All Forum Posts by: Tim Polk

@Kevin Boyd

Finalizing the business plan and answering my "why"

I'd focus on the why.  If it's just because you listened to a Brandon Turner book and now think passive income is the easy route.  It's not.  There is a lot of hard work and sacrifice that people do not discuss in these forums like any business.  The why is what keeps you moving when the chips are stacked against you. 

Team - can't push mentorship enough.  Look at someone you admire, ask them questions, learn about them.  There is a reason you look up to them.  That's a great way to start a team.  Might not be someone in real estate, that's fine.  Successful business owners know good accounts and hard working people. 

Lack of knowledge on my strategies, estimating rehab costs, etc.

Situational.  Is there a specific project in mind?  If not, rehab costs should not stop you.  Find a GC, get a quote.  Add 20% to whatever their scope is if going that route.  

Sounds like you need to decide what you want.  Then get your feet wet.  Good things come to those who wait, but only what's left by those that hustle.  Get up, make a move.  

@Jenna Pedro

Find a mentor.  Search forums, events, talk to neighbors, church members and family members.  Find out who is active in real estate investing and see if you can help them with something/anything.  Helping them in anyway will most likely result in helping you learn and allow you to tap into their network to start building your team.

 Multi part: 

Contractors - for the rest of your career and I don't care how deep you get into real estate you will be vetting new contractors.  You will be disappointed, angry, losing sleep, the list goes on.  I don't care what people say in all the podcasts about financial freedom and ease.  You want it?  It's going to come at a price mentally, financially, relationships, time, stress etc.  My tip to you today, is when you find a good contractor.  Ask them for referrals.  Don't go for the cheapest just because it's the best number.  Look at them, look at what they drive, how they present themselves.  Some might accuse me of overanalyzing this, and I'll reply that their wrong.  However, set a limit.  Got a job coming?  You're in a hurry?  Rule of thumb and it can change per situation.  Get three quotes, do your research, ask detailed questions and then hire the most qualified.  Stay in close contact the whole way.  Set your expectations on everything from scope of detailed work to payment schedule and keep detailed notes.  After you build a relationship you can back off a bit. 

Estimated repairs - sounds simple but youtube is actually a decent source for this until you become fluent and seasoned. 

Financials - find a good lender, one willing to spend time explaining the difference in types of loan.  Do NOT just take private money to start something without doing your hw.  To many predators out there willing to give more than enough rope to set you back.  

Overall -  I think you need a mentor.  Find someone in or out of your network and ask them what you can do for them in exchange to learn from them.  Food for thought. 

r success and 

 Found an email recently I wrote before purchasing a rental property years ago with the same concerns.  I moved forward with the purchase because the numbers made sense.  It's a fantastic rental to this day.  Worried about a pop?  Invest somewhere where the "pop" is going to be less impacted, then add in conservative numbers to offset.  Then trust your numbers and your gut.  Sometimes people look at real estate like a stock.  It's not, it's tangible.  If it goes down 20% in 12 months and recovers, but cashflows the entire time is that a loss?  Not in my eyes.  

Are we referring to those that prey on people for short term gain over-promising and underdelivering? Claiming cap rates and ARV's that are not realistic? If that's the case surround yourself with individuals who give you conservative numbers, estimates and extended timelines. Or, at least care about you and not just a quick paycheck. Personally, I constantly feel I have to lower the bar with my expectations of "new" people arriving in my network almost to a fault. Not a viable excuse to not move forward. Your roofer did a bad job? Leaks after install and blames it on the siding? Weigh your options, take and action and put it behind you. Someone was a wolf in lamb skin, talked you into a bad deal? Learn from it, don't take the low road. Karma is a B. There are plenty of people in every aspect of not just real estate but life that want to succeed and see your succeed. Embrace those partners. Spend the extra time making sure they hit goal and building the relationship. When in doubt, reach out to them. It's always easier outside looking in, they are the ones who will protect your from false evidence appearing real.

Use the rental tool bigger pockets offers to do an analysis of your property. Hover over tools up top, calculators, Rental Property. There is a video somewhere you could probably just youtube how to accurately fill in the blanks if you need guidance on that. If you want to be conservative 5% vacancy, 7% maintenance, 10% cap x. That will put the numbers in perspective. You'd be skipping the 10% PM for now if you're managing yourself. Keep in mind with property tax when you move out eventually the homestead depending on where it is falls off and property taxes go up increasing operating expenses. If you want to scale and move I would house hack. FHA 3.5% down on a multi family or speak with one of the local credit unions to discuss lending options. After those two things are done you can decide to keep and go HELOC or sell. If you keep, risk the HELOC to leverage the purchase.

How did this turn into an IRS/Tax forum?  He asked about conferences that would be a good vacation spot.  

Jocko Willink San Diego in November.  Not real estate but life lessons.  

Grant Cardone looks like it's digital this year?  Soo, go anywhere you want and bring a laptop.  I'd recommend Caddy's on the beach in St Pete, FL.  Cheers ;)

Find a mentor and if required, use some of the $500 to spend time learning from them.  If they are a good mentor, they will most likely tell you to keep it in your pocket.  Don't listen to the "You can'ts" of the world.  Where there is a will there is always a way. 

In a motivating mood today.  What's holding you from taking your first or next step?  

You can pay a local title company to run a search on it.  See who is owed what and if there are any clouds/liens on title.  A less expensive and IMO slightly less reliable route is ownerly.com