All Forum Posts by: Tyler Jahnke

I don't have a ton of experience here, but the first thing I'd tackle is the legal / paperwork side of things. If you're using other people's money, you need to have an agreement down on paper. You need to iron out the very specific details of how you intend to use their money, details on equity split, etc. Talk to a lawyer soon while you're looking for deals.

-Tyler

Hey @Account Closed - as said earlier, unfortunately the tax assessed value isn't too relevant in determining a selling price or value of the property.

If it's a single-family, the most important thing is to look at comps. That's where the value of the property is largely dictated.

1. You need to figure the ARV (After repair value) first.

2. Then figure out the renovation costs

3. Once you have those numbers then you can accurately figure out what your asking price should be.

4. If you can be ALL-IN at 75% of the ARV, you've found yourself a good investment.

Best of luck!

-Tyler

Hey @Alex Spahman here are a few things to do right now:

1. First, make sure you have strong personal financial health. You should be an expert in your own financial situation right now. If you can't tackle your personal finances, I don't think you can master it in real estate yet. Understand your income and expenses. Figure out how to cut personal expenses and increase income.

2. Aggressively save so when a deal comes, you're prepared to jump on it.

3. Don't get sucked into feeling that you should follow what most of society does after college. Many people get that first job, that steady salary, and they blow it on partying or buying their first fancy car. Stay disciplined.

4. CONSTANTLY network and meet other successful investors. Become friends. If you do this for years, opportunities will start to flow your way naturally.

5. Figure out what your first investing strategy will be. And focus on that first. Don't dabble when you're just getting started. It's hard to make progress that way early on. You'll have plenty of time to dabble when you get more experience and have the proper systems in place to be successful in multiple different ventures.

6. Understand that you will make mistakes. A ton of them. What will separate you from the rest is how you react to those mistakes. Either get frustrated and give up or learn and move on.

Best of luck!

-Tyler

Hey @Sameer Kh - spending $6,100 on repairs seems like you'd basically be spending 5 years of cash flow (considering you finally made some money this year in the amount of $1,200).

So, it looks like you're betting on appreciation, which is always risky. I think you need to consider selling / 1031 exchange.

Best of luck Sameer!

-Tyler

Hey @Collin Chan - my friend and I host a monthly meetup in Oakland if you're in the area. Hit me up if you want more details! We'd love to see you other there sometime!

-Tyler

Hey @Jeremiah Akindele - I sometimes feel like these mentorship programs are looking to take advantage of people that are looking for a "shortcut." Unfortunately, people looking for a "shortcut" are in for a rough ride.

In reality, to be successful in real estate investing (or life!), it takes a ton of time, effort, hard work, grit, focus, and relationship building. It's a long game we're playing. It'll take years and years to grow. And a 3-day crash course isn't the answer to success.

I've seen many successful real estate investors build their empire without spending a dime on these guru workshops. Because they focused their time and efforts elsewhere.

How do you grow in this space?

-Biggerpockets

-Youtube

-Podcasts

-Books

-Attend or start your own meetups

-Call investors. Have coffee with them. Build friendships

-Tyler

Hey @Rachel Meeks - I personally love Indianapolis as a market to invest in! Great city with so much upside. Here's a great map of the city which should help you identify and understand the different neighborhoods: https://www.biggerpockets.com/renewsblog/guide-grading-indianapolis-neighborhoods/

Best of luck!

-Tyler

Hey @Shane Willis - I personally don't view any of my real estate connections as competitors. I believe that we can all have our own success and grow together. Think...the abundance mindset.

Sharing best practices, being open to helping others, and NOT being selfish have all been crucial to the success I've had. More opportunity has come my way because I'm so open. So, in short...I wouldn't worry about it. And think about how you can incorporate being open into your life and investing career.

Best of luck!

-Tyler

Hey @Jake Stokes - I get it too man! I was raised and live in the SF Bay Area. Tough market to find cash flow.

I started looking out of state in 2016, bought a couple of single-family properties and a duplex in the midwest. Now I invest in Phoenix in larger multifamily.

It'll come down to your goals in life. What does your ideal look like? And work backwards from there. Betting on appreciation is always a gamble. If I ever buy in my crazy Bay Area market, I'd house hack and rent out rooms in my property...that's probably the only reason right now why I'd buy in my market.

So, for the time being I'm focused solely on out-of-state.

If you decide to look out of state, I can't stress enough the time and effort you MUST put into building a team out there. Don't take shortcuts or the easy road. REALLY build trusted connections. That will make or break your investments out of state.

Best of luck! Be patient!

-Tyler

Hey @Scott Trench - YOU KNOW there isn't a right answer! All good, it's a great conversation starter :)

This is an often-debated question. My answer: there's no way to tab one market as "the best."

Unfortunately, I see too many people get stuck in trying to identify a market and they end up sitting on the sidelines for years...or for eternity.

Yes, do a little research and look at the metrics of different market. But I'd argue to spend more time and effort into building a trusted team in a market. Take action by picking a market quickly, building a team there, and go for it!

-Tyler