All Forum Posts by: Anish Patel

@Chris Nance  I like the suggestion of read rich dad poor dad first if she is willing to read it.  Or get it on audio and play it in the car whenever your together.  Its first about changing her mindset.  I make my wife listen to bp podcasts in the car when I drive (cuz the driver controls the music!!) and she has come to enjoy them.  I think the success stories of others are a big help.  Also you need to identify the objections or fears she has about investing.  I would guess that a lot of it is lack of knowledge and preconceptions she has.  Need to overcome some of those little at a time.  "Systematic Desensitization" :-) is the official psychology word for it I think.  Put as much positive emotions around real estate investing as you can.  Possibly another objection maybe she doesn't think you are ready or have the right tools yet.  Fake it till you make it some say.  Start going to the investor meetups in your area,  Maybe take her along.  Hopefully she will turn after all your attempts.  Finally offer a bribe.  Sometimes that is all you need.  Shoes, new dress, mini vacations, put some positives in for her for being on board.  Hope some of this helps!

@Melissa Gittens We really like buildium.  We manage around 70 or so units.  Haven't used the others, but I've seen overtime how buildium is making great efforts to constantly improve the software and make it better.  We really enjoy the tenant side management.  We think it is great for 3rd party management, but have had some challenges with managing our own rentals in some aspects with lack of certain accounting features.  Best of Luck!

@Greg Lott I've had days where I think, why did I ever invest in the city.  Tenant screening is crucial.  Over the years I've learned its better to wait for the better tenant when renting in the 400-700 range.  I've rented to fill vacancies when I shouldn't have, which i have regretted but think is all part of the learning curve as you grow.  But its a great learning experience.  Best bet is to buy right.  I think the 3% rule is better goal for city multi units.  If you want to see some real financials, I have a few multis in the city and would be happy to share.  PM me if interested and we can meet up.

@David Krulac I have a group of 7 town homes in Hershey under a partnership that I would like to buy out and get all under 30 year fixed mortgages under my name.  Do you know any lenders locally or out of state that would do something like this?  Do I have to buy one at a time saying its my primary residence or will a lender work with me to get all 7 as 30 yr fixed.  Currently all but two are rented.  All seven average at a 225K purchase price.  Any advice? Thanks

@Camille Frederick  You don't need any mentoring programs.  All the info is free.  Just need to seek it out and want to learn.  My steps

Step 1 - Listen to all the bigger pockets podcasts from day 1 and continue to be confused on where to start. Its a lot of info to digest, but lots of good knowledge.  Read books that they recomend on the end of the podcasts

Step 2 - If you don't know where to start, no worries, get a job and start saving some money.  Preferably a job that teaches you how to fix things in homes so you can get some knowledge and build some contacts with contractors.  Take some classes on plumbing or electrical or HVAC etc..

Step 3 - Find your first house hack.  Get a traditional 30 year loan, put as little money down as you can.  This is the cheapest investment money you will ever get.  Find a fixer upper, duplex etc.

Step 4 - Try to find ways you can be valuable to people in the real estate industry.  Seek out people and ask them.  "Is there anything I can do to bring value to you so I can learn more about real estate investment"

If I was 21 again this is the order I would go in.

@Adam Hays The BRRRR Goal in my opinion in an over simplified example

1. Buy Property at  good discount - lets say 60 K as it needs a lot of work.  Put 6K down of your cash and borrow finance rest of 54K from mom (So Far 6K cash in)

2. Fix Property, Renovate and rent (lets say 20K Cash Borrowed from Grand Dad) - Total investment 6K from you + 54K from mom and 20K from Grand Dad 

3. Refinance, property appraises for 100K, rented for 1000/ month.  Bank gives you 80 K Loan. And you have 20K in equity for your work

4. Use 80 to Pay 54K back to mom.  6K back in your pocket and 20K Back to Grand Dad

5. You now have a rental property giving you some cash flow and 20K in equity with 0 money down and you got everyone's money back to go find another house to  BRRRRRR 

Sorry for the late response everyone.  I appreciate all the advice.  A different investor group grabbed up the package but from what the attorney told me they paid too much as they wanted to rescind the offer after it was already sent and accepted.  Ouch for that group :-(  I was also on vacation in India for a few weeks so I Iet the deal go as they wanted a quick closing before the year end to get it off the banks books.

PITI and HOA $650 sounds about right. You will have to add some for Mortgage Insurance. I'll assume the property is in decent shape. HOA takes care of outside things. If you can house hack/rent the place for 900/month total I think you'll net $200-$250 without taking into account property management and vacancy and other things you will eventually think about. It doesn't register high on the risk scale in my books. Your going to House Hack (best way to start out in my opinion) so you will be at the property and taking care of it all. I don't consider this anywhere close to a home run, but I think the risk is easily manageable here. Your getting cheap money and putting very little cash into the deal while house hacking so I would go for it. The only thing I would hesitate is if the place needed a lot of work. If that's the case then I would say no. @Darian RichardsonLet us know how it goes with this one

@Darian Richardson  One of the overwhelming things you hear when listening to the podcast at the end is that Action is a big factor in  a person's success and path to success.  Those who do not take it sometimes never will.  From your own words, it seems that you have been searching far and wide and this is the first property that you have found that fits your expectations and formula.  I say go for it and use it as your learning experience.  I have made many bad deals early on but used those lessons as a springboard for the next deal and the next deal to make them better.  Most deals are made when you buy the property at the right price.  If the numbers seem to make sense then I would go for it.  If you want more feedback, post all the numbers that you accounted for and people will tell you if your missing anything.  Good Luck!!

@Vicent C. Maybe try getting a LOC (line of credit) against the equity you have in your house and keep it ready. As long as you are not using the line, you don't pay anything on it and when you do use it the payments are interest only so its cheap money. Save a little more, keep the LOC handy and pounce when your ready.