All Forum Posts by: Scott Hollister

@Sabrina C. open to all BP members! 

Hello @Account Closed, 

Welcome and it is a great place to be!

First off, good for you knowing your expenses. (It looks like you have been doing your homework)

As for your questions: 

1. Are you comfortable living there? (Some people might disagree with this question)
2. Have you studied this market? (East Cleveland)
3. Are you familiar with seller financing? 

Good luck David! 

Hello @Account Closed

My next questions: 

1. Why do you need to take the loan out? 
2. Are you going to rinse and repeat that money? 
3. Are you short on rehab/holding cost funds? 
4. What are the benefits of living in the house until it sells? 

Good luck Bryan!

Hello @Amanda O'Mara, 

You don't necessarily have to have 20% down for REI. I don't know about investing in crowd funding, I would assume its for someone who wants to be a hands off investor. What are the returns promised for investing?

If you are thinking about investing yourself: 

• Have you read this book by @Brandon Turner: The Book on Investing in Real Estate with No and Low Money Down
• Also, check out Podcast 92 where Brandon gives more great ideas. 

Good luck Amanda! 

Hello @Richard Burke,

• Did you factor in your down payment as a ROI?
• The "normal" fund for repairs all depends on your market and your type of property. Seeing how your type is a condo, budget for those surprise assessments. 
• See if you can get a hold of what assessments were done in the past, plans for the future and then try to get a cost per year. (Hard to gauge but a rough idea won't leave you high and dry when they put a new roof on)
• As a new investor, I think building yourself that cushion is a wise decision. Save your money in general for the next investment. 
• Rentometer is a quick tool. For accurate rent look on CL or call around locally. 

My advice. 

• Why move out when you have two roommates paying you more than it costs to live there? 

1. Save that rental income. 
2. Grow your portfolio faster with the extra income?

@Jason Schimer great discussion! 

1. I agree with you on 123. I think that is pure motivation!! Stories like this inspire us to be all that we can be!
2. There are so many great podcasts and with each one I learned something new. But continuing with the inspiring stories I'm going to go with Grant Cardone on Podcast 108. I am currently listening to his audio book (Just finished 10X, now on Be Obsessed or Be Average) His podcast has taught me to stay away from being small. I had small thinking and small business, I was being "realistic" with my goals. (Which goes against traditional thinking) But Grant has taught me that this way of thinking put a limit on my potential. He also gave me the wisdom to treat REI as a business, to create systems and processes to build wealth. Even if you don't agree with his teachings you will leave this podcast feeling pumped and motivated!
   1. Jim Rohn had a great quote on potential that has always stuck with me. "Every life form seems to strive to its maximum except human beings. How tall will a tree grow? As tall as it possibly can. Human beings, on the other hand, have been given the dignity of choice. You can choose to be all or you can choose to be less." 

Hello @Daniel Fazio and welcome to BP! 

Its great that you're starting at a young age. How many real estate books have you read this year? 

You have selected a farm area. Have you analyzed the market? 

What would be the best investment? One that gives you education, a return on your time, and positive return on your money. 

• Once you analyze the market to see what is selling, and for what price you can choose the best investment. Maybe it is a 3 bed, 2 bath ranch in a certain part of town. Then you can target that type of investment. 

Here is your action list: This is to be completed by Friday! (Do not wait) Seeing how you are a college student, you have a nice winter break to pick up a deal)

1. Carefully choose an realtor that is investor friendly. Put a list together and start calling them. Interview them and ask if they work with investors, have/had investment properties themselves, references from past sales? 
2. You have your down payment and holding cost money (15k). How will you finance the rest of the deal? Partners, hard money lenders, or the bank of Mom? 
3. Analyzing deals. Set up your Zillow app for every house in Spring Hill, FL. Start running numbers on the houses to see what the repairs would cost. (Start studying rental markets to see what houses rent for as well) 
4. Choose whether you want to do a flip, buy and hold, house hack, small multis, or BRRRR strategy. There are many ways to get involved, listen to the podcasts and something will grab your attention.
5. If it is a flip, order this book. It is extremely valuable to your success. The book on estimating rehab costs will help you if you choose buy and hold as well. During break I would advise that you devour these two!:) 
6. GO to your local meet-up and find people that you can learn from. In my local meet-up I found financing (Commercial and conventional) REI realtors, partners, contractors, friends, and mentors.
7. Have you considered get a multi and renting out the rest of the units to live for free? Then, getting a roommate and make money? (I personally think this is the best way to enter and not get over your head with something that might have more wiggle room for error) 

Good luck Daniel! 

@Chad Duncan how creative are you? 

Just be careful when comparing yourself to others: Don't do it! haha (Aim to be better than you were yesterday!)

You are correct in that if you save up for each payment it WILL take forever. I think if you focus on a business plan that is repeatable then you will find more success with REI. (Ever thought of doing BRRRR and rinsing that down payment? Just one option) Once you put a down payment it is locked up and has a 0% return, wouldn't it be wiser to reuse that money?

Also your market and someone else's market with a 20-30k purchase price is a little different. (This is a gross generalization)  

I think most of the success stories are hard workers that GRIND! They just find a way, whatever it might be. 

Welcome to the forums @Jose Esquivel!

Best Advice: Move forward with the BEST investment you can make on your TIME and MONEY. 

• When you take a conventional loan out: These loans, like most, are heavily front loaded with interest. That means it will take you longer than you think to pull that equity out to use it again. 
• 2nd option: If you are referring about a House Hack situation? Then yes. Most people here will agree that this is the best situation for a new investor. 
  • You get two benefits: 
  1. You learn how to become an investor
  2. You get a primary residence

Just remember to make a wise investment. Value your time over money!

@Stephon Shaw it is all personal preference. When you purchase a larger multi you get economy of scale. (1 roof, etc.) You also max the number of units with your conventional loan. 

My personal choice was a single family home "duplex". I wanted my own house so I bought two single family homes on one deed, I get the benefits of house hacking but I also have my own walls away from neighbors. (Personal preference) 

• I just finished reading the Total Money Makeover and there is a very important line in the book: “If you will live like no one else, later you can live like no one else.”
  ― Dave Ramsey

So choose the best choice that will bring you closer to your dreams.