All Forum Posts by: Neil Schoepp

@Juan Santos

First listen to the podcast and decide what type of investor you are going to be. Are you going to buy and hold single family's, Mobile home parks, multifamily, notes, retail space, office space etc. Then start looking at markets. Set up keyword alerts for the type of investing you choose, and the areas you will be driving through. 

Setting up Keywords alerts:

1. upper left corner click on your photo icon then on settings

2. Across the top you will see Keyword Alerts

3. it's self explanatory after that.

As  you read / respond to / and create post you will start seeing what is out there. It can be as simple as "hey I'm going to be in Provo next Monday anyone want to meet for a cup of coffee and discuss the market?" 

You need not have done a deal to sit with me and discuss real estate. You need to have a basic understanding and a drive and you already have the drive. That's why you start with the podcast and determining what type of investing you want to do. 

Remember the answer is ALWAYS no unless you ask. So ask. Just keep taking action and things will happen.

@Juan Santos

Short answer is ABSOLUTELY!!!

You have a huge advantage over a lot of us. You drive for 8 / 10 /12 hours a day. Use it wisely.

Start right here with podcast. Listen to them all.

They will give you exposure to the different facets of real estate investing. Each podcast will have a book or two as a recommendation get an audible account and start "reading".  

The Bigger pockets podcast will also lead you to other podcast.

Then pick your niche and take a deep dive into that learning all you can.

Is there any chance during your day you could meet for lunch or coffee on your driving route. I imagine your job takes you to many places. If you "regularly" take a route start networking along that route. 

Reia and meetups. I run a local one and know that if you contacted me and explained your situation I would absolutely say come on down and yes even if it was just once and I never saw you again. The job of the REIA is to bring investors together. If I can add value to someone I surely would.

This is a mindset thing I don't remember who said this but make sure you think you can.

"Whether you think you can, or you think you can't, your right"

@Josh Smalley

Focus on the stages of investing. 

Financial house in order:

Before anyone can invest they must be on stable ground..........Credit scores, debt to income, budget, emergency fund 

Education:

Is Real estate a good fit for you? Terminology, Broad overview, mindset, types of Real estate investing, 

Niche:

Discuss 10 or 12 Niches to expose them to then let them research it more in depth and pick what resonates with them. 

Market

How to pick a market? What to look for. Key points, research sources, etc

Networking:

Real estate is a team sport. 7 levels of self perception, follow up, deal feed back, building a team, open ended questions

Deal Analysis:

Proper underwriting, you make your money on the buy not the sell. What are the key metrics to look at obtaining.

Sources:

Biggerpockets Do individual searches for each item, then follow up on ideas and terms presented in each post. Listen to all podcast then read book recommendations.

Itunes Podcast keyword real estate or specific niche

Reading stuff from whom you agree is on the top of their game......Here is a good place to start

@Chad Kastel

Best way I have found to find market rental rates is to call other properties that are available and ask. Look at realtor websites and do the math. If you are using a broker on this deal they would also be a resource even if it's just the sellers broker. Nothing beats on the ground research.

Next, to reflect upon your question 

"My question is what percentage of what would be considered fair rent would be mathematically incorrect to take no matter how good and stable the tenant."

This is purely personal. You are considering everything I would. I would also consider how long you plan on holding and what your exit strategy is. I am a buy and hold guy so when I buy a property I buy it with the intent of passing along to my kids. Doesn't mean I won't sell but that's my strategy. That's a big difference from I am looking to sell in 5yrs. I look at things through an NOI looking glass so $25 a month at a 10 cap is $3000. If I can deal with that then I let them stay. I would agree there is a certain premium to not have to search for make ready and "worry" if the new client will be stable.

WOW! @Nickolas Rossol what a great mindset!

First that's a great strategy. Work your tail off save as much as possible and use it to start the wealth creation machine. What you are planning is house hacking and a great way to start. One caveat I will list is for some it's a challenge to be both the owner and a fellow "resident". Some people cannot stomach living alongside their tenants. Just give it some thought.

Not sure on your finances but I would go larger than smaller, so say a quad instead of a duplex if that is possible for you.

I would keep your credit as clean as possible. No new cards. Pay your debt down so your debt to income ratio is good. Start building relationships with local community banks so when financing time comes they know who you are. 

You have an entire year to build your foundation (education) start with, among other things some books:

Wheelbarrow of profits by Gino Bararbra

How to create lifetime cash flow through multifamily properties by Rod Kleif

Investing in duplexes triplexes and quads by Larry Loftis

What every real estate investor needs to know about cash flow by Frank Gallinelli

@Erik Schneider some great suggestions so far. I too highly recommend Joe's book. Another you may like is @Gino Barbaro book Wheelbarrow of Profits.

@Account Closed form Here in the file place.  it has helped me communicate much better with perspective tenants and weed out those that would not be a good fit.

It also helps to include lots of high quality pictures in your listing.

@Valerie Buss

If it were me I would give them your 8 month rate. It sounds as if it is a legitimate mistake.  IYes they should have caught it and yes you could hold them to it and yes they should honor it since they did sign it.  But the client didn't move in yet and they caught the mistake quickly. 

I would not look at it as backing down. We all make mistakes. I always attempt to do the right thing, and here I see that as adjusting the rent.  

You will get many opinions, at the end of the day it really comes down to what you are comfortable with.

@Michael Junior

I have good success with visiting the county GIS page. You will be able to click on the parcel. Some county's will list the info right there others will give you a control number that you can search the assessors records with. Sometimes just listed as public tax records. 

@Joey Anderson

Welcome. you have arrived at the best place on the net to start your education. 

The short version

1.Familiarize yourself with the different strategies

2. Pick a strategy and do a deep dive into it 

3. While doing #2 above research 5-8 markets and pick 1 or 2. 

4. Now do a deep dive on the market you picked.

I can list my blueprint but it may not resonate with you. You have to figure it out for yourself. Below is how I started. 

I would listen to podcast's to get a feel for the type of investing I am comfortable with. Each podcast will also recommend a book or two for reading.

Each strategy has their own nuances. Single Family's (SFR) value is based on comps. Where Multifamily that has 5 or more doors (units) is valued on the income it produces.

Start with looking into:

Multifamily (MF)

Mobile Home Parks (MHP)

Single Family (SFR or SRH)

Fix and Flip 

Self Storage

Tax sales

Notes

Or any others that you hear of

There are so many ways and only you can pick which fits best into your life's plan. For me it's MF I like that I am much more in control of the value of the property, it offers great economies of scale and it is something I am comfortable doing from out of state. 

Next, I would learn all the nuances of whatever strategy I decide on. 

After I picked my strategy and while I was doing my deep dive I would research 5 to 8 markets, narrow it down to one or two and become an expert on those markets. Rents, expense's, cost of turns, path of progress etc.

One great book that will benefit you independent of what strategy you pick is Frank Gallinelli's

What every real estate investor needs to know about cash flow.....

To your success,