All Forum Posts by: Dan Nelson

Hi Conrad, sorry I never saw this before. There is no downside to appealing your taxes and there is a very good chance you will win. You have two choices:  You can appeal them yourself or hire a law firm.  The advantage of the law firm is they will do it every time they come up for appeal and you will not have to pay attention to the deadlines.  The downside is they will take a portion of what they win for you.  If they lose the appeal, they take nothing.  Let me know if you would like me to introduce you to who I use.

While opinions on the "better" real estate market varies based on your preferences and investment goals, I think their are many markets that make more sense than SoCal.  For example Chicago - the market I am in -has more affordability compared to many areas in Southern California. The city's lower cost of living and real estate prices can provide investors with more accessible entry points and potentially better cash flow opportunities. The economy is extremely stable with diverse industries like finance, technology, and manufacturing and Unitrd Airlines and McDonalds.  SoCal has historical property appreciation and high demand for housing but much tougher laws and zero chance for cashflow.

 Chicago tends to offer affordability, geographical diversification, and potentially better cash flow opportunities due to its lower cost of living and real estate prices and rent control is illegal in Illinois. 

I am focusing on Chicago because it is the area I represent and know the best but I prefer the fact that it has both cashflow potential and future appreciate at a much lower starting price.

Hi Dan,

1. It's great to hear about your successful start in the real estate! 

The choice may depend on your specific investment goals and risk tolerance. You might even consider combining both strategies, using BRRR for some properties and conventional loans for others. Given your successful experience flipping and renting a property, I recommend using the BRRR method to extract cash and purchase additional rental properties. This approach can help you grow your portfolio more rapidly by recycling your initial investment. Good luck and keep us updated on your progress!

Hi, Ke Nan Wong does an exellent job of summarizing it.  And here is a little more detail on your example.

If the appraisal comes in lower than your $200k offer, you'll face a choice. You might need to negotiate with the seller to lower the price to match the $150k appraisal, or you can cover the $50k gap yourself.

On the flip side, if the appraisal is higher at $225k, it's generally good news. It can lead to better financing terms for you, and the seller might be happy to get a higher price for the house.

So, it all boils down to negotiations and decisions between you and the seller, and how to handle the $50k or $25k difference. Best of luck with your home purchase!

@Amna Khan Amna, this happens a lot. Taking this first step is terrifying. I waited 10 years to buy my first property. And when I finally did, I eventually got a loan on that property And bought two more. While I cannot know exact details on your financing, you are in a strong market and it is highly unlikely you will regret it. It is much more likely that you will be like me and wishing you did not buy more earlier.

Thanks Elbert!

@Sam Zawatsky I agree with much of what people are saying here and definitely what @Conner Olsen posted. 

And to answer your original question, there are just not enough properties on the market, and that might not change for years and years.  Prices in most major cities have been going up for over a decade now, and if they come down, I do not expect it to be much. It is just hitting smaller towns and communities now. Building is at a standstill and many people still want to buy so there is no immediate end to rising prices in site.  I live, work and invest in Chicago and the only regret I have about my investments was ever waiting for a great deal.  I wish I had bought 3 times as many properties as I did when I was younger.  You can be as conservative as you want, but I regret how conservative I was when I started.

If you buy a decent building in an area where properties tend to appreciate and take care of it, it will appreciate.  You will be able to refinance overtime and buy more without additional investment.

Hi Mary, 

I don't personally share your fears of runaway inflation.   Even Iceland completely cratered and it took 9 years to recover.  And there is no comparison between Iceland and the US.   However, it isn't just how many properties you get.  It is how much cash flow you can expect to generate and what your expected equity in those properties will be in 20 years.  It is just as important that you know you are investing in the right areas as focusing on the number of properties.  I don't plan to retire for a very long time because I love what I do, but I do believe I have enough equity in my properties that if the cash flow is not what I expect, I will be able to sell them off and live very comfortably.  But back to your exact question.  I think 10 properties is a great goal.  But you could easily by 15 or 20 in 20 years.  If you are worried, make that your target.

 @Bill Brandt really nailed it. Get a property manager and have them do most of the work.  Best of luck.

There are so many ways you can approach it so I am going to offer you two.

1) Most young people benefit from going to college and learning what they are great at. You will also learn to communicate and hopefully get a sense of accomplishment and confidence.  You can learn a field, get a great job and start saving for real estate.

2) If you really believe you have the confidence and work ethic to start immediately, you have a lot of options.  What @Remingtonlyman suggests makes a great deal of sense.  You can also work as a real estate agent assistant and learn everything on the inside.  You can also work for anyone with any real estate role and go from there.

One option is you pay money to learn a skill that will fund a real estate career. The other is you get paid to hustle, work for very little money, but get paid to work.  Number 2 sounds easier, but it is much harder.  The best advice I can tell you is that making it in real estate is not hard, but it does take financial discipline.  Especially in the beginning.  Everything you make should go toward future real estate purchases.  All the best, I am sure you will kill it.