All Forum Posts by: Justin Foster

Ashley, go to events under networking and search for meetups in Tulsa. I missed the one that just happened today but there are monthly get together a at a minimum... the Tulsa ones are all very laid back in my experience. There's also a Tulsa Real Estate Investors Association (REIA) you can hit. Google it.

 Being this season of life, I’d encourage you to check out Scott Trenches book “Set for Life.  It is a great read and allows you to think holistically more than just mechanically.  

P.S. Deren is a great person to talk to more to get a better understanding of the Tulsa market from an investors mindset.  He has helped us tremendously.  

I've been listening to the book The Simple Path to Wealth by JL Collins.  Its a great read and I encourage anyone who hasn't heard of Mr. Collins if you are new to this investing thing to check out his website

https://jlcollinsnh.com/

In the book, Mr. Collins basically suggests that the most powerful investing vehicle is a long position in the US stock market. He points out that investing in the total us stock market over the last 40 years would have yielded a ~11.9% ROI with dividends invested if someone had just stayed put. He mentions real estate very little so far (I'm just over half way through). I like his strategy, simplicity, and humility on this topic of which he is most certainly an expert. For those of you who have read it, I'm sure you know what I'm talking about.

My strategy for financial independence and early retirement has been heavily geared towards pumping all surplus money into real estate holdings. While I do contribute to my 401K to get the company match, we are heavily putting cash towards long term buy and hold properties in our local market. The potential for returns in our market and indeed the cash on cash I have achieved in my portfolio suggests that REI can have more upside; albeit, I am not a passive investor so this is not an apples to apples comparison. As I strategize about buy and hold properties I simply have a number in terms of # of doors in mind with monthly cash flow as a goal for Financial Independence. The investment strategy of FIRE with stocks and bonds is more focused on a withdrawal rate... Collins says ~4% annual withdrawal of your investment holdings to cover lifestyle. Others may say more or less.

So I'm wondering about others strategies that are diversifying their portfolio with stocks and real estate in the long game.  What are your thoughts of cash flow on the one hand and withdrawal rate on the other? In the short game, what kinds of strategies do you have to do with your cash as you search for real estate.  How do you maximize returns on cash with good liquidity while still protecting your money?

Welcome! What particular markets you looking to invest in? Do you have an idea of SFH or multifamily etc?

@Grayson Gist cozy is a good service if you have a few rentals. It’s essentially free to you and I have found it to be the best for low cost RE management.

@Stevie Delacruz consider the time value of money when investing. Putting investing off in your earlier years is never justifiable from a mathmatical perspective because of compound interest. The potential growth you will see is the highest it will ever be now, each year that passes by, potential growth becomes less because of the time value of money. The more disciplined you are now in figuring this out and taking action the more wealthy you will become. That’s how the math works. Good luck!

My schedule is tight this week but I will try to make it.  Thanks for facilitating!

What did you decide to do?  I'm in a similar situation with a  potential renter.  She has a 700+ credit score with a bankruptcy from 5 years ago and good income.  I'm considering asking her to up the security deposit 1.5 times what I normally ask.  I'm not desperate to fill the vacancy yet; however, I'm willing to work with someone who on paper is showing she has turned things around.

Just be yourself and trust that gift.

@Robb Rollinger I did the same thing with a half duplex when I left Denver Co 5 years ago to come to Tulsa. The market was hot so we could rent it out and it be cash flow positive for a couple of years. But it was a pain managing just one rental unit in another state. We didn't have bad renters, just little things were more of a challenge. This was all before I was introduced to BP and after looking at various new strategies of REI, we decided to sell and I'm certainly glad we did. We did a BRRRR strategy on a triplex in Tulsa that cash flows very nicely and I believe is in an up and coming area. My wife and I are sinking down roots in Tulsa so for us it makes sense for our properties to be here

If you do decide to rent your condo and it cash flows, you may consider writing into the agreement that the tenant is responsible for repairs that are $100 or less.  If you get a good tenant that is homeowner quality, this can be helpful and is what we did for our tenant in Denver.  Obviously there are risks to this with the wrong tenant.

Another option could be to owner finance the condo, absolving you of some of the responsibility and increasing the potential monthly income. 

Best of luck to you!  Once you’re in Tulsa reach out if you’d like to chat more!

Justin

Just curious... Does the term "rat hole" refer to the people living in these houses?  Or does it imply that these places tend to have rat holes within the property where actual rats live?  Semantics I know... But is that important to anyone here?