All Forum Posts by: Bryan Beal

@Wendy Black never once did I say, or intend to say, anyone was expendable.  Not you, not anyone. 

I understand I may have overreached with the "Totalitarianism" comment in trying to get my point across but the point I'm trying to make is that there is way to keep the country and economy open and achieve a downward trend in COVID-19 infections.  I also acknowledge that the way I wrote the original post made those to think my points were literal.  At a certain point, as @Bill F. so poetically put it, the damage done by closing the economy outpaces the damage done by this disease.  Personally, I think we're very close to that point.  Obviously, there are many that disagree with this sentiment. 

I knew this would be a hotly debated topic when I started this thread and as I said in the original post, I want to have open discussions about this and see how others feel. 

We obviously disagree on much policy as I am not a fan of Mr. Garcetti but I'm glad you responded.  

@Damaso Bautista if that’s truly what you think I’m saying or implying, you’re right, there is no having a conversation with you.

@Damaso Bautista

If spouting off California codes of law is your way of sparking a conversation, then we have different interpretations of a conversation. You're allowed to disagree with me, that's fine. But there's no denying that shutting down the entire country will do irreversible damage to the country, to the economy, to REAL ESTATE, to our businesses, workers, health care employees and everyone else who works for a living. Real estate markets are going to hit a major snag because of this and I think this topic is very relevant to the future of our real estate market and our ability to grow wealth through REI.

Obviously we have different viewpoints and I always welcome that.  I'm the first to give back to those less fortunate and donate my time to healthy, societal issues.  But I do believe we all have the right to be the best we can be individually, as well.  Society is not a cookie-cutter structure - we all have different needs, desires and wants.  Yes, we should look out for one another but what's best for me isn't always best for someone else.  You can't simply classify everyone together and say we all have to abide by the same "social contract."  That's not what this country was built on.  What is was built on was freedom of choice and expression.  If you think we should all just conform and all act the same towards a single goal, I have a book you should read - it's a manifesto by Karl Marx.  

@Carolyn Fuller you realize the VAST majority of people fully recover, right? There have also been studies done that show over half of those who test positive are asymptotic. Doesn’t the “common good” also let people live their lives and provide them rights to not worry about where their next meal should is coming because they can’t work and have lost their incomes? I’m all about having a discussion but this “common good” you speak of works both ways.

@Damaso Bautista and EXACTLY why I’m leaving California later this year.

Let me address these one at a time -

@John Collins - I think you're missing the point.  No one is arguing that the health care system is overburdened.  If you choose to quarantine yourself so you don't contract this virus, that's perfectly fine.  You stay inside, away from the world around you and you stay safe and cozy in your home.  No problem with that at all.  But if myself or anyone else is willing to carry the risk and go about our daily lives (and be surrounded by others that are willing to carry that same risk), why do you have a problem with that? 

You talk about workers being "disproportionately affected" by this.  And yes, that's exactly my point.  Do you think that they don't also want to get back to work?  If someone is willing to carry the risk, they should be allowed to go back to work.  If they're not, they won't be forced to and they can stay home and stay safe.  And I never came close to implying we shouldn't take care of the critically ill - don't put words in my mouth and get off your soap box. Rah rah.  

@Scott Passman - At a certain point the damage done by shutting down the country is greater than the treatment itself.  A large number of people who are taking these tests and burdening the health care system are not sick and not showing any symptoms.  If only those who needed those tests and care got those tests and care, we'd be in a much better situation. 

And same point as above - if someone is at risk and they want to stay at home, they can stay at home and quarantine to protect themselves.  If others want to get back to real life, and we all agree to the risks involved, we can do that without impacting those who don't.

@Scott Wolf - You clearly didn't read my entire post.  Drunk driving is both irresponsible and ILLEGAL.  I specifically say "within the confines of the law" which obviously went unnoticed.  And yes, everything has intended and unintended consequences - but if we allow those to quarantine who want to quarantine and those who want to get back to work get back to you, it's a win/win.  Do you disagree?

Let me start by being crystal clear. I am very sympathetic to all of those who have been exposed to COVID-19 – those who have either struggled through severe (or even mild) symptoms and certainly those who have passed away or lost loved ones due to complications from this virus. The magnitude in which this virus has overtaken our entire world is unprecedented and we need to protect those who are most at risk… BUT, at a certain point, we need to ask ourselves, “Are we doing more harm than good by shutting down the entire country?”

This country was built on freedom. Freedom of speech, freedom of religion, freedom to pretty much do whatever we want within the confines of the law. It’s our right as Americans to willfully make decisions that are in the best interest of ourselves and our families. Since when can a governing body tell us what we can and cannot lawfully do? I can’t go see my brother at his house (a private residence, by the way), under the pretense that we both agree to see each other, without the risk of being handcuffed, arrested and thrown into a police car?

Sure, we hear and read all about the death rate from COVID-19 and how the number of cases goes up by the thousands on a daily basis. Any death is a terrible death – no one wants to see anyone suffer or die because of an infectious disease. But we also need to take a look at the reality of these statistics. The people that are most at risk of developing complications from this virus are the elderly and those with pre-existing health conditions. The VAST majority of deaths related to this virus are those who fall into one or both of those categories.

For example, in New York, the epicenter of this virus in America, there have been 118,000+ confirmed cases and 10,000+ people have died from COVID-19. As of Monday 4/13, a total of 128 of these deaths were people who had no pre-existing health issues. On a percentage basis, that’s less than 0.11% death rate for those without pre-existing conditions. 0.11% - that’s the same death rate as Influenza.

If I want to take the risk and go outside, go to work, go to a sporting event, go to a concert, go to a bar, go to a restaurant, go to my brother’s house(!), then that it MY right to do that. If someone else wants to quarantine, stay home, not go to work, or not do anything social, that is THEIR right to do exactly that. We need to make decisions for ourselves, not be dictated to stay at home and wear a mask when I want to get into my car.

Yes, my real estate business has been put to a complete stop.  Rents will be harder to obtain the longer this goes on and lender will be less likely to underwrite as things become more and more uncertain.  That's not good news for any of us.  But my frustrations go well beyond real estate.  They expand to all aspects of human life and our civil liberties. 

I can’t stand idly by and watch our country turn into a Totalitarianism state that I don’t even recognize anymore. It’s time to open up the country. It’s time to open up the economy. It’s time to get back to work and get back to our normal lives. If you agree (or even disagree), please respond back to this and let’s have a discussion about this.

@Luke Ski not to mention, and I can’t believe no one is talking about this, giving away “free” money is going to have long lasting consequences. For everyone. The value of the dollar will drop and who says these stimulus checks will be used towards anything “stimulating?” Can’t just print more money to solve these problems. This was propped up on a shaky foundation and I’m afraid that foundation may crumble. Don’t think that when the country opens back up it will be back to normal - this will have negative impacts for quite a while. Having said all of that, we ALWAYS come out of these downturns eventually and when we do, we’ll be better than ever. Hang in there, things will get better... It just won’t be quickly.

Hi Tim,

Yes, that is all correct.  Our average cash-on-cash is ~20%/property and we're generating about $20K/month in net revenue after expenses and maintenance.  And all OOS.  

We created a unique, simple approach to on-boarding OPM - happy to share that information off-line if you'd like to hear more about it.  

December 2017, I bought my first investment property in Pittsburgh, PA. After my wife and I looked at about 30 properties in 2.5 days, we settled on a nice SFR near downtown – listed at $212,000 and we paid $200,000 for it. As fate would have it, my realtor loved the house so much she rented it back from me the month after we closed and almost 2.5 years later, she's still there and she's about to sign on for another year.

After that, it didn't take long for me to get the bug. In March 2018 I bought another SFR in Greenville, SC (if you want a hot market - look no further than this one). In my infinite wisdom (or lack thereof at the time), I overpaid for this house and spent more than it appraised for (please don't ever do that and learn from my mistake). Regardless, I was able to rent it out in about 45 days and we've had the same tenants in there this entire time – cash flowing nicely with little maintenance and upkeep.

Then it took off. I won’t bore you with all of the details (if you want them, feel free to reach out, I’m an open book and always willing to help) but we now have a real estate portfolio of 37 (and growing) cash-flowing assets (to the tune of ~$25,000/month in net revenue), spread out across 13 states, worth over $8,000,000 in total value. ALL of which has been OOS (out of state) investing. I’ve invested quite a bit of my own money, both now and when I got started, but when I realized the power of OPM (other people’s money) it took me to the next level. I have partners across multiple entities with different classes of assets, scattered amongst a number of markets. All of this while working a separate full-time job.

Our purchasing strategy has been a mixed bag, as well. We've successfully used the BRRRR method on a number of occasions, we've flipped some homes and we've purchased rent-ready properties on 30-year notes. We've never once purchased a house with cash – we've leveraged every purchase we've made to date. We've established ourselves with our *lender to the point we have maximum exposure limits as well as a fix & flip LOC to help with the BRRRR and flip aspects of our business.

And I’m not here to pretend like this has all been rainbows and sunshine, either. We’ve made our fair share of mistakes along the way, we’ve had some investments that have straight up flopped and we’ve had some, let’s call them, difficult tenants. But that’s to be expected. Not every investment we made has been successful, just like every investment you make won’t be successful. Learn from those mistakes and make sure you never make the same mistake twice.

I tell you all of this not to brag, but to help new investors get off the sidelines and go get their first deal. I know how it feels to overanalyze and feel like you’re spinning your wheels – it’s very easy to get caught up in the details and not pull the trigger. There’s always a million reasons not to do something. Find the one reason to do something.

I’d love to hear your comments/questions and I’m always willing to help when and where I can - please let me know what you think and if/how I can help you gets started!

*A HUGE shout out to our lender, Finance of America. Couldn’t do what we do without them. If you want their info please send me a direct message and I’ll be happy to forward.