All Forum Posts by: Joel Arndt

@Aaron Moore

This info is excellent. Thank-you, Aaron.

@Tim Atha

2020 isn't that far away. If you're upfront about your timeline with a good realtor, they'll understand. In fact now is the time to find a good realtor so they can help you sort through properties and understand the market. That way when the time comes that you're ready to invest, you'll be several steps ahead. Whereas if you wait to find a good realtor until you're financially ready, you'll still have months of learning ahead of your actual purchase.

Yup. Find a good realtor. 

When I started out, I went through 3 realtors before finding my realtor now. He knew more about investing than me (which was a first), he became a realtor because he was investing and wanted to do real estate full-time, and he has been extremely patient with me.

I'm constantly marketing and prospecting for off market deals, so when I come across someone that wants full retail value for their home (which I will not pay), I give him all their information. 

He gets warm leads, I get information when I ask for it. Win/Win. And on the rare occasion that I find an MLS property worth looking at, we get to work together a bit.

So, until the real estate boards democratizes access to their sales data, the best way to access that info is to develop a good relationship with a realtor.

What kind of properties are you hoping to invest in?

The way Buffet describes the importance of cash flow is wonderful!

https://youtu.be/5ioeNrmn4eY

@Mike Dymski

Yeah, it's pretty basic, although, not as basic as buy, fix and sell. This small sliver of the real estate investing world happens to be a very practical way for the average investor to scale up their real estate investing.

Brandon made a point on the podcast that if you can flip properties in a market, then you can definitely BRRRR there as well. I challenged that, pointing out that you could flip in a hot market, but the prices will likely out pace the fair market rents in the area.

 Awesome. Glad I'm on the right track. :)

When you say 7% ROE, that's after the refi, right? 

You know, we talk a lot about ROI or IRR or COC, but the ROE get's left out a lot. I don't know if I've ever heard of an ROE rule of thumb... Why did you choose 7%?

@Steve Vaughan

Makes sense. Priorities matter. Really, that's what @Russell Brazil is getting at as well. That's understandable. 

With your experience, Steve, when you used to do the full BRRRR, which criteria did you look at first? Was the Rental Value or the ARV?

@Bob Woelfel

Right. I guess I'm talking strictly about a typical BRRRR investment. When you live in the property, that changes your investment criteria drastically and you're no longer looking at the deal through the same lens. The point of a BRRRR is to invest, add value, create cash flow, pull out your principle, then reinvest. That's very different from the person looking to house hack.

@Victor S.

The clickbait comes from my marketing background. :)

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So did you end up flipping that property, or did you hold it because of the value of the neighbourhood?