All Forum Posts by: Larry Smet

Welcome back @Ray Wicker

Don't stop at the podcasts - I would recommend diving into the resources section (tab above), especially read all the "Ultimate" Guides that Josh Dorkin and Brandon Turner put together. And of course, don't forget to ask questions in the forums. It's amazing how people dive in and help out!

Larry

Thanks for sharing your experiment @Joey Nakayama @Joey Nakayama

Like @Brie Schmidt mentioned, definitely keep us posted as you gather more info. I've been wondering about this exact topic over the last several months

Larry

Hey @Raji Kaur

Chicago can be really expensive, and it's getting even more so now because everyone's getting busy. A good contractor bid will break down labor and material for each item, but many won't. It always helps to get several bids and compare. Like @John Weidner said, it really adds up. It's also going to depend on the neighborhood - you should be rehabbing to match the quality in the neighborhood.

I may have missed it, but it wasn't clear if you were rehabbing to flip or to rent. That alone is going to make a BIG difference.

Larry

Nice co-opetition example @Wendell De Guzman

This is what BP is all about. Well done. Keep it rolling!

Larry

Hang in there @Atul Mohlajee, it's just a matter of time... as frustrating as that is, you will be able to get him out in the end. Tenant screening is so important in Chicago. Better luck next time.

Larry

I've always heard to hire slow and fire fast. With that in mind, make sure that the contract has an iron-clad clause that let's you cancel the contract (that won't cost you extra!) to move to a different property manager.

Welcome @Tony Goodwin

Don't forget to ask lots of questions (after you google them on BP) in the forums, read some every day and most critically start to take a little action every day.

Good luck

Larry

Hi @Michael Gee

With a turnkey provider, don't forget you have to do your independent due diligence on both the provider AND the property (and area). Also, don't forget that good property management is absolutely critical to making a rental work so you have to have that set up before you buy as well. If the turnkey provider is providing all these services then your due diligence of them would have to extend to ensuring they perform well in their rehab work as well as property management. In that case, it would be prudent to have a backup plan (e.g., another property manager ready to go) in case it doesn't work out. Be wary of long term property management contracts.

Let us know how it goes

Larry

Congrats @Atul Mohlajee !

It's worth celebrating every purchase as long as you've done the due diligence. I like @Account Closed recommendation of setting a little more aside from rents to build up an extra reserve. That's prudent for any rental, but maybe needs a little more here to deal with unexpected issues with the roof.

Keep us posted on how it turns out.

Larry

Welcome @Saleem Shields

A quick tip based on my own experience is to focus on one thing (e.g., wholesaling) and learn it inside out. Even within wholesaling, there are a number of different ways to go about it so again, focus on one technique.

When you get really competent doing that one thing, then move on to the next technique. The problem is there are so many different techniques and types of investing that it's very easy to get pulled in different directions, especially when the going gets a little tough in the beginning. Human nature is to not stick with something long enough to pay off - most people quit too soon. You need to stick with one thing, learn a lot (but not everything - that's impossible!) about it and then dive in.

Also, you have to take action consistently (that means every day) and you'll be surprised when you look back how much you've accomplished over 1 month, then 3 months, 6 months, etc.. At least that's what's worked for me. Remember that REI is a marathon, not a sprint... it takes some time to get things moving, but it gets easier after you've done it once or twice.

Good luck!

Larry