October 2018

Personal Purchase Update

Newest purchase took a tad longer than I expected. As I mentioned last month we had to go back through and do some further updates before we listed it for rent. It took no time at all to get a renter in there which was great, so I scheduled the appraisal with the lender. Hurricane Florence delayed us a week, but the appraisal went through and I got all my money back! 

Purchase price – 55K

Rehab – 10K

All-in cost – 65K

Appraised value – 100K!!!!!!

Rent – $950/month 

It shouldn’t be so easy to make this much money doing so little. 

I went to Fincon 2018

Fincon is an annual conference for financial bloggers. Tons of people in the “blogosphere”, youtubers, podcasters, and content creators of all kinds come together to talk shop. It was a lot of fun, and a useful learning experience. I came away super inspired and I’ve already bought my tickets for next year!
 

Click here if you want to see my experience as told through my camera]

Fincon has an interesting history for me. I had been hearing about it for years through people involved in the personal finance community, but it’s for bloggers. So when I started my blog, I got excited that I had a legitimate reason to go! So I prepared by redesigning the site, I got the nice logo made, business cards, and tried to step up a little bit so I didn’t seem like a total slacker. 

Unfortunately when I got there I felt like a total slacker anyway. Not in a bad way, but in a motivating way. It’s good to see the effort your peers are putting into similar work, helps hold ourselves accountable. Next year I look forward to trying much harder: more preparation, better pitches and branding, more deliberate networking. 

All that said, this event is FUN. I work at a bank and bankers are BORING almost universally, I was worried that hanging with a bunch of money nerds would be similar, (and it was kinda) but it was fantastic and I already bought my tickets to go next year! 

I made a mistake by not going sooner, thinking I didn’t have anything to offer, or wasn’t established enough. I wish I would had gone far earlie. 

 

What’s going to happen in November

I have 2 podcasts coming up! 
 
Very exciting times! Late last year I started this blog to share my real estate thoughts, shortly afterwards I got the opportunity to write for the official Biggerpockets blog regularly. Next up I’m going to record a podcast with them. No idea when/if it’ll air, but I’m excited to prepare diligently and make the most of this opportunity, no squandering! 
 
I have another podcast opportunity with them in the works but it’s still in testin so don’t want to jump the gun. 
 

I’m going to buy another single family home 

I had intended to start this process in September but had a slight delay, all things considered not that big of a deal. This will be my 3rd complete purchase and rehab for the year and that was my goal, excited to hit it!

Residential real estate deals are getting more competitive these days for sure. Margins are tightening and interest rates are rising, I’m starting to develop strategies for alternative paths forward. Keep you posted on what happens. 

Books I read this month

 I only got through 4 books this month but I’m quite happy with the choices I picked, especially Yuval Harari and Richard Dawkins’ new books. I read Roger Stone’s book because I wanted to see what this guy had to say, but it was drivel unfortunately. 

The Federalist Papers – Alexander Hamilton / James Madison

21 Lessons for the 21st Century – Yuval Noah Harari

Stone’s Rules – Roger Stone

Science in the Soul – Richard Dawkins

Want to get involved?

People are always asking to be part of our success, and we are always looking to bring in great talent.

If you are looking to provide some value and want to get involved, don’t be shy. Reach out!

My DYEB podcast appearance

 
 
 
 
 
Admittedly this happened quite a while ago at the time of this posting.

I’m a new blogger, I started writing for the first time ever in late December 2017. My goal was simply to practice, maybe put out some helpful information, and get some exposure about my real estate business. Building a blog was not been easy for me at all, so I went searching for help and I found a guy named Pete McPherson who has a podcast and blog called doyouevenblog.com. I learned a ton from him and he was generous enough to have me on his podcast to talk about beginner bloggers. It was a great experience and from that, someone reached out to me and offered to redesign my website, and I hired him to design the website you see now!

Here is the link to hear the podcast, it’s me and Pete talking about blogging and business.

 

 
 
 

September 2018

I’ve decided to try and do monthly updates to catch people up on all my projects at once rather than weekly random articles with no particular coherence. This will be the first of many! 

Personal purchase update

My latest purchase has finished rehab! We had finished it and tried to rent it for about 10 days and then went through and made a few more adjustments. The house had wood paneling on the interior which was quite a bit outdated. I was confident that we could get the house rented as-is, but I wanted top range of rental income, and I really wanted to make sure this house will appraise for 85K or better. So after the rehab was complete, I looked at the pictures and decided it was worth sinking some more money into. I had my team pull the wood paneling down, install new counter tops, and a few other small odds and ends. Now we are back to looking for a tenant. The pictures are before we went back to redo those items.

This project has been going a bit slower than my last one. My contractor has a ton of his plate lately (somewhat thanks to work I’ve brought him) so this has fallen a bit to the wayside. Fine by me really because we have both been focused on other mutual projects. All that said, I’m happy to wrap this one up and get it profitable.

I started my side of the underwriting for this deal 2 weeks ago! That means as soon as tenant signs the lease at this property I can go apply for a mortgage with my lender, he’s going to ask me for a laundry list of “stips”: loan documents to satisfy lending requirements. This will include W2’s, tax returns, bank statements, insurance for all my properties, hoa statements, paid tax bills, etc. I have all these documents prepared already so as soon as the processor asks me for that list I can give them to her instantly, this speeds up my underwriting immensely AND it makes the loan processor’s life really easy. Win/Win/Win

I spoke on a panel regarding long distance investing

Speaking is something I’ve always been intrigued with, and there is a TON of value in it, but it’s a talent like any other: it must be practiced. I was fortunate enough to share some of my knowledge at a local real estate meet focused on out of state investing. I was happy to share my knowledge and hopefully, I’ll get the chance to do it again soon!

Thanks to Neil Henderson of www.summerskycapital.com for snapping this great picture of me! And another big thank you to Outback real estate investor group of Las Vegas for giving me the opportunity to share what I know.

Here is an article for Biggerpockets about why it’s important to build a team BEFORE you buy a house

The link to that article is here:

Newbies, if You Want to Land a Property Within 12 Months, You Need to Do THIS Now

I started using my talents and knowledge to help other people duplicate my process

Towards the middle of the month a guy reached out to me expressing interest in replicating my process. We made quick friends and started ramping him up to understand how I make money so easily. I showed him how I buy houses, introduced him to my ground team, and on August 21st we had an offer accepted on a GREAT DEAL.

Purchase price – 34K

Rehab estimate – 25K

ARV – 85K

Rent – $950/month

This is a sick deal and very happy I could help a stranger to make money using what I’ve already learned. I certainly couldn’t do it without my great ground team in place, so I’m thankful for them stepping up so well to take on these new clients.

It seems as soon as we started making some successful progress in this area another client reached out to employ my skills in the same manner. I’ve begun to move towards this opportunity in what I’ve tentatively called “Alexandria Consulting”. I will look to expand on this new demand and try to help as many people as I can.

What’s going to happen in September

I’m going to buy another single family home

Maybe my last for the year. I really want to move into a commercial purchase next year so I’m trying to slow down my cash usage for the time being. I fully intend to spend the majority of my cash assets on a large apartment and it’s unlikely I’ll have access to that income again for a while. So I’m hoping to get one more deal done and then shift my focus on the next big obstacle, although I will continue to assist others

I’m going to fincon 2018

My friend Lee Huffman goes to Fincon every year and raves about it. My FOMO was kicking in hard this year so I looked into it. It’s a conference for financial bloggers which neat but I’m not a blogger, rather I WASN’T a blogger. I literally started this blog so I could go and network and have a reason to participate. That was in December and since then my blog has provided me with far more opportunity than just one conference. If you’re on the fence about content production then my suggestion is to just get started. Put something together and start practicing, the results I’ve had in just 8 months have been staggering. Highly recommend.

Books I read this month

Are you reading consistently? This has been the massive life changing habit for me. Sad I wasted so many years thinking I was smart rather than working hard at actually learning. I clean off books at a blistering pace these days to make up for lost ground, you can see my list of August additions here:

Never Split the Difference

Raising Private Capital

Hitch-22

Guns Germs and Steel

Change your Mind

Want to get involved?

People are always asking how they can bring value and get involved with our process, but I’m not always sure what talents people have. Here is a short list of things we could always use help on. If you are looking to be part of a growing operation and think you can help us do better, reach out!

  • Blogging/writing/proofreading
  • Finding multifamily deals in North Carolina
  • Social media  strategy
  • Photography/videography in Las Vegas
  • Podcasting