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- All my property shouldn't be more than 30min from each other. This is achieved by having all my property in a circle of 15min radius (or 30min diameter). My own house that I live in can be outside this circle, but the property I own is better contained within this circle.
- Use about 20+ agents (or other people) to find deals for me.
- Check criminal and credit reports on potential tenants. Check references. Make the tenant responsible for maintenance.
- Shop around for business insurance. Find one that does not go up in premiums every time you claim.
- High-end single-family homes take about 8 months to close the deal. Low-end single-family homes take about 2 months to close.
- Keep properties in the town you live. You want to see and feel the property. If you do the deals right, you will only need to see your property about 1 or 2 times a year, but it's still better for your properties to be in the same town that you live in.
- Don't wait for all conditions to be perfect before you invest. Do concurrently the things you need to get in order (clean up credit, read all the theory, etc.)
- The progression of property investment go from single-family homes to multi-family property (complexes, etc.). When you reach the stage where you need a property manager for all your single-family homes (should be more than 15), you should rather sell all the single-family properties and trade up to multi-family properties (stage 2).
- 3-2-2 (bedroom-bathroom-garages) is the number one leased (rented) property in the USA. For South Africa, my personal experience believes it's 2-1-1. Important to take cash flow deals that match those most popular for rentals.
- Partnerships suck, but we do them if done exactly right only. Be cautious with family, because it can split family members. If going with a family member, have everything (roles, responsibilities, liabilities, etc.) written up front and signed. Also, if going with a family member, better for one to be the lead investor and the other a silent cash partner.
- Good deals come down to cashflow and comparables (what other similar units SOLD for and what they rent for). Make sure that rental income minus PITI (Principle, Interest, Taxes and Insurance) give you at least a +$200 cashflow. Also, refurbish completely and then let the tenant be responsible for maintenance.
- Have a goal of retiring in 5 years of when you started. It's possible and should be the goal.
- Long-term wealth building is done through buy and holding. Add up a lot of +$200 passive income streams.
- As Kiyosaki says, have to leverage off other people's time, money and knowledge (in any work).
- When house standing and need to rent it out, first make sure that you know right price to rent it out at. Do comparables. Don't only rely on agent's comps, but do your own. Speak to neighbours and look at other lists that you can get hold of. Find out stuff on similar properties (e.g. pets allowed).
- You're trying to achieve best product at best price. Price aggresively and make sure it's in tip-top shape (clean and functional). Make sure there are no safety issues for parents. Don't have to have everything new, but have to have it as a clean home.
- When setting price don't put it higher than others hoping somebody will negotiate you down. The good tenants won't pay more. Actually put it slightly less to be competitive. Get the positive cash flow and attract good tenants at the same time.
- You want to pick the tenant, you don't want the tenant to pick you.
- Natalie explains how to market and meetings with buyers yourself. I will be following another piece of advice that says use agents to find property and agents to sell property.
- Drop insurance to tenant insurance after tenant is in to cover structure and not contents.
- When seeking out a partner, must have a plan of what you're going to do. Must know what type of deals, what split with the partner, what role you need from the partner, your resume, etc. After the game plan is down (like when starting a business), then seek out a partner (can do this in secular work as well).
- Natalie says she will send the vendor list if we email her.
- Another reason to take about 70% equity out of house, besides making it work in other investments, is that if somebody is suing you, or wants to cease assets, that less equity is all they have access to.
