All Forum Posts by: Tyler Kesling

@Drew Sygit my strategy for now is to spend the next 6 months or so learning everything I can about real estate markets, properties, underwriting, financing, landlords, property management, construction, legal, insurance, and anything else that comes across my radar, all the while trying to make connections and build relationships within each of these areas to build a network and gain the confidence to sell lenders and investors on the very best deals I can come up with. I believe if I can present a bullet proof opportunity, I can find the funding. I can see a situation where I defer the lead on a deal if thats the route needed but I'm trying my hardest to make my first deal my deal. I may have to start smaller and that's ok too, at least I'll be in the game. I really do appreciate all the advice on this site and can't wait until I'm the one giving it instead of only asking for it. 

Not to drag this thread out indefinitely but if I were to take your advice and start small, is it the dumbest thing to 1) Hire a PM on a single fourplex and 2) Do a HELOC into a DSCR? I've reached out to the gentleman that owns the large PM group in the area to see if he knows of any smaller PM that I can connect with and I also messaged my credit union to find out what my best options would be. Look at me taking charge of my financial future! Goggins and Cardone would be proud. Next I need to start reaching out to brokers and sellers.

@Randall Alan

My hold up is that I usually get a decent influx of cash in late June so I'm expecting that to get me into the best starting point. If for some reason that doesn't roll in or if I find the perfect opportunity before then, I'm jumping with both feet. There's a four a few blocks from my house with a handwritten "For Sale" sign, asking $200k, claiming $3150 per month rent. That one and a duplex off market sitting right next to it are right at the edge of a B neighborhood and going into a B-/C+. I want to wait and go for the white whale but im so tempted to go ahead and make contact to see if i can get real numbers. They look to need some lipstick but pretty solid. I saw some older pics on zillow.

@Randall Alan- Totally valid points. I think you can probably search for anything and with the right key words get the results you're looking for. After all, the Earth is flat in some forums. I've watched several "Webinars" (pretty sure they're just hyped up YouTube videos and not what I would consider a webinar) right here from BP that are really just a push to become a "PRO" and gain access to all the tools. Seems like they usually start with a little info to get your attention and then tell you to just punch the numbers into the Pro Tool and voila, you're now ready to purchase a property and I'm just thinking, "Did I even learn anything?". I've been a fan of Cardone for years for more than just his REI information. He's an acquired taste but I've read many of his books and maybe I'm a fool, but I believe he is genuine in his commitment and drive for success. I 100% know that he's going to spend a decent part of the 2 days trying to get me to invest in Cardone Capitol. I've filled out those little "Enter to Win" cards at the mall for a new car and had timeshare folks blow my phone up for the next 3 months. There was never a chance to actually win a car or the trip but rather enjoy the David Goggins types telling me that I'm being lazy loser, get your act together, become the best version of yourself! Cardone fits that mold. I'm just pulling from everyone and every resource I can access right now. I spend a lot of time reading these forums plus I've read David Lindahl, Ken McElroy, James Randel, Scott Berges, Roger Dawson, and have been watching videos of anyone else from first time to pros with REI information. I really believe that we live in a time where all the information you need to do just about anything is available for free online. Like I said, most of these authors/investors talk about going bigger sooner. You have to learn either way and the only difference in a lot of cases is the numbers are bigger. If you learn to drive a stick, driving an automatic is no big deal. It isn't really any harder to drive a stick, just different, but for people who never learned it seems very challenging. I have no fear of running the numbers, building a team, investing, repositioning, refinancing, selling or holding larger properties. Funding the larger properties to start sounds like it will be my biggest challenge and I'm not convinced, yet, that I can't find the money out of my own pocket or find OPM to get a deal done. I work with a lot of high earners and have a few friends of friends that are doctors and lawyers. I'm going to start reaching out soon to a friend of a family member who owns a local PM group with roughly 1000 doors for lower income, just to pick his brain, but I can envision a scenario where if I needed to partner with someone to get my first deal and gain some creditability and experience, he may be willing to assist. Anyways, again, I really appreciate your insight. I need both, the "GURUs" telling me that I can conquer the world overnight and the real investors to let me know that it might take a little longer to get there.

@Ryan Tongue -This is great, congratulations. I am only a few weeks into my journey so your original post really hits home and to see what someone who is really driven to accomplish a goal can get done in 9 months is inspiring. I would love to hear more about how your first deal went. Specifically, more on your partnership and the roles played, the funding (saw in your original post you were exploring options), and how you are managing the properties.

@Tom S. @Randall Alan. That's a terrible story about the Tesla but think about the guy who's running that company. He's also launching people into space. Big risk, big reward. I am taking all your advice and information and putting it in my Notation notes for REI (you should really see this thing, I'm reading roughly 3 books a week, watching and reading countless videos and articles and I have a virtual seminar with Grant Cardone this weekend). It may work out that I have to start smaller than I want but having a big goal and only getting 80% there is still better than having a small goal and hitting it 100%.

I will say that in pretty much every book I've read so far they say one of their biggest regrets is not going bigger sooner so there's that. I used AI to help me create an accelerated learning schedule and I believe financing deals is in another week or two out before I really start a deep dive into it but its been on my mind since the beginning of my journey. I just appreciate any insight on how others did it for the first time. Thank you both for helping me along the way. 

Thanks for the insight @Randall Alan on how current owners and markets might react to the ease on rates. I also appreciate you sharing your story. I've really enjoyed just reading through the forums and listening to books about individuals paths and successful and the challenging deals.

I've got big goals so I'm going to do everything I can to get to 60 doors before the end of 2026 and the deals I'm going to get into are going to net me a minimum of $100 cash flow per unit. With the direction things look to be headed, I don't think that's unreasonable. If I have to use every dollar I have access to and drain my life savings dry, so be it. I'm burning the boats on this one and making it an obsession. I've built my mindset to believe that my W2 is a prison that I have to escape. It's a great motivator. Plus 20 doors will help pay for a PM. I have zero interest in becoming a LL. I'm not opposed to buying a four to start if I can find a PM in the area that will service that and then turn that into a 20+ 12 months down the road. 

I would think with the HELOC, I could run with that until I can do a refi and with the interest rates starting to come down, there should be some gains to be made and I can repay the HELOC in short term.

I know the 401 penalties are steep but my thoughts are if I can gain enough cash flow to leave my current career, do I really need to worry about whatever money is in there to draw from 20 years down the road? I feel like by the time I can withdraw without penalties, I should have enough cash flow and appreciation that my "retirement" years should be taken care of.

I'll have to see what happens when it comes to lenders, I guess. My plan is to be as knowledgeable I possible can so the deals I present are rock solid and convincing enough to get my money. I think I know enough people with funds to jump in if the first deals get bigger than my pockets. 

Thanks again,

I have a goal of purchasing my first property July 2025. I'd love for that to be at least 20+ units and I'm curious how some of you financed your first deals? Lessons learned? My current goal is to create enough cash flow over the next 3-5 years that I can quit my W2. 

Some options I'm running in the background of my brain while still learning the basics would be, in no particular order.

A- HELOC.

B- Sell my current house and either rent short term to get some momentum or use part of my equity to put down on a new home and the rest into a rental. 

C- Raise the funds from friends and family.

D- Just use cash from savings and start small.

E- Pull from 401K and really take a risk on my returns. (Cash Flow is my goal) 

Pros/cons, other creative ideas?

@Gino Barbaro Thanks for the advice. I'll check into the subscriptions. 

Thanks @Bradley Buxton. 

When I'm practicing underwriting, I'm finding a property that looks interesting, trying to find out median rates in the area and do some math to get to the NOI then divide by 6% and come up with some sort of value. I'm just not sure how to find out what a good cap rate is. I'm just pulling 6% out of mid-air. I read somewhere that "A" properties should be 7-8%, B 8-9%, C 10-11%, D 12+ but again, I don't really know how to sus that out myself.