All Forum Posts by: Dylan Lersch

 Patience and knowledge is the key! I saw you mentioned in another comment that you wanted to make sure you had enough in reserves which is critical. 

Would you rather purchase a property prematurely, not have enough funds and suffer from consequences or be financially secure, ready and then go for the right deals with safety/security?

Here is the thing @Dylan Lersch...everything ends up being a mindset.

In my mind, you can't get the wrong house BECAUSE that's the one got lol and things will come up and because you have a growth mindset you know you will avoid them the next time...

The only way I've found to avoid mistakes is to learn from other people, get as many smart people around, and ask as many questions as possible...BUT still, at the end of the day, each one of us has our own individual journey you can get as many smart people and ask as many questions but nothing replaces experiencing things yourself.

The people I have seen scale the quickest, but systems in place the fastest.  IF you are in the Chicago area would love to connect.

I love when you mentioned that deals are there every year 💯

As a newer investor, it’s so easy to get hyped when you find a good deal but you have to remember what’s best for you financially at the moment. 

There’s always a good time to buy the RIGHT property. 

I'm a fairly new investor as well and just closed on my 2nd rental property. An investor friend of mine sold it to me for a slight discount (185k). I had to cough up roughly 43k which was not easy for me. It truly adds up. I had to pull funds from my IRA, 401k loan, emergency savings. Now I'm looking for funds for the rehab. Keep learning and build that credit up and emergency funds. When the time is right it will happen. Also network with folks. The reason I got this property was talking about Real estate with the guy while playing Pickleball. It's a small world.

Hey @Dylan Lersch!  Looks like Monday is a great to post on biggerpockets...so many responses already!  Love the subject line....that's a great question...

My personal belief is that the right time is always now!  You may just, obviously, just need to get a bit more creative to get your deal done while you are building credit.  If you can find someone to partner with that is always the quickest route to scale and grow quicker - at least that is what I have found.

Middle 600s is good credit in general so what if you have to pay a bit more interest that just means you may have to spend a bit more time finding the right deal...which there are still many of here in Chicago.  

If you need help finding some deals let me know and I can steer you in the right direction.

@Dylan Lersch If it was just credit and your credit was at least 660, if it were me, I'd get started and be willing to pay a higher interest rate as I worked on my credit. However, you will need cash reserves and cash for downpayment/closing costs, so until you have that part shored up, I think I'd wait to buy, but continue analyzing deals.

Hi Dylan, 

I believe it may be best to get your credit and emergency fund ready before investing in a property. As BP has mentioned in various podcast/webinars, real estate is a long term investment. The reason for this is because things will come up and it will require cash or some financing to take care of it. You don't want to put yourself in a situation where you are pinched to make things work personally or for an investment. What I have done is make sure I have enough money saved up for my personal life and investment operations. Chicago is a city that can be tough on landlords - I have had bad tenants and the process to evict them is long and straiieous. The deals are there almost every year, so don't feel inclined to jump as soon as possible without having safeguards in place. :) 

Cheers!

Investing in REI will require a never ending need for cash. Either yours or someone elses. So saving money and improving your credit will help now and down the road.

@Dylan Lersch

BRRRR is difficult right now. it's also a strategy that takes cash.  there's no buying a BRRRR deal with $0 - you need cash to buy, and then you need cash every month to pay the holding costs and service the debt during the rehab.

lots of things are making BRRRR tough right now, especially the increase in interest rates and the fact that prices have leveled off. if you did a BRRRR in 2020 and just waited 12 months, prices would go up, and that would help your appraisal. that is not the case anymore. other factors are making it difficult too - there is lots of competition for deals, both on and off market; lots of good contractors are booked up; and lending has tightened a little, and it's harder to get a higher LTV.

so just to be clear: 

-BRRRR requires lots of cash - it's way more cash intensive than portrayed

-BRRRR is not a cash flow strategy - you will end up with a break even property

-if done right, you'll wait 3-12 months to get some (or close to call if you really crush it) of your invested cash back

I know this wasn't your exact question, but I had this typed up for another thread and thought it was relevant here

hope this helps