All Forum Posts by: Scott Dixon

Welcome to BP @Matthew Kinsella

@Matthew KinsellaI am a big advocate of buying a duplex, triplex, or fourplex and living in one of the units to serve as your first investment property. This is how I got started and think this route has several benefits with a few of them listed below

1) Much lower down payment: If you can qualify for a FHA loan you can put as little as 3.5% down to acquire the property.

2) Close proximity to your tenants: Some say this is a bad thing, but it severed me well.

3) Getting to know your property: Since you are living in the property you will get to know all of the issues/repairs which are needed and can work on these over time. This will ensure you will have a solid property for years to come when you are ready to move on to the next property.

I would start off by getting in contact with several lenders in your area. Since you mentioned you are in a sales job I imagine much of your income is commission based and this could cause some challenges. If this is the case it is not the end of the world you will just need to educate yourself on the other methods of acquiring property, which might be outside the realm of a traditional loan also known as "creative financing."

Best of Luck!

Scott Dixon

Hey Brandon,

Welcome to BP! Good to see another investor from Central IL. As you probably have picked up successful wholesaling is all about effective and consistent marketing. Have you selected the method(s) of marketing you will be using?

Best of Luck!

Only about 300 yellow letters into marketing for motivated sellers and just had a county sheriff stop by and talk to me about a concerned home owner who had reported me for trying to scam her. I wouldn't think that this is common but has anyone else ever ran across this?

I sent a standard yellow letter just stating that I would be interested in buying their house and sounds like someone was so concerned after receiving one letter that they "called the cops." I have a P.O. Box so the police had to at least to a simple check to see where I lived to come by my house and speak with me.

In the end I showed the officer what I was doing and put her on the "do not contact" list with him watching over me while I typed it into excel. The officer seemed to want to tell me not to proceed with sending anymore hand written letters out but I had stated that everything was public records and I was doing nothing outside the bounds of the law. So, he accepted the comments not to contact this concerned home owner and went on his way.

Has anyone else ever got the cops called on them for sending out yellow letters. I guess this is the day and age we live in with everyone so paranoid about people trying to scam them.

Chalk it up to an interesting experience in my young investment career.

Hey Carl,

I have seen Flipping Vegas several times and have to agree that the numbers don't add up on most the properties. Flipping Vegas might be bad but Property Wars is way worse from a numbers standpoint. The purchase prices are about double what you would need to pay to actually come out ahead. If it was as easy as the tv shows make it look, then I guess everyone would be doing it.

This is a list of podcast I put together for some of my friends who were looking to start out in Real Estate Investing. Thought it might help some of the newer investors on here looking for some quality free info. Enjoy and feel free to add any other podcast that you have benefited from over the years.

Note:
No Particular Order.

1)
Title: The Ultimate Real Estate Investing Podcast
Host: Sean Terry
Timeframe: April 2010 - Today
Roughly # of Episodes to date: 102 episodes
Topics: Wholesaling, Marketing for Motivated Sellers, Setting goals ,and Taking "Massive Action"
Quick Overview: Great podcast and Sean has a really good outlook on everything. He focuses on the positive side of things and has as many or more challenges as most of us when trying to put deals together but he has decided long ago to not let those little speed bumps or walls stand in his way and "blows through" any obstacles. You will get a ton or great content and instruction you can take action on especially in the marketing for motivated sellers and wholesaling spaces.

2)
Title: Real Estate Investing Mastery Podcast
Host(s): Joe McCall and Alex Joungblood
Timeframe: June 2011 - Today
Roughly # of Episodes to date: 54
Topics: Primarily Wholesaling and Lease Options but cover more topics from time to time
Quick Overview: One of the best podcasts in terms of making cash fast with little risk or holding time. Joe and Alex provide valuable insight in the process of finding motivated sellers, locking up a deal, and selling or transferring to an end buyer for a fee. A ton of good info and all presented with a laid back style from 2 guys in the trenches every day putting together deals.

3)
Title: REIClub.com Podcast
Host: Frank Chen
Timeframe: Aug 2006 - Today
Roughly # of Episodes to date: 190
Main or Recurring Topics: A lot of different topics but all focusing on different aspects of investing in real estate
Quick Overview: Most of the episodes are a conference call type format with a speaker basically taking the floor and presenting their material or product. You can get a good amount of information from these podcast and also can find a bunch of videos from Frank on youtube with more tips and info. This podcast does have some of the speakers pitching their product which seems to turn some people off but there is still a good portion of content for free.

4)
Title: Lifestyles Unlimited Podcast
Host: Steve Davis and others from the Lifestyles Unlimited team
Timeframe: 2009-ish - Today
Roughly # of Episodes to date: A TON, about 7 a week
Main or Recurring Topics: Investing in Buy and hold rentals
Quick Overview: This is one of the first podcasts on real estate investing I listened to and really enjoyed being able to have a new episode every day. This podcast promotes and educates following the Lifestyles Unlimited model which is a group out of Texas and the podcast is a recording of their radio show. Awesome of beginners and will help to reinforce some of the common principles and topics of real estate investing. Might get a little old after a while with the recurring topics but overall very good.

5)
Title: The Real Estate Guys
Host: Robert Helms and Russell Gray
Timeframe: April 2008 - Today
Roughly # of Episodes to date: 238
Main or Recurring Topics: Covering many topics but mostly focusing on buy and hold rentals
Quick Overview: Easily the most professional podcast when it comes to real estate investing. Have some big names in and outside the real estate industry come in and share the knowledge and experience. Robert and Russell are a good team and complement each other nicely and promote many of the key principles followed by many of us who follow Robert Kiyosaki and his advisors. Interesting to go back and listen to some of the episodes recorded during the dark days of the housing slump of 2007-2009.

6)
Title: The NO LIMITS Real Estate Podcast
Host: Todd Toback
Timeframe: April 2012 - Today
Roughly # of Episodes to date: 12
Main or Recurring Topics: Marketing for motivated sellers and wholesaling
Quick Overview: Todd and the NO LIMITS Podcast are newer on the real estate investing podcast scene but so far he has some really good information to share. I really enjoy hearing case studies and really breaking down the numbers of a deal to give me specific examples that I can learn from and Todd delivers this with the NO LIMITS Podcast. Like many of the hosts on this list Todd and great energy and if nothing else that should motivate you to get out and starting working on your first deal.

7)
Title: Flip Guys Podcast
Host: Peter Conti and Jerry Norton
Timeframe: Dec 2011 - Sept 2012 (not sure if they will be back)
Roughly # of Episodes to date: 20
Main or Recurring Topics: all types of flipping (houses, commercial, and "who knows what else")
Quick Overview: Peter and Jerry has some very interesting ways to get control of assets and make some money from flipping properties. I enjoyed learning a few different methods that are working in todays market that I haven't heard anywhere else. Not sure if the boys are still going to continue the podcast but nonetheless there is good content in the 20 episodes that are already out there.

8)
Title: Epic Real Estate Investing Podcast
Host: Matt Theriault
Timeframe: June 2011 - Today
Roughly # of Episodes to date: 48
Main or Recurring Topics: The Path to becoming wealthy through Real Estate Investing
Quick Overview: Matt starts off with laying the road map to becoming wealthy through investing in real estate in episode #1 and he will stress that you should listen to that episode first to keep a vision on the motivation behind the topics. Matt does fix and flips in California and buy and holds in the Midwest and through this real world experience is able to keep delivery what is working and not working in today's market. He also provides additional topics with featured guest from around the real estate industry and other real estate investing podcasts. Really solid content and have enjoyed Matt's outlook on investing.

9)
Title: Creating Wealth Podcast
Host: Jason Hartman
Timeframe: 2008ish - Today
Roughly # of Episodes to date: 289 (121 found on itunes archives)
Main or Recurring Topics: Covering many topics but mostly focusing on buy and hold rentals with every 10th show being an outside of real estate topic
Quick Overview: Jason does a great job with the Creating Wealth Podcast and focuses of topics that will help you build your real estate portfolio and grow your passive income. The Show ties in well to Jason's Platinum Property Network which has turn-key rentals for sale in several markets around the US. Jason is still actively involved in real estate and his up-to-date knowledge shows through in the quality and timeliness of his guests and topics. This podcast is absolutely worth looking into and even going back and listening to the long history of archived episodes.

10)
Title: The Real Wealth Show
Host: Kathy Fettke
Timeframe: 2003 (started with a radio show in California) - Today
Roughly # of Episodes to date: 20 on itunes but has produced many more
Main or Recurring Topics: Covering many topics but mostly focusing on buy and hold rentals
Quick Overview: Although Jason might not agree Kathy's podcast is not the same but similar at a high level. She is a strong believer in buy and hold real estate and also has a turn-key rentals business through The Real Wealth Network. Many of the topics covered help to build your knowledge in the rental real estate arena.

Hey Joel,

Sounds like you got a good mix going and the weighted vest will give a different dynamic for sure. We do Workouts of the Day (WOD) with 20 lb vests every now and then which always surprises me on the massive difference 20 lbs can make.

Jenkins,

Believe it or not but I am rooting for a little snow. Last winter and thus far this winter have been crazy warm and lacking a real winter feel. Probably shouldn't be complaining right?

Where I am from:

Originally from a tiny town in north central Illinois called Tiskilwa but now I live in the Champaign/Urbana area very close to the University of Illinois

Background/Goals:

I am a agricultural engineer and focus on off-road equipment. I am the guy who is looking at every piece of equipment when driving around town or down the interstate, kind of an “equipment geek.” I really started to get interested in real estate when I was looking to buy my first home shortly out of college. My first purchase was a duplex where I lived in one side and rented the other. Looking back, this was a great way to start and you will find out quickly if rentals are for you. In my case, they were and since I have purchase a triplex near the University of Illinois while moving out of the duplex but holding the property. Right now I am pushing to get 10 great properties all locked up with 30 fixed interest loans to start off my career in real estate investing. Along the way I want to get more versed in marketing for motivated sellers, fix and flipping (when the numbers make sense and to build cash reserves), wholesaling (same reasons as fix and flipping), and eventually commercial real estate. All of this is being done of the side like most people while I work my normal career as a design engineer.

Interesting things about me:

I am getting really into Crossfit! If you don’t know what Crossfit is and you are looking for a way to push yourself mentally and physically you should really check it out. Not a pro by any means but working to at least be competitive within our own “Box” (Crossfit Gym).

Look forward to connecting with the BP community and continue to learn and share what I can along the way.

Hey Matt,

I am just as new as you when it comes to Bigger Pockets but have a little experience investing in properties. In terms of your question , if the property in Hartford would be a good investment there is a number of details needed to truly make that call but here is a way to get a rough idea:

1) Find 5 comparable properties that have sold in the area over the last 6 months (sold properties not just listed properties). More the better.
2) Throw out the low and the high properties then take the average of the 3 or more in the middle and multiply by 90% (little buffer) to get the After Repaired Value (ARV)
3) Now that you have the ARV you will need to work on the repairs. Since you are new I would really suggest walking through the property with a contractor or 2 and get some rough idea on the numbers. You should be fixing up to match the community not going all out like some of the weekend home shows.
4) Once you feel good about the estimate on the repairs needed back that off the ARV. For most of us we are looking for deals and that means there should be equity left in the deal to make it worth your while. Whatever amount of equity you are looking for will also need to be backed off the ARV to ensure a good investment.

You will always want to add some cushion into your numbers. I have yet to come across someone who always over estimates the cost of rehab and includes more fees, commissions, misc expenses than what is actually spent at the end of the day.

Have you considered making your first venture into real estate a multifamily (2, 3, or 4 units) which you live in one of the units? You could qualify for a FHA loan if the property is also your primary residence. The benefit being the down payment could be as little as 3.5% and could be a good way to start off what will hopefully be a long career in real estate investing.

Good Luck!
Scott