All Forum Posts by: Brian Ellwood

@Brian Ellwood LOVE it!  This is area of alignment is one of the first areas I work with people.  Real estate is great for creating cashflow and wealth... but it what it can give that is more important (control, time, freedom).  So many fall into this trap that they "love" real estate, so they make it another job, and are disillusioned when they figure that out.  So you have to do 2 things (like you did) to avoid this:  1. You have to know what you truly want (deep down what are you running towards).  For me it's control of my time to spend with my family, friends, and travel.  2. Then you align your investing interests with your time.  Now you make have to flip or wholesale for a bit to get your business started, but you have a greater road map to move past that part of investing, because you know where you are going.

Can't wait to see where your journey takes you next!

Thank you so much for the valuable information. I am an aspiring investor looking to make my 1st deal. I have probably been thinking too much in to it that it has delayed me for months (Despite COVID-19 uncertainty of course). As a newbie should I worry about figuring out asset protection before making a purchasing decision? This has really delayed me from jumping in. I see so much different information, even in these boards versus Insurance or LLC or both. If LLC is recommended, which state is best to create it in? I read a lot about Nevada, Wyoming, Texas and Delaware being real estate friendly. I'm in NJ and looking to purchase in NJ. South Jersey/Philly suburbs. It is a bit overwhelming. My goal is to have cash producing single family and multi-family homes and to have passive income exceed my expenses ala "Rich Dad, Poor Dad". The more I learn the more insurmountable this all seems. Ultimate end game is to step away from my 20yr IT career and focus solely on RE and the family. Any advice on getting started would be greatly appreciated.

Thank you,

Patrick

Awesome post @Brian Ellwood!  I absolutely agree!  I think some new investors get lost in thinking they have to add 100 units this year like they heard on a podcast, or else they aren't doing it right.  But if you know what numbers you are trying to hit and just shoot for that, then you probably can do that with a lot less doors than most people think.  My husband and I sat down about five years ago and developed a plan to replace his income and that was our plan.  Now, we have surpassed that, and of course our end goal changed, but he is now part time at his job and we have more time to spend together as a family and do the things we like.  We still don't have that lamborghini, but that was never what it was about for us in the first place.

Great insights. I think so many of us fall into the save a few bucks to do it myself when that is just being penny smart and dollar dumb!

as the saying goes, "you don't need to time the market, you need time in the market"

also,  the only thing worse than waiting for market dips is the formatting you chose to write this post

First off, great post @Brian Ellwood! A lot of good points, but I think this is very true for a lot of new investors and folks I've spoken to looking to get into RE. I always try to lead them to what they are seeking and why. To go a step beyond and ask exactly what it is their desired "lifestyle" is will definitely be good advice. 

I actually never really knew about all the dozens of niches within real estate while growing up, I just knew you could buy and rent or flip. My mindset when looking to make my first purchase was always to quit my day job, whatever got me to that goal the fastest is what I was pushing for. That's how I landed to buying a property, collecting cash flow, trying to make the operations as streamlined as possible, and gaining more units. Early in my investing, on my very second property, I had the opportunity to "flip" my deal within a few hours and make nearly 20% return on an off market deal where a previously interested buyer had offered in cash (essentially wholesale). I decided against selling it, literally within hours of closing, simply because I was set on the cash flow that it would generate for me versus the transnational gain as you had mentioned. Eventually RE allowed me to get to the "lifestyle" that I had wanted: quitting my job, chilling on a beach internationally while barely working a few hours a month. Until I realized how overrated it was and how badly I wanted to be back on the grind and work on new challenges, retirement wasn't my desired lifestyle anymore. 

In my second phase of RE investing now, that "lifestyle" goal has changed to being a more active investor, and I presume it will change again in the future as my desired lifestyle changes. 

Really good stuff here. I'm also in the Nashville area and currently invested in Columbia (south of Spring Hill). I did your analysis, but I'm curious to know your thoughts on this market. We mainly invested there because the greater Nashville area is growing and Columbia was still an affordable area that was a reasonable drive for us from where we live in Franklin.

@Brian Ellwood

Curious what led you to pick these six variables as the "go to" ones? What were the other options you didn't pick? 

From the data I've seen price to pent is negatively correlated with cumulative return (appreciation and rental income). Also vacancy from my analysis has no impact cumulative return. 

Thanks! 

@Brian Ellwood my House Hack duplex is in Old Hickory, closing next Wednesday. I’ll be assessing different Tennessee markets for deal #2 after getting settled in the duplex.