truly compare each market without emotion.

Regarding the negatives you named, Inventories are low basically everywhere. Covid stopped people from moving unless they really had to. If you're buying rental properties you probably won't deal with the MLS anyway.

There are still deals happening in every single market you'll look at. The only way you'll get those deals is by building that team. The only way you'll build a team is if you focus. The only way you'll focus is if you pick a market and stick with it! Memphis and Huntsville are generally well-regarded, but you need to know what to look for. Deeper study of each market is critical. 

Really there are lots of guides out there on how to pick a market and build a team. There will be headwinds in every single market you look at, guaranteed. Just be ready for it :)

Start with ALL or as many of the Bigger Pocket podcasts as you can!   Listen and watch every day!!  Two or three a day...the guests and hosts have recommendations for books.  There is a ton of great advice on the podcasts.  Watch the BP YouTube Videos.  These videos and podcasts will get you motivated and give you ideas.  Good Luck on your RE journey.  I have ALWAYS been interested in RE.  Even before I bought anything, I would read books, and whenever I traveled I would pick up those RE for sale flyers and magazines in every city I traveled to. I started with thinking about RE and looking at prices and thinking about structuring a deal way before I actually did anything.

@Aaron Daniel

In terms of finding a mentor, I would suggest you start reaching out to every investor in your area that you can find on BP or local meet-ups but don't approach the conversation with the cliche, " will you be my mentor" bit. Just tell them who you are and what you want to do and then see if they would be willing to talk to you about their experience.  

From there, you can get to know them better and figure out what type of value you could bring to their business. Once you are able to provide them something they don't have or help solve a problem of theirs, they will be more willing to help you out and return the value you gave to them.

Just be sure to always lead with value and try to provide a helping hand.

-BA

 What kind of a value can a rookie give to experienced investor? 

Hello @Aaron Daniel! starting out too, no investment yet... I was listening to podcasts too, but i switch to Brandon's advice to reading books, and DUDE!!! I'm learning things about RE reading books that I had absolutely no idea something like that was even possible!. These are the books that I'm reading, and the ones that I think would help you (Including with finding a mentor).

-Rich Dad, Poor Dad (in my opinion, this book will help you change the way you think about money)

-Brandon Turner's Rentals Series (this are 3 books, one shows you literally how to do everything, then how to do it with no cash, then how to manage it)

-Network! (like everyone else says, network... tell everyone what you WANT to do, so people tell you if the want to help you)

Good luck man!!! best to you!

@Niña Phelps Niña, good on you for getting started so young! I wish I had an interest in real estate investing at your age. If you’re focused and do it right, you’ll find yourself way ahead.

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I’d say the most important thing to do right now is to identify what your goals are. There are a lot of things you can do with real estate. You can flip houses, wholesale, but and hold, invest in notes, etc. There are also different vehicles within real estate - single family, multi-family, land, commercial, etc.

There are a lot of options to get involved with, and it can be overwhelming. My advice is not to try to learn everything at once; instead, pick the method and vehicle that is best aligned with your goals. Over time, you can grow to learn more and more in the industry.

Once you’ve decided what aspects of the industry will help you accomplish your goals, assess what resources you need to start investing there. Resources may be your network, funding, time, knowledge, etc. Develop a plan to put those resources in place and start executing.

You'll learn the most once you get your hands dirty. Don't feel that you need to spend months trying to narrow down your vision. Jump in as soon as you can and as often as you can (even if it is with small things like analyzing deals on the MLS).