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All Forum Posts by: Tye Brooks

Tye Brooks has started 5 posts and replied 32 times.

Post: Am I Ready to Start Investing??

Tye BrooksPosted
  • Douglasville, GA
  • Posts 33
  • Votes 9

Good idea @Account Closed. The interest rate on my car and student loans is about 7% (average), which I'm sure I can make way more than 7% on a flip (well....if I don't then I must've done something wrong in my analysis, lol). I completely agree with you though. I haven't used the deal analysis tool yet on an actual property that I would be interested in. I've done the "rule of thumb" calculations on a bunch of them, but not the full blown analysis. I will definitely add that to my "to do list" for the week. Thanks for the advice.

Post: Am I Ready to Start Investing??

Tye BrooksPosted
  • Douglasville, GA
  • Posts 33
  • Votes 9

Hi BP!!!

I've been on BP for a little over a month now, and in that time I've read countless forums, listened to a bunch of podcasts, and read a few of the recommended books. I feel like a have a decent grasp of RE, but I can't help to question if I'm ready yet. 

Here's the situation. I'm 26, have a full time job, credit score close to 700, and about 20k in savings. I have paid all of my credit cards down to about 15% of their limits, put away a 4 month emergency fund and paid my car insurance off for the year. I have a car loan and student loans...that is my only debt (except the 15% of my credit cards).

I want to fix and flip 30 homes over the next 3 years, and use that capital to buy and hold at least 10 properties (in the same 3 years). And repeat that strategy until I have enough cash flow coming in per month to replace my salary (I'm hoping I can do it in 6 years).  I would love to find a mentor in the Atlanta area to partner with on my first few deals, so that I can learn more...but I have also heard so many horror stories about mentors who charge a few thousand (which is way less than the guru's but still a lot of money) and then they magically disappear.

Does anyone have advice on finding a good mentor in Atlanta to partner with? Or any advice as to whether or not I even need a mentor with all that I mentioned above? I can feel the "analysis paralysis" coming on and I'm trying to just get started before investing becomes "something that I thought I wanted to do once". Help! I will take any advice you guys have to offer!

Tye

Post: Biggest Challenge Getting Started.........

Tye BrooksPosted
  • Douglasville, GA
  • Posts 33
  • Votes 9

Hey @John Cohen! Great thread! I haven't actually done anything yet but have been in the "research" phase for a few months now. I have a little cash available to get me started, but I'm hoping to find a mentor in the Atlanta area that can partner with on my first few deals. That way, I can actually get started, learn from a seasoned investor along the way, and not devote as much time as I would normally have to doing it on my own. I still work a full time job and am only available evenings and weekends. Do you have any advice on how to find a good mentor/coach? There are so many people/guru's that want to charge ridiculous amounts of money and I've heard horror stories about paying a coach that you never hear from again. 

Any advice?

Post: I'm a Newbie-Pay Down Debt or Start Investing??

Tye BrooksPosted
  • Douglasville, GA
  • Posts 33
  • Votes 9

@Evan Roberts That makes sense to do it under my name...but I don't plan to live in it at all. Would I still qualify for any of the first home buyer deals? Even if I don't...it still makes sense to do as you say and purchase under my name to pay a lower down payment and keep some of my cash available for the rehab. 

You think my 8 year retirement goal is too far fetched, lol? Same thing my dad said, I probably didn't explain it right. My thought is...I bring home about $4500 per month from my job. If I can do 25 flips at $25k profit each (average) that would make me $625k. That $625k could be used to put down payments on 15 rentals that will bring in $300/month cash flow each (average). 15 rentals at $300/month is equal to my $4500 that I make at my job...I could "retire" in the sense that I won't have to go to work anymore to make the money I make now. Of course the grand plan is to make way more than $4500/month...but that's my starting point. If it takes me 8 years to do 25 flips something is seriously wrong, lol. I actually think I can accomplish $4500/month in cash flow in about 2-3 years. 

At least that's my game plan for now. I'm sure it will evolve and change as time goes on. If you think it's the worst idea you've ever heard, let me know now before I start acting on it!!

Thanks for all the advice so far, this is really helpful!

Post: New Investor in Atlanta, GA

Tye BrooksPosted
  • Douglasville, GA
  • Posts 33
  • Votes 9

@Linval T. 

WOW!! Thanks so much for your help! That is awesome. You definitely saved me some time searching on my own. I really appreciate it!

Post: I'm a Newbie-Pay Down Debt or Start Investing??

Tye BrooksPosted
  • Douglasville, GA
  • Posts 33
  • Votes 9

@Andrea Castor I've definitely decided to go the route of paying off the cards. I actually made a nice dent in one of them this morning....the other will be a work in progress and take a few months. I will definitely not look back on those!

As for the car, I've kept cars as well (probably some longer than I should have), but I also travel back and forth to NJ every other month in my car, my parents and majority of my family live there. I probably could've gotten away with something a few years older with decent mileage...but I plan to keep this one til the wheels fall off, lol.

My hope is to be able to be doing this full time within the next 2-3 years...so I would have to pursue it pretty seriously in order for that to happen. I would agree that I need to get a few deals under my belt first though before I dive in.

Yeah, he's supportive. Of course he doesn't want me to do anything that would put me in a position to not be able to cover my own bills...but he is on board with what I'm doing. He doesn't want to get involved in it, nor do I want him to (just for the simple fact he is my boyfriend, not my husband and he doesn't need to have a hand in anything that I'm doing business-wise). He's there for moral support and will help on specific tasks if I ask him to...but I'm the one running the show, he's my cheerleader!

I have a few contractors in mind. None that I have worked with before...but I have been eyeing them. That's definitely something for me to keep in mind. I generally have an obvious "no nonsense" attitude that helps me to weed some of that out...but I will definitely be observant when dealing with them. 

Great advice, thank you!

Post: New Investor in Atlanta, GA

Tye BrooksPosted
  • Douglasville, GA
  • Posts 33
  • Votes 9

Hi BP! 

I am very excited to have found this site. So far I can see there is a lot of information and many people I can learn from! I am completely new to the industry and have an interest in building a successful flipping business. I actually stumbled across this site while Googling "Is Fortune Builders a Scam?". I attended a 3-day seminar and was completely gung-ho about cutting a check for $25k for their education program. I owe BP a big thanks for saving me a nice chunk of change!

I'm interested in learning all that I can; learning what things to look out for, how to properly asses a deal, how to find good GC's that won't rip me off, multiple exit strategies in case something goes awry, information on taxes and benefits of an LLC, possibly finding a local coach/mentor that won't charge me $25k...pretty much everything I can learn!

I'm hoping to find, buy, fix and sell my first property by May....a little less than 6 months. Hopefully with some solid advice, you guys can help me get there! Please connect with me if you have any insight or advice to give!

Post: I'm a Newbie-Pay Down Debt or Start Investing??

Tye BrooksPosted
  • Douglasville, GA
  • Posts 33
  • Votes 9

@Dominic Lucarelli @Douglas Snook Yes, it's a long drive...and Atlanta traffic doesn't help. But it is a safe area. Crime rates are low and home prices are decent. Me moving closer would be moving towards the city and the high crime rate. The area that my job is in has a higher crime rate...and the surrounding areas are "uppity" and the homes are expensive yest smaller. I have a little girl I have to worry about...I'll take the longer drive if that means she'll be safe(r). 

My boyfriend owns the house we live in, my name isn't on it. 3200sq ft for 150k vs the surrounding areas of my job...same 150k would buy 1500sq ft. 

I could utilize a first time home buyer program (after I get my credit score up about 40 points) since I have never purchased before. Does it make more sense to do a purchase like that under your personal name or set up an LLC? I have heard there may be tax benefits to an LLC?

Post: What happened to my $30,000 profit?

Tye BrooksPosted
  • Douglasville, GA
  • Posts 33
  • Votes 9

@Matt Morgan Great story...thanks for sharing! I'm new to this...and in Atlanta so I know the area isn't the same but if you don't mind, I have a few questions (well, actually anyone can answer them...I'm sure everyone here knows more than me, lol)

1. Did you do your first flip under your personal name or have you set up an LLC or S-Corp? Can you give me some advice on that area? There is a deal I've been eyeing but I'm nervous to pull the trigger since I'm not sure what route makes the most sense for tax purposes.

2. My target purchase price for the deal would be $70k, rehab budget of $40k. The comps are $180-$225 (of course I know I'm missing holding costs, etc). Would you suggest using my own personal money for the reno portion or would it be best to keep my capital and use OPM for it all?

Any other advice anyone can give me would be great. Even if it isn't this property....my goal is to have my first deal done and sold by May. 

Post: I'm a Newbie-Pay Down Debt or Start Investing??

Tye BrooksPosted
  • Douglasville, GA
  • Posts 33
  • Votes 9

@Jerry W. Most of my debt is student loans ($30k). The only way to avoid that would've been to not go to college. I did the best I could...working two jobs while being a single mom to pay for my first 2 years out of pocket....but the last two, I needed the loans. I already have a budget in place. I save between $500-$1000 per month (depending on how much my commission was for the month at work).

I make anywhere from $50,000+ at work (again depending on commission. 2016 looks like a $60k year for me right now...2015 was about $52k. 

@Douglas Snook te car that was totaled had a loan, which was paid by the other car insurance company. I got a new car that now has a loan (I  owe 21k on it..$380/month for the next 5 years...I literally just got it 2 months ago) credit card debt is 5k, split between two cards (2k at 21% 3k at 15%...so of course I'd pay the 2k off first).

I was thinking of finding a mentor in my area...working on about 2-3 flips together and splitting the profits so they have a vested interest in it as well. Then I should be ok to try it on my own, and have some more money to work with.