All Forum Posts by: Trevor Riley

being able to find a reliable bird dog would be awesome! or a directory of top-rated wholesalers

@Trevor Riley this is an interesting question, because I think a lot of people (myself included) are experiencing challenges that they weren't experiencing prior to the rate hikes, and the subsequent significant shifts in the market.

For many investors, agents, mortgage brokers, etc., the last several years in real estate have been relatively predictable and relatively easy to navigate.  People who were at least somewhat competent got in a "rinse and repeat" rhythm:

-Mortgage brokers had tons of applications and refis to work on (and more came in every day). 

-Agents could easily sell houses with offers rolling in and bidding wars all around. 

-Investors were in a straightforward cycle of buying, watching appreciation grow, refi'ing to a lower rate, and buying again.

Rinse and repeat, rinse and repeat, on and on forever, amen.

Now, the market dynamic is so different that many folks' biggest challenge is figuring out the next step in a market--and a broader economy--that is very alien to most of us. 

-What does that mortgage broker do when they go from processing more loans than ever, to suddenly having nothing but tumbleweeds rollin' through their office? 

-What does that agent do when there's suddenly a noticeable decrease in demand? 

-What does that investor do when they can no longer refi to a lower rate, and 1031'ing won't pencil out because they'd be going from a 3.5% to a 6.5%? 

...it's like a pilot who proficiently flies 747s for twenty years back and forth, back and forth, back and forth across the country...until one day, they're told that they have to fly a rocket to outer space. Can that old dog learn a new trick?

The sad truth is: there will be people who find themselves a victim--sometimes through no fault of their own--of this quick and significant shift in the market. Some folks are losing their livelihoods as we speak. Others are about to find themselves in a very tough situation with insufficient resources to weather the storm. As Warren Buffet says: “Only when the tide goes out do you discover who's been swimming naked.”

On the bright side, as with any market shift, new opportunities are arising--and it's our role to identify those opportunities and pursue them in a professional, calculated, and conservative manner.

Personally, I'm still working on trying to figure out my own next step, but I think I'm closing in on a few prospects...As the Bear Grylls meme says: "Improvise. Adapt. Overcome."

Good luck out there!

This is a good one! 

I have noticed over the past couple of weeks one of the biggest challenges I've faced is with organizing and making sure I'm using time efficiently. 

When you waste time and aren't moving in a direction with meaning/purpose it can do damage to you emotionally and physically. I recommend making sure that you are taking care of yourself on all levels whether it be business-wise, health-wise, or financially. Don't let yourself forget why you get started and take every day with a grain of salt. 

Keep crushing everyone!! 

All the best,

Josh

Good day,

With all due respect for the people that make this site possible, is it possible to have the listings  cleaned up in the "Listings" section. I could be wrong, but I kinda doubt some of the property listed there is still available. Some listings showing over a year old...rentals with leases expiring in 2021. It would just be nice to see what's actually available within this community. 

Respectfully,

Ryan

biggest challenge is getting in the game already. Im a full time registered nurse, was inspired by rich dad poor dad, found bigger pockets, read BT's book and BRRRR book, and now looking to get out of healthcare for more feedom and time for myself family friends and other people.

The books taught me the things i need to do to get ready like get bigger pockets PRO, analyze deals, get pre approved, be active in BP forums etc etc but i just dont do it. too busy too tired or whatever.

I have my "WHY" but i guess im just terrified of getting out of my comfort zone and take on the challenge. Plus im an introvert kinda person so its hard for me to reach out to other people.

Any of you guys are introverts too and founf success in real estate? how did you overcome YOU and finallt did it? 

You guys have a great day!

Trying to pick a market and build a team to help the out of town investor

Quote from @Trevor Riley:

Quote from @Cody Morrell:

Coming up with criteria that make deals work - COCROI, NOI, whether to cash flow or go with appreciation.

Also, getting my head out of my backside and starting to take the steps to get my first rental. 

 Thanks for sharing, Cody!  It looks like you have an idea of what criteria to use.  What would give you the confidence to know that you have the right criteria for you?  Is that the only thing holding you back from starting to take the steps to get your first rental?  You got this!

I appreciate the encouragement, Trevor! 

Repetition in analyzing deals would give me confidence and also going through the whole process of getting pre-approved, getting the right leads, making sure the numbers work, putting in offers and succeeding. Pretty much doing the whole LAPS process. 

So far I am one step in with getting pre-approved and I already have a local investor/agent I’m going to meet up with to help me with leads!

The target for what we can afford in an STR purchase has changed due to interest rates, falling occupancy and lower average daily rates. We have to make sure the income will completely cover the expenses and still return the COC we need. Any one of those factors alone wouldn't change the underwriting too much, but the trifecta means we have to be even more conservative in our underwriting than we normally are. Our target market isn't cheap. Fortunately, we're also seeing home prices soften a bit, some price reductions and longer days on market so we expect those factors will help balance out the others.