All Forum Posts by: Nicholas Misch

As stated already by several people the 1% rule is a very loose general rule. I usually have minimum cash flow I desire from a deal and then work everything around that (if cash flow is my main focus). Also as stated that sometimes and some markets investing for appreciation is the goal due to low cash flow ability but big long term appreciation which is what really leads to wealth. One of the few things that I agree with Warren Buffett on is his quote:

“The first rule of an investment is don't lose [money]. And the second rule of an investment is don't forget the first rule.

I think, at least for me that applies to investing in real estate as well. Now while I don't expect that I will NEVER lose money at all, I go into every deal with the minimum standard that it wont lose money as I have run the numbers to the best of my ability. 

I wish you the very best on your new real estate investing endeavors!

 Great post! The only thing I would disagree with is waiting until 3 months until ready to purchase to talk to an agent, though I know why you suggested it, because many busy successful agents won't make time if the person isn't ready right away and will write of the possible client, some agents like myself on the other hand care most about the relationship first and want someone to reach out to me as soon as possible so we can build our relationship and trust so when the time comes to pull the trigger on that investment I already have a great idea what they want and how they operate so I can help to the best of my ability. I also unlike the average agent, like to help my clients learn before they invest. It's good for me, them and the investing community as a whole. 

Long distance investing in D-F in my opinion not a good idea, possibly a better idea if you live in the same city and can have more of a hands on approach. I actually have an investor friend who lives and invests in the same neighborhood and he does amazingly well because he is known and respected in the community and knows exactly how it handle any issues himself. For me it's a definite no at this point, however I would passively invest with my friend as I believe in him and trust what he's doing. 

 What would the purpose of your website be?

David Greene wrote a great book, Long Distance Real Estate Investing available at the BP bookstore. Also as some have said, find a good trustworthy realtor and or property manager in the locations you are considering as they can be great resources for deals and local information. 

The Midwest including Ohio is a great place to invest. Just be sure if you move here that your really ready for 4 seasons including lots and lots of snow. 

My only advice is to make sure you are as knowledgeable as possible about any rules and things you have to follow regarding the local governments rules as I hear sometimes they can be strict. 

 Hey Jessica, I hope as a fellow real estate agent and someone who has several investments, (and am a Veteran also)  you won't take this "tough love" the wrong way. I have seen your comments about getting multiple other specialties and schooling and licenses, and I was there at one point also wanting get every license, learn everything myself, and do EVERY project I could to "save" money and I thought at the time, make things easier for me. The truth is all it did is cause lot's of overwhelm and I almost quit. Then I heard a quote from Eric Thomas (Known as ET) and he said. "The wealthy think, and the poor labor". This changed everything for me. Now nothing is wrong with doing and having careers in the trades and laboring to make an honest living, but even, lets say a plumber who decides they want to create a huge plumbing business, has to decide that they are going to stop doing all the "labor" and they have to focus on "thinking" or in other terms strategizing for the business growth and managing and hiring people to do the labor while he builds the wealth. So I am not sure what you want to do or build, but if your anything like me (and it seems that way by your posts) you should focus on what gets you closer to what you want and your goals, and learn to manage and let those who already have the skills and knowledge do the "labor". I hope this helps, and feel free to reach out anytime. 

Real Estate comes with risk, as do most things that are greater pursuits then average. If you don't feel comfortable then you should consider using a PM or just not doing this business. I don't mean to sound insensitive, but we mitigate risks as much as possible and accept the rest as risks of the business. 

What a beautiful place! I don't have a lot of advice as I don't yet understand the market in Arizona, however we love Arizona and might book a stay!