All Forum Posts by: Sohrab Ansari

I say give yourself a break and keep actively searching for deals. We've bought 2 slam dunk deals in 2 years and nothing else. The cash you have is power. Use it to offer less on properties needing little work and a short close time. Our current BRRRR cost $116,500 (ARV $350,000) and we won it with a 2 week close and cash purchase. There's nothing wrong with patiently waiting for something great to come along. You never know a seller's reasons for selling. We bought one property below value because we agreed to take good care of the tenants and not raise rents until warmer weather arrives and because the tenants liked my kids. Pick good locations, make aggressive offers, and be patient.

Good worksheet.  Couple of comments on Sterling Heights:

• You are paying 14.25% in management fees.  Many of us pay 8% with no lease up fees.  This will be market and management company specific.
• Charge the $100 in utilities to the resident (if that's typical in the market)
• Property taxes are high...we have the same issue in SC
• Not sure what is in Other
• $15k is a healthy amount of rehab to have to perform with no increase in the property value
• 60% expense ratio is on the high side for a $1500/mo rental.  It may not be far off but a few tweaks may get it closer to actual.

Dearborn

• Same comments as above.

If the property values are increasing with the rehab, that's part of the return calculation.

Need to run a hundred of these and most of your questions will be answered (and you will be giving others advice).

Hope that helps.

What I have realized observing others and my self is that when people don't do what they need to do despite having all the resources they have 1 of 3 things really holding them back:

1) Don't have a big enough why

2) Haven't defined their goal and created an action plan to implement it

3) Have unresolved fears and confidence issues

Though I think having a big enough why will produce the energy to resolve most issues obstructing our path to success I believe working on #2 & #3 will yield the biggest benefits for most people. Every body I know has a big goal and dream. They just haven't gotten around to making their dream a reality because of  #2 & #3.

What I suggest is that you start with #3 (unresolved fears). Sit down and have an honest conversation about your fears. Be sure to list all of your fears no matter how small or petty they appear. Next to each fear write what you would do if it came to fruition. Its amazing the stories we make about our fears. With your fears identified look for simple things you can do to break them down. So if you fear the potential financial burdens of owning Real Estate start by looking at homes, valuing them and coming up with cost estimates. If you fear dealing with tenants moonlight as an assistant Property Manager or temp as a Leasing Consultant. Do this for each fear.

For #2 (undefined goals) I would suggest you create a SMART Goal, create an action plan to get to your goals and brainstorm ways your goals will be sabotaged (from you, people you know, resources you don't have etc.). With each sabotaged goal item come up with creative solutions to over come them.

Some resources I recommend: 

For a great Lifehacker article about ways we sabotage our selves (also check site for other great thoughts):  

https://lifehacker.com/5928698/how-our-brains-stop...

12 Week Year (a book with great content on the creation of action plan but a bit wordy):

https://www.amazon.com/12-Week-Year-Others-Months/...

Make your Shift (Great book about creating goals and breaking them down into manageable pieces):

https://www.amazon.com/Make-SHIFT-Powerful-Moves-W...

I hope you have a successful 2018!

You are answering your own question on what is keeping you from doing this.  You need to analyze deals and make offers...my earlier post was direct and intentional.  If you run your financial analysis and post it here, we can help.