All Forum Posts by: Nick Patterson

@Honora Ciancanelli

I would just call and simply say.  "You are listing your property for rent, do you want to sell?  I want to buy"

We did 1 seller financing deal for a rehab.  Did a small down payment with a 5% interest balloon after 3 years.   It worked out really well.  Would love to do more, but easier said then done.

I was a realtor in 2002. Bought first property in 04 didn't buy second property till 2012 Main reason. I had no focus. Now we focus on one type of property and one neighborhood much easier to acquire.

Hi

I personally dont know of any banks or hard-money lenders that will do 100% financing.

Options

1) Get a partner to bring in the 20% and give them equity in the building and or a preferred return
2) Ask the seller to hold the note.  Maybe give them 5% down at closing and then a balloon note due in 7 years.  Once you raise rents you can re-fi them out with new loan.
3) HLOC or line of credit from another bank?

Where in Chicago is the property located?

Did a post last week on how I found my last 20 buildings.
Which gave me an idea to jot down who these sellers were.

Bank Sale: 8
Long Time Owner / Retiring: 8
Estate Sale: 3
Wholesaler: 1

Takeaways,  I LOVE the old fellas.  The guys with lots of equity looking to cash out and move to Florida.   They are the most willing to just "sell" and not fight over a small difference in price because they know 1) I will close and 2) They just want to get out.  

Bank sales are nice too.  

Estate sales while nice involve a LOT of headaches.  We are 100% on the distant cousin who lives 1000 miles away thinking the $200,000 property is worth $1,000,000...

yes, you need to hang under a broker.  I'm sure there are companies out there that work with investors and not "Realtors" Take a look around, check out firms that offer 100% commission.

Its worth the price of admission...

@Shawn Crawley

This business requires consistency and a lot of determination. I know lots of military guys who are very successful in this field as they have those traits. (Including my RE partner) Just keep on doing it everyday and you'll figure it out.

If you are serious about this business, you should end your reliance on realtors and get your license. You will have your own access to the MLS and data for buyers You will save lots of time and money. Start with a big company to hang your license so you can network and learn.

I love this question, it always reminds me of Buridan's Donkey..

Wikipedia..

It refers to a hypothetical situation wherein a donkey that is equally hungry and thirsty is placed precisely midway between a stack of hay and a pail of water. Since the paradox assumes the donkey will always go to whichever is closer, it will die of both hunger and thirst since it cannot make any rational decision to choose one over the other.

I have similar thoughts looking for other markets. I just look and look, there are so many options.
Once you pick a city like Cincy.  How do you choose what neighborhood?  How do you choose what streets?  Basically so many decisions, nothing happens

If you do this, pick one area (I would assume all areas are good) and stick with it.  Don't be a donkey- (I just read Tools of the Titans by Tim Ferriss, i think this was the Chris Sacca chapter...)

I must have had a great shower because I had a few ideas I just thought of.

I love ideas, but the reality is in actually taking action.  Action is everything- Unfortunately, unless it involves buying buildings- I'm all ideas no action. 
I also own a business and know that it is annoying sometimes when people come to me with ideas that would take lots of money and time to implement, I get it...

So, with that here is my other idea.

I just finished reading Tim Ferris book "Tools of the Titans" It is a summary of his 200 podcasts broken down into book form with some extra chapters sprinkled here and there on various topics. 

It was great, because there are a lot of his podcasts that I dont want to devote 2 hours of listening time to.  But in a 2-3 page summary with just the highlights of the interview,  I was able to gain knowledge from people who I never would have given a chance.  

BiggerPockets with its new publishing company could easily copy the Tools of the Titan's format and draft up a great book on all the interviews Brandon and Josh have done.  Instant winner.

I recently read a book by austin kleon "Steal like an Artist"   Basically nothing is original. Copy what other people have done and make it your own. 

There is an app I started using Coach.me - Which I downloaded and hired a coach (with no RE experience) to help keep me accountable to my goals.  In fact I don't think she knows I am a real estate investor.  Nonetheless, I inputted my goal to time block 5 days a week from 10am-1115am to prospect and follow up to acquire new buildings.

In 13,14 and 15 we where on a buying spree.  In 2016 we only purchased 1 property.  The market being crazy was a factor but also I feel that I got "comfortable" and stopped the prospecting train.

Coach.me charges me around $60 a month and she checks in with me everyday to make sure I did my time block.  Its wonderful.

Now the idea:

BiggerPockets has such a huge database of people who need accountability and people who are here to help.  In fact a google search with "BiggerPockets Accountability" has 30,000 returns.

There should be a program that can connect people to hold each other accountable and charge them for the service.  Its great because its not a "guru" telling the users what to do. I'd suspect most investors on here know what to do (If they don't the answer is on the site) but its a matter of actually "doing it"  Similar to the fact that I know how to get in shape, but do I do those actives?

There could be plenty of pricing models

1) Like Diet.com people would put money in a pot and the one that doesn't prospect loosing out

2) Charge like Coach.me, $15 a week

3) stickk.com is another similar site with models where people donate money to charity or loose money to an anti-charity if the tasks are not done.

Thoughts?