All Forum Posts by: Stephen Herbert

Hi Alan - 

There is value in a good broker. A broker that is connected in the space will often see deals that others don't. I'm happy to put you in touch with a team I've worked with for years that would be a good resource to know. DM if interested.

Mondays: FSBO

Tuesdays: NOD

Wednesdays: Real estate attorneys

Thursdays: Wholesalers

Fridays: Asset managers

Saturdays: Follow up emails

Mondays: Follow up calls, repeat.

Hi Jordan - 

The advice that one is not looking for is often the best advice to heed. 

It's easier to look at a situation when one is not financially tied to the property, and the others on this thread are dead accurate. Using family money to buy a property with no clear plan in place (and potentially septic issues?) is a quick way to ruin Thanksgiving for perpetuity, so it's better to put a detailed approach in place and know how you're going to be able to handle the reno and successfully exit the property. When it comes to real estate, even with a well executed plan in place there will still be plenty of things to learn on the way.

I recommend finding someone that you can partner with on a current venture of theirs as a learning experience - put $15k into the mix and use that as a mentoring experience. Then, 2-3 deals down the line when you have a better idea of timeline, processes and execution, get into it on your own. 

Patience, diligence and good old number-crunching are invaluable when you're putting a large chunk of money on the line. We're truly trying to be of assistance; we're not trying to crush your dreams, here. There will be other opportunities.

There is literally nothing bad that will come from being a licensed REA and investor. It will likely make you a much more effective communicator when it comes to putting offers in, it will give you insight into how you should assess and look at deals, and where you should be looking for deals. 

While you will learn a lot through experience, you can also forgo several mistakes by front-loading your education and getting licensed.

Well done, Andrew - that's quite an accomplishment and undoubtedly the first of many to come. 

I'm wrapping up my first flip right now and will put it on the market in the next 2 weeks. I'll have a post coming on the numbers soon :)

Hi Kyle - 

It can be a daunting task to set aside the funds each month to save up for a property, no doubt. If you're able to save quite a bit using the "pay yourself first" mentality, then you're doing the right thing. It's easy in today's market of crypto-millionaires and fast-action TV shows to feel like you're missing out on a craze, but the worst thing to do is get yourself into a property without knowing the numbers behind it, resulting in sleepless nights, unpaid mechanics liens and potential foreclosure due to hasty decision making. 

Take your time and be sure you know what you're getting into before signing a contract (and be sure to read the contract!). Making a quick decision based on FOMO may very well only set your further back over time.  

Hi Jason - 

I am wrapping up a house we are flipping in Cinci right now, all while living in SF. I have not seen the house, and that comes with a certain degree of stress, both as we go into the final inspections as well as throughout the entire process. What led you to Cincinnati? Is it a place you would consider moving? As a first time investor, there's (debatably) no better way to invest than house-hacking with an FHA loan. That's a strong first step to building long-lasting financial wealth, as noted in the fantastic book, Set For Life. 

I recommend getting acquainted in the area, finding a solid contractor crew (and vetting their previous work thoroughly) and calling around to local property management companies to find who they use regularly to manage their repairs. You should have a firm grasp on the general processes involved in buying, drafting plans, construction timeline and resale strategies before getting into it as a first timer. You don't want to sound like an out-of-state newbie to a local contractor, who very well may use your account at Home Depot to buy materials for other projects. 

Get comfortable with uncertainty, or be explicit about your expectations when working with a contractor (weekly visits/photos, invoices prior to payment, etc) - don't make assumptions. Feel free to DM me.

Hi Ashley - 

Atlanta has done hundreds of investors very well. I work with several in the area who are taking down dozens of homes a year, and I always believe the best way to get into the depths of your local market is to attend investor meet ups. That's where you'll meet both the investors who have dominated the market for years (maybe even decades), as well as the more up and coming crews who are looking to buy and sell inventory. 

Best of luck - let me know if there's anyway I can help.

From my experience, most HMLs do not report to the credit agencies (despite most of them requiring a pull to borrower). My company does not report to the agencies, either. What's important to note is that while they may not report to the agencies, therefore not be factored into your DTI, you need to monitor your debt levels to ensure you're not taking on debt obligations that you're unable to afford. While we may not report to the agencies, we will pursue the house we underwrote should you stop paying us to make payments on your primary.

I am working towards financial freedom, and have learned a lot from the individuals on this website, in addition to the podcasts and books put out by BP. I'm relatively young compared to most other investors, but am inspired several times a day by the clients I work with through my lending business. 

I work with 23 year old millionaires who own 100+ properties and 40-50+ year olds scraping together the 10% down for properties. But it's not a matter of where you are currently; it's a matter of where you want to be and the drive and determination to face the certain adversity you will encounter with a strategic eye and relentless effort. If you're not where you want to be, then take a WFH day, turn off your phone, put your headphones in and don't look up until you have a plan in place.