Creative Ideas? Or trying to reinvent the wheel?

[Travis Smith]

Hi BP Community,

    My name is Travis Smith, I got a long one for you today! To start I am a completely inexperienced and excited newbie looking to get his start in the real estate world. I am currently looking to get into real estate due to my experience as a MSW (Master of Social Work) practicing in the County Child Welfare and State Adoptions capacities for a couple of years now and have seen consistent and egregious failures on the part of the governments idea of assisting some of the communities and populations they serve. I am looking to eventually venture out of my amazing state position to attempt to go forth as an Independent LCSW and venture into the field of real estate investing and trying to provide community development and financial education in the process. Unfortunately social work has not been as financially lucrative as many other endeavors that I previously could of looked into, however my intrinsic sense to be protective and to serve my fellow man led my down my chosen path, which to this point has not steered me wrong. I have excelled to some of the upper-most levels of Division 1 sports and attained All-American status twice in shot-put, worked as a driver for an exotic dancing company, college leasing associate, casino security guard, and now to my current field and positions which have revolved around child welfare for the last four years. I am aiming towards providing lease to own property leases and housing for foster families and foster youth who are often left to fend for themselves once getting involved with the system. Due to the recent occurrence and affect of a community I hold dear, Paradise, California I am also hoping to provide emergency housing with similar lease to own terms at minimal profit to allow families to get back onto their feet. With that not to get to controversial, but as a master of social work and for the most-part being highly skilled and utilizing available resources to their upmost, I would like to look into providing grants for rural housing, business development and agriculture to promote the cannabis and it's supporting markets industry that is sure to develop and continue to thrive as our country and the surrounding countries move to legalize marijuana and it's derived products. I understand I am being lengthy at this point but please understand it is only to give clear context of the reasoning behind the creative strategy that I am attempting to pursue and the goals that I aim to achieve through my real estate investing future.

I live in Fresno, California where the housing and rental market are strong. I currently live in a condominium near the State University which I purchased in April of 2018, five months after being terminated from my first full-time career position, which was with with a Child Welfare Department here in California. I purchased the condo for $112,000.00. It is a second and third story dream, with two balconies overlooking the pool and the front of the complex which is nice, as a smoker you don't have people watching or able to see you from across. As I have stated funding has been one of my major issues. Immediately after my purchase I began my real estate investing/ Financial education and have not stopped since. I was raised to believe the desire to have money was bad although it seemed to be the thing we always seemed in dire for most. When I grasped the idea that the average man was able to become financially independent my years of skating by through some of the best public schools, a UC and a CSU for Graduate school that brought along with it a diminished love if not hatred towards reading and learning all of a sudden stopped, and the desire and understanding that knowledge is power, what you don't know costs ya and ignorance is expensive hit me like a bag a bricks. Reading and learning is easy when you know their will be a payoff or some form of benefit for you in the end. Coming from a recovering addict who recently experienced the power of Ayahuasca during a trip to Florida, believe me I know what kind of drive it takes to buckle down sometime, despite everything in you wanting to go enjoy whatever poison they may be suffering from dependence with. With I have been looking to get into small multi-family units in my area. I have mainly had my sights of four-plex ranging from $250k to $350k, due to my recent purchase, as well as my immediate, pay yourself first, action always beats inaction, head-first bravado started my first LLC, obtained survives through 1800Accountant and went towards applying for business lines of credit cards, (previously believed I was going to finance completely with cash advances from business credit cards and have not been able to secure enough needed.) I am currently pre-qualified for $275k from a lender in my area. As far as a down-payment I have around $5k cash, $15k in available cash advances from personal credit cards (would have to season 60-days), and a retirement plan from my position with the state I would use. Now I know I can look to get into something with this, especially if I changed my market, however I would very much like to stay local and although not self-manage be able to work on a property and get as much experience as I can as working in the field of social work, working with your hands sounds like a dream job at the end of some days.

I am looking to install new LTV flooring throughout my condo, paint the interior, and redo some small items such as shower doors. The current Zestimate is at $118k, with a one-year forecast to be at $126k. An amazingly kept condo was sold at a steal, I am still kicking myself for not finding a way to purchase it for $115k, which was much nicer, however my neighbor was a motivated seller and needed cash fast. With the rehab done, I am looking to re-appraise the property, in which I hope to get an ARV (After Repair Value) back of around $135k. If I am able to get my condo after the rehabs are done to appraise for $135k, which would create the 20% equity often needed for a Home Equity Line of Credit. With that ability I was hoping to then take out that home Equity Line of Credit, pay off any monies owed for rehab, estimated cost around $5,000.00. Then use that monies as a down payment for my real estate investment jump start instead of leveraging credit cards and needing to season. In addition once another property was purchased, and through the BRRR strategy, which is my intended plan with all my small multi-family future properties, I want to use the home mortgage optimization method. Which once able to take out equity from the second purchase and the repayment of the first home equity lone of credit, after having the necessary 20% equity in a mortgage if not needing the money for a current purchase, utilize home equity lines of credit on each mortgage, and use the money from the HELOC and pay down the same mortgage to be paying down the principal substantially faster on each property free and clear.

I know this a lengthy post and I hope some brave souls muddled through what my teachers have told my individual way of telling things. Any information is greatly appreciated, although I my aim is to be financially independent the greater goal is to do it pursuing something worthwhile and meaningful. If anyone knows of anyone individuals interested in investing or creating programs similar to this I'd be more than happy to inform any individuals or companies of strategic and profitable ways to invest in some of our most vulnerable communities. Thank you again for any who have taken the time and I hope your weekend and your endeavors are created as you envision!

T. Smith