THE ABOUT ME AND MY CURRENT POSITION IN REI

[Pedro Gonzalez]

Hi, everyone, I glad I found this REI site, community, it's been really educational for me. This is where I'm at presently. I owned a duplex, which I bought in late 2010 on a VA loan, since I'm a Veteran, in order to occupied one side and rent the other, while being close to work, in a booming neighborhood that I like, and great market appreciation. Bought it in 82K and it's currently 230-250K range. My hope was that by now, it be in the million price range, due to the market appreciation in this area, so I could sell, retire, and live forever happy ;)). At least that was the plan when I got it. But it did not, or maybe, have not happen just yet ;)) because It happened to my friend's property; and he didn't even plan for it, pure luck, but that's how things happen sometimes.

Everything was working fine, had a good tenant that I inherited from the seller, payment covered all my households expenses almost, so my 5-6K net monthly salary was playing money basically, and I did play ;')). But then, being Miami Florida, there were thunder storms, roofing issues, insurance claims, still unpaid, lost my tenant as a result, bad financial decisions, etc, etc.. got me in a jammed that I still am. I was counting with about 50K in insurance payment (according to claim) which would allow me to rehab the whole place and get even more out of it, but it did not happen like that, still over 2 years into the claim. Regardless of all that, currently my situation have changed, I discovered the REI business, and my plan, priorities, have changed. Now I want to hold to my property, and re-invest in it, and continue to grow in the REI business. But now, I am stopped because of past, bad credit issues ( 590-620 range) which had affected my ability to get funds to get my business moving forward.

Right now I had an equity in the $150-200 thousand range, Which I can use to expand and grow, but I can't get funding even though, I am able to pay a loan or mortgage, just with my own salary, no counting cash flow from my rental; and It's very frustrating right now.  My plan was to tap on the equity build on the property, do some rehab, and buy or build on the back of same property, but I'm not able to get approved for a Heloc, refinance or anything. I could easily build a studio and live in the back, and rent the front units each about $1800-2500 range, a month, after some rehab, which will offer me a good cash flow, and continue to keep growing my real estate business, but I have not find a way to get the funding in my present credit situation. But, I'm working on my credit in order to move forward.

So i'm looking for any advice, in the community here, to my dilemma. What you think of my position, what would you do, and/or recommend me? Which is the best way to proceed once I fix my credit, and I'm able to get funded? Is it better to refi, to get a Heloc, Business loan, etc? Is it better to sell, and then work with the capital gains? I really do not want to sell, I like my area, but that could be my last resort.

Another idea that occurred to me, is to form a LLC, sell or refinance my own property to my own LLC for the current market value, for the purposes of getting funds, assets protection, kick start my business, to see, If I'm able to get the funding thru my LLC rather than thru my personal credit, and made that property the base of my business. I don't even know, if that is allow, but is something that has crossed my mind. So, any advice, suggestions, from the community here? I would really appreciate it. Thank you in advance for your insights. I'm very happy I found this website, community among the great amount of noise and disinformation out there. Keep up the great job, and I hope to be a contributor to the cause soon enough after I get more expertise, and my act together. It's not a matter of how, but when. I will succeed in this business. It is the right business for me, for my goals in life, and I am NOT looking back, no matter how hard or impossible the road seem to be at times. Thank you and I look forward to cross path with some of you in our endeavor to financial freedom.

Pedro Pablo

Miami Florida

Investing Zip Codes

33127,33137, 33142 and surrounding areas.