All Forum Posts by: Ronan Donnelly

@Carlin A Guarneri, I have a few ideas/thoughts for you

1) Can you leverage short term rentals to give you some income while you find a longer term tenant?

2) Credit scores aren't the best indicator of what makes a good tenant. I would be willing to select someone with a low credit if they had demonstrated that they continued to pay on accounts that were behind (and dragging down their score) rather than giving up on them

3) Section 8 - I have had a positive experience with Section 8 whereby the tenant quality has been better than I have found on the open market

Good luck!

Hi @Timothy Hero and welcome to BP. One of the areas of BP that I have personally found to be most helpful is about how to condition your mindset and to set goals. Setting big tragets is a great way to stretch yourself, but it isn't enough. Start with understanding your deeper motivations, your "Why?". Once you understand that you will have greater clarity and purpose.

A few other things

1) Having $50m of assets doesn't imply success since they could be underwater and negatively cashflowing. What you likely really want are equity growth and cashflow

2) Work backwards from the 'big' goal and understand what you have to do to get there e.g. buy x units that cashflow $y per month

3) Set some interim goals to give yourself small wins. It can be easy to give up when we are far away from our goals and hit resistance. The path to success is non-linear and you will need a strong mindset to push through to the part where you experience rapid growth

Good luck and don't forget about me when you are worth $50m!

Hi @Mike Mefferd, I think that it is wise to consider all of the different options to improve NOI whilst also gaining a marketing advantage of being environmentally friendly. Are there any subsidies available for efficient energy options that you could avail of.

Another related way to increase NOI whilst gaining the marketing advantage of being environmentally friendly would be to offer fee based electrical vehicle charging stations.

Great advice, I second that! Good luck.

Hi @Danny Lee, you sound like a great son, your parents clearly did a good job of raising you. I'd suggest breaking things down a little bit, especially why it is so important for your parents to 'own' a home which is definitely a liability, however it may mean some security. I'd also challenge you to think of the house hack as a step towards a goal, rather than the destination. Why not do the house hack first and then buy a home for your family once you have got more equity and cashflow in place? 

You might find this recent article very helpful in changing some of your assumptions on the housing market: https://www.economist.com/special-report/2020/01/16/housing-is-at-the-root-of-many-of-the-rich-worlds-problems

Good luck and PM me if I can help you.

@Josh Eccher, the most impactful experience you could get would be to work with the kind of person that you want to become. Simple, good luck!

@Brendan Chisholm, great story and lessons, thanks for sharing. When you are rely on money from accredited passive investors you have to deliver upon your projected returns or you will likely be out of business. Getting out of what turned out to be a bad deal was definitely the right move. Congrats on having the fortitude to make the right decision for your investors and for your business.

Hi @Gregory Halliday, congrats on getting ready to take the first step towards building yourself a second stream of income! My advice would be to go for the house hack option, here's why:

1) You can never count on market appreciation and in a world of historically low financing rates I would suggest that asset prices are sensitive to a downturn

2) You can much more reliably force appreciation by by improving an asset

3) If you focus on assets that need improving you are much more likely to get a below market deal where you will have instant equity at closing

4) You can get much better financing terms for a property that you buy personally rather than an investment

5) You will ultimately be a better investor if you have some hands on experience

6) You will get better returns on the house hack because you can avoid paying property management fees

etc.

Good luck!

@Shane Shaddox, for that size of deal the costs of setting up a syndicate are likely prohibitive. Why not go with a joint venture or simple partnership? You can adjust the split of the returns any way you want. A very basic example would be a 50/50 split between two partners, one of whom brings the money and the other who finds and manages the deal. Good luck!