All Forum Posts by: John Myers

Oh, and I love your last name!!  You are a Warrior to get that many doors in the first year!

Congratulations and very impressive for your first year!!!

here is an article about housing prices is 2023

Sounds alot like this thread.

@Drew K.

You have been given some great advice in this thread!!

I will reiterate a few. Set goals for yourself. Set huge goals. If you want a million in the bank, set your goal at $10m. It is going to be hard work so why not set huge goals. Write your goals down every day of the year as if you have already achieved your goals. Never, Never, Never reduce your goals.

Take MASSIVE ACTION to achieve your goals. Instead of making 10 calls, make 100 calls. Outwork everybody else and you will find success. If you are not achieving your goals, take a different strategy and still take massive action. You can find strategies everywhere. I find the more action I take, the "luckier" I get.

To get started find a high performing team and outwork everyone on the team. You will find many real estate agents that get into real estate because of the "flexible schedule" (it is not), they don't think they have to work hard, and they will make a lot of money. This could not be further from the truth.  Being a real estate agent is tough and only the best are really successful.  You will need to be in the top 5% to make real money.

What to ask when applying to work for the team. How many transactions do they do per year? What is your role on the team? What is your commission cut and how much can you expect to earn in a year? Leave the team as soon as you can create leads on your own. You will need about 3 or 4 lead channels to be highly successful.

Once you start making money, get your money right.  Save money, reduce debt and look for investment properties to buy.

I recommend reading the 10X rule by Grant Cardone and watch his videos. I don't agree with everything he says or does, but his thought process may change your life. It changed mine.

There is great information here, but nothing in your life will change if you don't take massive action. You can plan all you want, there is no better teacher than experience.

Not enough information to know if the deal is good. I don't like negative cash flow with the hope it will get better in the future. Is your LOC at a fixed rate or a variable rate. Also do you have the cash or access to the cash to make repairs if the tenant moves out? Does the condo rules allow you to rent out the property? I don't like the idea of a condo for a rental as the condo fees go up almost every year. Some condo fees are out of control.

The tenant knows they have a good deal and probably will not move out.  You will also want to raise the rent every year (as long as the market allows) so the tenant gets used to the rent going up.

You also want to make sure you are following your state's tenant landlord laws.  Our state requires everything in writing and there are time frames depending on the type of lease, i.e. month to month, or to renew lease.

Most tenants are very savvy when it comes to rents and the market.  If they are paying under market rent, they know it.  I have been raising rents fairly significantly in the past three years.  Not a single tenant has moved out. (I have 9 sfr)  They all know inflation is causing the price of EVERYTHING to go up.  They may not like it, but they understand it.

I have been giving tenants two or three months notice so they have time to look for another option.  Like I said, none have moved out.

congratualtions and a great lessoned learned.

I do very little to no work on my flips or rentals.  Just makes sense for me to sub it all out.  However, if you are short on cash and don't have other options, do the work yourself.  Do you what have to do to get started and your hard work paid off in more than one way, ie lessons learned.

Just get out of doing all the work you can as soon as you can.  

I agree with many others, I would not rent to either tenant.  Your current choice as you laid out is bad or worse.  I would keep looking.  You may get stuck with a mortgage payment or two.  But let either one in and you are likely to lose much more!!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $165,300
Cash invested: $22,000
Sale price: $235,000

Purchased this bank owned home with the intent to fix & flip. This was a lipstick flip as I call them. Needed minor cosmetic repairs, flooring, paint, appliances, water heater, etc...

What made you interested in investing in this type of deal?

It was a simple fix and flip and easy money.

How did you find this deal and how did you negotiate it?

This was a bank owned home and found it in the MLS, I am a real estate agent.

How did you finance this deal?

Cash

How did you add value to the deal?

Minor cosmetic fixes, paint, flooring, appliances, water heater, minor repairs.

What was the outcome?

Nice profit of about $35,000.

Lessons learned? Challenges?

Originally I had a partner when we made the offer. After the offer was accepted, my partner wanted to back out of the deal. He did not think we would make a profit. I went ahead with the deal on my own. I am and agent and was confident in all the numbers including ARV, repair costs, etc... He did not believe the home would sell for my ARV.

Lessons learned. Flipping houses is all about the numbers. Do your due dilligence and make sure your numbers are right.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a real estate agent in Albuquerque NM metro area and am used to evaluating potential flips. Confidence comes with experience!!