All Forum Posts by: Bryan Snider

@Matthew Miller ,

For an investment property loan, I recommend you find a small local community bank that holds their loans in-house (does not sell them on the open market). Happy investing!

@Matt R.

@Matt R.

@Matt R.

@Dustin Markwell Welcome fellow Louisville investor. I am actively investing in fix-and-flips here in Louisville and always willing to chat if you have any questions getting started. From your first post it looks like you are light-years ahead of where most people start out. You have a vision and a plan in mind to get there. That separates you from 90% of the pack. I admire that. Reach out anytime to me or any of the Louisville investors here on BP. @Sharon Vornholt , @Erik Hitzelberger and several others....they are great people

Thanks,

Bryan

If you find a good, honest coach it can be a great thing. What you are paying for is: 1. an accelerated learning curve 2. mistake avoidance (you will still make mistakes but should make fewer) 3. The "push" that gives you confidence to take action and do a deal. Determining a fair price to pay in return for the coaching depends on your situation. You can place a value on your time (and you should definitely do that) to determine the worth of accelerating your learning curve. You can ask other investors at your local REI club to put a dollar amount on the mistakes they've made. (I have an experienced investor friend who overlooked the fact a house was missing a foundation. He had to bulldoze it and start over. Mistake cost him 5-figures). In summary, items #1 and 2 above will fluctuate in value depending on the caliber of the coach. Item #3 can make the difference between never taking action and building a sizable wealth. I don't know if I ever would've taken action had it not been for my coach. I was too scared and too risk averse. Now I am not. I guess I owe him big time.

Originally posted by @Shaun Reilly:

@Bryan Snider

"A throwing-lesson from Tim Tebow is more valuable to an aspiring college quarterback than it would be to Peyton Manning."

I have video from Sunday that would contradict this statement. :)

Ha! I purposely chose that comparison because I knew it would get a good laugh from fellow football fans. I really wanted to see Manning succeed but it just wasn't his night to shine I guess.

This is a great discussion. As a reader of BP, I appreciate the time that people spend sharing information on this site. Each of you deserve thanks for sharing your perspective. Here is my contribution to this discussion.

Educators of any type can be placed into one of two categories:

Category #1: Educators who provide a value that is greater than the price they charge for it.

Category #2: Educators who charge more for the information than the value it brings to your life or your business.

As a community of BP readers/contributors, we should not automatically stereotype all Educators into category #2. Rather, we should help one another identify and benefit from the Educators who are in category #1. If we focused on doing this, the category 2 educators would go find something else to do.

The key for each of us is to understand the value that it brings to our unique situation, which begins with the value we place on our time. Depending on where you are in your investing journey, the same information may be more or less valuable to you than to someone else. A throwing-lesson from Tim Tebow is more valuable to an aspiring college quarterback than it would be to Peyton Manning. Likewise, a system that leverages other people's time and expertise to help you flip houses is more valuable if you are working a full-time job than if you have 60 hours per week to dedicate to flipping houses.

There are plenty of dishonest people that we will encounter in all facets of life. However, it is reasonable to think that there are Educators who want to earn an honest living, even a lucrative living, by teaching others to do what they have been successful doing.

Hey Brandon,

I also caution the use of the 70% rule. My main dislike with a rule like that is it does not factor in a specific profit you want to make. I like to start with the profit I want to make based on the complexity, risk, and effort required to complete the deal. Then I work backwards from there. In your example, it would be as follows;

$160 (ARV)

- Profit you need to make

- $25k (rehab)

- purchasing costs (closing, inspections, etc)

- carrying costs (principle and interest, taxes, insurance, utilities, etc)

- selling costs (realtor commission, closing costs, seller concessions, etc)

= maximum allowable offer.

Beware.....The 70% rule take a passive approach to the most important part of the deal....your profit! It can also have significant error if you do anything atypical such as borrow hard money at high interest rate, etc.

Hope this helps.

Thanks

Bryan

Ryan,

I don't usually get up to Cincinnati, but if you are ever going to one of the REIA's there let me know and maybe I'll venture up. And of course, of you are ever in Louisville let me know and I can show you around and show you some of the fix-and-flip deals I do down here.

Take care,

Bryan

Ryan,

You are doing 2 things exactly correct: (1) Educating yourself and (2) Taking action. A common theme amongst the successful investors I've talked to is that the turning point for them was when they took action and bought a property. The same thing was the turning point for me. I also invest while working a full time job (and then some) so I am here to tell you that you can be successful. My advice is to place a value on your time and eliminate distractions to focus on the things that accomplish your goal. If you ever want to chat just message me through Bigger Pockets. Good luck!