All Forum Posts by: Scott T.

@Account Closed

Sounds well planned. And sticking to higher rent areas, with pockets of lower priced housing that aren't war zones, buys more cashflowing properties. Also check into Mitch Stephen's (out of San Antonio, Texas) approach... as he has a proven strategy that work's masterfully on local and nearby homes, or if one has a local to market, remodeling contractor. I already spent two decades in design, build and remodeling... so what appeals to me is "pretty houses" and then reinvesting in homes that need work (for equity) and letting OTHERS fix them up! (Borrowing private money to fund them, or doing say a $25k.- $50k. LO deal in Cali, then buying a property somewhere cheaper...) Also Ron Legrand's "Work for Equity" program is pretty savvy, for 'flips.' 

Both coasts and all other grossly overpriced areas severely limit one's (potential) leverage... and will TANK when the Powers That Be pull their next staged, "market correction." ;-)

@Account Closed

Q: " I often think about selling my duplex in Seattle for the same reason. It produces a nice return, but I know I could get much more cashflow if I sold and used the money out of state. I am saving to buy in the Midwest. But sometimes I think that if I sold I could really get the snowball rolling. I hesitate because the value just keeps climbing. I don't want to be kicking myself in the butt 20 years from now like the Bay Area investors that sold 20 years ago..." UnQ.

It's about LEVERAGE and CASHFLOW... You'll make far more selling say on either coast and investing in a (rent / job) growing or even stable concern in the Mid or Southwest, South, etc. 

I'm going to focus of buying Subject Tos and Owner Financing... and doing Lease Purchase and Lease Options, then buying and holding OUTSIDE of California, and / or becoming the bank. (i.e. Holding the NOTES in the states where one can 'foreclose' if / when need be, within a month...) Right after when the next 'correction' hits will be the BEST time to BUY and HOLD the NOTES on single family residences, reselling them as LPs and LOs, or you could also keep them as long term rentals. 

So... WHY play "landlord," when you'll make a LOT MORE with FAR fewer HEADACHES... doing the alternatives? At least that's my take, after six months of STUDY... Multifamily and hundreds or more doors is also a great strategy, if: A.) You have the funds? And B.) You have an onsite manager who deals with 95% of the management, maintenance and evictions, etc.?

@Wendy Schultz

Well stated... I know several people (some of whom I made the initial suggestion) that rent- out their entire abode (while they stay at a friend's, lover's, family's, etc. place) for around +/- $500. a night, here in Sonoma, Napa and Marin, etc. county "wine country." They also tend to utilize VRBO and one realtor friend plans to 'specialize' in managing these places. (Her 2500sf condo overlooks the main park green, in Windsor... and it right next to shopping, a grocery store, eateries, bars, entertainment, etc.) 

I's venture to say that it wouldn't be worth doing the 'lower- end' with fewer than three bedrooms rented, and the people I've noticed doing so indeed had three or more rooms allocated... Unfortunately this doesn't consistently attract the 'right clientele,' and also tend to upset the immediate neighbors. (Especially in ruraldom!) As for 'area...' that's generally more about "safety" and "things to do within walking and driving distance," than the actual space itself, at least for shorter- term guests. If I were Michaela, I'd offer those on "lease to own" agreements for $5k. - $10k. down, and target the mid higher- end (full space) rentals, or not bother?

@Michaela G.

I used to sell on eBay both after Wall streeter 1 (Meg Whitman) and then foolishly again later on, when John Donahoo took over and it got far worse. I see very similar parallels with Chesky's 'mentoring' by Donahoo, the "word on the street" of a 2017 or '18 IPO since 2014ish, and after viewing the speech Brian gave at the Aspen Institute. Much like eBay (or any global 10,000 public livery corporate system subsidiary, under the Crown empire) the founders either "toe the line," or are soon replaced with a Meg or John type. (i.e. an establishment autonotom, focused on 'theft' performance bonuses, perks, stock price, quarterly reports and undeserved, "golden parachutes!") 

I suggest you instead (sandwich or cooperatively) 'lease option' those properties, make considerably more BANK than "renting them out," then when the "economy tanks" again in 2018- 20ish... you will have capital to REINVEST at or near the BOTTOM of the market 'S' curve! Thanks for sharing your (parasitic) 'hosting' story, in so much detail. Sounds like you also made the RIGHT choice. Keep smiling, and kind regards :-) Scott

SORRY to hear about your negative experience with AirB... but I'm also NOT the least bit, surprised... I studied Air Bed & Breakfast in some detail, several years ago... have stayed in about ten abodes thereon, and spent over $10k., as a guest. It seems to me that since the CEO (Brian) & co. began 'mentoring' with the likes of eBay's CEO (John) and AirB is expected to 'go public' either later this year, or in 2018, that in all likelihood this will only continue to get even more lop- sided as time goes on, as par? And there it is in a nutshell, if you understand what that really MEANS?? 

Prior to hearing about the 'pitch' to the (Rockefeller) Aspen Institute, and Chesky 'consulting' with (former BAIN Capital CEO) Wall Streeter, Donahoo, I was an advocate... and will likely continue to use AirB, as I like the 'experience,' and abhor HOTELS and their inconsiderate guests! However they are NOT in the business of being FAIR to hosts, any more than eBay is fair to their REAL customers, the SELLERS! Bottom line; they are FIRSTLY 'cash cows' to the so- called ELITES and all public companies are beholden to them, as are the 'founders.' PERIOD!

@Brian Gibbons

Thanks for linking this, Brian:  https://www.biggerpockets.com/renewsblog/2014/04/16/finding-mentor-real-estate/ . I'm reviewing your excellent seller and buyer presentation, etc. videos on YouTube for LO deals, and rewriting some (hybridized) 'scripts,' as I can't locate any that are to my liking, and persona. (I'm not one to utilize 'wrote scripts,' and sounding 'mechanical...' and most of the LO, etc. scripts I've found on the cheap, frankly aren't very impressive.) Hopefully I'll soon be in a position to invest in a mentor, again. Thank you kindly for all you share, sir! LOTS of very useful information. :-)

You would THINK that one could 'edit' an 'update,' or a post for longer than 15 minutes of infamy? I meant to say (before hitting 'enter' and not being able to update, the update... WTH, BP?!) that if I go to a 'guru' and 'add value' I should be COMPENSATED either with money? Or with THEIR TIME?? (And it should also therefore be based upon the 'added value' CONTRIBUTION... in proportion to at least, their increased BOTTOM LINE. But that of course is definitely NOT how this grossly LOPSIDED 'system' of 'crony- ism' operates, now is it? So what VALUE can be 'added,' within REI? DOZENS of things, from my limited vantage point. And I'm merely ONE, 'idea person...') So I in turn ultimately don't SHARE... when (by all rights) I should be PAID as the CONSULTANT. This 'model' needs to CHANGE, people. The bankers are still WINNING... in case you aren't paying ATTENTION?! :-)

@Karma Senge

I concur, and this is the main ISSUE with the mentoring / coaching paradox... Perhaps 95% of those who need RESULTS don't have an extra $5k.- $50k. to 'invest' into "mentorship," up front! And one must ask themselves WHY anyone 'advertising' to teach others, won't agree to "share the risk" by meeting someone 'half way' for say a minimal down payment, then "doing the work" necessary, or they LOOSE their' deposit?!' (Risk- incentive- reward...) That is, perhaps $500.00 down, then APPLY what you've learned, and GET A DEAL DONE, before receiving more 'coaching,' on say a 60/40% 'deal split?'

I can now see why a potential mentor wouldn't consider a straight 'deal splitting' arrangement out of the gate, with the HIGH attrition rate (and time and effort commitment, up front...) but this almost universal "pay to play" model only works with people who have the "investment" funds... which ISN'T the VAST majority of those who are likely to DO THE WORK. (i.e. Those who are HUNGRY for that knowledge, and reward... from a NEED as well as want and desire, perspective, based on CIRCUMSTANCE... vs. someone who isn't literally, HUNGRY for it... and THEREFORE, prepared to TAKE ACTION!)

And this ISN'T a 'pitch,' nor a 'rationalization,' but if someone other than these 'gurus' did meet people on a level playing field... I (and many others) would have paid them say $500.- $1k. down... before investing in several $100.- $300.00 'guru' courses, only to end up with 'analysis paralysis,' based upon CIRCUMSTANCE leading to an incomplete 'action plan,' more so, than HABIT... That is, a FACT! I am currently 'filling- in the blanks' from a dozen gurus and online mentors 'freebies' and the $1000.00 invested thus far (over six months) in 'courses,' etc. Had I been offered a DEAL SPLIT up front, where would i be today? And how much would my mentor have been, AHEAD?? (i.e. $10K.? $25K.?? $100K.???)

@David Faulkner

Q: "I can't wait until if/when you ever need to apply for a mortgage or any other sort of loan or a job at any one of these evil corporations ... I would give just about anything to be a fly on that wall ... you corrupt pig bankers gaming the system to control the masses, well you can never control me, now give me some money! Who is 'gaming' who indeed. LOL." UnQ.

I have no problem avoiding dealing with bankers, to date... that's a big part of WHY I'm getting into REI (as a business model) and should be our primary objective for doing so, if one have any real MORALS. And also because the one- side, hopelessly passe' 'establishment' clearly is beyond 'corrupt' to it's very CORE... and therefore MUST BE REPLACED... And as for those working for 'publicly traded' corporations, you're simply part and parcel, of the overarching PROBLEM... so if I "hit a nerve," then so be it? Or if you're rather saying "good luck with that..." then you seriously underestimate me, and my level of 'resolve' after what I've endured, sir. ;-)

@Jay Hinrichs

Indeed! There's next to nada, anew... aside from the latest 'regs' to stem the tide of the 'sheeple,' awakening... or upsetting their apple carts, like bulls in their China closets... or derivatives, default swaps and crypto currencies. As soon as someone figures out how to 'game' their rigged system, they co- opt and control them, as par, since the dawn of so- called "civilization..." (Then they either 'convert,' the "heathens?" Or throw them out of a 50 story window!?) When you control the 'money,' markets, politics, war machine, legalease and media, edu, etc., you control the system... ;-) I am not paying these gurus much, nor giving my better ideas to them. So who is 'gaming,' who!? But thank you kindly for your concern, sir! :-)))