All Forum Posts by: Tyler Haskell

Ben, I definitely agree that I will need I offer him something of value in order for an agreement to be reached. Driving around for vacancies is also a good idea I had not considered.

Alberto, thanks for the reply! I never thought about getting to know the guy more personally and using that to find other ways to offer help. I believe your right in that some very successful financial people may find it more beneficial an be willing to help for knowledge in unrelated fields or even hobbies. I will have to see how personal the individual wants to take the conversation.

So as a new investor I managed to pester a local investor to the point that he has agreed to meet with me over coffee to discuss REI. I called this individual because I noticed his bandit signs all over the Sacramento area. He was very friendly and said that even though he was busy, he is always receptive to speaking with another investor.

I get this the feeling that this guy has a rather large operation going based on this information: He keeps saying "we" and I am pretty sure it is a syndication of investors. He also stated that they buy houses to fix and flip with cash, and purchase in all of Northern California and most of the bay area. He also stated that he was in the process of selling two other businesses he owns to fix and flip full time, indicating that he is doing well. My question is this:

When I meet this guy, what can I reasonably expect? Ideally I am looking for a mentor who doesnt mind me shadowing him, and maybe would take me on as an investor, bird dogger, or even a future partner. But really why would this guy do that? He obviously doesn't need additional financing, he obviously knows what he is doing and is doing well, and I could not really teach him anything about REI. I really am the one seeking knowledge and experience through him.

I am thinking of asking him general questions about the Sacramento area to help me with my buying criteria, and maybe some questions about how his direct marketing works. I also am thinking of asking him for mentorship, and in exchange I would offer to do some manual labor on some flips (I am a painter), and look for additional deals for his group in exchange for insight. Perhaps I can convince him to involve me in a future deal with him as well.

Let me know what you guys think!

@Chris VailI appreciate your comments. The more I read about REI and BP forums, the more I see that there really are no rules and no "right way" to do anything. Its about creativity, acting on opportunity, and making your own way to success with the help of others. Your point about me being satisfied with the return is true, because in some markets depending on condition you have to tweak your criteria and your expected ROI. Your last sentence is also something I personally have a hard time taking into account; this is a marathon not a sprint. My personality is to obsess over a goal, live it every day all day, and become good at it really quickly. But then I also need to see the results fast as well. Real estate is something that without patience can get me into a lot of trouble. Good luck on your search as well, Im sure we will find what we are looking for eventually!

@Michael Evans Thank you so much for the reply! While I realized that I need to build an investment model that took into account financial inputs and outputs, I had never considered that I need to factor in other resources, such as my time per week. This ties into what was said about this being a marathon, and can help me to budget my time better. I also like your approach to dividing that time into specific meetings and goals per week!

After more thought, I will take a look at narrowing down my criteria more, determine what kind of yearly cash return on my money I will feel good about, and then develop an action plan to expand my network, and find a systematic repeatable approach to looking for deals to match the criteria. I may even delve into some direct mail and see how that goes.

Hello everyone,

I was hoping for some advice on where to begin in realistic expectations for the Sacramento area. Clearly the 2% and 50% rule are tough to find in CA and even Sacramento, so in order to not turn EVERY property away, I need to know what I CAN find that is a good deal.

Given that 25% down on a 200,000 SFH in Sacramento would exhaust all of my investment capital, is this the smart place to put my money? Especially when the 2% rule is more like the .8 - 1% rule here, and that is considered good?

Is it wise to put all of my current investment capital into a property that will yield neutral cash flow assuming I buy right and can keep it occupied without lapse? 

The upside to that risk is that I would be banking on appreciation and later increasing rents, and after all that sounds better then sitting on my money for 5 years until the next market cycle. But that can also be dangerous. 

I would love to do multi family in Sacramento but those seem even more difficult to find, not to mention that I would have to raise additional money to get one. 

Given that others seem to be having problems finding deals in this area also (just my view of things from the forums), out of state investing towards the middle of the country seems very appealing, especially when I see people talking about 25K a unit. But as a noobie out of state seems a bit daunting and an easy way to get into trouble.

In all fairness I have not established a relationship with many brokers or wholesalers in the area, nor have I established a good network yet, so I cannot give up before I really even begin right!

I am simply looking for guidance on where to start directing my efforts and training my brain given the economic landscape. Thanks for any advice you can give me!

Tyler Haskell

Thanks @Brandon Turner ! I will check out those keyword alerts and the webinar. Thanks for the support.

Thank you for sharing your experience Khang. I have read other posts from people in Sacramento saying the same thing. Good luck in the out of state investing!

Hello everyone,

My name is Tyler Haskell, I am 26 years old and live in Sacramento. I currently own a small parking lot seal coating and striping business in Sacramento, and spent 5 years in the Marine Corps before that as an Arabic Linguist and Intelligence guy.

About two months ago, I read Rich Dad Poor Dad and since then have become absolutely addicted to real estate. I started listening to the BP podcast religiously, and was reading 2-3 REI books a week. I always invested in the stock market and never really considered REI. I am incredibly excited to begin investing.

I am new to REI and looking to expand my knowledge and my network. I am seeking positive people that also have a passion for real estate that would allow me to learn from their experience and expertise.

I am also looking to acquire my first deal.

My first question:

Are markets that suffer from an inventory shortage typically much harder to find deals for buy and hold investing? Do these markets favor rehab and flips? Sacramento seems to be a sellers market at the moment with a shortage of houses. Although I have only been looking for about a month, I cannot seem to find any single family homes that would positive cash flow. Nothing seems to come close to the 20% discount against comps or even rent near 1.5% of purchase price. 

Perhaps I just do not know how to spot a deal yet, I have been looking on Craigslist, MLS, Loopnet, walking and driving neighborhoods, and calling all friends and family.

Sorry for the long post and its really cool to be a part of this great community!

Tyler Haskell