All Forum Posts by: Harry Arnold

True - good points. 

It seems to me that BP has changed. I can't put my finger on exactly when - but, I think it started about 3-5 years ago. Up until then, BP was filled with good stuff, real value, from real REI at all levels. The content was gritty and real, and came from actual hands on successes and failures. Now, it seems like a social media platform to just "talk" about theories and possibilities. If I had to guess, I'd say that BP got big and the founders handed the day to day operations over to people that know how to market, but have no experience with the actual subject matter. It's probably a natural transition, and I'm just whining about it. Maybe it's just that I miss how it was, and I'm resistant to change.

Sounds fishy. You thought your realtor was responsible for finding out about mold and termites? You went in with an FHA loan and there's not mandatory contingencies that could easily get you out of that contract? You didn't run this by the attorney that you're using? Here's my take - you got cold feet and want your deposit back. For buyers good news - in NJ you can back out for just about any reason; cold feet, psychic reading results, or a bad hair day - and get your money back.

Maybe what you're looking for is a mentor or a coach. When I think of a "partner" - I think of someone bringing a valuable piece of the puzzle to the situation. Those pieces include; a deal, cash or, equal to superior experience with hands on REI. If you have one of those items, then finding a "partner" should be easy. If not, then it usually doesn't work out. My suggestion is to turn your "passion" into something tangible. From my experience, that means doing the leg work, and getting your hands dirty. Best of luck.

I don’t really have a suggestion for you. However, I can identify with your frustration. It’s almost comical how towns can randomly do stuff. Like - in a down market, they can reduce your assessment - but, the rate goes up. And your taxes don’t go down. I try to chalk it up as a cost of business - but, it’s frustrating! 

If you put $31k down, and make $3600/yr positive cash flow, and take tax benefits, and even just 3% appreciation into account - you’d probably be looking at 30-50% return on your money. So what if you lose a months rent. The return in the long run is going to be fantastic. 

Depending on situation, it may not be a big deal. Happens all the time and usually will be fine as is. If it was from a home inspector - ask them if they own any properties, and if not, why. Sound a little jaded about inspectors?! Lol

“1000 percent” isn’t going to happen. Don’t take this the wrong way, but there’s an element of risk no matter what. The more area you give access to - the more they can sweep. However, for a $200 sweep, we can’t expect them to do more than sweep. You can remove vegetation and rip up the deck, buy the house and not worry about it. Or move in to something else. 

Do you feel similar?

No one can be tougher on me - than me. Left unattended, my mind would sink me into an abyss filled with self-pity, negativity, and just downright dark feelings. In real estate investing the internal dialogue goes like this, “I should be doing more, I’m not working hard enough, I’m lazy,” and on and on. In reality, I’ve bought 10 single family houses in 3 years, and hold half of them as rentals. I’m in the middle of a new project, and have one on the market for sale. That’s not bad - but, I SHOULD have done more. Shoulding on myself doesn’t help. But, it’s not easy to stop.

One of the most effective ways to get relief, is telling others what I want to tell myself. “this business is tough. you’re doing something others only dream about doing! You’ve overcome set backs and disappointments that would have broken you years ago! This is the life you’ve always wanted. Your net worth doesn’t compare to your real worth - and your net worth has increased by an infinite amount!”

Fill in some of your own motivating statements, because the above are meant for you.

The fact that you’re on BP and asking questions means you have the “itch.” I looked at properties for years before I was in any kind of position to do anything. You’re further ahead, just from the angle that you can buy an owner occupied property - and seem to have done some preliminary research. I have 20 years on you and will give you unsolicited advice - go ahead and do it! Even if it’s not the “deal of the century”, after some time it will be amazing! Every single property I was on the fence about years ago, now has a ton of equity. I quit my W2 job 3 years and 4 days ago (who’s counting!) to do this full time. I’m not “rookie of the year” - but, I’m happy (not satisfied) with where I’m at. 10 houses in total, and hold 6 of them as rentals. My goal is to do 10x that in the next 3 years! I have a good feeling about you. Get creative with house hacking. It doesn’t have to be multi-units, you only have to say you “intend” to live in it as your primary residence for the mortgage, etc. A year from now - you’ll be on here looking for your NEXT deal! Good luck.