All Forum Posts by: Brian Truman

Hi @Joe Garbarczyk, 

Wow! What a unique property! So...I hope you don't mind me asking a few qualifying questions...:

• What is the zoning? If there are not separate tax parcels, that sounds like multi-family. If its not zoned for that, or its non-conforming, then you might have some problems getting financing on the property. Or, that might be a title issue that could hamper the closing. 
• What does the legal description say? Are there underlying legal lots that you could use as a historical basis for being able to carve off the lots? I would see what the minimum lot size requirements, if any are there and see if you are able to subdivide the houses off and get them their own tax parcels. Where I am at in the Northwest, this is really expensive to do. 
• Have you checked to see if there were any zoning violations on the property?
• Lastly, have you pulled title to see if all these properties are on the title report, and clouds, if any. 

I would recommend going down to the jurisdiction the property is located in and talking with the planning and development or permitting departments to see what they would ding you on. 

I hope that helps, Joe! Happy hunting! Cheers!

Brian Truman

Hi @Terone Johnson, 

It sounds like you might be pretty familiar with the Indianapolis area. Do you own some property there already? If so, I would go the hard money route. They are more likely to give you a pre-approval letter based on the 20% or so down needed to close on a property. That is probably the quickest way you would get one. Cheers!

Brian Truman

@Ray Vidos,

That sounds like a good candidate for the 25-30% rule. I wouldn't do much more. Just keep it to lipstick and make your percentage. 

Hi @Maurice Collier, 

First off, I want to thank you for your service to our nation! We owe you a great debt. 

Second, congrats on buying your home!

I highly recommend the BRRR strategy. It is a great way to get started. Feel free to message me if you would like to discuss more. Cheers!

Brian Truman 

Hi @Vasily Alagoz, 

May I venture a question? Do you own your primary residence at this time?

Hi @Ray Vidos, 

I have found that reasonable is a relative term...We use the following equation for what we want our profit to be:

ARV x 70%= y, then subtract what you think the cost to fix up the property is going to be (i.e. $10k, or $20k, etc...) So it looks like this: y - $15k (in fix up costs) = offer price. So you kind of bake the profit into your calculations. We are looking to make about 25%-30%. So not so much of a dollar amount as a percentage of the deal...

There are other ways of doing it... this has worked for us. 

Brian Truman

Hi @Keith Robinson, 

What you want to do is a good thing... It just depends on how you want to approach this business. I have a friend that is much farther along in this game than I am, and I have a ton of respect for how he has gone about doing business in real estate. He has spoken to thousands of people on how to he made it in real estate, and the one thing he told me that HE learned from all those talks and then keeping in touch with those people is that only 5% of them out of the thousands he has spoken to ever did anything at all with that information. And of those 5%, all of them succeeded, but NONE of them did it the same way he did. 

My point is, there are so many ways you could make it to where you want to be. You could faithfully pay off the house in 8 years, you could use the equity in your home at a certain point to buy a rental property, you could use hard money in which you would only need about 20% down to get into the property. You could partner, you could buy notes. But the great thing is, YOU get to determine your risk tolerance, and pursue the path you want to take. The best thing, in my opinion, is to make that decision... and stick to it. Have that goal written down, and visit it often. 

That's my 2 cents.... I wish you the best, Keith!

Brian Truman

Hi @Rumiko Acopa-Rios, 

Highly recommend listening to the BP podcasts! Start with #1 and work your way up. They are an education unto themselves!

While doing that, I would then go some REIA meetings and BP meet ups and talk to as many people that are actually doing real estate investing. From having gone to a few of those seminars, I found that they are usually trying to sell you a system... Go meet the people that are actually doing the investing. I have found some amazing people at these events, and they are usually more than willing to talk about what has worked, and not worked. Cheers, and happy hunting!

Brian Truman 

Hi @Daniela Grozeva, 

Welcome! This is an awesome business! My recommendation: Listen to the BP podcasts starting from episode 1. I was already wholesaling, but it was still really educational. You will also hear about many books that would be great to read/listen to. 

My personal favorites:

1. Rich Dad, Poor Dad

2. The Slight Edge

3. 6 Months to 6 Figures

BP podcasts:

#166, #171, #176

I hope those suggestions help. This really is a great field to be in.... I wish you the best. Cheers! 

Brian Truman

Hi @Donald Ferguson, 

A word of caution with sheriff sale properties in your State of Michigan: there is a redemption period. That means that you could buy the property, get it fixed up, or rented out, and then the original owners can get the cash together to redeem and reclaim the property within the allowed time period, and you would be required to give it up... and possibly out a lot of cash yourself. 

I would talk with some folks at a local BP meet up to see if they have had any experience with them. You could also go to the auction and talk to the folks there. Many times, there are investment groups there that are willing to talk with you, but beware the auction guru... I bought a property at the auction here in Washington State, and got to know some of these groups, and they are to be treated with caution. 

Hope that helps!

Brian Truman