All Forum Posts by: Drew Cameron

Hi fellow BPers. I stumbled across a book that was mentioned in one of the forums here called "The Wealthy Code" and read it cover to cover really liking the ideas, content and the way it was written. The author wrote another book called "The Bankers Code" about using whole life insurance as a way to create a personal bank. After reading this I have read a few other books on the topic and I am excited to get my plan setup. The premise is that we pay 34.5% of every dollar we make to interest and taxes. By using a life insurance account as a vehicle we can gain access to funds that are fluid, the interest compounds and pays big dividends when it is time to retire. There are fees associated with setting up the account, but once you get through the "loading phase" where you are feeding the account money annually, you can withdraw from the account for things you would normally finance like a car or house and make the same monthly payments to yourself as you would with conventional financing. By doing it this way there are no loan fees (other than the initial to setup the account) then you recoup the interest by paying yourself back the same interest rates that are being offered at the time. Meanwhile your funds are growing around 10% annually in an account that is fluid and will pay dividends when you retire, and also pay out a death benefit in the millions. Has anyone out there done this with success?

I went to one of their three day seminars and found it very helpful. I didn't buy the program, but it adjusted my thinking and mentality. I knew nothing about real estate but knew there was a lot of money to be made and a whole bunch of different ways to do it. They sort of glaze over each strategy for an hour or so while continually hammering home that you need their program and software. For me it changed my mindset and for that it was worth it. If you already have experience as a real estate investor or already have the drive (I'm assuming you do already if you are on BP :) ) then I would pass. If you're a self starter and go getter you definitely don't need to go. You can find everything on here. It's more beneficial to find a local person to help you at a meetup or REI club. Best of luck

Bryan Blankenship Kevin Wall I'm interested in turnkeys and would love to connect with you gentleman to talk about potential deals.

Jack Edgar jr thanks for the insight.

So the other day I'm out driving for dollars in a new neighborhood and every few hundred feet they have neighborhood watch signs posted. This particular area isn't especially nice, but doesn't seem to be a high crime area either. It looks like an average lower middle class neighborhood going through a bit of a transition period. I found a few potential houses to mail to after a couple hours, but after seeing the signs everywhere I started thinking outside the box. Here in Phoenix, we are very seasonal and have transplants from everywhere. Most places I've lived in the valley from Tempe to Scottsdale to Phoenix to Glendale etc don't really have a sense of community. Most places I've lived I haven't met or spoke to the neighbors. I'm thinking this neighborhood might be different and people might be more in tune with their neighbors. I am going to reach out to the neighborhood watch and say I'm a local investor looking to buy vacant and ugly houses to fix up the neighborhood and get them some good neighbors and raise the value of their houses. Also if they know anyone who's interested in selling I'll buy theirs too if the numbers work. Has anyone in the BP community tried this before?

Thanks for the input everyone. This is a strategy that I can lay to rest.

@Jacob Ham it is definitely doable. The properties that cash flow the best are multifamily homes. They can be difficult to find because we are in an investor heavy market, but they are out there. I met a man last week who bought a duplex and was living in one side and renting the other. He was only paying $50 out of pocket every month while the tenants pay his mortgage. I am currently looking for a multifamily home to house hack as well. I missed a great opportunity on a fourplex because it was a wholesale deal and I didn't have the capital upfront, but it is cash flowing $1000 a month and all units are occupied through next August. If you are just getting started I highly recommend looking into multifamily. They don't appreciate as much as sfh but they cash flow better which will help you grow your business quicker.

@Jacob Ham rental properties are definitely doable in Arizona, however, the deals are a little harder to come by. Our market just doesn't cash flow as well as other parts of the country like the Midwest or the South and are priced higher so it is more difficult to get into the game initially. Prices here are rising faster than many parts of the country so with a long term outlook buy and holds do work if you are willing to bank on appreciation which is a scary strategy to rely on. I would also say that there are many flippers here in the Phoenix area getting good returns. I haven't done any yet, but I  am partnering up with an investor who has been doing them here in the valley for over 20 years and averages 35-50,000 per flip. It's not the enormous returns that flippers get in Southern California but I wouldn't say the margins are razor thin.

If you can't negotiate a lower price I would leave it at that. You make your money by buying at a discount. At least you're getting responses from your mailing campaign though.

Anthony Angotti thanks for the advice. Phoenix is a really hot market right now. It seems pretty competitive with so many investors in the area. My one downside to a wholesale deal would be lack of capital. I'm new to this, but my understanding is wholesalers generally need all cash to close fast right?