All Forum Posts by: John Peine

Especially since you are new. You will need a business model. Which if you have a deal you have already done this. You just haven't gone to Kinko's to make it pretty and you might not have done graphs, which I do because I like to see stuff visually. You will also need to buy it with an assement, and if the bank asks it (which it almost always will) make repairs and etcetera to secure their investment. They also might make you get some types of insurance, hold stuff in escrow. You will have to go to the bank and ask. Which asking what they normally need is a good first step. Make proposals, make it look nice. Talking to loan officers having everything in a three ring binder or scroll binder. Clear tables, clear font and good flow of a proposal is way better than some hastily scribbled down notes stapled or paperclipped together. Then move forward. Expect to run around a lot. They will ask for rent rolls and monthly NOI reports all the time, usually. That is why you will probably want to stick to a smaller bank who is more relationship oriented.

My advice has been previously said by both people above. It's hard to tell you what you are comfortable with. However there is cheap money (low interest) and expensive money (high interest). It really depends on what your investment style is. For instance I *loath* debt. I usually end up paying something off before the note is full dew. That said the interest rate on my house is 3.5% fixed. So if rates go up to 6% I will not refinance unless getting that equity out absolutely needed for the next deal.

@Shawn Moser if you really feel like you need one on one guidance look to someone local. Casually meet at a REI meeting. Ask for contact info. If you hit it off drop them a line now and then. Being in the doldrums between my first few initial deals can be frustrating. It's always good to hear encouragement coming from mine.

I can do weekly calls for 8k a year. I will cater your program to your specific needs. I will listen to what you are wanting out of REI, and tailor your purchases to what you need. We will also have a deep discussion on your reason why, and figure out the best ways to positively impact your life. Honestly, I am of two minds. Though I agree with most people here, sometimes I feel like I need special motivation. I am always one of those people who say "You paid *that* much for *that*?! I would do the exact same for cheaper."

I tried to make the title as un-click baity as possible but here is the sight.

https://www.datascoutpro.com/

It's has been free in the past, however now there is a pay wall, unless you are strictly looking at tax auction sales.  I think it gives a good 100 mile above view, can easily indicate there might be interested parties, and usually the name that goes along with the title.  Is there a better service I should be using in this regard?

Honestly feeling a little lost in the woods lately.

Your original post also hit me in a place I keep coming back to in my mind.

Being a millennial with a full time job paying less than $12 an hour. I can always come up with a few hundred if not thousand here and there but it has been hard to save for investment. 

Unfortunately I have to spend my money on fancy things like heart surgeries and medical bills.

The sad fact is a lot of the people I know are in a similar boat.  I think if we could just start saving here and there, investing in microloans, or other, better investments, we might get somewhere as a generation.

Thanks for taking the time to read.

I can but stuff like that is kind of once in a year.

I didn't get anything last year. This year I will just miss it probably.

Moreover I am still a super noob still on my first deal.  I am still hesitant to not know what I don't know.

You seem super on point and cash flowing. You are the kind of person I want to become in a year or two.

It's hard to wait because if I have to go solo I have to be conservative.  I feel like I could leverage myself more if I saw the numbers and have someone backing me.

That is why I am trying to find a partnership somewhere. I am planning for it to be local atm, but I will take what I can get.

Originally posted by @Moisey Meyer:

Originally posted by @John Peine:

It is great you are trying to diversify though. My initial thought though, especially before you reach FI, be very conscious about where you are spending your time in business. If you can make X dollars by spending Y hours online retailing and that X + Y can beat REI... focus on online marketing first. If X + Y is greater with REI then focus there. Your time is incredibly valuable, and it is your one and only fixed asset.

What I would suggest, instead of starting two things at once, do one.  Give it everything.  If you can kill it in online retailing while working a full time job do that, save. Then when online retailing can fully support you stop work then have more than enough to make multiple deals.

Or, do what you are doing with house hack.  Become FI through real estate, then dabble in online retailing till you feel comfortable. Then buy a successful website.

Going about it this way gives you the least amount of things to learn an master at once. Once something is mastered move onto the next.

Good hunting.

 So my plan requires me to invest in real estate because in order to keep my expenses low and minimize my environmental impact I plan to build a tiny home in the next few years. It's something I'm very passionate about and borderline non-negotiable. The plan is for one of the homes that I purchase to have a decent sized lot(.5 acre or more ideally) for me to be able to build my Tiny home on and rent out the actual home. It will just help me live the lifestyle that I think I want for my future. I included the online retail as more of a side project because the brand development and marketing of it does interest me a lot.

 Brother, let us not spend the next week and a half sending tiny house Pinterest notes.

I live on a 2 acre lot. If I had all the money right now I would break half of my land parcel into a 1 acre lot and put a tiny house quadplex in my back yard. It would also mostly be unnoticeable dew to my love of below grade living.

Me and my tennent/roommates are converting 1/4 of my lawn into a garden.

After that knock down the mobile home that I am living in now. Put up another quadplex and airbnb.  I live on a lake and a state park so I am preparing for seasonal traffic. 

I know I shouldn't be giddy in love with my first deal. But I have gone fishing more in the last month than I have in the last decade.

It's great to see what you want out of life and are prepared to take it man.

I bought my SFR asking several lenders about FHA MFRs none in this area supported MFR FHA's. I could have probably looked harder for a lender but I like the area and I got two tenants. But at the end of the day I guess I could have looked harder and got something with better numbers.

@Derrick E. would you consider syndication?

I understand it might be more paperwork than you are interested in.  Currently I am house hacking any making ends meet and then some.  I hate sitting on my hands waiting for the money down, then six months of padding.  I could come up with comparable money but don't have anything like that in my sight.