All Forum Posts by: John L Daly

@John L Daly, 

Whole life insurance is NOT a retirement plan. It is a life insurance with forced savings component, bunch of fees and high commissions paid to the sales person selling it. For most people whole life insurance is a rip off, it is almost never a good idea to bundle life insurance and savings. You will be better off buying cheap term life insurance to protect your loved ones and invest separately, you won't have to pay any fees and will have 100% of your savings to invest. 

IRA vs 401k - depends on your situation. IRA contribution limit is $6,500 per year. Solo 401k contribution limit on the other hand is 10 times higher, $66,000 for 2023. You don't have to have a custodian for the 401k (unlike an IRA) and can have "checkbook control" and ability to invest in alternative assets such as real estate or private lending. However, to qualify for a Solo 401k you must be self-employed. 

@John L Daly

Don't stress too much on the details. You're going to have to get on the phones and mess up a few times. That's one of the best ways to learn. If you win, then PAYDAY!(Maybe lol) If you lose, then you learned something and you're still winning. How I got started was I called on properties out of state for practice, then as I got more comfortable I started to call on properties in my market (DC/MD/VA) which is a more competitive market.

Somethings to keep in mind: 

Be tenacious. You may get no's all week, even 2 weeks, but don't discourage. Always have the mindset that the next call is the next deal and rock it out. 

Know your numbers. ARV, Comps, etc... The more you know will make it more comfortable for you to have the conversation with the seller.

Believe in yourself and your "script". If you're not confident in what you're doing then it's not going to work. Sellers especially real estate agents can smell the BS a mile away.

Ok, motivational stuff out the way, multifamily you want to be between 5-10% cap rate depending on your market. So you divide the total cost of the property by yearly return. Example: Property X worth $100,000 rents for $10,000 a year would get you a 10% cap rate. You have to factor in expenses like project management, turnover for tenants, maintenance, mortgage and etc... This seems complicated, but to put it simply, just write out some low offers get on the phone and start calling. Good Luck!

To find a wholesale deal, you’re going to have to find a property at a deep discount. To find that you are going to have to locate distress. To find disstress, you are going to have to pull lists of addresses that need, not want to sell.

@John L Daly

Don't stress too much on the details. You're going to have to get on the phones and mess up a few times. That's one of the best ways to learn. If you win, then PAYDAY!(Maybe lol) If you lose, then you learned something and you're still winning. How I got started was I called on properties out of state for practice, then as I got more comfortable I started to call on properties in my market (DC/MD/VA) which is a more competitive market.

Somethings to keep in mind: 

Be tenacious. You may get no's all week, even 2 weeks, but don't discourage. Always have the mindset that the next call is the next deal and rock it out. 

Know your numbers. ARV, Comps, etc... The more you know will make it more comfortable for you to have the conversation with the seller.

Believe in yourself and your "script". If you're not confident in what you're doing then it's not going to work. Sellers especially real estate agents can smell the BS a mile away.

Ok, motivational stuff out the way, multifamily you want to be between 5-10% cap rate depending on your market. So you divide the total cost of the property by yearly return. Example: Property X worth $100,000 rents for $10,000 a year would get you a 10% cap rate. You have to factor in expenses like project management, turnover for tenants, maintenance, mortgage and etc... This seems complicated, but to put it simply, just write out some low offers get on the phone and start calling. Good Luck!