All Forum Posts by: Paul Faryna

Thanks for this great analysis! Any updates on your thoughts on Gastonia or other areas around Charlotte?

To people that are successfully running VR, do you see the great returns in tourist cities mainly (close to beach, skiing, hot city) or in boring areas as well (conferences, weddings, etc.)?

@Dave Van Horn thanks for the advice! I didn't know about CRS, but checked it out and will contact anyone I find there. Unfortunately, doesn't look like any investor specialists for the area I'm looking at, but still may be useful.

Thanks for the tip @Account Closed! Is it abnormal to ask so many questions when starting a relationship with an agent?

@Account Closed, It all depends on lifestyle choices. I'm not sure why so many people don't believe living off $40k is possible when it is EASILY possible in one of the richest countries in the world (the US). Let alone other places. Yes, that means you don't buy a new car every 5 years. Or eat out 5x a week. Or buy tons of stuff.

Thanks for the info on passive funds, I'm actually not too familiar with those!

Quick Goal Summary: I'm looking to invest out of state for cashflow. The most important thing I keep hearing about doing this is vetting your team. I'm speaking to ~ 10 agents to vet them out and want to ask the most important questions. Please comment on any important questions you think I may be missing. Here's my list, hopefully someone else can find this useful as well!

What got you into RE?

How long have you been working in RE?

What's your big picture goal?

How many investors do you work with?

Do you work with investors looking for cashflow?

Do you work with any out of state investors?

What price range of properties do you have experience with?

What areas are you most familiar with?

Do you walk any areas?

What areas do you stay away from?

What are the major benefits & challenges for investing in this area?

Can you do walkthroughs with video/pics?

What would be your advice for a new investor?

Can you tell me about a time you bought an investment property that didn't pan out?

Why don't you invest in RE?

How often do you get off-market deals?

Do you have contacts with contractors, property managers, inspectors, lawyers, accountants, bankers, or any other professionals?

Can I get an investor reference?

What are the normal hours I can contact you?

Why wouldn't you want to work with me?

1 of 2 options. Either the article is BS or everything I've learned about RE in the last few months is BS.

If you want to be crazy rich, yeah, go start a software company and move to The Bay. If you get lucky and work hard you'll strike it rich. Other paths to get you there include Vegas or the lotto. I've read about Angel Investing and you can expect returns of ~20% on average with a portfolio of $1M to invest. Got less than that? Stay out. Seriously, this is what David Rose who has a vested interest in getting you to use his platform says in his book many times. Basically, your chances of your business hitting it big are very low. And that's if you're a savvy investor who's great at evaluating founders, businesses, and deals.

The article states you need $800k to make $120k per year in RE giving 15% cash flow. The great part is though that you can start with much less. The other great part is that's only cash flow, total returns will actually be higher than the average business which super savvy investors vet and invest in!

Oh yeah, and nobody NEEDS $120k/yr. Fact is that you can live better than 99% of the planet for $30-40k per year. No, you don't need a 72" curved TV that massages your retinas or the new iPhone 7 which is slightly water resistant.

I'd rather take my 15% cash on cash plus gains on equity and appreciation over worse returns in other asset classes (public and private equity, bonds, etc.). Oh yeah, most people retire after 45 years of working, with RE you can more than halve that time. Who's complaining?

Am I missing something?

@Mark Nolan thanks for the recommendation, haven't read that one yet!

I've been reading a couple books, TONS of articles, and many podcasts (on 2x speed of course). Any other resources are well appreciated. I'm starting to see a lot of the same info over and over which I figure is a good sign that I'm learning the basic theory well.

Soon it will be time to take action!

@mark Nolan thanks for the recommendation! I've been reading a couple books, many articles, and listening to podcasts but haven't seen this resource.

I feel this is getting off topic. Again, my goal is not to live in the Bay Area permanently. I'm not sure what Pollyanna is so I can't comment there. In most of the US a $40k budget is much more than what is needed to live a luxury lifestyle. Plus, I'll still be hustling on the side as I will be in my 30's. If RE is fun enough I'll keep doing it. I also have many business ideas that I just wish I had more time for. Heck, if I love my job I'll keep working there! The point is I won't HAVE to work there ;)