All Forum Posts by: Jeff McCaskey

@Andrew Lisi

Andrew, welcome to bigger pockets and thanks for posting an intelligent question/thought. There really are a large number of ways you can get started investing and many ways to finance your deals. It varies as widely as people do really. 

Don't feel too intimidated, I had a part time job or maybe got that just after I decided to pursue real estate for my future, and .36 cents in my pocket. No kids though - I would've had to pursue things differently had that been the case.

Now I believe it was the podcast "the one thing revisited", I think.... where the story says you basically need to work backwards to where you are in order to put the right steps together to move forward. You should listen to it when you get time. It was interesting to me since I've almost always done that somewhat naturally. The point I'm making here is, you want to enter real estate investing, so...... what exactly are your goals?? I saw your profile said you'd like to end up a millionaire, though you didn't say when you'd like that to happen. Good news is that your goal is entirely possible with real estate!! There isn't any bad news - must be your lucky day! 

I'd say this, for starters anyway..... Make an end goal that is attainable, you can always adjust it upward as you move forward. Ok so make that goal with a time line for it, then work backwards to where you are today. That will help you see the path. You say you're very new to REI, so maybe setting aside time in you goals in this beginning period to read and learn and explore your market and get comfortable in your new REI clothes would be a good first move so that you get off to a good informed and confident start when you make that first investment!

Feel free to post back here with some refined thoughts. 

Some questions to think on as you form a strategy:

- do you have any money to use now to invest with

- will you be a multi unit only, sfr only or mixed bag investor, or commercial

- if you make an investment, or when you do rather, what number in monthly cash flow will you set as your floor in order to get involved in the deal (mine is 200$/month/property, or I don't buy)

- can you find owner carry sellers

- can you use a lease option or find lease option sellers

- what grade of property or neighborhood/tenant will you be targeting

- what fits best into your life as far as time management with the young kids at this point

- do you have anything to bring to the table in order to partner up with someone to make all this a bit easier

- according to your opportunities you find out there, what additional streams of income can you identify to go along with target properties or create as a result of being an investor (some people are agents, brokers, property managers, some use coin op laundry in multi units etc etc etc)

All these types of things can go on forever as far as lists are concerned, but you'll have to find a comfortable place to start/enter investing and evaluate things as you go along and readjust as time passes.

@Cole Fisher

Hey Cole,

I wouldn't slow down. Keep up your energy, enthusiasm and momentum. 

I checked out your profile and did see that you are at the very beginning of your career in REI. Nothing wrong with that, but it might present a few challenges when asking for 100k on what sounds to be a multifaceted first deal.

I'm sure there are some easier and different ways you can get started, this sounds a little suspicious to me at first glance and as mentioned the numbers do seem a bit slim.

Usually properties purchased at a sheriff sale aren't in the best condition, I wonder if there might be more rehab to do than what is stated. Have you been inside the property yet??

Also as stated, look into the HML side, make those connections and learn at every turn. After you have a little experience under your belt you will likely find the one common problem you have most often will be not enough funding to fund the opportunities that you will find. I would advise you begin to make connections there as well.

Another thought on this project is, can you volunteer to be part of the rehab effort either for pay or free so that you can learn about what it takes to perform this kind of work and get a birds eye view of the standards this other investor operates by?? You would certainly learn more than you expected I'm sure!

@Parish Benoit

BAM...!!! Way to go!!

@Sara Bolliger

You will have to make your own determination as what would be appropriate to do in this case taking into consideration the above posts.

My thought is : When you realized this wasn't going to be a quick fix why did you deal with allowing multiple delays in the process knowing it was going to be a while..... Instead of just calling a local HVAC company to resolve the issue within hours if not one full day??? 

I know it's a home warranty and yes people did live without AC etc etc, but 2 weeks is not acceptable in this case. I assume the home was rented with central air as part of the expectation of the living environment and part of what is paid for via rent each month. So to expect working AC is reasonable combined with being in a major metro area there is no reason the part couldn't have been replaced within literally hours of a diagnosis......

Lesson learned I guess, happens to all of us along the way. But your home warranty situation just cost you a pretty penny and the end doesn't justify the means in this case.

Even in a worse scenario the entire unit could've been changed out well in advance of this part being installed.... Just food for thought.

@Dana R.

The deal is tenant is to leave the unit in the same or better condition than they found it right.....

They didn't.

Doesn't matter who gets the knots out if that's how you do it, but charge them for the time spent dealing with the issue.

Had a move out where a toilet tank lid was broken. Had an extra toilet so I swapped tanks out and replaced guts at the same time. Since I had the tank I priced a new tank and then charged for labor for the change out. If I were to charge just the 30 some $ for the tank that wouldn't cover my time. Just like no charge for blinds doesn't cover time involved in cord issue or replacement...... 

@Toby Coons

Hey congrats on the job right out of school! That has been difficult for many the last several years. So you're on the right track so far!

So listen, I'm not near as knowledgeable about stocks etc etc etc as some other members would be, but...... I do have some knowledge and life experience. 

If I were in your position or similar to, I would first make sure I keep the job first off (lol) but you need a savings account so make that a priority because sh.. Does happen out here after school lets out (not saying you were unaware, just being honest). So make sure you get a few thousand saved up first while making some contribution to Roth/IRA vehicle you want to position yourself to use at some REI point in the future.

Then decide what your role will be in your yet to be formed company. You will want to basically practice being that guy in any and all ways possible.  However, you will also need to know what you're actually doing - so I would recommend that you (people say find a mentor) but go get involved with someone who is doing things the way you want to run your business some day as well as get involved with the guys doing the actual work that you will soon ask others to do. 

For example: this week I am having a new kitchen installed in my current flip project. Package ran almost 5k for material right. Ok. Now to install them. Well, I ordered one step up from basic cabinets for a slightly better look right. Ok, no problem. We unpack boxes to find out that although they look great the side panels are particle board with a laminate veneer over lay. No problem right, ok. Trouble is, at top and bottom edges there is splintering of the material, most of which is easily fixed with  a dark stain touch up or wood putty. However a few cabinets had a busted edge in places. Thankfully for me those were all hidden when butted up to adjacent cabinets. - so I've discussed with my contractor how to solve that from becoming a real problem in the future. After much debate and conversation he says, "what you should do is have all outward facing sides built with plywood not particle board and that would prevent this from being an issue in the future". So had I not been there and been involved, this likely would have taken me longer and more $ to learn. Now I can make that decision from my office and others like it. 

- this one of possibly thousands of small mechanical steps that go into the decision making process during renovation and flip projects. You will need to be informed enough to know who to hire and who not to hire. What a good job looks like and what it doesn't, when to stop work because of bad craftsmanship etc etc. When someone lies on a ticket about what the real costs were to complete said work etc etc. You will be earning a new education to the one you just completed.

Anyway, depending on your strategy you will need to learn quite a bit about the path you will take. Get good at the learned part as you prepare to start. Depending as well on strategy you will also likely need some capital at some point so begin to make connections there as well. Later you can use your own when you have built your Roth/IRA as well as private and bank money.

But do these things and you will be on a solid path and of course you will need to find your own way and make those mostly minor and occasionally major adjustments of your own - as well as use BP as a great tool to learn and move forward.

Good luck!

PS. - I have 2 degrees, this is more fun!!

@James Marie hey man, don't get too down about it.

Couple things:

1) RE isn't for the faint of heart, so know that out of the gate.

2) it took me 10 months to find my first deal, and I was pretty active in looking.

3) Take the time to listen to the last podcast, there is a great tip on this at the end that is simply put and says it all.

4) Really using the word "motivation" is the wrong thinking, motivation comes and goes, it's more of an emotional response of sorts. DETERMINATION is really the word you are looking for, no matter how motivated you feel or not, if you are determined - no level of motivation or lack there of will ever be your down fall.

BE DETERMINED!!!!!!! (Know your "why")

if it's a profitable deal tell her you will do the work for her to quiet title to her and pay for it as well. Get it done and then buy the parcel from her. If it's profitable.......

@Billy Rogers

@Wayne Brooks is right about the "quiet title" avenue. I bought a property in Kansas really cheap several years ago from a man who lived in WA but was from and moving back to NC. We talked and I inspected property with a key I believe he sent prior to payment, we exchanged money and papers and I was supposed to get a corrected deed to said property. I never received the new title from him. I tried over a year to contact him at no avail. So I think I asked some questions at the courthouse. Was steered onto the quiet title process and went through it. Today I have the property and the title was corrected. Turned out not to be a big deal really, though I was concerned. I think it cost me 4-500$ to fix it. Never heard another word from the man who sold it to me. Pretty odd stuff...... But I would never pay a ransom!!

I wouldn't DIY anything on HVAC unless you have acquired the skills to do so. There are options, I would suggest you do research and know your options and figures before you do the first unit so you know how to approach all 4 and so that you can evaluate your decision based on work performed in the first unit. Many people who claim to be plumbers contractors HVAC etc etc honestly aren't at the top of their game so you as the investor need to be aware of many things to make sure work is done right and you get what you needn't men pay for.