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All Forum Posts by: Keith K.

Keith K. has started 10 posts and replied 38 times.

Post: Somewhat experienced investor in Portland, OR - New to Bigger Pockets

Keith K.Posted
  • Investor
  • Portland, OR
  • Posts 38
  • Votes 10
 @Brandy Anderson:

Welcome to BP!  I am new to this site as well and am also slowly getting through the podcasts.  I'm generally focused on buy-and-hold with a goal to replace job income with passive income in 6 years.  Unfortunately, the general consensus is that Portland is a no cash-flow town.  But I like to try and prove the consensus wrong.  What are you and your partner leaning towards?

Post: Business Plans and Software

Keith K.Posted
  • Investor
  • Portland, OR
  • Posts 38
  • Votes 10
Originally posted by @Benjamin Arp:

@Harold H. 

That being said I do have a recommendation for the planning process. When you're planning out your business it might be useful to use Mind Mapping software such as xMind. This will allow you to easily map out all of the various silos of the business. http://www.xmind.net/ Once you have a mind-map it should be much easier to fill in a business plan template that you find online.

 Hi Benjamin, thanks for the advice on Mind Mapping a plan.  I've heard of Mind Maps used for other purposes, but was skeptical as it seems more of a brainstorming tool than a planning tool.  Planning to me involves time and completion of things along the way, but a mind map just looks like an organized bunch of ideas.  I took a look at Xmind based on your recommendation and their screenshots make it look like it is geared specifically towards project planning.  So, I'll give it a try.  Thanks.  Keith.

Post: Born again real estate investor

Keith K.Posted
  • Investor
  • Portland, OR
  • Posts 38
  • Votes 10

Mehran,

Thanks for your reply. I've been slowly catching up on the podcasts and I am finding out what a rock star you are! The out-of-state investment approach is quite tempting with its better adherence to the 2% rule than here in Portland. I am also interested in investing remotely because I would like to apply lessons I've learned in outsourcing, managing, and delegating from afar (making mobile apps) to REI.

I wonder though, have there been any reasons that have caused you to need to be out at one of your investment properties in-person?  Turn-key properties are quite attractive, but they just seem too good to be true; there must be some catch that would, for example, cause me to have to 'drop everything' and fly to Mobile, Alabama to take care of a problem.  I think you mentioned that you have a partner there on the ground, but what if you didn't?

Thanks for your time.

Post: Approaching not very neighborly neighbor/hoarders about selling

Keith K.Posted
  • Investor
  • Portland, OR
  • Posts 38
  • Votes 10

Hi BP community,

I am considering approaching a homeowner with an offer to buy their place. It's obviously a hoarder house and the owner and others who 'live' there are not exactly the kindest folk. I have made deals in the past where I contact the owner directly and actually enjoy that approach, but this one seems a little iffy. I would like to buy their place partly for REI and partly because I want to see them gone. I wonder if it'll be worth the trouble regardless of the great deal I get and wonder if there is more care I could take in approaching them with an offer. I have no knowledge about their need or desire to move yet, but am betting that if I present them with a wad of cash that they would take it. I also have to find the wad of cash. :)

Keith

Post: Quit Claim Deed Strategy

Keith K.Posted
  • Investor
  • Portland, OR
  • Posts 38
  • Votes 10
Originally posted by @Lynda Poe:

We just buy property in our LLC's name to begin with...I have purchased property in the beginning in my name and then put in the LLC's name via a quit claim deed. There is a time and a place for that in my opinion. It's just not how we usually do it.

Lynda, thanks for your short and clear answer. Just one question: Banks won't usually provide financing unless the property is deeded to a person (vs LLC). So, are you not financing through a bank? Or have you just found that right bank? Thanks, Keith.

Post: Creating a company: LLC or other alternative?

Keith K.Posted
  • Investor
  • Portland, OR
  • Posts 38
  • Votes 10

Scott,

Can you give an update as to your Partnership vs LLC question and your current approach? I'd like to know what you decided to do.

Thanks,

Keith

Post: Born again real estate investor

Keith K.Posted
  • Investor
  • Portland, OR
  • Posts 38
  • Votes 10
Thanks Hattie for the insightful comment about REI spouses:

Originally posted by @Hattie Dizmond:

@Keith K. 

"... Also, we can get really passionate, when we understand what the end game is.  Make sure she has a clear understanding of the vision and her place in it..."

Post: Born again real estate investor

Keith K.Posted
  • Investor
  • Portland, OR
  • Posts 38
  • Votes 10

Hi, I am new to the Bigger Pockets community, but not new to REI. First, sorry if this is a long post, but I've been really into writing lately and hope you can bare with me and hope you may see some of yourself in my story and can provide feedback.

I had my first 'go' at it over ten years ago after reading Rich Dad Poor Dad. That book solidified thoughts I had all along and, as a result, found a property and purchased it directly from the owner at a good price. My vision for the property was either flip, rent, or hybrid.

Unfortunately, the investment took a long term detour when my source of funding decided they had a different vision for the property (nice place on the Oregon coast) and wanted to keep it in the family forever. Dreams of passive income bliss became a 9 year drain on our bank account. During that time, I decided that if this is how REI was, then I didn't want any part of it.

I still obsessed over passive income streams and spent those 9 years trying anything and everything including the stock market, online marketing, and even mobile app development. While I learned a lot of new skills, I hadn't really chipped away at my passive income goal.

Having tried 'everything' (okay not really, but it feels like it), I went on a long hike alone on a plateau above Lake Billy Chinook in central Oregon. Long hikes are always good as I get several hours to talk to myself and inevitably learn something. The Oregon coast property is starting to make income as a vacation rental, not cashflow, but yes -- income. And it's a start. In fact, this little realization transported me back through all the 9 years of trials and failures. I realized that none of these are going to get me to my goal, but REI could if I approached it with more care, patience, and with a better plan.

That's where I am today.  I am still working on my plan, but likely to focus on buy and hold for making nice rentals in my community (Portland, Oregon); flips and simply finding deals for others may also be an option if the opportunities present themselves.  Partnership is also something I am seriously considering because of the 1+1=3 effect and that making your friends wealthy is as satisfying as making yourself wealthy.

I am interested to hear your thoughts.  Questions currently rolling around in my head:

-Property management role? I would like to keep REI as passive income as possible so would like to hire out property management. However, I understand that you must first know how to do things you will eventually hire others to do. Is it possible that I could hire property management out from the start, as long as I took extra care in observing their performance in the beginning (almost like a probationary period). Or, is learning property management first-hand absolutely essential for success in REI buy and hold strategy?

-How to involve a spouse who doesn't share the passive income vision, but does like 'looking at houses'.?  I don't think I really need to explain this one.  

 Thanks for letting me into the Bigger Pockets community.  

Keith from Portland, Oregon.