All Forum Posts by: Ofer Eyal

Not really @Hannah Reichert.

Two years is a long time plus plans might change and you can end up living there a decade or two.

Question to you: what are your "yeses", why are you considering getting into a business relationship with a neighbor?

Hi @Elizabeth Beard How to work with a contractor (including how to pay him), is a big subject, far beyond the scope of a forum post and I highly recommend getting yourself thoroughly educated on it. 

In short, and risking being very superficial, it goes like this - you reach a prior agreement on the different elements of the rehab and much each should cost. Later you use this during the rehab itself to agree on the next chunk of work about to be done and you pay in advance only for this chunk according to the price agreed when you signed the contract. 

This allows you control over the process and the contractor the financial freedom to do the work. 

Again, this is a very bird-eye-30,000-feet look at the process. 

There is a beautiful and deep reference to this entire subject of how to choose and work with contractors in David Greene's book Long Distance Real Estate Investing. My advice - read it. This is a complex subject that can easily make or break your ROI. Approach is when you are prepared.

Hope this helps!

Never, like I wouldn't date at my workplace, or do business with friends. The risk isn't worth it. 

@Breahna Sutton Hi and welcome. 

In a volatile flippers market I'd look for markets that are good both for flipping and BRRRR (as exist strategy in case the market goes down in the time between buy and sell).

Bare in mind that different classes may mean different locations. Like DFW TX might be a good market for flippers with min of 500K budgets while Atlanta GA might accommodate those with 150K on the same grade of neighborhoods.

I love it that you reach out to your intended audience for gauging the needs.

Good luck!

@Nate Desmond There is risk here and you should ask yourself if it is a. containable, b. worth the benefit and c. what are you willing to pay for it.

To answer a. you should ask yourself what is the result of a catastrophic outcome and if you can contain it? Like is this your only REI property or one of dozens? If the former - this can have a serious impact on your overall investment. If the latter - this might be a bump in the road..

If the answer to a. is 'yes' then move to b.: ask what do you expect to profit from sticking to this property and is it worth it to take a risk. If still 'yes' move to c. an ask what premium do you expect the seller to give you (i.e: discount) to make it worth your while should summer comes and you find out that not only you have 10,000's of non-paying residents in the house but that those are literally eating into your equity...

Get expert advice on this from people who specialize in termites - both on risk, damage, feasibility of containment and cost of repairs. 

REI is much about risk management.

Hope this helps and good luck!

@Robert Kohnfelder There must be drawbacks, as there are drawbacks to any strategy... I think there is a better way to face this: find people who are really successful at handling investments of bigger houses, especially buy-and-hold, and pick their brains on how and why they they do it.

Then, ask them, and only them, about the drawbacks and how they handle those. The rest of us - what do we really know about succeeding with this if we chose to go a different path?

@Jim Piety in that case, I'd consider moving the investment to somewhere where BRRRR is a viable exist strategy. Don't limit yourself based on locality and for sure don't cut corners giving up on an exit strategy.

A great resource to look at is "Long Distance Real Estate Investing" by David Greene. 

Hello @Hannah Givens and welcome

Everything @Chad Rocke wrote with one addition regarding #4 - don't just purchase, actually read. Tapping into the minds of experienced investors is priceless. 

Also, set a date. Commit to a date within say 9 months where you want to move to your new house and put it in your calendars. 

Good luck you guys!

@Robert Kohnfelder I would look at the market and region and see that there is demand for 4 or 5 beds. Also, if there is demand, and you end up becoming convinced that you don't want to handle big families as tenants, consider flipping.

Sounds like you might have hit gold. Rejoice. 

And congrats for the upcoming wedding :)

Honestly @Joseph Borges you sound like a super productive person and run what can be a very successful business. Part of growing is to identify your strengths and stick to them, and find those who are strong where you're not and let them carry you to greater success. 

In short, if I were you I'd hire someone who's super good at organizing so they could free me to do more of what I'm great at.