All Forum Posts by: Rob Gillespie

@Jim Goebel I COMPLETELY agree about TRUE FEEDBACK being taken into consideration. I ask for it frequently, however the folks that I accept it from have a true understanding of every side of what they are giving advice on. 

For example, I love my mother, could not have asked for a better one. Honestly, would not be in the business today without her. With that said, the advice she gives me about business and how to earn a living is really coming from a place of her own fears and not from actual real world experience. 

I sell investment properties, when I tell some folks that at a cocktail party or networking event, they instantly go toward how bad of business it is because tenants will tear the house up and if they do not pay, it takes forever to get them out.  When I ask if they have had that experience, they usually tell me it is what they have heard. 

So in short. YES- ask for advice and feedback frequently, but make sure it is a reliable source that is giving you the advice. 

Jim, I do appreciate you asking me to clear that up. I am much better at talking than writing and I can see how that would have been misinterpreted. 

@Linda Mukes welcome to BP!

That is great that you and your husband will work together at this! It makes it much more fun. As your husbands role in this business, your goal is to find the best deal possible. I would suggest getting involved in a local REIA group and really marketing for off market deals.

I would set some goals to talk to at least 5 sellers per day and make them a written offer. (if you are not embarrassed of the the offer you are making, you are offering too much!) Get the good deal FIRST, your buyers list will take care of itself!

The lack of offers is the biggest mistake new investors make. 

Sorry, didn't mean to preach! LOL Welcome to the site and good luck!

You can pass it off to the contractor in the contract, but at the end of the day if there is a run in with the city, you will be standing in court along side of him or her.

@Nick C. I believe they are both right. If you are going to be in real estate, it will not hurt to have every aspect of your life involved in it. Walking dogs may be fun, but you will have more opportunity to network with other players in the game working in the business. 

Your rich dad is correct too. It is what ya make it out to be. you can do this quickly by aligning yourself with the right people. You will live up to the environment that you are in, sort of like a fish in an aquarium. it will not outgrow its home. 

Perhaps ask your "rich dad" for a property job in the business helping him with his properties. He must have a team if he has nothing but free time. Ask to help him out. 

Just my 2 cents! Good luck!

@Tanner Marsey I remember as a kid reading BMX magazines from Huntington beach and there would be kids on their bikes next to the beach with girls in bikinis next to them, and we were all riding around old residential neighborhoods, LOL (so already jealous of where ya live!)

Now to the question! The first thing I would ask you to do is make sure your numbers are correct with expenses on the property. I do not deal with ocean front properties, but are there any hidden maintenance fees that my be needed owning a home on the water? In the Cleveland market, I always use the 50% of gross rent rule. So if your house will make you 1k per month or 12k per year, the Net Operating Income is 6k per year. take the NOI and subtract your principal and interest payment from that. This will give you a good idea of actual loss.

Overall, if you have the funds to do it and you see the market going up, I would consider doing it. Waiting until it is already back makes it not affordable. 

I would also look at the number of rentals there and the demand for housing there. You can figure that by using Craigslist. Run an ad and see what type of calls ya get. 

You may even consider Air B&B.

Good luck! save me a guest room when ya buy it!!!

@Joshua D. Congrats on your accomplishments! "Money with no brains" is a broad statement. 

What is the definition of "no brains". Is it lack of  college education? I would challenge any professor at

an ivy league school to step in next month and manage your portfolio and lets see how it goes. 

My kids will come home from school and tell me how "smart" another kid is in the class.  I always tell them that because someone has the capacity to memorize a fact and recite it on a test is NOT inelegance, it is a good memory. 

True Intelligence is the ability to reason and problem solve and I can not think of a better way to showcase your intelligence than managing a bunch of rentals!

My mother is the one that always told me to go into real estate and have a rental, then told me to get a good union job with a retirement plan. I did EXACTLY what she said, graduated  high school and got a great union job making 50k per year with full benefits and  a retirement plan.  When I took my real estate to a new level and QUIT MY UNION JOB, she cried! To this day I have done more than 1,000 real estate deals and my mom will still tell me about other family members and how great they are doing because they got  a promotion at work or worked a bunch of overtime and made 90 grand that year and NEVER recognizes what I do or what I have accomplished. 

My point is, I do a nice job at not valuing the opinion of others, I am on my own journey and if you are with me then great! If you have negative things to say toward me or are not supportive, I simply do not validate your opinion. I may like or love you, but could care less of your opinion. LOL

The A students work for the C students

The C students own the company and rent their space from the D student. 

With all of that said, I am sending my kids to college, but they are expected to have a plan going in! It is a means to an end, graduating college is not the end goal. 

Ok, I will get off of the psychiatrist couch now! LOL

@Joey Hampton Black mold is a term that is over used in my opinion. 

I am not an expert, and of course consult someone that specializes in this. ( my don't sue me disclosure, LOL)

I see the word "Black Mold" overused so often in this business. There are several types of mold and not all of them are black mold.  Mold needs to feed on cellulose which is paper or wood. so it would not feed on caulk or a fiberglass tub insert. 

My belief is that is mildue and can be cleaned up pretty easily. 

When doing a rehab, I live by the motto. "When in doubt, rip it out". 

Hope that helps a bit. Good luck!

@William Warner Welcome to BP! My wife is from Beaver PA, not sure how close that is to ya!

This is a great site, you will love it. Wholesaling is a great place to start. My one piece of advice for wholesaling is 

to not focus on your buyers list... it will build itself with a good deal. 

Focus on finding the off market deal before anyone else gets it, that is the secret sauce!

As I said in other wholesaling threads, I will be happy to share my purchase agreement and assignment of contract that  I use when I wholesale.

Just PM. me. 

Good luck!!!!

@Ron S. CONGRATS!!!!!!

The first one is the toughest, but now your on your way!!!

If ya ever think of doing anything in the Cleveland Market, let me know!

Also, I am sure with the amount of research you have done you have researched Self Directed Retirement accounts, it is a great way to hold rentals. 

Good luck with your new adventure!

@Amanda N. I think it is great that you are considering ANY deal! So many never take the first step, so CONGRATS!

Now the deal... 

I think Expenses at 1800 is pretty light for a 10 unit. That size building can be tough. Vacancies are higher, Dumpster for trash, lawn maint. ( i guess ya dont need snow removal, LOL) How about Air Conditioning? are you cooling common area? Are bed bugs an issue in that part of the country? 

My point is, it is not a BAD deal, but I would probably not jump into a rehab on a 10 unit right out of the gate. 

The monthly expense seems low and the rehab can go over budget and timeline pretty easily on a job that size. I would need to see pics and detailed bid for rehab to get a better idea, but 60k does not go far on a 10 unit. 

Good luck on whatever ya choose to do!