All Forum Posts by: Tim Ryan

 I recorded a podcast last week with Dave Meyers and Henry Washington of Bigger Pockets. That'll come out in a couple of weeks. Listen to that and I believe you'll hear the answers to this question. 

My first statement is: You are not looking to buy a rental in the California, an anti-landlord anti-business state are you ?

Don't do it. Cali is great for flippers/developers. Sucks for buy and hold.

Regarding the LLC, the problem isn't that the tenant will go after you for all your money. They'll just not pay rent and get away with it in Cali. And it's just getting worse all the time.

Vote NO on 33 if you care for real estate investors.

Good write up and well written.

I agree. When I learned this I decided to focus on one market at a time. For investors like be being from California, we need to find markets out of state. What I was seeing were many investors being all over the country. Looking here and looking there but not putting down roots in any one place.

I went into Chattanooga TN (for investing) in 2009 and stayed until 2018. I did very well.  Now I'm in the Milwaukee area and I will only invest in one market at a time.

The simplification is in the focus.

Confucius said: The man who chases two rabbits catches none.

Really, really bad to buy with negative cash flow. And that's because you can buy with positive, so why buy negative.

Question for you Brian - What will you do doing at the property during its tenancy if you buy the new construction house (which is over an hour drive). Will you be needed for maintenance? or will you have a PM do that. Will you manage yourself or hire a PM. Will you be able to spot an issue by doing a drive by every couple of weeks.

I'm challenging you Brian to get of the fear of "out of state". You will need to invest OOS unless you are ok with losing money for years. Just like learning anything. Once you know how, you know how. There are methods. Your fear is not real.

Just trying to help. I got the same talk years ago and I've been killing it OOS ever since. I own zero rentals in Cali and never will.

@Stuart Udis I'll agree with your post for the majority people.  Of course there are successful students also but for most, it's not going to work.  My former Mentor/Coach told me only about 4% of all students ever do anything, and only about 2-3% do it well.

After I heard this I wondered how could the educators really know who will succeed and who will not?  I was blown away when I saw the ones I was sure would, and didn't. Then others I didn't see it and they killed it in syndications (and still are). So I don't blame the educators for taking students.

I concluded it's "buyer beware".  Which is exactly what your post is about. Good job.

I have a theory I've been working on for years and I still don't know how to articulate it very well. But here it goes:

I believe there are many people who are Smart, Good Savers (so they have funds), Responsible, Highly Regarded in Their Work.  But none of that makes them "Entrepreneurial".  And I believe this is the key.  

I've been telling people for years that successful real estate investing is a Highly Entrepreneurial Endeavor.  Most people don't really even know what this means. It does not mean someone who opens a business, and doesn't necessarily mean your created or invented something new.

It means you are First a Visionary, and Second willing to take the risk.

Many people who are responsible, got a great job, saved money, and then want to run a real estate business - are very risk averse (opposite of Entrepreneurism). So they don't do deals.

So what's the answer?  For many of you who are chasing what Stuart is saying, you are probably better suited to be an LP in a professionals syndication (being careful to vet them of course), than to set out to become the GP.

Diran, sell your Cali rentals and buy out of state.

Best advice I've offered in years...

When doing on your own as a personal investment, then not many. When you work this as a business, many.

Always be on the lookout for a good deal as you'll find them at anytime. Let's just say this would no be a good time to quit your day job and go real estate investing full time. Because of the things you bring up and because it is very competitive out there, I haven't bought in 2 years. But I have been upgrading and developing the properties I have.

 Sounds good. DM and let's coordinate

Hi Richard,  I think it's amazing as we see the same cities being promoted all the time. I tend to be a contrarian and not follow the crowd.  We should connect as I'm in the Pasadena area. Get a coffee?  I can tell you my story.  Finding out of state cash flow properties under $200 - yes!