All Forum Posts by: Dan Hellweg

Look into different groups as sometimes some just might not be a fit. Additionally, it can feel like a bit of a "hurry up" or feel like you meet these people with 10, 100, 500 doors and it "seems easy". Never compare as everyone has a different journey. Finally, don't feel obligated. There are so many ways to generate wealth in, around, and out of real estate. If you never really feel comfortable, it will only need to regret and frustration and provide the opposite of what you want (anything in life...not just becoming an investor).

Focus on college towns that are more than just the college (and yes, this does make it difficult to acquire homes, i.e. Austin, Texas). Do some research on the area. Will you be able to rent to students during the year and Airbnb easily in the summer due to the area? Can you just Airbnb it all year because the college does so much (think Greek Life events, big sport events, general student events throughout, etc). Watch out for towns that are small and with small private schools; usually not much going on and overall populations won't generate what you want/need. Also, look to local industry in the area. If the college struggles for some reason, i.e., similar covid situation in the future, what's the outlook for your investment. Also---college housing in general is getting big investment. Remember, students only want to live on campus (unless forced to for longer) for their first year or two usually. Check this out: Blackstone Makes $13 Billion Student-Housing Bet https://www.wsj.com/articles/blackstone-bets-on-campus-housing-with-13-billion-acquisition-11650366000

Hey Patrick! The right time to invest is "when it's right" for you. You already took the first step by asking for tips/what to do next/insights/etc. 

Investing is a philosophy and you have to learn, grow, and position yourself. Everyone has a different risk tolerance as well as expectations of why they invest. If you invest to grow rich, it doesn't work. If you invest to create something and generate wealth, then welcome aboard!

There's a lot of strategy that goes into the purchase and you already scratched the surface. The best thing it to get out there and see what you enjoy and then how to position yourself towards it. You may never want to do any work nor manage projects, then turnkey may be your thing but then have to have a strategy on how to continue to scale that based on what your bring to the table and your long term plans/goals. 

Quote from @Dustin Sanders:

Is anyone else experiencing slow bookings? I am in 3 different vacation heavy markets and my April & May calendars are at about 25% occupancy.

Many of my peers are still seeing pretty good numbers. People are excited to get back into city spaces so some markets are doing very well on STR while others looks to be drying up (travel that was influenced on the circumstances). However, with the rising prices on gas, food, etc, it will probably take a hit. I often ask friends/family what they are doing for trips. The last two years during Covid were simple weekend trips, some flying, etc but pretty much staying at Airbnbs but I am getting a strange mix of traveling overseas since it made no sense to travel or doing nothing really. HA...not a scientific test but a little sample.

Quote from @James Robert:

Hey guys - i just bought my first house. Turns out the inspector missed the house foundation issue.. the house has a sinking foundation and I don’t wanna pay to fix it. 16.5k quote before leveling floors.. I paid 183k and it appraised for 215! I’m currently doing updates but the sloped floor drives me NUTS. I don’t know if I wanna live here much longer but I don’t wanna pay taxes on my capital gains. I know I could make money on this house if i sold it after updates. Don’t know what to do. Kinda just want to buy another house with 5% down (lender told me I could whenever I want) and offload this one while I can…

Thoughts? Advice?

Thanks! 

Oh- I am also a realtor so when I buy a house I take a commission on it and use for downpayment. Also don’t pay to list it. I would only have to pay the buyers agent 3%.

Comfort in living and investment is important. You don't want this to come back and bite you. If the issue won't get worse and is more of a cosmetic item, then see what you can do for rent. Otherwise, probably best to get the repairs done and then assess. Structural issues don't get better in time (lol) and trying to sell will just cause red flags if it was recent when they review property history. 

Quote from @Gigi Smith:

He can’t afford to buy a new fridge, he wants me to buy it. He can’t afford storage either. He can barely afford groceries. When he was yelling at me yesterday I calmly informed him that he is free to find another place to live, to which he replied that he wants to live at my unit forever because he loves it and the rent is too expensive everywhere else.

 I also died laughing at this line "that he wants to live at my unit forever" but after he just yelled at you. I feel like that was probably all you needed because now he knows he's not in your favor anymore.

Without knowing who he really is personality wise or what's up in his head, I would just get him to record a video or two, put down some paper towels, etc to get some "proof" 

You submit an offer...and lost. Can you relate? Most likely, you can. However, do you really know why you lost out?

When you're working with an agent (or maybe you are the agent) do you know what your positioning really looks like and are you aligned with the seller's interests? So many times clients think that the most money wins the deal and this is not always the case. There are a number of factors in winning a deal. Below are a few of those (amongst others) and would love to hear any other ways you connect to win!

1) Know the Market | What just sold, where, and what were the terms? The seller's agent is very engaged in the area to ensure they maximize the deal for their client. This isn't just comps; this is an intimate understanding of what a micro-level market looks like and what's prompting the deals.

2) Ask Questions | Is there something particular the seller's agent is seeking for their client? Did your agent ask what those terms are?

3) Stay Focused | Investment properties are a different beast and if you're new to it, you need someone that will inform you not only on what the purchase looks like for today, but how it will impact you tomorrow. Make sure you have plans and can adjust going forward. A clear path will ensure a confidence is communicated in the deal and make have the seller lean towards your offer then.

4) What Other Listings Are Coming Up? | You lost this offer but does the seller's agent have other opportunities coming up? If your agent successfully connected with the agent, they may be excited to try and do an off-market deal. 

5) Follow-up | Is your agent checking in on the deal that's under contract? Showing you are still in the shadows, willing, ready, and able (and excited) is powerful stuff! Imagine if the buyer that won the offer begins to beat the seller up for credits/repairs. Your backup offer (even if not the next one in line) gets a lot of attention.

Overall, there is no ironclad way to win every deal. Sometimes, it's just not meant to be. But taking the steps above (and plus some other ideas/methods not listed) will allow you to know what is required to get the deal done or what happened that you did not win and know how to be positioned for success in the next!