All Forum Posts by: Travis Watts

@Dan Colantonio Good question. I have never done a deal without having adequate cash reserves on hand. If I were using your proposed strategy and I thought the flip would cost me 50k, I would have 75k on hand (a 25k buffer). If I thought it would take me 3 months to turn around, I would underwrite for 6-9 months just in case. I am considerative, but I believe preservation of capital is always #1. Best of luck! 

@Shaye Pentino I could be...depending on you and your strategy. I was actively investing in single-family homes for many years and determined that passive investing was a better strategy for me. That doesn't mean passive investing is the right path for you though. Turn-Key is nice because you can "hit the ground running" in real estate without lengthy delays and rehabs and hand-on work; however, it is not a truly passive model if that's what you're looking for. Even with a property manager to oversee it, you will still have vacancy issues to consider, tenant issues will occur and common home problems such as a hot water tank breaking or leaking will happen. I chose to shy away from all of this completely over time, but I still "park" my money in real estate. I invest passively in real estate syndications, but again....everybody is different. It depends on you, the deal itself, and how involved you want to be. Best of luck!

@Danielle Wolter Great topic! Having invested with 14+ syndicate groups, I have learned a lot about vetting the teams. The top three ways I vet a team are #1 Word of mouth testimonials, not ones on a website and not the ones the syndicate groups hand out, usually from current or past investors I network with #2 getting the data/numbers as it relates to the track record of the team (how many deals have they done, what were the results) and #3 finally a gut check. I try to meet the team in person, if that's not feasible, I try to do a webcam call or if they are a public figure, I watch a lot of their content and read reviews online. Among these three ways, you can dig deeper with background checks and having your legal team read through the docs for additional insight. But it usually starts with an in-person referral, then I start digging around for 3-6 months prior to investing. Happy to be a resource anytime. 

@Ashley Kehr They made a "Cash Flow For Kids" boardgame. I bought it for my nephews several years ago. I enjoy playing it with them when I visit. 

@Lam N. "Syndicating" or accepting investor's capital is a HUGE responsibility. If you're not 100% comfortable taking on the risk and liability, it's likely not something you should do. I don't see it as a "trust issue", I see it more as taking responsibility and knowing yourself. 

@Brian Jackson I drink wheat grass juice first thing in the morning, then run 1 mile on the treadmill, then 30 grams of protein. That's been the best way to start my day...so far. I hand-picked these activities from some "gurus" out there. 

@Max T. It's a good question. I tend to focus on macroeconomics (seeing the big picture). What if you knew that a Lamborgini typically sells for 100k, but recently (due to supply/demand) the price was pushed up to 200k. And then today, the price dropped to 180k. Would it be wise to buy the dip? Everyone will have their own opinion on that one ;)

@Scott Passman Start with your own beliefs and your own philosophy first. Then when you read through content and hear other people's opinions, you can more easily filter out the information that doesn't fit. Best of luck! 

@Jason Merchey Ken McElroy is a great guy. I have met him, read his books and I appreciate all the things he's done for others in the real estate world. The part of his quote that is most true to me is "I knew that if I did nothing and remained frozen in fear, I would fail." That is precisely how I felt 10+ years ago and what convinced me to get started in real estate. People will do more to avoid pain, than they will do to obtain pleasure. 

@Andres Aracena Offer to sign a longer lease and/or offer to put extra $ down upfront.