All Forum Posts by: Lamart Gomillion

Welcome to BP Rob. I am a newbie like yourself and getting ready to take action on the 10th of next month.

Regarding your question, if it was me, and I planned on living in one of the units I would purchase a quad, that way you would have 3 sets of rents coming in to offset any loses if you have repairs or turnovers, basically you should be able to live for free. Regarding finding properties, try doing a search on loopnet.com, and filter the search criteria for what you are looking for, but you may have to pay a premium to access all listings. Deals seem to be getting allot harder to find, I guess that is evidence of the market trying to rebound, but they are still out there. 500 to 600k seems to be on the high end, maybe that is the norm is Boston, not sure. I know you said you may want to occupy the property, but you might want to consider trying to get an investment loan on a quad and come up with the 25 percent down if you have the cash to do so and just buy the quad and collect on 4 rents. Biggerpockets has many knowledgable experts here, and a few inspirational investors that I personally favor, like Brandon Turner, William Bernard, and Rich Deweese. Send them a greeting and introduce yourself and post as much as possible so everyone gets to know you. The good thing is, all the information you get here, is FREE. Good look and happy house hunting.

Good Point Jeff, although I believe we will be ok since we both make pretty good every month from our current Jobs. Plus after every loan is secured, we will pay up mortgages 2 years in advance. The compounding profits and made made from the Job will either go back towards mortgage or towards more property, I believe this is kind of the snowball affect they mention here. I have actually decided against the 300k 21 unit building. My issue is, that while I know we can get it, on the flip side it would be much easier to just purchase a quadplex for 100k netting 20k per year minus 5000 per year in expenses and just pay up the mortgage 2 years in advance. We will start with only quads for the time being, and move to bigger and better things once the cash flow starts to get a little bigger.

I agree with you Joel, while 21 units typically draw in certain kinds of tenants, I believe it still can be rewarding if we are careful. We are either looking at Georgia or Florida. We are looking around for Cap Rates at 10%. I get what you are saying about the professional partnership especially with the size of this property. We have about 38k each for a down payment which is around 25% of what we are trying to purchase. I agree with more networking, we will try to include one more buyer on our next project. Al Williamson, thats for blessing our plan, that sounds good coming from a professional.

Hello BP Members

Myself and a friend are about to pull the trigger on purchasing a fleet of Multi-family homes. The first will be a 21 unit building. I have did the numbers, and they look good, but that is not what I would like to focus on. I am wondering what action would you gentlemen take if you were in the situation. Me and my friend are both contractors overseas, and have a combined income of a little more than 300k. We both have allot of cash saved up on hand. The issue is, things are winding down over here in Afghanistan and we will soon be laid off by the end of the year. My suggestion to my friend was to purchase a property at the end of May, and aquire loans on more properties 2 months at a time while we have this kind of income coming in. We may not have another opportunity like this again making this kind of money. My idea was to use 10 percent of equity from the first property and 10 percent cash to finance the second property and keep repeating the process until the banks tell us no you can't have anymore. All loans aquired will be paid up 2 years in advance once we have them to free up net worth which would be immediately pushed back to loans. After we have all loans on the table, I will push all profits towards 1 loan to knock them out as quickly as possible. To lower our own personal expenses so we are not using any of the money profited from the properties I suggested we stay in Thailand for about 2 years where we both have condos that are paid for and the living expenses are very low there. He on the other hand thinks we should move a little slower and get 1 21unit building and learn from that for a year. And that is fine, I believe we both should learn, but with time against us, and without us making this kind of money back in the states, I am sure the banks will not be so favorable. I can't remember who but someone did say allot of what we are trying to do will depend greatly on property management, which is fine, I will have family members monitor them frequently if we need to. Please let me know your thoughts, and the action you would take if it were you. He is freaking out a little, I believe he is a little scared, but it is a good sign from him, tells me he knows we can pull it off and the situation is very real, thanks for any help you guys can offer...Lamart.

For as I am concerned, all of you guys are heros. Very inspiring and hopefully very soon I will follow the same path, thanks.

Welcome to BP Neguiel, you are in the right place, the people here can help out allot. I would be a little more specific with your questions, so they can answer them precisely. There are allot of people here who will inspire you greatly, best of luck.

Has anyone ever read these books (volume I and II)? In it, the guy talks about his strategy for buying and renting out over 300 single family homes.

For the first property, he started off with around $28,000 or so from an insurance settlement, but he talks about taking out a HELOC or getting money from credit cards and buying the property in cash.

Then, once that property is fixed up and rented out, get another loan from a bank on that property for 75-80% LTV, and use that cash to buy another property. Repeat to infinity is what he says. He and his partner did this for over 300 properties.

I have read and read and searched and searched and cannot see how on earth he was able to do this, with the current Fannie/Freddie limits of 10 mortgages per person. Even if he and his partner each were somehow able to get 10 apiece (and I'm only seeing the ability to get 4 per person), that would only make 20.

So what is the secret to how these guys were able to do this?

Hi Dawn,

Sorry I am all late on this, but I just found your post and really caught my attention. This was my plan as well, if it were me, and 10 loans were allowed by banks, I would use all profits to pay off 1 loan at a time, and use any other capital I had to pay off 1 loan for a couple of years. I plan on doing this next month with my first Multi-family property, I will get about 3 buildings with about 21 units each and pay all the mortgages up 2 years in advance, and then move from the states to Thailand to lower all my personal living expenses since it is so cheap to live there. At that rate, I do not think it would take very long for those loans to be paid off.

Joel,

Sorry for the late response, it is about 8:30am in Afghanistan. I do agree that it would be challenging to manage the PM's from here. I do like the idea that Brian mentioned in regards to a 16 unit building instead of having properties spread out across Augusta GA. Seems to me that larger PM companies will not take your property seriously since they are dealing with so many. The reason I wanted to get started now, is while I am making this kind of money, it will be much easier for me to aquire loans and would be much harder if I was to just quit my Job and start from ground up with RE. What do you think about smaller PM companies handling the property? When I get home, I would like to learn the operations myself for at least a year so I can get a feel of what is going on, then hand the property off to a reliable PM company so I could have the free time to invest in other places. Please give me your thoughts. I have a business partner, but we both have different approaches and opinions about how to get started. He is more geared towards buying and flipping for immediate capital, which is fine, but is the market good enough to continue flipping again, how long will those properties be listed before a sale takes action in today's market.

Hello All,
I am new to the RE world, but have been tracking Biggerpockets forums for some time now. I am here to draw out a plan, and would like you know what you Ladies & gentlemen think. My plan is only for Mult-family units at the moment, and I currently live in Georgia. The plan is as follows, I will purchase 4 Multi-family quadplexes this year, at an average total price of 120,000. Each Multi-family property goes for 525 totaling out at 2,100 per month. With 4 buildings this goes for 8,400 per month, totals out at 100,800 per year gross. Now for the expenses, all 4 properties will require loans, since I am putting 20 percent down, I estimate the mortgage payments will reach around 650 per month for each building totaling out at, 31,200 yearly. Maintenance I expect may be around 5000 per year for each building which adds up to 20,000 per year. Property taxes should be around 1,600 per year total. Property Management is estimated at 10 percent 10,080 yearly. Net profit is only at 37,920. After the 4 buildings have been purchase my plan is to leverage all 4 with equity only by half, and pay cash for the other half to finance 4 more properties so I could have 8 total. That is the total master plan, please let me know if this sounds feasible, I am currently 31, credit score is around 720, and yearly income is around 140k from my Job as a contractor overseas where I have been employed for 7 years. When I get all of these loans, I plan to leverage a little bit by paying them all up 2 years ahead of schedule. Please let me know how this sounds for a newbie, have been studying this stuff for some years now, and am ready to pulll the trigger. I do realize I may need to mix some flipping in with this plan to pay off these loans quicker, but my main objective is to phase out the need for a job, and I will add in flipping at a later time, plus I have not done as much as research on flipping as I have with buy and hold, flipping seems like a waiting game, but profitable. Forgot to mention that I do have 1 property that is being built in Thailand that I do plan to resale. Another question is tax benefits, how much of this can I write off? Please please let me know what you guys think, your help would be greatly appreciated.