All Forum Posts by: Andres Calderon

@Brian Garrett

Drum roll.............. No they're completely real. 

Daniel Michael Knight

Allow me to stir the waters here but first of all YES I agree with "certain" things that have been said. I don't really like the awkward almost negative responses since in real estate there is no template it's completely up to you how far you go is based on how fast you move divided by your dedication multiplied by your ambition.  

I completely disagree with this "It takes time" and "Do yourself a favor and stay in school" attitude, not very motivating guys. 

I disagree because I and others around me as well have completely disregarded these sayings, rules or whatever you want to call it.

It's obviously not achieved overnight but you can raise some serious capital in just one year... 

think outside the box.

The beauty of real estate is exactly the FACT that YOU COULD RETIRE and build your dream life at a very, very, very young age. I've never been one to speak about myself so I will tell you that I have friends (some from wealthy families and others coming from poverty) that thanks to this industry, if they WANTED to could very easily retire making 5 figure incomes from their portfolios and they are from 24 - 34 years old. 

To answer your original question : NEVER.

They day you no longer need them, is the day the bank will come to you. Trust me.

Daniel you have to remember our generation is much more advanced than our parents and for that matter the previous generation of investors.

We have resources they never had starting out. Social media, technology you can reach people anywhere instantly use it to your advantage don't take it for granted. USE it ALL. 

I would suggest you expand your network, talk to wholesalers, hard money lenders, FIND INVESTORS and create joint ventures. I've known individuals that had the capital but just didn't have the energy to get into any other investments...BE THE SOLUTION, create your own opportunity. 

Understand what they want and find it.

Start thinking about how you want to structure your portfolio and what you will need for it to be done but in detail.

The fastest way to wealth is using leverage. Venture out into other investment strategies as well.

If you want that passive income find a deal run the numbers and go out and find an investor to fund it , the bank should be a plan B. You can manage it yourself or include a company management fee when you run your numbers. Find your goals, pace and build a system that works for YOU... Remember everyone's advice is based on their own experiences, accomplishments AND failures.

I hope this short run on, brought some inspiration and ideas to you!  My Point is Real estate gives back what you put into it... you'd be surprised how fast you can achieve wealth. Remember It's completely up to you how far you is go based on ....

how fast you move divided by your dedication multiplied by your ambition.

work smart NOT "MORE".

Best of luck,

-Andres 

@Lau Jacob Just to clarify a "GOOD DEAL" is more than just the rental income.. Where the property is located, how old the property is, etc , etc those are just some examples of many that determine a good cash flowing deal. 

That is a formula you must create for yourself. Everyone has their own based on preferences, financing and other variables it's not an easy answer BUT I went ahead and made this template to give you an idea of how I personally do mine. 

I take 50% of the gross earnings and whats left is what i do my numbers with. If it cashflows at -50% it'll cashflow with the actual numbers. Always better to be conservative and not force your way into a deal..

To answer your second question "What is a good percentage to earn on the return?"

The question should be HOW MUCH DO I HAVE TO MAKE. 

That's completely up to you. What are you okay with getting in return? How did you structure your deal? Did you get financing? Have partners? etc.. 

The average "DEAL" that I believe most investors are fine with ranges anywhere from 6%-10%. 

I personally won't do a rental unless it's making upwards of 15%, extremely hard to find but if I'm going to deal with tenants it better be worth my time because my primary source of investing is flipping.

Regards,

Hope I was able to guide you in the right direction.

-Andres

@Kaled Naser

Congrats on getting into the industry !

I would suggest on narrowing down what it is that you want to do or see yourself doing."I mean want to completely dedicate to find deals, make offers, estimate repairs, market for buyers and sellers"

All those topics you mentioned take years to master and develop skills for, take your time you'll get there.

Focus on what you want to be known, that will also help others on here give you better direct advice and tips from their experiences.

Regards,

Andres Calderon

@David Baier

They are equally complexed. They are different machines and have to be respected, this is where doing the proper due diligence is crucial. You can go from "thinking" you purchased a great property to loosing your investment capital real quick. With auctions there's no room for errors nor time to "THINK" you know something, you better make SURE you know what you are looking at. 

Both have great opportunities. I truly believe THE key factor in auctions is just being persistent. I see many people give up because nothing came up the day of the auction. If thats the case just expand into other areas. Numbers are numbers don't be afraid to expand and leave your backyard.

@Brian Garrett

Just a personal decision the extra 10-15k is no longer worth the headache. I do usually rehab but higher end properties these are just fun and quick flips.

@David Baier

Replying to your question if anyone has had success from auctions in florida... Last month Purchased this condo for 25K, currently under contract for $43,600 closing on June 22nd. No work was done sold it AS IS.

The trick to auctions is knowing what liens have priority and which get wiped out

and keep in mind if you PROFIT when you PURCHASE the property not when you SELL, you're good.

Theres also a HUGE difference between FORECLOSURE and TAXDEED auctions, be sure not to get them confused and do the proper due diligence for the proper auction.

@Trae Turner

Trae welcome!

Just to give you an idea I'm based out of Miami but most of my projects are in the orlando/ north florida area. 

There are great opportunities in those areas since they aren't flooded with investors YET unlike miami.

The fact that your current careers gives you the flexibility in order to research is a huge plus as well.

You're already starting off on a great note!

I would suggest focusing on what your main goal is ( do you want cash flow or capital gains) and from there structuring an investment strategy ( Rehabs, buy & hold, rentals, etc.)

Regards best of luck and remember have fun!

Andres Calderon

@Zachary Bischoff No! not at all I wish, If that was the case I would be buying anything and everything even sight unseen and just hold it lol 

The due diligence is the most important part of tax deed investing.

What makes this such a better form of investing if that the mortgage gets wiped out, that yes.

 There are still liens that can survive the sale such as IRS Tax Lien, Department of Revenue, State, county, municipal or city liens and Utility liens. 

An important factor to keep in mind when running your numbers is to make sure that the amount of surplus funds are sufficient to pay for certain lien amounts.

Special assessments can survive the tax sale if they were approved before the sale and the payments are due after the date of the auction.

Some liens can even be negotiated.

I would love to keep going but unfortunately I put myself in a difficult situation because It would be unfair to certain individuals from here that bought some of my courses.

However I Hope this clarified your question and gave you an example of some liens that can survive the tax deed auction. 

Best of luck ! 

@Nathan Guanch I would definitely look into multifamily units. Leave the flipping for later down the road that tends to always be very capital intensive.