All Forum Posts by: Michael Forbes

Keep track of your improvement costs. Make sure the appraiser understands the value that you added. 

Also explain the circumstances of the low purchase price at which you bought (i.e. not an arm's length transaction, needed help out of tax trouble, cash/no contingencies offer, etc). This will help justify the recent low purchase price. 

Hey Emad - You picked a good city to investigate. There is always a balance between appreciation and cashflow. I don't have any imperical data to support Cleveland but I live in the western suburbs and have rentals and flips here. It is hot right now and everything still "feels" safe to me for the future. I'm spending my own money here when I see the right properties. I know this isn't scientific but hopefully it provides another data point for you. 

I agree with Thomas. Your contractor should be your PM. Hiring a PM is a band-aid but finding a good contractor is the actual cure.

Hi Sabri - I think many people get too concerned with buying a property that has already been rehabbed. Doing that will cost a premium and you may not be able to buy in a "good" area. I would focus instead on building a good team (agent, property management, and construction) to take care of the asset for you regardless of its condition. This will free to you to look at all kinds of properties. 

Personally, I want to live in a place that I like. Some people will house hack in an area they don’t want to live in so they can squeeze every dollar. If you want to live in a particular area, that’s what I would look at first instead of returns. Don’t get me wrong, it has to cashflow after you move out but live in a place that you’ll enjoy. Invest for lifestyle, don’t sacrifice lifestyle (too much) to invest. 

When looking at cashflow for 12 months in the future after you move out, definitely look at the aggregated data like Matt said. Also, call around to ads and even go look at places to see how much they charge and compare that to the specs of the place. That exercise will help you get more comfortable in your target area. 

Hey Gino - You would be crazy to not be a little hesitant on your first deal. It’s good that you’re being a little cautious so don’t feel bad about it. 

Stick to the areas you are comfortable with and/or get some local people in your corner to help educate you on areas you want to learn more about. Working with a good person or two that are actually investing should give you a lot of confidence. 

Lastly, if you’re so tight on cash that the house could become a curse, maybe it’s best to wait a minute while you save a little more money. Take action but don’t be in a hurry. Cardone is all about massive action but sometimes that means hustling to pile up cash before you make your move. Patience can be the massive action sometimes.

Let me know if I can help in any way. Even if you are already working with an agent and need a second opinion or want to chat, I’m always down to talk shop with investors. 

If you are just looking to shop for the best rate, check out credible.com. They don't spam you or sell your information. 

For an appraisal, like other people said, keep records. Also have someone attend the appraisal on your behalf to point out the improvements and best features of the place. Too often, important details go unnoticed. 

Was this a dp1 policy? I carry dp3 on all my properties. DP1 is cheap but not worth the limited coverage in my opinion. 

Hey Mitch - Not sure if you remember but I'm pretty sure I bought a Saab from you many years ago! 

Pumped to see you got into real estate. Let's get together sometime and chat!

Hey Ike,

I have a one stop shop if you'd like to interview them. Construction, management, and agents. Great people who have the investor in mind.

Shoot me a DM if you're interested in more options.