All Forum Posts by: Eric Anderson

@Sean S.

I am quickly discovering that I need to surround myself with the people that are doing things I want to do.  I feel like I am on the outskirts of the city, trying to figure it out.  I need to get into the heart of the city and interact with those people.

It is so difficult to change when everything that surrounds us remains the same.

I do not know if that helped you, but your post certainly made me wake up!  

Thank you much my brotha...

@Marcell Salmond

Regarding the yellow letter approach...

Trying calling the owner instead so you can learn the owner's story and determine if you can be a solution to her problem. 

The direct mail approach is used to flush out a lot of prospective deals from people that may be in a stressful condition that motivates them to sell their neglected or frustrating properties.  For one property, it is better to call.  The call may take less time than writing and mailing the letter.  Then, you will end up talking with the owner if there is a deal to be had.  Eliminate the extra steps for one property.

I'd stay away from mentioning your family's past involvement with the property.  The seller might equate such facts as sentimental value that should make the property worth more than it really is.

@Aaron Kim

What kind of lifestyle do you want to live?  What are your BIG goals and ambitions for your life?

Will real estate, actuarial science, or a mixture of both help you reach those big goals and ambitions?

These answers are within you.  Share them with us, and let's see what happens

@Marcell Salmond

Why do you want to buy this property?

Thank you very much, @Kim Stofan

I will add those Pod casts to the line up.  I retired in 2010 and moved back to California in 2012.  Then stumbled on to passive income steams and BP in 2015.  It's been an eyeopener for sure.

I hope all is going good for you around the lake!

Good morning @Salvatore Leonetti

I gotta ask... What are your goals?  Why are you getting into real estate?

Start crafting your plan for how you want to achieve your goals, the strategy you will employ in the beginning, and when you know you've hit your target.    Mentors want to see such things from their juniors.  It is their of determining if you are serious.  This one activity enables a mentor to see how he or she can contribute to your success.

Please share your goals in this post.  It is a great for you to see it for yourself as well as share it with others

Helps this helps, my friend.

Best of luck, and stay the course

Good morning @Stephon Busch

Check out the BP podcasts that are in line with your goals and strategies (Fix and Flips).  Listen closely to the "Famous Four" for the best tips on Real Estate books and business books in general.

I hear, time and again, that when you find a good deal, you can find the money cuz investors love a good deal.  Be willing to partner up with a seasoned investor in the beginning, Sure, you may not earn all the money the deal throws off, but you will be receiving a valuable education that will set you up for continued and lasting success.

Focus on your strategy and stay the course, my brotha, and best of luck.

@Steven Dreyer

You are in an ideal spot to study and prepare to jump when you return to the state.  When do you find out about your return date to the states?

Word to the wise: always keep your eyes and ears on any BRAC (Base Realignment A Closure) talks in Congress.  Military bases are a great source of tenants... until they are closed.  

Throughout the 90s, California alone went from 11 active duty Air Force bases down to 4 by the end of the decade.  Some communities were able to repurpose the base property, and others were not as fortunate.  Cities like Sacramento felt it a little.  Towns like Atwater suffered a lot more as they searched for a new norm without the base's money in their economy.  

Always know what direction the path of progress is headed, and try to have your properties along that path before progress arrives

One plus of owning an apartment complex is the vacancy to mortgage relationship.

With a house, you get a 100% or 0% percent vacancy rate.  So you pay all the expenses until you place a new tenant in the house

With an 8-unit apartment complex, one vacant unit translates to a 12.5% vacancy rate.  The 7 occupied units can still keep your operation in the black.

My wife and I are looking to house hack a four plex so we can have the other three units cover the mortgage payment and operating expenses while we prepare for our next Real Estate purchase.

I have not seen any studies about it though.

Additionally, you are in a college town so you may able to own a 4 bed house and rent out each room to grad and or undergrad students.  As long as UN is open, there will be a steady stream of temporary residents looking to rent instead of buy

@Lesley Resnick

I agree with you completely!!!  Wendy and I have things we want to do.  Being stuck in the 9 to 5 interferes with our ability to do those things.  

We are both focused on doing good things for people which explains our involvement in Rotary International.  We devote our lives to blessing others with our time, talent, and money.  It is the lifestyle we want and the reason we began exploring passive income in general.  

We set some money aside 30% of our income for savings, trips we want to take, and blessing others in ways we see fit.  The do the best we can to make the other 70% stretch which includes some entertainment along the way.  It is not easy every month.  However, we know that developing the passive income stream(s) is the key to enabling Wendy to quit her job when she wants to.

@David Goossens perspectives are on the mark too.  We have a budget and are pretty good at staying within the numbers.