All Forum Posts by: Stephen Robertson

@Alfredo O.

Late reply, but in case anyone else is looking for the same information, I usually find these offers by searching "garage sale" on craigslist... might also try asking around at the local flea market.

@Cameron Lam

Just wanted to say that cozy might be a better way to manage your rent collection than venmo. I started several months ago and love it.

...or you could have someone buy you out of your position so you don't wait a year to realize your profits and move on to the next. I'm active in the Lubbock market, give me a call; looks like you might have deals I'd like and vice versa.

I should've added: what's your exit strategy? Are you looking for flips or rentals? Just because the property doesn't fit your model, doesn't mean it won't fit someone else's. If you've already done the research and leg work, put the offer in and then wholesale it or get a partner that likes that property.

@Drew W. I think this is a great question/discussion thread. One thing to keep in mind is the area in which the house is located. If most of the houses on that block only have window units, consider whether or not this is the norm and therefore acceptable for that particular neighborhood. You'll want to consider the long term cost of window units as well though. They can tend to walk off and do occasionally need replacing; lower concern and cost in a 2/1 than a four bedroom house with two living areas. I'd also look into a mini-split as well. It is much more difficult to recoup the cost of installing central heat/air in a smaller home, especially if the ARV is a low price per sf; this is where you'd definitely want to consider the mini split option (the smallest ones even come as a DIY kit that doesn't require an HVAC technician as they come with a pre-charged line).

On the flip side, this can be a good negotiation point. If the neighborhood has mostly central heat/air homes and has a large enough ARV, you could be getting a deal on something that all the retail buyers (and some other investors) are overlooking as well. One thing I need to get better about is always make an offer if there's a number that will work for you. I've walked into open houses of homes that I knew were unlikely to accept my offer, but I write it down and hand it to the agent anyway. They're required to present any written offer regardless of how they feel about it (though some don't). I've had offers accepted when brokers tell me it's not possible and done things realtors tell me "can't" be done etc... Make your offer, and if it's still on the market 30, 45 or 60 days later, submit your same offer again. Repeat this until it's either sold or off the market. As time goes by, they'll likely increase in motivation. That same offer that keeps coming back will start to look better and better and they could accept or counter. You also have the added advantage of letting the listing agent know that you're serious and they may start looking for deals for you.

Summarized, look for opportunities when you see obstacles; this is a numbers game. Go with the number YOU need to make it work, not the asking price. I've made offers as low as 34% of asking price. It only has to work once to be worth it.

@John G.

One thing I've started doing is converting all my locks to smartkey locks. All vacancies will use the same key. I'm olanning to start using only 3-4 keys for occupied properties and just keep a record of which one is which (A, B, C...). This will allow me to change one keyed to the A key to B or whatever system I decide, etc. This will keep the previous tenant from having access (unless they wait several years). As long as your rentals aren't right next door to each other or duplexes and such, there shouldn't be much issue with a tenant realizing their key works another door across town.

Ouch, some of these replies were a little harsh. While I don't disagree with the content anyone delivered, you gotta give people time to develop a thick skin. Most of us take a lump or two every once in a while, but that's the best teacher anyone can have.

OP did mention other reasons, but without that extra information, nobody can really provide an earnest opinion or adequate advice.

For what it's worth to anyone else who stumbles across this thread, I've found that the best way to increase your risk tolerance is to keep pushing it. Finishing up the biggest rehab I've ever done, now I'm on the hunt for package deals... pushing your comfort zone can become fun.

@Kaden M Jackson

You make more doing that (usually at least), but your management time and expenses will be higher. Do your research and talk to others with experience to determine if it will suit you.

I'm actually planning to enter this market soon myself.

@Jake Thornton

I think the biggest thing being overlooked here is resources and personal comfort. Your friend doesn't have the real estate investment knowledge that you do, or the comfort in dealing with a hard asset vs. paper asset. Similarly, he likely has a higher understanding and risk tolerance for stocks than you. Instead of looking at one being "better" than the other, you should try to learn each other's methods so you can decide to implement the other's (or not).

I'd personally choose the real estate every time because I understand it better, I'm more comfortable with the risk, and I'm passionate about it.

Sounds like you've decided to take this plunge, don't get distracted by someone else's shiny objects. If you're willing to get into this knowing that you may make some mistakes, but will embrace those as learning opportunities, then you're chances of succeeding should be very high. I've probably made at least one mistake with every purchase thus far, but I consider it on the job training and wouldn't change my decision to invest in RE.

@Dustin Morgan & @Jerryll Noorden

It's no secret that Jerryll loves SEO (read many good posts from him on the topic). One thing to bear in mind is that everyone's resources are different. I'm not just talking about time and money. You have to evaluate ALL of your own resources. This includes your personality, strengths (and weaknesses; find out how to overcome your own weaknesses - be it hiring someone to fill the gap, overcoming it etc...), GOALS (some people may like working 80 hrs/week and the thrill of the chase, others want more time at home with family), desire to work alone or on a team,knowledge... the list goes on indefinitely. If someone isn't tech saavy enough to learn and implement SEO quickly and can't afford to pay someone else to do it for them, it isn't the best option for them. While the cash-on-cash return might be higher than the method currently being used, if it requires you to study full time for 9 months because you're not particularly inclined to that skill set, then it could end your career and/or motivation. Also, look at personality. Jerryll has a very polarizing personality (extreme best/worst point of view). This is a very effective marketing method that suits him well. It doesn't suit me well because I'm not a very polarizing personality type.

I've used SEO poorly in the past, and plan to use it again in the future. When I do, I will have someone help me learn (Jerryl would be one of only 2 people I consider if he's still teaching). Evaluate all the advice you receive against your resources. I would suggest that anyone wanting to grow in noth business and personality do some research on self-awareness and emotional intelligence. This will make you more effective in negotiations, but more importantly, help you realize what your strengths/weaknesses are and how to utilize or compensate for them, respectively.

Ex. I was originally taught to incest usuing a W2, houses were only a stepping stone to passive apartment investing. When I left my W2 job, a friend from high school that manages my apartment complex (he's a multimillionaire at this point) told me to go get another job asap so I could build wealth by xontinuing to buy apartment complexes as a passive investment. My resources changed by not having a W2, so he felt I needed to get that resource back. I refuse to do that because I love working for myself too much. I'm trying to build a businees that I want to work in, but allows me the flexibility to take my 2 year old for breakfast every Monday morning, or Friday afternoons with my wife and son at the park, etc... again, GOALS and desired lifestyle are part of your resources requirement. This may mean trying a few things to determine what you like and don't like and where your strengths/weaknesses lie.

Hope my WAY too long of a reply helps someone in determining their own marketing direction (and investment strategy).