All Forum Posts by: Armani Hall

"How to invest in real estate without banks" is one and the other is "IRA 401k income builder"

Hey Armani, I would suggest that you try to attend your local REI networking groups and meetups. Connect with as many real estate investors as you can. You can also consult with lenders, brokers and ask them for suggestions on who might be a good real estate mentor and most will be able to provide one. Try to think of different ways you can add value to that person. What are your strengths? For example, are you experienced in social media marketing? Could you offer a mentor some tips? This way it's not just a one way street.

I like to try to set up a meeting every month with someone I think I can learn from or who could be a potential mentor. I always come full of questions and ready to learn. Many are specific to the individual that I am meeting with but there are some questions that I have taken from John Maxwell's book "Good Leaders Ask Great Questions."

You may want to use them too:

What is the greatest lesson you have learned? - By asking this question I seek their wisdom.

What are you learning now? - This question allows me to benefit from their passion.

How has failure shaped your life? - This question gives insight into their attitude.

Who do you know whom I should know? - This allows me to engage with their network.

What have you read that I should read? - This question directs my personal growth.

What have you done that I should do? - This helps me seek new experiences.

How can I add value to you? - This shows my gratitude and desire to add value to them.

These can be a great starting point for you. All the best!

I would spend as much time educating myself using the resources out there that are free. There are many YouTube videos, they are many books and courses that are relatively inexpensive, and the key is finding individuals that are in the business and actually making money and not just selling courses.  

Good luck in starting your journey, Armani. You're on the right track trying to find someone that will mentor you, I have been lucky enough to have a few people help me get started in this journey and I can honestly say I probably wouldn't have even started if I didn't have their help.

You're in a massive area with a real estate investor around every corner, I would suggest finding local real estate meetups. You can find them by searching the forums. This will allow you to personally connect with people and network.

As far as how to approach people, I would not go in asking for a mentor. That sounds like a lot of work to people when they're not sure how serious you are yet. Ask questions, build relationships and find areas that you can add value for people based on your skill set or desire to put in work. You may not find a mentor the very first time you go to a meetup, however if you continue to go consistently and build relationships, it will happen. Just know that a mentorship requires work on your end as well! 

Good luck and I hope your journey into real estate is as enjoyable as mine has been!

@Mario Fernandez

I'm in the Bay Area and recently closed on a SFH, move in ready in the Indianapolis area, for $130,000. I did 20% down conventional loan. The projected cash flow on mine is $200 a month. My Rent to Price ratio is about 0.76%, which doesn't hit the 1% rule but the RTP ratio is worse in the Bay Area, more like 0.54% ratio. I also look at other metrics: is this a growing area, job opportunities, appreciation of properties over time. Cash flow is a major part but not the only factor for me.

If you can put $80,000 down that's do-able in the Midwest but don't stretch yourself financially too much. I found homes in the $59,000 to $100,000 range that needed lots of work. I was looking for $120,000 to $180,000 for move in ready.  I didn't want to do an out-of-state rehab and I know the Indianapolis metro area well, used to live there. I did a local renovation and it's a lot of stress, went over budget and I was on site at least once a week. 

I wouldn't recommend doing an OOS rehab for a first time investor unless you have a trusted team in place: realtor, contractor, inspector, property manager, painter, roofing company (if a new roof or repairs are needed). If you're not able to fly or drive to the property you're placing all your trust in people that they will make good decisions for you. I might consider a BRRRR in Indianapolis now, since now I have a team in place. Another option is buying from a turnkey company but you would need to vet those carefully - some are great and some are terrible. I considered buying a house in Ohio when I talked to one turnkey company but I wound up buying with an Indiana realtor who works with lots of investors. Good luck!