All Forum Posts by: Vincent D.

Exactly guys.

Again, to anyone looking into the realm of real estate investing as a newbie, I caution against an "overnight riches" outlook. This is dangerous, and likely to end in failure b/c you will invariably pack too light for a many-years journey!

Newbies on the "fringe" often hear about real estate investing through sources which churn up emotional enthusiasm over the thought of "quick", "easy", and/or "huge" profits. In truth, very few ever have the "home run" experience again and again. Not to say that it doesn't/cannot happen, and it should always be held as an aspiration within grasp (in my opinion), but not to the extent that the most common real estate success path be ignored (steady, longer-term wealth accumulation upon which to eventually quit your office job and to retire from...very comfortably and well before you hit 60!).

I've had a handful big-profit deals over the last 9 years, but the thing that gets me most excited is sustainable, passive income. I quit my "day job" years ago, not because of "home run" deals (which, by the way, are MUCH easier when mortgage money isn't extremely tight like it is now), but with a steady, ongoing accumulation of real estate deals which provide monthly income.

To do this properly requires focus, determination, and perseverance, among other things. In fact, I would suggest to newbies on the "fringe", kicking the tires around the perimeter of the REI arena, that unless you have some short and long term goals, you will likely not succeed in the REI industry. In fact, without a bit of focus up front, it is likely that you will bounce fruitlessly from one incomplete RE endeavor/method to the next, quickly losing faith in each one, in turn, before making a dime. Find a plan that has been tested and proven, and GIVE IT TIME to work. Follow it explicity. Don't look for short cuts or personal "improvements" until you've had enough experience to justify such. Stay in touch with peeps here on BP with your deal search, number crunching, and nuances. Always defer to experiential wisdom.

REI can indeed produce those glorious successes you've heard about, but not without commitment! And MOST of the time, it happens over a longer time spectrum and NOT based on a string of "home run" deals!

Not sure why I'm writing this - just a whimsical stream of thought that I felt was worth solidifying into words. I want to simultaneously give hope and caution to aspiring real estate investors!

Peace,

Vince

happy to help, friend :)

lol ron. No dodging bullets in this area. Like I said, Indy is unique in its opportunities - in some ways, a well-kept secret. more for me!

Indianapolis is very even keel. There are no all-out war zones. My focus area isn't north-side suburbia, nor is it the inner city dregs. It's a great middle ground. My average all-in purchase/repair cost is less than $30K for an average rent more than $700/mo gross. Very solid. Generally, I'd say about 75% of these tenants last at least a year as paying residents. I found the perfect niche and the perfect system for running the show. just saying... :)

Jon,

Yes, ANYTHING gov-backed. These programs are invariably rife with waste and peril. Above all else, the government doesn't have anything to loan or with which to BACK a loan. By trying its hand at "fairness" and forcing Sh***y loans through the system for years up through the IMPLOSION (and still today, for that matter), it toys with a major economic component with which it rightly has no business.

The fed can set policy to affect bank borrowing rates, and that should be the distance of its reach. for every 'legitimate' gov-backed loan there are five which are inherently stupid, from an objective standpoint. Above all, it remains unprincipled. It was a bad idea (FNMA, for starters) from its origin under fdr's new deal, made worse by Bush1 and Clinton in the 90's, and let off the reservation entirely from that point onward.

People stop caring about the ripples so long as they get what they want in the moment. Maybe that's why pseudo-gov entities like FNMA, FHLMC, etc are accepted almost ubiquitously for "liquidity" purposes. Look at the crapstorm we're in and trace it back to its origins, and you will find at the epicenter these beloved, "cryptic-in-the-middle" feel-good institutions kicking the growing problem down the road.

if the tenant pays, keep him and defer the rehab till he moves out. If he doesn't pay, evict, then rehab once he leaves. If he stays and pays indefinitely, you've just saved yourself some rehab money and effort!

I'd run from government-backed money - hud, homepath, etc. Red tape and wrongful sourcing. Yuk. imho there are better ways to grow your RE roots.

It has to be an area that you could easily drive to every day (if you had to, though you NEVER should). Half an hour from home is my personal rule. My 30 rentals are all within a 4 square mile area less than 30 minutes from my homestead. Of course, that's just the beginning.

It's all about the ROI, so far as I'm concerned. Assuming you're talking about rental properties, if the numbers don't make sense, nothing else does. return on investment (net) is what you should be queuing on.

This is just the cornerstone - obviously, we can't equip you to run out and make a deal tomorrow with a few short paragraphs. IMHO, you should look into some type of systematic roadmap that you can follow in steps to complete your first deal or so until you get the hang of it. Worked wonders for me, and well worth the investment (many, many times over).

In any case, I wish you the best!

ONLY if you can gain proof of payment history from tenant to previous owner...and make sure they don't fudge it! In any case, don't buy the property BECAUSE of the tenant - it should be a killer deal with or without the tenant. if not, keep shopping!