All Forum Posts by: Jess White

@Frank Wong Thanks for the insight Frank. How many months of cash reserves do you like to see per property?

@Frank Wong I really like that idea of cash reserves. That’s a really good point. The ability to withstand any kind of downturn with sufficient reserves is a great way to keep yourself afloat and in the game.

@Will Gates That makes sense. Im wondering if anyone is doing some kind of stock market/other form of diversification. Most of us are in real estate because of the power of leverage and cash flow. Does that power outweigh any investment outside of Real Estate? Even though we know we can likely get better returns and control over our money, should we still invest in the stock market for a balance? I’m honestly really torn on this.

We hear so much about how we should Diversify our money and portfolios. Yet most of us here on BP beat to a different drum. We don’t depend solely on a work 401k or pension plan to be our saving grace when we are 65. We take our retirements into our own hands, and most of us don’t depend on Government to take care of us. This all being said, what the heck does being diversified look like for Real Estate investors like ourselves? What are you doing to stay diversified, or are you even diversified at all? This is a big question, so I’d love to hear various sides on this. Thanks everybody, I love having the opportunity to have conversations like this with smart people like you!

@Andrew Flora That’s really solid advice. Love it.

Should this be purchased by me the landlord, or should the tenant be the one to bring in their own W & D if they choose? A little reference on the property. It’s a new construction SFR and will rent for $1650.

@Dennis M. Love this answer. Bold in action and goals. Most people will never act on their dreams. They just think, “that must be nice, wish I could do that.” The reality is, everyone can do real estate. It’s all about action, hard work, and education. When it comes to “Should I fire my mentor”. This just sounds a little funny to me. Rarely does someone ever become your formal mentor. That being said, mentors to me are people that are simply better than me at what I want to become. They are simply friends I can call upon for advice in real estate and life, and we exchange value for each other. We don’t owe each other favors, or “You scratch my back I scratch yours”. It’s just about being able to look up to someone and help each other achieve goals. You surround yourself with like minded rockstars. It’s like what David Greene says, “Rockstars hang out with other rockstars”. The law of averages, etc.

@Terry Lao Those are all great and all, however never get too absorbed in frugality. A lot of times frugality can be very short sighted and cost you more in the long run. I think it’s good to be cautious of your expenses and liabilities, but never obsess about them. Your time could be much better spent educating yourself and developing relationships with individuals in real estate, VS clipping coupons for three hours on a Sunday to save 40$. I like to think back to the book, think and grow rich. Use your mind more than anything to help you grow your real estate business. I used to be obsessed with spreadsheets and counting very penny I saved for the month, until I realized it was hindering my growth. Opportunity cost Is very much a real thing.

@Kyle Hassig Simple. I would’ve stopped buying liabilities and spent my money on assets early on. Also, I would’ve forgotten the lie that all debt is bad, that limiting belief slowed me down and prevented me from taking action and growing. I would’ve read books right out of high school and learned to love reading.

@Jay Hinrichs That’s fair. I can definitely see the part of how some only buy in the Midwest because it’s the “highest cash flow”, and how that isn’t always the best move. This is why I enjoy these forums, we get all kinds of different perspectives. What better alternatives would you say newer investors have, with less risk? As you mentioned before.