All Forum Posts by: Joshua Hilliard

@Brieer Doggett My advice would be to pay down debt first. Real estate is a cash intensive game. You need money to play and that's hard to do if a lot of your money is tied up in unprofitable debt. And then what happens if you need to do repairs, something unexpected happens that requires money, or just trying to get a mortgage and your debt to income is all screwed up. It's too easy to drowned with all that excess debt. Pay down debt, live without the toys for now, make smart buying choices and then real estate will be the result of the way you have been living your life not a means to change it. Good luck with your investigation!

Has anyone used the Zillow tenant screening option. I just found it and wanted to know what others experiences have been. Thanks.

A little scepticism is a blessing that helps us plan for risk, see what could go wrong, and not take foolish risks. These are all good things. It's ok to go slow and find what works for you or find someone doing what you want to do. Don't let your scepticism interfere with your opportunity to learn new methods, techniques, and strategies. If it's still not right then find another wealth building tool. There are many out there. Good luck with your investing!

I think the 2% rule applies to how much you pay for it. You are well over that number. Also I'm positive you have gotten your money that you spent back out of the house and you are now making an infinite rate of return. There are experts in tenant placement that will still let you manage. I would hold onto it unless you find an amazing deal. You could also refinance it and pull out money to buy something else. Remember though, if your house went up it's a good bet the houses you are looking to buy went up as well. Don't overpay just because you can. If this is one of your "Pigs" then you must have an amazing portfolio! Good luck in your investing!

Originally posted by @Parris Crockett:

Originally posted by @Joshua Hilliard:

If your numbers don't work don't convince yourself that they do. There are way too many good deals to try to make a bad one work. Also vet, vet,vet, and vet some more your contractors. It's obscene how much money I've lost on just these two mistakes alone.

 Thank you so much ! Can you expound on vetting ?

 Make sure they are licensed and bonded. Ask to see the paperwork, then check up on what they give you. I've had a contractor give me his license and insurance information. It turns out it was forged. Ask for 5 referrals, then call them. Don't email. People tend to be more honest when you are speaking with them. Plus it's easier to sniff out BS. Visit some of their other jobs if you can. Don't just settle for pictures. If they stand behind their work then they will understand and won't be afraid to share it. It might seem like a lot of work but just this year I've lost over $8000 and got left with a half finished bathroom that needed to be rebuilt from scratch again, while my contractor decided to take a month vacation in the Dominican Republic. Guess who paid for the trip??? This guy. Anyway get a system to vet your contractors and don't get lazy. It will save you a ton of work and money in the long run. 

If your numbers don't work don't convince yourself that they do. There are way too many good deals to try to make a bad one work. Also vet, vet,vet, and vet some more your contractors. It's obscene how much money I've lost on just these two mistakes alone.

Just wanted to throw my two cents in here. I am noticing from my own experience that talking about being a renter is one thing but until you pull the trigger it's just talk. I've been on the verge of posting my basement for rent now for weeks but it's scary. I'm trying not to make any mistakes. Once I get over the hump I'm sure I'll be fine but it sucks with the uncertainty now. My advice is if you want to invest in real estate become a landlord as soon as you can. Whether through house hacking a multi family, renting out rooms in your SFR, or straight investing in a rental. Don't over think it. In this business analysis is important but action is what is rewarded. Take action! Good luck with your investing!

I feel like you @Tina Huffman. I was having a hard time finding info on notes myself. Don't get discouraged though. The more I look the more I find. Also reach out to the people you meet. Everyone I've met in this space has been very nice and not pushy at all. Good luck with your investing!

I would highly recommend sticking to your numbers. You can almost bet there will be unexpected costs and if you over pay you will be less equipped to deal with them. I bought a house last year and offered asking first day on the market. My realtor begged me to increase my offer because of multiple other offers. We held firm and got accepted. Then within a few weeks of moving in we found major problems that took more than 9 months and $100k to fix. We are just now getting back on track. If we would have gotten into a bidding war that would have been thousands of more dollars that we would have had to overcome and still would have had the same rehab pricetag. Stick to your numbers and you will avoid a lot of trouble!

Every successful person out there has a horror story! Now you have yours! Now... start where you are...get up... move forward! And don't forget to succeed! Years from now when you are around all of your successful friends and they start talking about their worst deals you'll have this in your back pocket. You'll pull it out, you'll all laugh about it, and you'll move on. Just think of it like you just got an Ivy League Education in house flipping. Lick your wounds, fix your finances, then get out there and put that education to work!!! You got this brother!!!