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All Forum Posts by: Ken Breeze

Ken Breeze has started 102 posts and replied 422 times.

Post: Single parent - Should I buy this duplex and live in half?

Ken BreezePosted
  • Investor
  • Phoenix, AZ
  • Posts 483
  • Votes 384

@Chris Hanisco I agree with @Ben G. To a certain degree. “The Richest Man in Babylon” makes the case of paying yourself first. So factor in PM fees for yourself as you would need to for others. The day will come when you will have to. Might as well get real now.

Post: Single parent - Should I buy this duplex and live in half?

Ken BreezePosted
  • Investor
  • Phoenix, AZ
  • Posts 483
  • Votes 384

@Chris Hanisco I'd also try getting a short interest only bridge loan from the same or other bank and refi whenever you rehab is done in 3 - 6 months. Since your increasing value, you'd "magically" create wealth and equity for yourself out of thin air. You can now take a HELOC for your next multifamily acquisition. Rinse & repeat. All this in the same year :-)

Again, always provided the numbers pan out. Don’t buy into the inflated prices of the current market. You really need to find that diamond in the rough. It’s tough but a great learning exercise in so many ways.

Post: Single parent - Should I buy this duplex and live in half?

Ken BreezePosted
  • Investor
  • Phoenix, AZ
  • Posts 483
  • Votes 384

@Chris Hanisco

BTW, Bigger Pockets has a great book on property management. So go for it :-)

Post: Single parent - Should I buy this duplex and live in half?

Ken BreezePosted
  • Investor
  • Phoenix, AZ
  • Posts 483
  • Votes 384

@Chris Hanisco

We all understand you being nervous. We all are when we move out of our comfort zone. But that’s exactly where your fortune lies.

I got really scared when I started getting serious on my first commercial size apartment building acquisition. Now all I see is facts and numbers. It’s just more zeros - on the pay check too ;-) The more doors, the better. Provided the underwriting works.

I also side with Robert Kiyosaki and Grant Cardone: Never buy a single family home for yourself or others (unless you’re savvy with seller financing). Rent it. It didn’t serve my family well owning a house. It’s loaded with disadvantages (worth another blog). Like millions, we lost it in the last crash.

Own nothing, control everything. Focus on learning and your journey of getting to commercial size multifamily real estate.

Be bold. Ask us for, support, help on your questions and perspective ;-)

I suggest all the free books and guides here on Bigger Pockets and audio reading “The One Thing” by Gary Keller and “The Cashflow Quadrant” by Kiyosaki. He’s also on YouTube.

Hit me up for more tips in a DM.

Post: Single parent - Should I buy this duplex and live in half?

Ken BreezePosted
  • Investor
  • Phoenix, AZ
  • Posts 483
  • Votes 384

@Chris Hanisco

Generally speaking, house hacking is it’s called these days, doesn’t have to be a bad idea staring out. The uncooperative tenant is a red flag.

Get the rent roll from your broker and check out when the tenant’s lease is up, you might need to let him go, especially since you will want to rehab your entire duplex to force appreciation and increase rents to market level. Then you can choose which apartment you want to move into and you can also choose your next tenant.

Monthly cashflow is the most important factor of all. Don’t bank on appreciation, this may or may not happen in the years to come. Cashflow is king and the value you create to increase your equity and thus standing with the banks which will allow you to acquire your next property.

Which brings up the question why you are not going all the way in the non-commercial field of purchasing a fourplex? It’s the same work but more cashflow.

Send me a colleague request and DM me with more questions if you like ;-)

Post: Getting a property management firm or doing it yourself?

Ken BreezePosted
  • Investor
  • Phoenix, AZ
  • Posts 483
  • Votes 384

Great advice from all the cool cats above. A balanced mix of continued learning and doing is, like anything in life, the best recipe.

My two cents would be: It depends on quite a few variables, some being your character, mindset, goals and where you are at on your journey.

Ultimately our goals are passive residual income, not active residual income. Thus outsourcing and leveraging other pros in their field to do the jobs you need to have done on a regular basis to run your ever-growing ship is key.

But if you're starting out small, and need or want to learn the ropes, you might decide to explore all the wicked and obscure headaches humans will cause you when owning and managing properties.

More often than not, when my team and I underwrite deal opportunities, we find that hiring a PM for MF properties under 50 units doesn't pan out. So someone in the partnership will need to do what needs to be done or pass on the deal. Above that, it becomes a line item in your excel sheet and now all you need to do is find a good PM. However, in that lies the true challenge ;-)

There are quite a few blogs and checklists here on BP to make sure what to look for in a PM which can also serve as a guide if you're doing it yourself or convince you to let it be. In any case, I'd make sure you or your PM have arrived in the 21st century of managing and scaling business Yes, there's this thing called the internet and some companies have invented amazing property management cloud software to make your life a ton easier and cheaper. We demand it from anyone we work with. From our tenants as well. No more "the check is in the mail" BS. Just look up a few companies and spend some time checking out all the cool things that can be automated for you.

In closing, using Kiyosaki's Cashflow Quadrant cross symbol as a model, you will generally want to focus and graduate from E to S to B and finally I quadrant as soon as you can.

Send me a colleague request and DM if you have any more questions. Cheers, Ken ;-)

Post: I dropped out of college last week.

Ken BreezePosted
  • Investor
  • Phoenix, AZ
  • Posts 483
  • Votes 384

@Michael Warinner Your journey has just begun. 

Kudos for your courage on making a difficult choice in changing times. I speak to dozens of people in the real estate business every day. I also meet up with newbies and youngsters that have a million questions and many doubts about continuing a path into a system that has been crumbling since the eighties. I suggest reading  Jeremy Rifkin's book  "The Age of Access: The New Culture of Hypercapitalism" and  "The End of Work". Real Estate, like any business, is a journey of learning, exploring and doing.

One of the many important thoughts to understand in order to succeed is: Don't walk your crazy, awesome adventure alone. Most peeps here will probably agree that it's much faster, easier and more fun if you can find people to 'play' with.

You're in the best forum on planet earth when it comes to real estate. Connect with people here, network in the real world, attend meet-ups or start your own event using the  BP Events Tool if you're a pro member and add Eventbrite and Facebook Events to fish in various ponds and extend your reach. This will be necessary if you're in an area where nobody seems to be active. 

Trust me, they are 'hiding' in the wood-works somewhere hoping that someone like you will take the initiative. Make sure you connect with local professionals (CPAs, GCs, PMs, attorneys, etc.) that can add educational or informational value to your meetings to attract a crowd so you don't have to do all the heavy lifting alone - plus, you'll learn new stuff ever time.

Read blogs and books, free and paid.  There are a few to start with right here on this channel.

Listen to podcasts, there are too many to count. Find your niche of interest. One of my mentors, Robert Kiyosaki, will support you on your quest on leaving school and not looking to stay in a job. Set a regimen of (his and others) empowering podcasts to keep your spirits up and keep you going. Be clear about your decision. Nobody can make it for you. Regret is a terrible companion.

Network like mad. Go to your local REIA if you have one, have lunch or coffee with one person EVERY DAY. Connect with a regimen of people on Facebook and LinkedIn groups every day. Who would have thought, despite 1M+ BP members, many still haven't heard nor care to join this forum? Pick them up where they gather.

Start taking a few real estate courses and look for business and real estate mentors to guide you along the way since you are guaranteed to get stuck time and again. And at some point, you will run out of finding answers to your questions that even this forum cannot answer because at some point the saying, "You get what you pay for" and "time is money" kicks in and no one has the patience or time to guide you to the finish line. The higher or closer you get toward reaching your goals, the tougher it gets. You're on the right track. However, it gets harder to find people with the knowledge and experience you need who are willing to spend "one on one" time with you.

There are many encouraging and discouraging opinions alike and I just grew a bit tired of the general notion that anyone can do it. As if business and real estate are as easy as reading a few books, listening to a few podcasts and going to a couple of boot camps. Been there. Done that. Didn't work. That was ten years ago.

Not everyone can. Many give up, make excuses, procrastinate, lose focus (Read:  The One Thing, by Gary Keller), in fact, most fall short or fail. Thus my emphasis on surrounding yourself with an A-Class mentor and team in the months to come.

Don't start if you don't think you can't stick to it for years to come, fall and get up again,  and if your reason "WHY" isn't super solid to prevent you from giving up. Read a few blogs or podcasts about startups and what they go through.  Kate's Take from "Entrepreneurs on Fire" (EOF) is a good start. I recommend her to anyone on this channel. That will give you an idea about what you're headed towards.

It's a journey. A marathon. Not a sprint.

It will be tough. It will be frustrating. You'll want to quit several times. Your friends, family and peers might want to talk you out of it. They do so because they don't know better. They are usually not surrounded by successful entrepreneurs and just want to protect you from falling down from your clouds and dreams. Because it hurts. A lot. That's why most never try. It's too painful. 

Be mindful whom you ask advice from. It will take time. Years. However, I will repeat that I commend you to your clarity and desire to make it happen. Just know to go in that this is not a quick YouTube video dude success thing. They never last long by the way because many have the wrong attitude. They might have made big money for a period of time, most often not passive or residual like real estate, however, they don't know how to keep it and fade into oblivion. 

That's not what any of us are here for. Real estate is a get rich slow game. It's not sexy. After a while, it's boring in fact. But what doesn't, right?

So, in closing, never stop learning and doing and moving forward every day!

"Do today what others won't, to live tomorrow like others can't."

Cheers, go get 'em'!