All Forum Posts by: Tiffany U.

@Chris Jensen First I don't have a ton of properties. After the home I inherited during the recession caused me all sorts of grief I didn't do anything with real estate for years. When I was ready I had to find a market that made sense for me. The city where I live is not where I invest. The market where I live has gone crazy. I invest in a military town that's about 3 hours away. Prices are more realistic and the major employer is the military base. I have a sweet spot for investing according to my strategy and numbers that work for me. I look at properties that are in the 60,000 range and bid based on numbers that work for me. I let the sellers know its a cash offer and all three of my deals this year because it was cash worked to my advantage. For those sellers that don't like my offer I move on. This year I had $150,000 cash to invest which I spread across 3 sfh0 properties. They are not mansions but solid properties with a history of cash flowing well, in the military town. I plan to take a break for a year save more money for year and then start purchasing small multifamily units. We are following a modified strategy laid out in the bigger pockets real estate investing book. But we don't seek financing. At some point we may but the ROI of 8% on a property held free and clear vs 10% with a mortgage for 15 years. In my eyes the better deal is 8% free and clear. I am not worried about a mortgage and at this stage in my life I need my REI income to be as stress free and passive as possible. My goal to purchase small multifamily units hasn't worked out yet. But I'm patient I know it will happen and when it does that money will further compound what I already have going.

@Chris Jensen I inherited a property in 2008 when my dad died. That situation ended up being a disaster and I lost money for other reasons nothing to do with the recession. I learned a lot from that experience. I buy and hold properties so far all of my REI purchases have been cash deals. I took Dave Ramsey's Financial Peace class 11 years ago. Got out of debt and like the idea of buying all my properties cash. When the next recession hits as long as my properties are rented I'm good. I'm not worried about how I'm going to pay the mortgage. It's not a strategy that's for everyone but it is working for me.

@Jeff Cagle Yes, at times I think everyone is getting into real estate. It's funny because I stopped talking about mt plans with friends and family because then everyone was/wanted to jump in. I think some of this is due to all the tv shows that show flips, rennovations etc. The reality is everyone is not getting in on real estate though it may appear that way at times. I just have to work my own strategy. I can't concern myself with what others are doing because then I'm distracted.

@Deba Douglas I won't get into the conversation if you should or shouldn't but if you're looking for a great attorney that's familiar with real estate in the DFW area I recommend Kellie Stokes at Stokes Law Office For my husband and I she has been worth every $.

@David Moore It's something I'm considering. I puchased both properties this year and I inherited tenants and chose to stay with existing pm. My contract to get out is not as sticky as the one discussed here. But I did have my attorney review and she gave me pointers going in to protect myself. At some point though I'd like to self manage if its possible. How are you able to self manage? I need my rental income to be truly passive. I work part time, I'm a mother, wife and I care for my mom who has cancer. If the pm is doing a great job in my current situation it pays to keep them. In time I will be able to tell if they are worth the money or not.

@David Moore I agree PM companies nickel and dime you. Their contracts are ridiculous. I have two properties both are with a PM company but only because they are not in my area.

@William Huston I'm new at this. Just purchased one property last month and will close on my second property next week and searching for my third. I'm using Quicken Home and Business. I did not compare it with Quickbooks, but looked at cozy, rentecdirect, excel and a few others. Quicken was the choice for me.

@James Caruso Townhome asking price $65,000 purchase price 47,000 no HOA. Can't remember ROI off the top of my head but the numbers worked so we took it. Cash deal with inherited tenants in place for the next 7 months paying $725.00. Another lesson I learned was dont pass up a deal waiting for the golden deal. With the market the way it is. We took it. Hoping to get a small multifamily unit next.

@La'Keita Redfern Don't give up.

It finally happened!  My husband and I closed on our first deal last week.  We purchased a town home and inherited tenants. 

We learned so much this first deal.  Thank you BP community, there is so much encouragement and help found here.  

Here are a few things that I learned:

1. Real estate investing is an emotional journey.  There are lots of ups and downs and unexpected twists and turns.  Learn healthy ways to alleviate stress. 
2. Read, read, read, and read more. There is so much literature out there around investing. Pick up a few books and dive in.
3. Stay positive.  You have to.  What's for you will be.  
4. Starting out a good attorney with lots of experience is worth every penny.  My attorney saved me in my current deal.  She helped me navigate some sticky situations that I may not have caught as a first timer. 
5. Build your team. Mentor, inspector, real estate agent, handyman, contractors, bank, lenders, lawyer, partner etc.  You need a great team around you.  Be prepared that the members of your team may change for a variety of reasons.  No hard feelings.  
6. You may have to train your real estate agent on how they can best help you.  Don't assume that your real estate agent understands what you are looking for as an investor.   
7. Run your numbers!  Make sure the deal works based on your numbers.  If the numbers don't work keep moving.
8. Don't get emotionally attached to properties.  You may get the deal you may not.  Emotions can cloud the decision making process. Stick to making decisions from the numbers.
9. You will never feel completely ready but educate yourself and then jump in.
10. Advocate for yourself and your interest in the deal.  It doesn't hurt to ask. The worst that can happen is the seller says no.
11. Be kind to your partner.  This is so important.  Hubby and I had some arguments along the way.  His thoughts and ideas vary from mine and vice versa.  It's okay we don't have to be the same for us to work together.   There is room for each of us to explore our ideas.
12. Create your investing strategy. Don't get swayed by so many ideas.  Focus on how you have decided to invest and work at becoming great in your niche.
13. Begin with the end in mind.  Treat investing as a business not as a hobby.  
14. Listen to podcasts.
15. Know when to walk away.  Pay for the option period. Get your inspection. 
16. It's really true the first deal is the hardest.  I just closed on a property last Monday and I'm already working the second.  

I could keep typing but I just wanted to share my good news with this great community.