All Forum Posts by: Tiffany Plovie

@Tim Mangold  I recently hosted an Official BP meet-up with Brandon Turner on July 8th. This is the event @Viktor Stakhov is referring to:

http://www.biggerpockets.com/forums/521/topics/133549-washington-state-offical-bp-meetup---south-sound---july-8th-2014

  The meeting was both laid-back and friendly while critically focusing on networking. The meeting was a great success and I am thinking of making it a monthly event.

   I strongly believe that the knowledge we need to succeed in real estate is within our own community. It is my mission to bring like-minded people together so that we can all succeed.

   In regards to forming any kind of business, you need a great lawyer and CPA on your team. Personally, I have an accountant who is also a tax attorney. He makes sure I do everything right and by the book, while still ensuring that I get every legal allowance possible. He is slightly more expensive than a CPA, but well worth it.

Hire professionals, even if they are more expensive. An ounce of prevention is worth it's weight in gold!

@Viktor Stakhov 

I am sorry about your REA. It sounds like he/she talked up the value of the price without giving you a reasonable estimate. Did the three of you and your REA tour the neighborhood for comparable properties, both before purchasing the property and afterwards? That is really how you get a good feel about what upgrades are worth the money, and what can be done without.

@Viktor Stakhov 

Beautiful flip!

It was such a pleasure to meet you and your brothers the other night. I have such admiration and respect for everything you have been through, your determination to succeed and the commitment to your family. Each one of you, the team you have created together, and what you have accomplished... Is an inspiration!

Haha! It never surprises me what debtors will do to avoid paying a judgment!  

As for a recourse of action, I would talk to your attorney. I would first ask them what remedies I could seek, then I would ask how much it is going to cost. Most likely, the resulting outcome would be a judgment of some sort... And you have seen (up close and personal) how he deals with judgments.

Time is money. Get your money out of escrow, and go find a cash-flowing property.

@Steven N. 

Welcome to BP!

   You have made a wise decision to post here and ask for help! 

   You are fortunate to begin with such solid financial resources. I can only assume that because of the percentage of money that you are willing to dedicate to real estate investing, that part of your long-term plan is to leave a legacy of wealth for your growing family. In order to achieve that goal,  you will need a long-term plan dedicated to a certain end-result. 

   While I understand the appeal of wanting to buy new houses that are seemingly affordable with little to no maintenance required (in addition to a 10-year warranty plan), a critical part of real estate investing means planning for the future, unexpected costs, the best ways to maximize your capitol and cash-flow.  This means seeking out deals under-market value, that are easy to maintain/easy to rehab or update (as it seems you are looking for something more turn-key), that are easily rentable and will appreciate well.  Frankly, new homes are not the best bang for your buck. In 10 years, the warranty will be gone, they will need updating, in addition to the damage done by 10 years of tenants.

Perhaps try to expand your reach- try out other housing markets besides new homes, and just see how it feels., You may be surprised at how comfortable you feel purchasing an older home that has been well-maintained, rents for a similar amount as a new home, but is 50k less, simply because it is older. 

Here is a brief (very brief) overview of the finances...

  Let's say, as an example, instead of buying three rental homes @200k, you are able to buy four @150, and allowing you to have even more money set aside for the repairs, or even another investment property, should the right offer come along.  Additionally, you would be spreading any losses over four properties instead of 3. As an example, should one of your tenants vacate (or you are forced to evict them), you would still have 75% of your properties cash-flowing as opposed to 60%. Again, these are just loose numbers to give you a different perspective... It all comes down to numbers, and which numbers will give you the results you are aiming to achieve.

What is your end goal? How much money do you want your properties to generate? What makes you feel secure? We all need an end-point.

Most importantly, set definable goals that you can reach along the way. Think of them as stepping stones to the future.

You have a solid starting pointing, now all you need is road map to get you to the life you have imagined living, and the legacy you wish to leave behind.

Ultimately, you have to do what is right for you.

We are here to help!

@Janelle Scruggs 

 with that attitude you will go far!

It isn't our past that defines us, it how we deal with it and the future we create going forward.

@Adam Roach 

  On sites like Zillow and Trulia, you will mostly find agents who specialize in residential sales.

 As a result, you will most likely spend hours viewing over-priced properties that 'match' your criteria, only to discover that they fall short, that the calculations are off or that they fail to verify certain documents (such as income/expenses, vacancy history and examine current leasing agreements).

   This is not because they are poorly trained agents. It is because they are used to working with a different kind of clientele.

 Investors think differently than most people. This why we are not satisfied with working a 9-5 job and putting money into our 401k (and hoping it meets our retirement requirements when the time comes), although we may also do these things.  However, this is exactly the clientele most residential agents encounter and the clients with whom they have the most experience.

  It is unfair, and unrealistic, to believe that a residential agent will automatically understand and be able to find the kind of properties that will satisfy both you and your partners.

Find an agent who is investor-friendly, and who is knowledgeable about the goals you want to achieve, can recommend ways to achieve them and bring you properties that are under-market value (and haven't hit the MLS yet).

I would reach out and ask for recommendations in your area.

 A thread simply titled:

'Investor-Friendly Agents in Edmond, Oklahoma' 

should provide you with several good leads and recommendations.

Good luck, and keep us posted!

@Janelle Scruggs 

As for being an agent, keep your day job! The best thing about being an agent is that you are able to work around your own schedule.

You will have to work hard, but that is true of any path you take in real estate.

@Janelle Scruggs 

   Welcome to BP! 

I would first like to point you to a few links that will help you find your way around BP, a couple of links to books that you may find useful, and then tackle your question directly. 

You may also want to post in the New Members area and introduce yourself, including the area you currently reside in, the avenues of investing that interest you, and the areas you would like to invest in. This will help connect you to other investors that you may be able to connect with who are not only familiar with your area, but maybe able to help you.

Start Here:

http://www.biggerpockets.com/real-estate-investing

Read everything contained on this list ( I have read many of them personally, and can vouch for their value):

http://www.biggerpockets.com/renewsblog/2013/04/14/best-real-estate-books/

And this is a must read if you want to succeed at any business, ever:

The E-myth Revisited: Why Most Small Businesses Don

I just wanted to thank everyone for such an amazing evening! It truly was a pleasure to meet all of you. I will be compiling the list of contact information today and send it out via email this evening.

We will have to do this again!