All Forum Posts by: Jason Wade

@Sam B. I've heard arguments like yours for the past 10 years, so forgive me for having become immune. I'm the first one who would like to see a correction, but sadly, I don't see it happening soon.

Shiloh,

For me its just trading one job for the other one is your self employed the other your working as an employee.  Or you can be a hybrid 1099  ..   it just seems to me those that really fancy doing landlording for a career tend to have more cube type jobs and did not like the structure.. were as if I look at myself.. I have never worked for anyone always been 1099 for 40 some years.. so to me its a life style.. There are simply very many ways to cut the real estate cake landlording is simply one of them.  But its the easiest to understand and the most popular ergo the competition for deals and the strengthening of the market.. 

I look at all these folks that say hey there are no deals its tough I am going to sit on the sidelines until it crashs and jump back in.. well that's fine from a land lord or own a rental perspective.. but this year will be our best in new construction. 

I sold all my rentals  350 of them to a partner 5 years ago.. you talk about the happiest day of my life.. I look at it like I just want out.. and I look at all these folks aspiring to own as many doors as possible..  there is just a ton of debt you have to take on and as we age we get debt adverse.. now in new construction we take on debt of course but we retire it.

and yes its a job.. but when its in the right market cycles boy is it a good one  Can make more on one new build in 9 months than a rental house in 20 years.. so its just scale. and what you want to do .. 

But the reason you have this run on rentals is as stated the financing is there for landlords easiest to get you need no qualifications to get at least your first 4 loans etc.. 

One reason I don't predict a major crash again well a few.. and why I think fence sitters may get a sore butt.

is that so many of the NEW crop of landlords are better prepared than pre 08  they have more money into the deals they are far more educated.. the turn key business is far more mature and reliable than pre 08... so that helps those markets. 

financing has been locked in at historic lows 5 % and under long term money is ridiculously good.. also this crop of landlords had the best buying seasons ever coming out of 08 to 2011.. so asset values were reset to under replacement values and under by a long shot in some markets.. 

So I know I am kind of rambling but that's how I see it so yes there is a romanticism of hey I get to not work for the man and I am going to start my own business this can be done in hundreds of different ways real estate landlording is just one.

WE are mainly on the debt side and I have clients that live strictly on note income.. Now you talk about passive.. no tenants no toilets no heavy lifting.. most of these folks though that have large note portfolios sold their fixed asset to TRULY get passive income.. and get out of the day to day..  

And then it comes down to regions  some regions you can do the landlording gig. look at all these 30 somethings that have built up nice portfolios mainly in the mid west.. you can do that there when your price points are where they are at basically the cost of new cars. however that becomes much more difficult in the coast markets.. and those folks can also buy a nice home to live on for 200k  were in Silicon valley its 2 million  !! 

So region ,  time in the cycle  and desire to work in your own job.

Most of my closer friends or colleagues are self employed small business owners..  And they all have different gigs and many are wildly successful.. my partner in our airplane for instance has a big underground contracting company 100 plus employees make huge bank.. and invest in real estate as well short term and long term.. and now started a container home building company LOL.  Garbage is huge money and so on and so forth.   

My suggestion (coming from someone who just gutted his first home at the start of 2017) is to expect almost double what you think it will cost, plus triple the amount of time.

I'm a go getter, and very motivated. I don't mind getting dirty or working hard late at night. BUT, I have hit a wall and I'm exhausted. I gutted my home to the studs, and found more problems than I had anticipated. I actually found more problems than a builder of 40 years anticipated!

Make sure you have capital to last. Because if you don't, you will be in over your head. Luckily I was able to get it livable and up to code in time. That took me 9 months though! I had to get a couple extensions from my insurance company to come and inspect the property.

In the end, all I have left is trim and paint and its been about a year. But there was a lot of late nights, stress, frustration, and even times I was scared. In the end I have no doubt it will be worth it, and if your up for the challenge it will be worth it for you to. But be prepared, over prepared.

-Brian

@Jason C. I think you'll find that BP "activity" in the forums is usually from people with 0-3 properties or people with 20+.  I don't see, oddly enough, a lot of posts from people like you with 6 units :-)  That's not a good or bad thing, it's just what I notice.  Heck, it might not even be true.  And then you have syndicators with hundreds or thousands of units or people who put $50K into a syndication that are "a part owner of" hundreds or thousands of units.  Now who actually *visits* might be a lot different than those people who post questions, reply to queries, etc.  I know the two people who I've ran into in the "real world" that listen to the podcast, etc. never post on the forums.

Anyway, I'm trudging along at 36 units out-of-state meandering my way towards whatever the next deal may hold.

Not at all!  I love gum almost as much as I do science.  

You're gonna follow me around all day huh... I don't need a new puppy..

It was on a Bazooka Joe wrapper.  Are your feelings hurt? 

 You sure that's scientifically based?  Is there a % +/-?  I want to know before I sign up to slander an entire profession of people. 

I read that 90% of car salesman are crooks, yet a lot of people seem to have cars... I should have clarified 90% of the one's I have worked in the past 6 years of investing. I'm not a rookie at this even though I have only been on BP for a few years. You have your opinion and I have mine. Have a good day!

David Moore
I will.Once I tie up all the current loose ends.
The story of my boot straps real estate journey is on the member blog.

It’s titled :”A diary of no BS real estate investing”.
Look it up.

It’s none of the super sexy stuff that gets 500 comments on the forums.
Just plain boring reality.

Again,
It goes to the point that has previously been made on this thread:
That blog article remained the most popular on the member blog for weeks...yet was not “featured” on the BP main blog.
The same week I published it,I saw some feel-good “million dollar article” patched up from some forum post a 19-year old had just posted....and made up into the feature BP blog article.

It’s what sells.

Understand that and let’s focus on reality and keep crushing it the normal boring way.
We should leave the fantasy to the ego trippers.

Cheers.