All Forum Posts by: Trent Ellingford

The statistics shared are an average of the entire city. The problem with an average is it tells you nothing about a specific area or zip code you're investing in. It's like making a decision to invest or not, or how to invest based off of national averages. There is no national index or city index, things can vary by zip code. In the list above there are safe areas with high demand and opportunity and areas you should stay away from. My advise would be to do a niche market analysis for the communities you're considering. 

100% agree with @Joe Villeneuve. You don't know what you don't know, and if you don't know that you don't know it how do you know what questions you ask? That sentence made sense right (Haha). But seriously, I'm not saying you have to have a mentor but a good mentor, in my opinion, is invaluable. Typically you pay for value. Unfortunately there are a lot of self proclaimed Gurus out there that charge a ton and bring little to no value and give Mentorship a bad name. That doesn't mean that paid Mentorship is bad, it means there are bad players. I have no doubt with all the free resources available someone can figure it out on their own but they're probably going to skin their knees along the way. Plus some people learn better by working with someone. They gain confidence by having their numbers checked, someone to walk them through contracts etc. Again it's not that one is right or wrong, it's what is the best fit for you? I paid a mentor several years ago when I started a business (outside of REI). Some people would be shocked at the amount I paid but to me it was worth it because he knew things I didn't and I got results significantly quicker than relying on just myself. I paid for speed and got a great ROI.

I've found that you pay for education one way or another. I've personally lost money on a deal, and it was an expensive learning experience. I've also had mentors in my life, some paid and some not. Does paying a mentor help you avoid costly mistakes, give you the courage to take action and accelerate the process of getting to your end goal? If the answer is yes, I would then argue that it is a good investment in yourself. Ultimately it comes down to what's best for you personally. I know some people would never pay for mentorship and others find value in it. As pointed out above, the next important step would be choosing the right mentor. I would interview them and ask them deal specific and market specific questions, as well as what are they currently working on so you can vet the validity of their direction. 

@Allison Leung It would be great if the app was a little more mobile friendly, and I'd love to see more content on Commercial Real Estate, repositioning and value ads as well as creative financing.

@Nathan Smith Wow, that's a loaded question. I don't think college is necessarily good or bad, it's what you do with it. I dropped out of college after my freshman year, and it was the right choice for me. I have friends with multiple degrees who aren't working in a field remotely close to their studies, yet have other friends with degrees who are excelling. If your goal was to be an attorney or doctor then of course it makes sense, but that doesn't seem to be the case with you. In the job world, not having a degree might slow you down some, but if you're disciplined and work hard it won't matter for long. Nothing beats hard work, determination and results. One of my wealthiest friends didn't even graduate high school. He has a GED. Like I said, it's what you do with it. One thing I bet almost everyone on this forum would say about REI is I wish I had started sooner. Understand that Real Estate done the right way isn't a get rich quick thing, but as far as long term wealth creation there's no better way. If you're passionate about something I say commit and go all in.

@Julian Alford as mentioned there are a lot of ways to structure the deal. Is the property listed with a broker or is it off market? Are you using conventional lending, seller financing, syndicating? Is it occupied and performing or does it need to be stabilized? Depending on the current position of the property, your resources or lack there of, the willingness of the seller to get creative can help you determine the best way to structure your deal.

@John Erlanger it would tell him something if there were comps but if there is not I agree that GRM will work.

@Mikey Robinson are their comps for the duplex? If you know the annual expenditures you can determine the cap rate and see if it aligns with your market. Keep in mind their needs to be a margin for the investor on the other end if you’re planning on wholesaling. After you get paid plus closing costs etc for the end buyer are they going to be able to cash flow it? Especially if they put debt on it? 

@Mikey Robinson what is the current rent being collected? 

@Mikey Robinson what shape is the property in? Is it currently occupied or vacant. What is fair market rent? If you can provide more details it'll be easier to answer your question.