All Forum Posts by: James Polk

I am interested in doing a mobile home park.  If you find something let me know.

Have you done any deals before? Not sure why the cashflow number is so low on 1300 rent with property under 100k.  You can call me and we can go over the numbers.  PM me.

Let us know what you think about the deal and if you buy it.

I did not check your numbers but 4% cash on cash return is terrible on a rental.  If you buy an investment property in the mid 350s you would want an appreciation play.  You usually can't get a property near the 1% rule of thumb without doing something creative.  I think you know this and that is why you asked.

The only good thing about the deal is you can live in the loop for $500 in a nice house but you have to put up with roommates. Yes you do have the principal payoff and interest deduction but had you bought a property with 10-20% coc you would have the same with a larger smile on your face.

Tony, that depends on you and your mom. It sounds like or could cash flow.If you don't know renovations and property management, you might learn some lessons that cost you money. To be direct, if you are willing to learn and pay the tuition for what you don't know then do the deal.

You can partner with an experienced person.

You can pay someone with experience to help managethe first deal.

Begona, I would agree with the other posts.  Use the 1% rule of thumb and stay under 200k.  If someone is selling a deal turn key in Houston, they usually have taken most of the upside out of the deal. 

Do you have experience renovating houses? You need some skills when dealing with contractors or you will have to pay for that education in wasted money.

How about you? 

Like a lot of people, Rich Dad Poor Dad showed me I didn't have stay in the rat race.

What product can you sell that everyone needs, doesn't ever go out of style, banks will like to loan you money on, the government allows depreciation write offs against your income, the buyer pays off your loan, the asset appreciates in value, rents go up as a hedge against inflation and it's a hard asset that should not go down to zero value.  Leasing real estate is a great asset.

Mobile home parks can be good investments.  If you see any let me know, I am interested in buying or partnering on one.

My first deal was a 2bedroom 2bath duplex I found in Fall of 2010.  My great uncle purchased it cash and site unseen.  I didn't realize he had wealth but i told him my ideas about real estate and he gave me a chance.

The deal dive:

Cost: $70k...wish i had bought more then

Repairs: $2k...i put in the labor.  Only needed paint and a stove.

Rents in 2010: $700

Cashflow: about $700

Hard to find deals like that these days, have to work harder.  I am buying one for $59k today but it has 26k in rehab and might require me to roll up sleeves and do the demo myself.

Why did you decide you wanted to invest in real estate?

Stephen,

I would suggest you find a good affordable market that will cashflow. I am partial to Texas as I have lived in 3 of the major cities. I am a lead investor and personally find(I should say create) deals with good COC returns in my local Houston market. Memphis,TN is reported to be good, parts of Arizona, and Alabama. Since you are investing outside of your market pick up one of the bigger pockets books that covers this subject. You will need a good property manager, partner, and/or someone on the ground that is knowledgeable and that you can trust to manage the deal.  Keep asking questions.  You will find the answers.  

James Polk

1) Pick up some real estate books that cover topics that you think you have concerns on.  I use to love to read, but who has the time with a wife, 3 kids, full time job, and after 5pm I'm an investor hunting deals.  Listen to the books on audible.

2) Listen to the bigger pockets podcasts. Brandon and David are awesome.  Even as an experienced investor starting to accelerate, the podcasts always have a gold nugget for me and are inspiring.  

3) Partner with someone that has experience or someone that has capital, or someone that has capital and experience.  The real estate Trifecta is Hustle, Knowledge, and Capital...you need all 3 to make the deal work.

4) Start analyzing deals.  Even if you don't know what your doing.  You must learn how to discern a good deal.  The practive will help you see a good one from a financial grave with your money(or worse your investors money) and your dignity written on the headstone.

5) Do your first deal!  It is the hardest one.  I have done 16 and I did the first deal with no money, no credit and very little knowledge.  Like anything else you have done...you WILL make mistakes, just fail fast, mitigate the damage, learn the lessons and we will be hearing your interview on the bigger pockets podcast.