All Forum Posts by: JD Randall

@Jack Cummings I am on my way to listening to all 425 or so bigger pocket real estate podcast episodes by the end of the year. (Sorry for the shameless brag. I started listening to them at the end of October 2019) The podcast is amazing but it definitely gets repetitive now that I've listened to so many so I cant say I would recommend you to do the same thing I did. I would recommend you check out the most popular podcast episodes or anything after show 400 while also making sure to check out something with more substance like an audiobook.

Here is a Spotify playlist of all of my favorite episodes that I have listened to if you are interested: 

https://open.spotify.com/playlist/181fVw320d4tiN35RRNvOY?si=MQwIvxxdT1uymk-QG89f8Q

@Ty Carl

I'm also a high schooler and I've been researching starting a vending machine business for a while!

I first looked into it for passive income but from what I've found it's a business as any other. It may be passive income in the future but at the beginning you are just self employed.

From what I've found, some locations will want you to give them part of your gross revenue. This is something you could do to make a vending machine offer look better but it is not required to offer this in order to get a location.

In my area there is always decent used vending machines for a little under 1000 and some even have a warranty. You will want to have a location ready when you buy a machine because it costs about $100 to have someone move a machine.

I've been struggling to seem credible (since I am a teenager) to businesses in my area so im looking into purchasing 2 vending machines with location. Make sure to talk to everyone you know about if they or anyone they know have a need for a vending machine. If you find someone that one it should be a ton easier to set something up.

Let me know if it's something you are going to pursue because would love to hear updates on it.

What is your highest ROI (return on investment) and what is your desired/expected ROI?

From my understanding inflation is taking away 2-3% of purchasing power a year. High-interest savings accounts interest (ROI) is .75%-1.25%, very conservative investments are about 4%, the stock market averages 6-7% and Real Estate is the outlier with ROI being everything from 12% to infinity (no money down investments). Is this accurate?

If you do BRRRR I would also like to know how much of your own money you used to do the deal because although you may not leave the money in the deal, you still used that money to set the investment up.

Hopefully I picked the right forum category to post to.

@Andrew Daus I'm also interested in how people are finding deals in our market. I've heard everything from our market is relatively easy to find deals in (they were talking flips) to you can only find deals if you are patient and analyze deals every day. I'm also interested in ways people are "making" their own deals through creativity (such as renting out by the bedroom and typical value add)

Thanks! I probably won't be going into condos but HOA fees also seem to kill a lot of otherwise potential cash flowing single-family neighborhoods. Are the HOA fees likely to increase in the future and kill your cashflow or is there something that makes that possibility out of the question?

Was there any rehab in this deal or was the 25k invested just the downpayment? Was that the amount of downpayment required to make the property a good househack and cashflow once you left the property? 

How long did it take you to find this deal? I've been working at my deal analysis skills for a while but have only come across one potential deal. (which I lost & later drove by to find that it wasn't as good as I thought)

Was the partnership just for the peace of mind that you wouldn't hold all the risk yourself or was there other reasons for it?

Sorry bout all the questions. Just trying to make my own deal happen as soon as possible and would love some advice about how other locals are doing things.

@Brenden Mitchum Would this work for cold calling on single-family properties or singular mobile homes not in a park? (taking into account that you are likely talking to a resident)

How do you know if they are an out of state owner? Doesn't the county assessor just show you the properties that they own in that county? Additionally, I know I have found phone numbers from the county assessor but I can't seem to find them anymore. Are you only able to do that for certain properties like those in an LLC?

I would say that getting into REI is like Cross Country. You just have to keep going, step by step, until you get the first deal.

I live in the Phoenix area and there is areas that you can get a house in the 100k-150k budget. The average house price varies a lot depending on which city in the Phoenix area you end up focusing on but they would be B-, C properties. There is next to no chance of multifamily property for that price range here.

Ive heard that Detroit is not a great area to invest in for anyone, especially new investors, because of the crazy high crime rates. The majority of Detroit is a D area.

(But definitely take everything I say with a grain of salt because I haven't done my first deal yet)