Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: James Paine

James Paine has started 15 posts and replied 133 times.

You can move. Email your lender. Tell them you got a new job and have to move. It was not your intent at the time of the loan to move but things change. They will be fine. You may have a restriction on buying another home with an FHA loan but that won't last long.

I know someone who bought a home with a VA loan (typically more strict than FHA) that moved out after 45 days becasue it was "haunted" and got another VA loan 2 months later.

Post: ​Kingpin - Book Review

James PainePosted
  • San Diego, CA
  • Posts 136
  • Votes 62

2016 Goal Read 52 Books!  (5/52)

I am well on my way of hitting 52 books this year. My roommate got a free download somehow of this book about hackers so I gave it a read.  This isn't a real estate book but when reading 52 books a year sometimes you have to read what's in front of you. 

If nothing else this book is pretty interesting. It details the credit card crime world, unground exchanges, and computer hacking. Normally in my book reviews, I post several bullet point takeaways but I don’t have a ton for this book but I will try my best.

- Your information is much more secure now with the chips inside credit cards.

- Good hackers can hack everything.

- Most of the security breaches came from Microsoft related products especially Internet Explorer.

- Most all credit card theft comes from making purchases in person, not on the internet.

Overall this is a good intro book into hacking and cyber crimes. This is a true story and does give you some pretty good relevant information.

Books Read in 2016:

Rich Dad Poor Dad

The Charisma Myth

Think and Grow Rich

13 Hours In Benghazi

Kingpin  

Post: $1MM Cash...How do you invest it?

James PainePosted
  • San Diego, CA
  • Posts 136
  • Votes 62
Originally posted by @John D.:

$1m cash = $4m in vacation rental properties leveraged, $800k+ gross, $400k+ NOI, $200k+ after debt service assuming full management. That's my current/new plan, so far so good.

 What markets are you buying the vacation rentals in? 

Post: Think and Grow Rich - Take Aways

James PainePosted
  • San Diego, CA
  • Posts 136
  • Votes 62

My book report on Think and Grow Rich is that generally this was a good book. Not great. There was some quacky stuff and the writing style will make it difficult for some. I think the fundamental principles in this book are good and worth the read. Below were a few take aways from the book.

Most men fail because they stop just short of the goal. Re: the men who stopped 3 feet short of the gold in Colorado.

Your goal must be a burning desire that is your only desire. Burn the bridges behind you. Burn the boats. Decide on your goal and do not allow a change of heart.

You must have 100% faith that your goal or burning desire will be achieved. Faith is made or developed by repeated affirmations.

Write your goal. Repeat it aloud as you arise and before you sleep.

There is one weakness for which there is no remedy, lack of ambition. People with the ambition to give up part of their spare time to study at home has, in him, those qualities that make for good leadership. Salaried employees who provide the time for home study seldom stay at the bottom very long. The action of home study opens the way for the upward climb. Their ambition gains the friendly interest of those who have the power to put them in the way of opportunity.

A quitter never wins and a winner never quits!

The lack of persistence has kept the majority from great accomplishment. Very often when things get tough and we feel there is no hope – it is at this point where, if we persist we will start to see the first signs of success. Persistence is a state of mind and therefore can be cultivated. Lack of persistence can be overcome with effort.

Successful people reach decisions quickly and definitely, unsuccessful people reach decisions slowly if ever but when they do reach a decision they have a tendency to be very wishywashy and change their mind often even when no new factors are introduced.

Over All:

  1. Decide on your goal
  2. Have 100% faith in your ability to accomplish your goal
  3. No matter what do not give up on your goal
  4. Create a mastermind group to help you stick to your goal and give you the knowledge to get there
  5. Continue with relentless energy toward your goal

Post: $1MM Cash...How do you invest it?

James PainePosted
  • San Diego, CA
  • Posts 136
  • Votes 62
Originally posted by @Account Closed:

I think it just depends on how much a person wants to work.  If I wanted  little work, little risk, long term, ok return and I was going to invest in real estate, I would probably find a sale leaseback to buy.

Probably something new with NNN for 15 years on the lease and multiple 5 year extensions possible. I would certainly make any franchise be back by the brand named company.

Maybe something like a Dollar General.  They are currently offering a 6.35% cap rate.  Some fast food places also work in that price range.

Of course that completely leaves out leverage.  That would be a cash deal.  Fully leveraged you could probably get 5 of those with $1,000,000 - $1,200,000 down.

 Would you diversify the areas or buy in just one market? 

Post: $1MM Cash...How do you invest it?

James PainePosted
  • San Diego, CA
  • Posts 136
  • Votes 62
Originally posted by @Kelly Smith:

Agreed, Christos, I'm all about a 10-20k shopping center in a neighborhood dense area with 5+ year leases without a single tenant commanding more than 30% of the GLA. $2M 9-10% CAP price points. So much less fuss than a ton of rental homes.

Kelly I agree that it would be far less fuss than SFR. Would longer vacancy be a concern?

Post: $1MM Cash...How do you invest it?

James PainePosted
  • San Diego, CA
  • Posts 136
  • Votes 62
Originally posted by @Christos Dimopoulos:

If/when I have $1M, I would look at investing it into value-add or income producing multi-family apartment complexes or retail strip centers. Single-family is great but with that amount, you have the option get into bigger deals with bigger long-term returns.

 Why do you thing the returns will be bigger long term on commercial?

Post: Book Recommendations

James PainePosted
  • San Diego, CA
  • Posts 136
  • Votes 62
Originally posted by @Erin Legler:

Hi Everyone,

If anyone doesn't know me I am a current agent and active investor in the Orlando area.  I love reading books and try to complete at least 1 a week.  Would love your suggestions on new books that you are all reading that you could recommend to me?  I have pretty much read all books that have been out for awhile (too many to list) and would love to know recently released books that you are all finding helpful!

 Erin - 

Glad to hear there is someone else that reads as much as I do.  Follow my profile or posts or whatever.  I typically post a short book review each week when I finish a book.  My reports might not be the best reads but will give you a good list of books! 

Post: Do you want to be more Charismatic??

James PainePosted
  • San Diego, CA
  • Posts 136
  • Votes 62

The Charisma Myth

In sticking with my goal of reading 52 books this year I though I’d give a report on The Charisma Myth that I just finished up which is book 2 for the year.

This book is power packed full of tools in every chapter to change you as a person for the better using Charisma. It gives you a lot of ways to increase your Charisma and also several different Charisma techniques. I recommend the read if you are an avid non-fiction reader.

The Presence that you give off or that other people feel when they are around you is the core factor that is used to judge your Charisma. People with high Charisma give off a presence of high power and high warmth. They are the kind of people that are both important but also feel like an old friend. One way to do this is to wait until the person you are done speaking with is completely done with talking, pause for 2 full seconds, allow your facial expression to take in what they just said and then respond to them.

When talking to people your body language needs to be both friendly and fully present. It is normal for our minds to wander. While you are speaking with someone, fully concentrate on what they are saying, not thinking about your response. Allow them to talk without interruption of any kind. You can think about how you will respond when they are completely done talking.

Being Charismatic is difficult if you don’t feel good going into a conversation. One easy thing is to make sure if you are meeting an important person make sure you are comfortable, that means clothing, meeting location, noise levels, etc. Really think through where you want to meet before just saying oh lets meet at Starbucks. One of the worst Charisma killers is uncertainty. Humans HATE uncertainty. When you feel uncertainty it helps to first acknowledge that you can not control the outcome personally then transfer the responsibility of the outcome to an outside power (God, karma, the universe, etc) The ability to handle uncertainty without being uncomfortable is one of the biggest factors in business success.

The human brain filters for relevant information. It is looking for things that can hurt us or feed us on a primal level. This creates a negativity bias most of the time. When you aren’t 100% sure spin all situations to the positive. It will help your Charisma, mood, and outlook on life. It will also allow you better decision making ability and give you more capacity to be creative. An example is that if you are driving to work and a lady cuts you off, she is speeding up and slowing down, then changes lanes and cuts off the guy next to you. Most people would yell at the lady, honk, their heart rate would increase, they would be pissed off at the danger that lady put them in. BUT what if that lady had an infant in the back seat that was choking and she was desperately trying to pull off the road to help her baby. See how that changes everything? Spin uncertainty and when you feel negative to positive in your brain.

The flight or flight response is one of the most difficult mind sets to get out of and it can be caused by a lot of things. While you are in it there is no way to be Charismatic. One of the only ways to break out of that is to get Oxytocin pumping through your body. That is a chemical that makes you feel good and relaxed. Imagining someone you love and care about is hugging you, keep that though for 20 seconds. Doing that or even better actually hugging someone you care about for 3-5 seconds will do the trick.

To be Charismatic you must be empathetic. To build empathy quickly tell yourself a story of the person you are about to talk to’s past, present, and future. Imagine that they passed away tomorrow right after you talked to them. Imagine what people might say about the person at their funeral.

There are four different types of charisma: focus, visionary, kindness, and authority.

  • Focus charisma requires presence. People feel that you are fully present and with them, listening to them, absorbing what they say, and understanding them.
  • Visionary charisma requires projecting complete conviction and confidence in a cause. They may not be warm people, but they feel passionately about their vision.
  • Kindness charisma is based on warmth. It connects with people's hearts so they feel welcomed, cherished, and completely accepted.
  • Authority charisma is based on perception of power. We evaluate it through body language, appearance, title, and the reaction of others.

I believe that I have Visionary Charisma. The negatives I’ve seen to that is people line up quickly to follow me. They get behind my vision, and charge forward. That is great but people are less frequent to challenge me. To really question some of the things I want to do. My idea could be terrible and I could have my entire company following me. Personally I am working on holding back on this kind of Charisma with my team and trying to move more towards Focus Charisma.

First Impressions Matter! In your first conversation with someone the goal should be to get them talking as much as possible and for you to not talk very much. A good ice breaker is to complement something someone is wearing then ask “What’s the story behind that”. Continue the entire conversation with open ended questions only. To exit a conversation with grace, offer something of value: information they might find useful, a connection or introduction, an organization you belong to, or an award you think they should be nominated for. Don't fret about what you said. What impacts people isn't the words or content used, but how they felt to be speaking with you.

Be a good listener! If what you’re thinking about is what you want to say next, your lack of presence will be written all over your face. Master listeners never interrupt, let themselves be interrupted, and pause two seconds before they answer. Your face absorbs, then reacts, and then you answer. Downplaying a compliment sends a message to your admirer that they were wrong to compliment you. Stop, absorb the compliment, let that show on your face, and thank them instead.

Reminding people that they chose you, your company, your service, or your suggestion is one of the best ways to maintain their support for you or your idea.

When apologizing, first hear them out without rebutting and fully understand. Then say you're sorry with thoughtfulness and concern. Show that you understand the consequences, and steps to ensure it won't happen again.

If you need to present on stage with Charisma:

  • Each point should open with stories, metaphors, analogies, numbers, and statistics that your audience can relate to. Close with a clear point or a transition to the step you want the audience to take.
  • Audiences remember beginnings and endings, so don't end with a Q&A. Let the audience ask questions during the presentation; this increases their participation and energy level.
  • To project power and own the stage, adopt a wide stance, practice without a podium or lectern, and find the right volume to project confidence.
  • To project warmth, speak as if you were sharing a secret, and give one or two seconds of eye contact per person as you roam the stage.
  • Pause frequently and deliberately. Have the confidence to make your listeners wait for your words. Also pause for three seconds after you first walk on stage, while sweeping your eyes across the audience.

I hope you enjoyed this summary of The Charisma Myth. I give the book a 4/5. This is a great book to buy and potentially just read 1 chapter every once in awhile because it is packed with so many stand alone tips.

Post: $1MM Cash...How do you invest it?

James PainePosted
  • San Diego, CA
  • Posts 136
  • Votes 62

If you had $1M, how would you invest it?

  1. Need Money to Live On

I think I would become a hard money lender. I could loan my money out at 12% interest and 3 Origination Points. In theory most HMLs are 6 month terms so if I could lend my money 1.5 times a year and earned 12% interest I’d be making a comfortable living. The points would be $45k a year and assuming I had an average of $750k lent out at any one time that would be $90k in interest. So $135k. I think I’d be happy with that in general.

One change I might make to spice things up would be to flip 2-3 houses a year. My friends that are in the HML business come across a lot of good deals that don't close and they HML ends up just buying it to flip it themselves. I think if you had the deal flow from being a hard money lender and only had to buy 2-3 deals a year you should be able to crank out $30k a deal so that would get you an extra

  1. Money to Live and Long Term Wealth

If I had either less need for money than above or had some outside money coming in and wanted not only to make enough money to live on buy also build long term wealth I think I would flip houses and buy rentals. My goal here would be to flip 1 house a month and buy 1 rental every 2 months. In the markets I would work in you should be able to make $30k a flip and that is also about enough for a down payment on a rental if you get a good deal. So live on the profit from 1 flip (reinvest initial investment) and buy a rental with the profit from the next deal. Some deals wouldn’t go as well so I might only be able to buy 1 rental a quarter but in general I think this would be the way to go. It is much more work than being a hard money lender but I think because you need money to live on and also are trying to build long term wealth that you’d want to be in the market every day looking for deals.

  1. Long Term Wealth

Buy properties in areas I don’t see going away that have strong cash flow. Leverage them with inexpensive long term debt. Deals 1-10 via Fannie/Freddie. All deals after that would be with a portfolio lender but interest rate would be my primary concern so they would need to be banks. B2R, Firstkey, and Colony charge higher rates than banks. They are willing to give you higher leverage but rate would be my big concern. I would make sure that the areas were good areas, where neighbors had pride in their communities and kids who grew up there wanted to stay there.

Anyway what are your thoughts if you had $1MM???