All Forum Posts by: Chris John

I'm not on BP as much as I used to be because, honestly, I feel like easy deals have dried up.  I'll leave the real work to professionals, so I'm kinda dormant and waiting for economic situations to cycle through so that I can find easy deals again.

However, I do remember several, several threads on BP a couple of years ago arguing syndications vs. doing the work yourself.  It's sad to see so many of these threads after looking through BP today, but it was totally expected based on the insanely low rates a couple of years ago and realizing how commercial lending works.

It's a bummer, but there's no such thing as passive investing and there's no alternative to digging into a situation and understanding it for yourself.

I logged in just to like this post.  Excellent advice and very well stated, imo.

I have some really good candidates for ADUs in California. Older homes on big lots in rental neighborhoods. When I ran the numbers, I ended up buying 4plexes in Jacksonville instead. Each pile of $200k got me 25% down and some money towards renovations on two 4plexes generating $8800/mo instead of one ADU generating $1800. I was also able to acquire $750k of real estate using leverage (now worth $1M).

Another great point is that this happened in 2020/2021.  If you're not already extremely well connected, buy some index funds (or the next Nvidia - maybe the current Nvidia still?  No idea...) or park your money in a money market fund.  Real estate is too much work to not be getting absolutely killer deals (and there's not that many available right now).

@James Hamling

I can't argue with a word!  haha.  I used to get frustrated, but instead I just tell my kids how easy the race will be for them since so few are running it.  Along the lines of Joshua 24:15, "as for me and my house, we will continue to work."  Well, and, more importantly, follow the Lord, but this is a real estate website, so...

@Nicholas Foy

I have no idea if it's an L or not, but if it is, I appreciate your ability to recognize it, own it, and move on.  That unvarnished ability to recognize a situation seems rare in this ever hopeful world where everyone seems like they'd rather complain and justify instead of accept, learn, and move on. 

Having said all this, make sure it's actually an L before you sell.  It takes a long time of losing a little bit of money every month to get to 25k. If you hold on long enough, you might come good through inflation alone. 

Best wishes

I have no idea what the $600 course is, but I can definitely say that buying Kiyosaki's "Rich Dad, Poor Dad", the "Cashflow 101" board game, and "On the Road with Robert Kiyosaki" were three of the best financial decisions I've ever made and have paid for themselves many times over.

Then, coming across Bigger Pockets during coronavirus and realizing that money was about to be devalued in a major way was also a personal game changer.  I'm so thankful that I locked in all of that debt at historically low, fixed rates.

Sincerely, I'm beyond thankful to Kiyosaki and Bigger Pockets as they've changed the arc of my family's financial situation.  I'm just sorry that not everyone has had the same experience.

@Eric Fernwood

I wish I could like your post 100 times.  You have absolutely nailed what an investor agent should be bringing to the table.  Congratulations on all of the well deserved success that I imagine you are having!

Numbers work = buy 

Numbers don't work = don't buy 

Don't overthink it and let the deal (not the property) speak for itself

I'd argue that the buyer always pays the commission. 

@Alex Kosley

It looks like you listed about 210k in debt.  What are the monthly payments on that? 

If it's anywhere near 3k or lower, I'd definitely not pay it off.  In theory, you could buy a property worth a little more than 250k and use the rents to pay your bills.  So, you could buy an asset that pays your debts for you (essentially you're paying off your debts on your income statement instead of paying them off on your balance sheet).  You wouldn't have to worry about the bills monthly, and you'd get a free house out of it eventually.

Of course, I wouldn't actually buy a 250k house for cash and without using leverage.  I'm just trying to simplify the argument.

Quick edit:  IMO, this country is broken in the sense that working hard and paying cash isn't rewarded anymore.  It worked for my grandpa, but now you're rewarded for borrowing.  I don't like it, but I definitely think it's the game nowadays.

@Ned J.

Fair point on the government overreach thing.  I definitely like zoning, but I concede that your point has validity.

I don't think we agree about the origins of the ADU bill, but I'm only speculating that it's do-gooder libs. I don't actually know for sure. I do know that I've heard progressives bang the drum, so it's a bit hard for me to believe that liberal California is carrying the water for investors after screwing them at every turn during Corona. Again, I freely admit to not actually knowing though.

Your CC comment makes me laugh.  Daddy's money does go far in the valley.  haha