All Forum Posts by: Greg Scott

Have you thought about getting into real estate investing, but it just seemed too much of a headache or too risky? Come spend an evening with us and learn how to achieve financial freedom through real estate investing.

Leave your checkbook and credit cards at home. While you are welcome to buy someone a beverage after the event, nothing is being sold. This is simply an opportunity to learn, share ideas, network, and meet other like-minded investors.

Agenda

• John & Pamela will share their story. They just bought their very first rental property. This is not a "no money down" or "get rich quick" scheme. This is something anyone can do. And yet, John & Pamela's returns will shock you and make you question why you ever put money in your 401(k). Come learn what they did to take their first steps toward financial freedom.
• Mike is an experienced single family investor, but now he is focused on apartment investing. Why? Mike will share his story about investing passively in an apartment complex. Then you will get to see a video of that lead investor talk about the property. Mike will answer any questions you have about his experience and why he is now investing in apartments.
• Following the meeting and discussion we will move to a local pub for networking and socializing.

Details

• Date: Thursday, November 16
• Time: 6:00pm. Presentations start at 6:30.
• Where: Warren Holiday Inn Express https://goo.gl/maps/Zbw2rSzfmv32
• RSVP: Please RSVP through SignUpGenius.com here:  http://www.signupgenius.com/go/5080d44abac2ca0f85-...
• Space is limited so please reserve your seat as soon as possible (and please cancel if you later cannot make it)

David:

I recommend looking at NARPM.org for property managers.  Start by looking for ones with lots of credentials.

doh.  sorry.  The prior post I read said they were from Texas

Lifestyles Unlimited has an office in your back yard.  You are lucky.  I fly to Texas 4x per year to attend their events.

@Katie Miller

You are going to have a major sample bias on this survey.  How do you reach new customers by asking your English speaking customers if they want this in Spanish?

No se puede!

@Matt Ott makes a good point.   I just assumed that you would want to pay down your student loan debt.  Most people have a hard time with the idea of carrying debt, particularly student loan debt, and given you are new to investing, you might not yet have the confidence you can achieve double digit returns.  So, it is true that if I were in your shoes, I would put as much cash towards investing as possible.  That student loan debt is relatively cheap.

The answer to your question is simpler than you might think.  

Your student loan debt at 4.5% is your key hurdle.   If you can find a house hack that makes you more than 4.5%, then that is your best strategy.   Realistically, in Tennessee you should be able to find properties with double digit returns.   As long as you don't stretch yourself to thin fiscally, the house hack is almost certainly the better financial decision.

@Kevin Scott

Coincidental last name, but I do not believe we are related.

I've been with the same company for 22 years and am now quite disappointed that for 18 years I diligently maxed out my 401(k).   Now that I know how to make money in real estate, I often don't contribute, or when I do, I do the minimum to get matching funds.  I do everything I can to get money out of it now, including getting hardship withdrawals (which I don't really need, but are totally legal) against my kids tuition bills.

If I had not so diligently funded my retirement account, I would already be retired!

@Tom R.

Yes, but there may be other reasons for renting vs buying.

I have one property in a B+ neighborhood, a great location.   My property manager put it up for rent and he said he was flooded with applications.   He said he was shocked because he had to turn down an MD with an 800 credit score because he got another application from a consultant with a 7-figure income who wanted to pay 3 years rent all at once!  That person could have paid cash for the house without blinking an eye.    

So, you never know.

Tim:

I suspect that Wells Fargo's actions were not altruistic.    Banks sometimes donate houses that are in really poor shape because it is the way to get rid of them at the lowest cost to the bank.

You should be VERY cautious.  Here are things I would check.

 - Is the neighborhood in a war zone or in a remote location?  It may not be worth the trouble to rehab it.

 - Get an inspection.  The thing may be ready to fall apart.   Some houses should be torn down rather than rehabbed.

 - Close with full title work.   You don't want to get the deed and then find you owe $25K in back taxes.