All Forum Posts by: Robin Pentecost

I loved this post! Have you listed to episode 635 of the Bigger Pockets podcast? Sam Primm talks about the process and how he pitches to investors and how he builds the relationships. It sounds like he started out like most people, so it was so inspiring to hear someone tell the story of how they went from average dude to 20 million. 

I’m closing on my first deal this Friday! If I can find one, so can you! Keep looking, keep reading, and find other creative people who make stuff happen. Great stuff happens in bad markets all the time so don’t give up

Thanks!!! I appreciate that

I’m seeing houses on zillow that are foreclosed and the asking price is above market value. Is that because more is owed than what the house is worth? 

Thanks Jared! I was afraid that would be the answer haha. I’m going to keep searching, keep learning, and hope a path opens up! 

Oh—and he says you must have at least 1 bathroom to every 2 people or life gets bad. Overall, you wind up with less capitol expenses though since you have more rooms rented and fewer roofs/plumbing systems/etc. You also have to find a neighborhood with no HOA and an area that won't complain about you doing this. Lots of barriers, lots of systems, but could be very rewarding financially and able to enable young professionals to live closer to employee entrance and save a ton of money. Win wins maybe.

Hi Patti-I’ll do my best to explain. Sam Wegert treats single family homes as though they are multi family properties. He looks for high square footage and tries to fit 8 bedrooms into them and then charges by the room. A house that might make $1000 winds up generating $4000. You can raise the rent $50 per year per month, which adds $400 per month per year. It also allows each renter to save a ton of money since they are only paying to rent a room. He only rents to young professionals and his company provides professional development support that puts them in the mind frame to save money and eventually be able to to buy their own homes (I love this!!!!). Each room gets a lock. The common area is furnished by the investor. The investor pays for electric, WiFi, water, and utilities. To reduce drama, refrigerators get each shelf labeled for reach roommate. The lease has a bunch of extra rules so that people fight less. Most property managers want nothing to do with this, so thats’ the barrier I’ve got since I don’t want to manage a property myself. I would listen to the podcast though—I would love to empower people to have great housing in expensive areas. 

The price of fresh, good healthy food is probably going to keep going up. Food is one of our largest expenses. My young kids and I are growing our own vegetables. We also picked up a few foraging books too and now eat many wild greens, nuts, morales, tubers, and high nutrient content plants for free…and it stops us from getting fat too so we will have less health care expenses in the future. 

I’m trying to find a niche in an area that other investors don’t love so that I have less competition. Single family houses are more expensive than many of the 4 plexes that I’m watching. The 4 plexes also cash flow better and some already have tenants in them. 

The problem is that most of them are built between 1880 and 1920. Some appear to have partial rehabs done before being put up for sale. My guess is that they were money pits. 

My dream would be to buy them, make them look beautiful, force equity into them, and rent to college students or young professionals and cash flow at 200 per door. I know nothing about rehab, or the risks of buying older properties, and I wonder how I could make this work. Anyone out there successful in this area? 

I just bought an intention journal and I’m waiting for it to come. I hope that by systematically making a plan for each week, I won’t get stuck. I’m still scared and still not 100% sure where to start, but I plan to interview multiple loan officers, multiple property managers, and keep talking to other investors, and keep practicing how to analyze deals until something clicks.