All Forum Posts by: Jason Taken

 Give Kassandra Carda a call. She's an investor/realtor/general contractor in that area. 5187279107

Hi there,

It sounds like you and your wife are at a crucial decision point in your real estate investment journey. Let's break it down.

First, congratulations on saving up for a down payment and considering your next steps carefully. Here are some points to consider:

**Long-Term Rental (LTR) Property:**

- Getting into the game sooner can be beneficial. You can start learning the ropes of real estate investing and begin generating some cash flow.

- With $50K to $60K, you can find a decent LTR property, but make sure to do thorough analysis on the property's potential for cash flow and appreciation.

- LTR properties often have more stable income streams, but they might not offer the same level of cash flow as a well-managed STR.

**Short-Term Rental (STR) Property:**

- STRs can offer better cash flow, especially if you can find a property in a high-demand area with good amenities.

- However, you mentioned you don't currently have the budget for an STR that meets your criteria. Saving up for a better property might take time, but it could be worth it in the long run.

- Consider using tools like the BiggerPockets calculators to run numbers and see what kind of cash flow you can expect from different types of properties.

1. **Analyze Your Finances:**

- Use the BiggerPockets calculators to see how much cash flow you can expect from an LTR property versus an STR.

- Consider your current financial situation and how much you can afford to invest.

2. **Research and Network:**

- Talk to other investors who have experience with both LTR and STR properties.

- Join local real estate groups or forums to get insights into the North Carolina market.

3. **Evaluate Your Goals:**

- Are you looking for quick cash flow, or are you more focused on long-term appreciation?

- Consider what type of property aligns better with your long-term goals.

4. **Consider Alternative Options:**

- If you can't afford an STR now, think about partnering with someone or exploring other financing options that might help you get into the STR market sooner.

### Conclusion:

Don't worry about overthinking it; it's good that you're considering all your options carefully. Take your time, do your research, and don't hesitate to reach out if you need more specific guidance. Good luck with your real estate journey!

Feel free to ask more questions or share more details if you need further advice.

Hi Steven,

It sounds like you and your wife, Renee, have a wealth of experience in the real estate and construction fields, which is a great foundation for starting your real estate investing business.

Given your background in residential remodeling and home inspections, and Renee's experience as a real estate agent, you're off to a strong start. Here are some practical steps and strategies to consider:

## Single Family and Small Multifamily Homes

When looking at single-family and small multifamily homes in northern Illinois and southern Wisconsin, make sure to analyze the local market trends, rental yields, and property appreciation rates. Use tools like the BiggerPockets calculators to run the numbers and ensure the properties align with your investment goals.

## Financing Options

For Hard Money and Private Lender financing, it's crucial to build relationships with local lenders. Attend real estate meetups and networking events in your area to connect with potential lenders and other investors. You can also use BiggerPockets resources to find investor-friendly lenders.

## Strategies: Flipping, BRRRR, House Hacking

- **Flipping:** Focus on properties that need renovation but have good potential for resale. Ensure you have a solid understanding of the renovation costs and timeline.

- **BRRRR (Buy, Rehab, Rent, Refinance, Repeat):** This strategy can be lucrative, but it requires careful planning and execution. Make sure you understand the local rental market and have a reliable team for rehabbing properties.

- **House Hacking:** This can be a great way to start, especially if you're looking to live in one of the units. FHA loans can be a good option here, allowing you to put down a lower down payment.

## Networking

Networking is key in real estate investing. Join local real estate groups, attend seminars, and participate in online forums like BiggerPockets to connect with other investors, lenders, and professionals in the field.

## Additional Resources

- Check out the BiggerPockets podcasts and webinars for more insights on these strategies.

- Read books like "What Every Real Estate Investor Needs to Know About Cash Flow" by Frank Gallinelli to deepen your understanding of real estate investing.

- Use local real estate agents who are familiar with investment properties to help you find the right deals.

You're taking the right steps by seeking knowledge and networking. Keep learning, stay focused, and don't hesitate to reach out if you have more questions or need further guidance.

Good luck on your real estate investing journey If you have any more questions or need specific advice, feel free to ask.

When it comes to financing, especially for hard money and permanent financing, it's crucial to understand the terms and costs involved. Hard money loans are great for the initial purchase and rehab phase because they offer quick access to capital, but they come with higher interest rates and fees. For permanent financing, you'll want to refinance into a more stable, long-term loan once the property is renovated and rented. Look into lenders that specialize in rental property loans, and consider working with a mortgage broker who can help you navigate the process.

### Deal Evaluation

To find the right deal, focus on properties that are undervalued relative to their potential. Use the 1% rule as a guideline: the monthly rent should be at least 1% of the home’s value or purchase price. Also, ensure the property needs renovations but isn't a total teardown. You want to strike a balance where you can add significant value through rehab without breaking the bank.

### Construction Process

Managing the construction process can be challenging, but having a clear plan and budget is key. Create a realistic timeline and budget for renovations, and factor in unexpected expenses. It's also important to work with reliable contractors and have a system for tracking progress and costs. Consider renovating units in phases to keep some units rented and generating income while you work on others.

### Connecting with Experienced Investors

Connecting with other investors who have successfully executed the BRRRR strategy can be incredibly valuable. Joining real estate investment groups, attending local real estate meetups, or participating in online forums like BiggerPockets can help you network with experienced investors. Don't hesitate to reach out to people directly, as many are willing to share their experiences and offer advice.

If you have any more specific questions or need further guidance, feel free to reach out. Good luck with your next deal, and I'm sure you'll find plenty of helpful insights from the community here. Happy investing

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Interesting niche. I'd love to see how we can work together.

Relationship based is the way to go.

Quote from @Jerryll Noorden:

Everyone pay attention:

Success to any business depends on its ability to find the right prospects, customers.

Now: 

Find 10 random people in foreclosure.

Now ask them. Do you want to sell your house (at a discount), Or do you want to keep your house?

10 out of 10 will say “I want to keep my house”.

Now take a tax lien case and ask them the same question: Do you want to sell your house (at a discount ) or do you want to keep your house?

Bet, they will say: “I want to keep my house”.

Do you all understand you are targeting the wrong people? Wait. let me try to paint a picture for you.

If you were blindfolded in the middle of a city and randomly picked people BLINDLY, you would have FAR MORE chance of getting a motivated seller compared to targeted lists.

WHY?!

Well because foreclosures, tax liens, job losses, all these people in these kinds of circumstances, do not want to sell their house, they want to keep their house. You are literally targeting people who do NOT want to sell their house.

REMEMBER THIS:

Motivation is an emotional RESPONSE to A Circumstance. Not the Circumstance itself.

The emotional response to a person with circumstance of "Foreclosure", is finding ways to KEEP their house. NOT SELL IT!!

Motivation is indeed an emotional thing not a logical thing. You can't go by a checklist and say " Tall grass? CHECK,

Boarded-up windows? CHECK... OK this means he is motivated. NO! Motivation is an emotional RESPONSE to a specific circumstance. Not the circumstance itself.

So this ENTIRE industry is tricking you. All you gurus out there constantly find NEW ways, to target the WRONG people! AI, Lists Propstream, Pocket listing, MLS. It doesn't matter what amazing new way you have to target foreclosures. They are NOT motivated sellers!

People seriously please stop spreading complete non-sense around, because the people new to this WILL believe your crap and you are ruining their lives!

So what you are doing is paying for a list consisting of people who explicitly DO NOT want to sell their house. 

People if you truly want to become successful, you seriously need to learn how to use common sense.

Now this is me:

All these leads are motivated off-market, organic leads. I don't lift a finger and I don't pay a cent to get them. These sellers, find me and beg me to PLEASE make them on affor.

So my point is this. These are not people I chose, they took the initiative to reach out to me asking me to please buy their house.

Now, ask me how many of these people here are in foreclosure. Job loss? Relocation?

NONE!!!

I RARELY get people you pay money for to chase!

Stop listening to people that tell you to stay "consistent". That tell you that if you are not getting any leads... to.. OMG.. "DO MORE mailers". 

For every 3000 mailers you sent, if lucky you get one deal. That means 2999 people out of your list of 3000 said NO to you! That is a 99.97% FAILURE rate.

Yet you happily listen to those who tell you to do MORE of a strategy with a 0.03% success rate.

Come on man.

My mission here is to stop all these scamming gurus fill this industry with all sorts of crap to justify you spending thousands on lists, mailers, SMS. 

You can not target motivated sellers. They target YOU!

Hope this stirs the pot a little bit and get some of you to think and realize that what you have been doing is simply wrong!

Good luck everyone, and don't forget to Think On Your Own!

 I love this take.