All Forum Posts by: Jonathan Cope

Nicole Pettis Congratulations on your home purchase and the progress you've made toward its renovation. For many successful investors, the quality they have most is self-control; they control what is controllable. Additionally, they are life-long learners. You may do the same. Consider slowing down and adjusting your course to one you can control. Don't expend your energy establishing a dependency upon others, whether for capital or otherwise. I got my start investing in real estate as you have, in 2000. We postponed our wedding and bought the least nice apartment in a lovely, old townhouse in a neighborhood in transition across from New York's lower Manhattan. Hoboken was then arty, risky, and not yet the back-drop for The Sopranos or Cake Boss. We lived through the renovation, learned a lot, and sold the apartment for a profit, which paid both for our wedding and the down payment on a second apartment twice as large. That process took three years. Not a fast flip. I was frustrated throughout because our empire was not growing quickly. But, in hindsight, we had a lovely place to live, had a lovely wedding at our expense, and learned more than imaginable. We were our own tenants as you are yours. We learned what mattered as a tenant, how to fix what was broken, and what needed professional attention. Moreover, we learned that if the renovation was the priority we could restrain our budget almost everywhere else to make it a reality. And we learned that the whole family had to be bought in to the process, even if I was the primary instigator of the purchase and the plan. The energy required to build a real estate business required everyone's commitment and understanding. If I may make a suggestion, consider focusing your attention on a) the project you already have and b) learning more, both about real estate and how you fit in the scheme of real estate. You have begun to do both it seems. Avoid adding another task - finding more capital from strangers - and commit your energy to controlling what you control or can. Budgeting, bartering for renovation tasks, Home Depot classes for DIY renovation steps, conversations with your father about his experience, getting that PA role for a broker, etc. @Brie Schmidt's podcast show 78 with @Joshua Dorkin and @Brandon Turner is a great one to enjoy for your situation. Additionally, consider identifying the next place you wish to live. Take your time but learn which neighborhoods will next be best. When your current renovation is done consider moving on to a new place and renting your current place as your first rental. It is a slow plan but one you control. We've taken this approach over the past 15 years. Doing so has built us a strong foundation, allowed us to acquire and control buy and holds, undertake a number of renovations, and build substantial equity. We started with nothing but student loan debt, good credit, jobs, goals and energy. You'll get where you wish to if you take your time and control the controllables. Good luck, Jonathan

@Jon Klaus 

Keeping a good crew busy seems wise. 

Best wishes on finding the new effort. 

@Brian Burke 

Thank you for making our schedule feel doable by comparison. 

We have a three property re-financing to arrange for execution in Q1. 

The result of which should reduce our monthly debt service by ~$4,000 monthly. 

As a buy and hold investor primarily, it feels to us a good time to lock in inexpensive long term funding. 

We have three new potential partnerships to explore and structure, two of which would focus on markets we are familiar with but new to as investors. 

We have a higher end flip to complete. 

Additionally, we need to decide whether to continue with higher end flips or deploy the proceeds in to buy and holds in different markets. 

We have a home renovation to finish, as our home was rented during our three year overseas assignment that concluded this summer. 

(I am still in London while the family is home, so I should figure that out, too.)

And lastly, we may have a multi-family to buy in if the math improves some. 

Hopefully that is all, other than mapping out a plan for 2015, some overseas flights, finishing listening to @Joshua Dorkin and @Brandon Turner's first 20 Podcast Shows and reading Brandon's new book, and the day job. 

Best wishes to everyone on their last 60 days of 2014,

Jonathan

@Dawn Anastasi 

Congratulations. 

Your conservative and thoughtful approach is idea provoking, Dawn. 

Does your business mission or perspective on your rental clientele help you keep focus on your discipline?

(The way you approach REI hitting and throwing you'll be joining Robin Yount in the Hall of Fame some day.)

While careful math seems at the heart of your process, it seems to me that something more helps you maintain common sense throughout your project execution. 

Is that the case?

Thank you for the project photos and details. 

It is nice to have them all as one considers new efforts. 

Congratulations again,

Jonathan

@Andrew Eaton 

Yours is an interesting and probable supposition. 

I enjoy how many stories the podcasts offer of new investors leveraging BP to get their start and maintain momentum. 

Nothing wrong with learning before leaping, as you note. 

Kenny Estes and Joshua Dorkin had and interesting exchange about just that in Podcast Show #30. 

In the end they both pointed to the opportunity BP offers to be an empowering place to protect oneself from the more predatory aspects of the RE market as a new investor. 

Given how much of global wealth is concentrated in the hands of 2 percent of the population it is likely that in any representative sampling most people will have little by comparison. 

Nonetheless, BP certainly appears to be the best place to find and learn from the small percentage that does have real estate investment assets and experience. 

I do like your point and the demographics would be interesting to understand. 

@Joshua Dorkin 

@Dawn Anastasi 

Thank you for your reply and sharing your first action point.

I enjoy gathering the book recommendations, too.

It is nice to hear you'll be reading some of the books soon.

On a long flight recently, I opted to listen to the Audible version of Millionaire Real Estate Investor by Gary Keller, a book I had heard of but never read, based on a number of Famous Four suggestions.

It helped pass the flight time quickly and offered some good perspective. 

@Joshua Dorkin and @Brandon Turner 

Thank you both for your votes today.

They made me smile.

It is a pleasure to have joined your community.

I had the good fortune today to have a terrific introductory conversation by phone with one of your more recent Podcast Show guests.

We live close to one another in New Jersey but would not have met and shared a nice hour as easily without your platform or Podcast Shows.

We've agreed to stay in contact going forward as our investment intents are similar.

Yet another connection you all have helped make.

Thank you again,

Jonathan

Tonight I am in London. London is a place I visit often and was my home for three recent years. During our time living in London, we - my family of four - visited as many places across Europe as practical, knowing we would not be here forever. We stayed most comfortably in AirBNB apartments during those visits. This evening I am staying via AirBNB with a family in their spare room. I have enjoyed listening to @Brandon Turner's advice to interested new investors about the practicality of house hacking as a first step. AirBNB reminds me of a house hack. Are any of you in BP Nation using AirBNB to begin or expand your real estate investing? If so, I would be interested to hear about your experience. Many of the people we stayed with in the past few years I know are slowly building portfolios of AirBNB rentals. Are you? Please let me know. Thank you, Jonathan

Welcome Alexander. Good luck with your initial efforts in Baltimore. Try the podcasts if you have not done so yet. They are a terrific education.

Hello BP Nation: I am looking for an excellent property manager, new or tenured, in Knoxville, TN, for a small multi-family (5-units) I am considering to purchase. As I have shared recently, I am beginning to transition from Buy and Hold SFRs to Multi-Families. In the past few years, I have gained experience managing rentals from afar in a New Jersey market I know quite well. However, I am now facing a new challenge. Specifically, I am considering the purchase of a 5-unit property in Knoxville, TN, a market with which I am less familiar. I would be interested to learn from Knoxville, TN members of BP Nation who your favorite property managers are. Know a great property manager in Knoxville? Please consider sending me a referral. I am an experienced investor and enjoy working with excellent local talent. Am open to working with young talent if they have talent and are looking to build a business. Thank you in advance, Jonathan

@Dawn Anastasi 

That is kind of you to say. 

At times, of course, it feels that the path forward is more meandering than one would wish. 

But it is great fun to make forward progress through action or, admittedly, inaction. 

Sometimes not selling or doing is the better action to take, I know. 

I am an admirer of Warren Buffett and Charlie Munger. 

Mr. Munger reminds those who listen that buying right and then doing nothing from then on is often the best path forward. 

As I listen to the Podcast Shows, I enjoy the energy they provide me and the motivation to find that next wise buy or smart thing to learn. 

I enjoyed your Podcast Show greatly. 

Your story of boldness and perseverance was a pleasure to hear. 

A shame about how family let you down. 

Congratulations on your success to date. 

I am curious, do you find the Podcast Shows to be a useful and motivating tool?

If so, have they led you to take any specific action?

Best regards,

Jonathan

David Krulac Am glad you enjoyed part of the cited survey. I suspect that may mean that only 16 percent of surveyed people were aware enough to admit that they did not know whether they were profitable. No doubt the group of people unsure but unwilling to admit it was larger still. I find many people have great uncertainty about the practical or profitable nature of their real estate whether personal or investment. That may be why so many people feel empowered or freed by Rich Dad Poor Dad and its simple but startling message. I presume in your business you encounter many sellers or buyers uncertain how to consider property. Are you surprised by the data? Or do you find it in line with your experience?