All Forum Posts by: Sean C.

@Jona Wells One thing you might want to think about, is what do you bring to the table, in a mentoring relationship? You should offer some tangible value or benefit to the person.

In many cases, it’s money. Maybe you are paying for it, thats your skin in the game. Of course it may be another value you bring, like doing things for the mentor, like an intern, or finding them a great deal that benefits them greatly.

Most mentorships are not one sided or there for the grabbing/asking. You might want to think about what makes you stand out from the crowd?

What have you done to invest in yourself, in your journey?

Good luck.

Best,

Sean

Bigger Pockets Property Insights tool has been useful, even if it's not perfect, it does list known ads, and it indicates the confidence level that it has in its valuation.   This may be a good first step, and then you can deep dive in the properties that seem to have a better chance of being a good deal.

Best,

Update, on the 48 Laws of Power

So I am on the 24th of the 48 Laws of Power, and it indicates everything I'm not.  I'm not deceptive, an actor, a liar, or opportunistic.   I am the 'fool' in the book that gets run over by those that play the gain every advantage through any means necessary game, as the author states.  The honest, fair minded, idiot that "no one else cares about".

It's a book unlike any I have ever read.  I can't say I like it, but I cannot deny it's wisdom, even if I do not like it.  It feels like I am reading the playbook of a con artist, despot, and backstabber, and it makes the world a little less bright as a result.

I cannot see myself going that route, but understanding the motivations of others, recognizing the duplicitous, and false pretenses, does actually remind, in a sobering way, that the world is not as virtuous as I would like to believe.   Nor does my own integrity necessarily mean that others will recognize it and want be good towards or fair towards me.

Hard, but I suppose, important pills to swallow, and for that, I will continue to read it and learn.   I will hopefully not be as naive, as I apparently have been about the dark side of what must be so many millions of people.  It's a book of wisdom, just not the kind I hoped for.   It's as if you were given the ability to see through others eyes and skin into what their motives are, their true thoughts and beliefs.  A manual for every kind of snake.  The historical examples/stories are fascinating.  

How to sell your soul to the devil if you want to join them, and there are many compelling reasons in the book why you may want to.

"What if you could read minds, and see what people REALLY thought?" 

This book is a lot like that. 

One time I was in a specialized training related to the business I was in at the time, and the person holding the training shared the following:

"Be careful with who you become, while in the pursuit of what you want.  Because after you get what you want, you'll have to live with who you've become"

I think I'm going to stick with that.

Thank you.  I love posts like these.

Out of the books you listed I would say the Chris Voss - Never Split the Difference, audio book.  I agree with the voice inflections comment.  I'm considering Black Swan study, but looking for a good entry point.

I would not choose Cash Flow Quadrant because I recommend Rich Dad Poor Dad as a prerequisite for optimal understanding.

Loved Richest Man in Babylon, and Josh's Real Estate Book, I just think they should follow Rich Dad Poor Dad.  I'd also put The 4 Hour Work Week by Tim Ferriss on that list.

I'm going to hack your other book ideas and grow my knowledge.  Thank you for your shares.

Best,

Sean

The Book on Estimating Rehab Costs by J Scott. I found this to be invaluable, because he breaks things into categories and covers the essential pieces in each system.  It was a great overview for what I'd look for, things I might never have thought about.   Even if you're not doing rehab, and short of an appraiser, it's a solid overview of exactly what you're talking about.  

Best,

SC

As I understand it you need to also have 1 million in Net Worth.

Best,

Sean

I'd recommend that you first invest in yourself, my friend.  Not in Austin.   Read books, listen to podcasts. 

Your question reveals that you have not put a lot of work into yourself or your plan.   For example, if you picked up and read one of the BP Pockets Books, The Beginners Guide to Real Estate, you'd know how to analyze markets and properties, because they give a wonderful step by step breakdown in the first few chapters.

I would also suggest that you go Pro, because the tools to do that, in part are simplified greatly by the calculators and Investor Insights.

"There is no such thing as a Risky Investment, only Risky Investors"

Best,

Sean

Originally posted by @Stephen Brown:

Hello Sean, for the interest rate I would guess around 4ish % you don't really know this number until you work with a lender. I also had this issue when starting out.

I would also say call an insurance agency and then guesstimate up or down like $30 for each property you look at depending on the price (more premium for higher priced home and more premium for damaged building)

For utilities, ask local investors

Call property managers

Thank you Stephen, 

That certainly narrows things down for me.  I know who to call, and that I'm thinking about this the right way.   I like your tip on the 30.00 guesstimate to work in a high low cushion depending upon property condition.   This is all helping me!  Thank you!

Best,

SC

Originally posted by @Dave E.:

@Sean C.

Welcome to BP! Love that you are practicing your analysis. All good questions that show you are really digging in. I would definitely follow the advice in the first post. Good all around info.

I would also think about getting another realtor. While they may be an outstanding human, if they don’t understand your goals and how the process works they won’t be very helpful. If you do decide to stick with them, try to educate them. Maybe you can help them get on a better path as well and you can grow together!

Thank you Dave!

As I am new, what would be the best way to find another Realtor in my area?  Just call and ask if they work with Investors, or know of Bigger Pockets?  What would you advise are some good "screening" questions to asses if they are potentially a good fit?  Ask the usual "Do you personally have/investments in RE" kind of questions?

Best,

SC

Originally posted by @Brenden Mitchum:

Hey @Sean C.

First, have you watched the webinars here on BP that explain the process? If not, start there. After that, take the time to watch @Mitch Messer's deal analysis series he put together. Each episode an investor goes through their deal analysis with the help of Mitch and other attendees. Fantastic content for anyone starting out in REI.

Still happy to answer your questions but I'd recommend watching the above videos first to see if you can answer them yourself after!

1. Best way is absolutely to get pre-approved or speak with a lender about current market rates for your asset class. However, I'm sure you can also find this information online. Right now owner-occupied residential you'll be around 3%. Residential investment is around 4%. Again, if you want more accurate numbers, speak with a lender. Or, speak with a lender anyways since this is the perfect opportunity to start looking for that team member.

2.  Same as the above but instead you need to speak with an insurance agent. Remember, if you're serious about investing in real estate you're going to want one on your team so why not start reaching out to some now. Give them the address of the subject property and compare their rates and what is covered. Now, you'll have a decent idea of what insurance will be for that type of property in that area and you may even have a new member of your team. I do not have an estimate on this one for you since it really depends on the area and property.

3. That one is entirely up to you. In some markets it's standard one way or the other but it's still up to you. Just make sure you adjust rent accordingly to keep with the market.

4. Same answer as 1&2, but most folks use 10% as their estimate until they've built a relationship with a PM and know the exact figure. 

It's really all about your team and constantly improving your assumptions. Each bit of new information you find on a property changes the underwriting a bit. 

Hope this helps and please, feel free to reach out to me anytime if you have other questions or just want to chat!

Hey Brenden,
A big thank you my friend!  Super helpful advice.

I have watched, and am still watching the webinars here, on the process.  That is how I got started "practicing".  I have not seen/heard of Mitch Messer's deal analysis, but I will certainly look around for that.  I'm educating myself as much as I can.    I'm getting into the habit of the Funnel concept, of analyzing properties and identifying deals/leads.

Thank you for the tips, this certainly helps.  Of course nothing substitutes for due diligence and checking/inspecting property that makes it to the end of the funnel, but this helps me know if I'm in the ball park with a little room, if actual numbers are low or high.

Best,

SC