All Forum Posts by: Martin Neal

I’ve got a little over 6 months in reserves and that’s if I don’t collect another penny in rent. Fortunately, I have a couple of tenants who jobs are classified as “essential” and has already paid rent for the month of April. Also, I am a big fan of government housing vouchers. So as long as the government keeps paying, I should be in good shape.

@Theresa Harris You’re absolutely right. I can’t leverage every dime I have especially at a time like this during a pandemic. I have months of reserves sitting comfortably in a bank account that will not only pay for my rentals to stay afloat but as well as my personal finances. Fortunately, I have a recession resistant job and quality tenants who are still paying rent despite everything going on.

@Tyrone Osilesi Not every BRRRR is a perfect BRRRR. Some BRRRR's I will get every dollar out, some I will be forced to leave some money into it. That's where the high cash on cash returns come into play!

I heard the expression that you can go broke buying good deals. I didn’t understand that expression until I was in that exact situation. I mean, good deals make you money right?? Yes but not quite.

I'm a firm believer in the BRRRR method. In fact, every deal I've done to date has been a BRRRR. I've brought deals that made 20%, 30%, or 50% cash on cash return. I've created systems, structures, and lots of documents to optimize my BRRRR process.

By most people standards, I’ve been kicking butt and taking names but after you do enough deals, the well starts to run dry. $13,000 in this deal, $5,000 in that one, $20,000 in the next one. It all starts to add up. Eventually, you run out of cash to invest and have to wait for those investments produce positive returns.

So while buying good deals may be good starting off, the goal now is to buy great deals moving forward. I can buy a good deal once a week in my market but until I collection of private money investors, I have to be a lot more selective. Do you agree?? I would love to hear your thoughts.

@Cole Britting not everyone can afford to buy and there will always be a rental market. The true question is how big is the rental market in your area?? The cashier at the local grocery store, the landscaper, the CNA, etc., they more than likely may be renting or looking for a place to rent. Some markets have people you can afford to buy but prefer to rent. I have both type of tenants. Even @Brandon Turner talked about the small town he started in and made it work. Do a little research, see how big the need for rentals are, run your numbers and see if you can make it work. Good luck!

@Steve Balinski If it's a really good deal, then find a way, otherwise find a excuse. What's the percentage down with FHA 3%?? In Illinois especially, you can get a conventional loan for as low as 5% down. I've brought two primary residences with a 5% down loan and you can too!!! Call lenders and find out which one will do this for you. Then borrow, beg and hustle for the extra 2%! Good luck!!

@Brent V. If you are concerned about the virus, hire out the job.

@Mark Miles If you’re having trouble with them disappearing, I would try putting a note about how many are supplied just to let them know that you are counting. This should discourage theft. Otherwise, you may have to caulk it up as a business expense.

@Michael Wegner pets are a good option. I typically like to meet he pet to ensure they are not aggressive and I typically will view there living conditions to make sure my property isn’t going to become their poop pads. You’re on the right track with the insurance as well.

@Victoria Coleman Yes. Cash Flow is king. A deal is a deal. It doesn’t matter the property type.