All Forum Posts by: Andrew Reising

This sounds like you are about to get scammed or you are advertising a scam.  

As an add on to my previous comment, I am currently in the process of pursuing 50% zero interest financing through a non profit who likes what I am doing and is partnered with the government in my state.  I’m working on a model that would take common homes in the market and make them big cash flow properties immediately.  If you would be interested in talking more about it or any of your investors I would love to have a conversation!   

Looking at the market the only way there seems to be any way to generate cash flow from a simple purchase and market listing is to either buy cash to avoid loosing it all to interest, or house hack.  I would say buying to break even initially is better than pissing the money away gambling or going to the bar though for sure.  With interest rates going up, prices will fall, if interest rates drop, prices should go up as more people will be qualified to buy.  That puts a break even investor in a huge advantage because he can now refinance the property lower and his equity just shot up.  Eventually the mortgage will mature and at the rate the dollar has been dropping, the cash flow from just one property would most likely be massive.

I personally wouldn’t buy the property to be in a worse position than while renting.  I had a studio apartment that was $900/month and shared lot parking.  I am single which was perfect because I didn’t want anyone else creating issues down the line.  I purchased my home for $255,000, invested about 40k cash to pull it all off rented three rooms out at $750/month and lot space to someone for a trailer home for $400 a month.  My escrow payment is $2,000 per month.  The rooms and trailer rental put my income from property at $2650 per month.  I am immediately paying next to nothing for the property after utilities, so saving big on rent but have 10 times the space between the house, yard and two garages.  Yes, what you want to do is way better than renting in the long term, I am arguing, look for a deal with bigger potential immediately, and than you will be super on top by the time you would have just broke even. I actually won a bid on a duplex and backed out during negotiation and purchased a single family home instead.  Everyone wants duplexes and the pricing reflects that, making profitability difficult with interest rates.  I’d argue now there’s not as much money in duplexes as house hacking, plus house hacking is easier in terms of keeping an eye on what’s going on.   

Thank you Brian, those are good suggestions.  I had researched crowd funding before but those are some new names to be you mentioned as well as information on them.  I like the idea of doing a joint venture deal, I can imagine how land lording can become frustrating very quickly but my experience has been positive so far and I’m not super worried about the amount of time it would take for two properties.  From being a general manager for a dominos downtown across the street from an event center and down the street from a shelter, I’ve developed pretty thick skin.  Just the concept of doing the work for my own business is a massive game changer from what I am used to in terms of dealing with issues.  

Thank you! 

I’m pretty new into real estate, this is more of a spin off of the question, do you need money for real estate, or how much of your own does it take.  Is anyone familiar with Grant Cardone and if so how does he fit into this question. My assumption and how I have so far operated was that, you save and buy as your savings and buying power allows. I’ve seen a lot of the ads and such that Grant Cardone puts out claiming you don’t need money to win in real estate. A co-worker actually paid for his classes and sort of summarized the concept to me, you make a proposal to an investor and if they like your plan, they may invest and if you follow certain guidelines for properties you will make money. I refused to pay for his class because it just seemed like I’m paying for a class to fuel him instead of working towards my own goal. My first property has gone incredibly smooth and I’m at a point where I am convinced I can replicate my process on a larger scale and start making some good money. I’m sort of stuck at this point of, should I hustle for a year or two again working 90 hour weeks tunnel visioned on saving 50k for a second property or is that a waste of my time and what I am trying to pursue.  The model I’m working for is taking the traditional sober house set up, and taking the sober part out and opening it up to the entire room rental market. There’s a house manager, and individual rooms rented.  It’s incredible easy for 4-5 people paying $750 per month and a house manager paying $400 a month to cover a 300k mortgage with a good amount left over after utilities and such.  The coolest part is it potentially fits into the affordable housing plans of my state and I am currently working on trying line it up to where I may be able to get half the loan interest free.  I rented out the three extra rooms in my house within a week and it’s been an awesome experience and I want to put my time and energy into doing it again but larger and more focused on profitability, instead of free housing and equity for myself.  I should be able to manage both the properties myself, property managers would be more down the line.  So the question I guess is, should I put the time and energy into trying to connect with an investor or accept that part of this game is patients and saving over time.  All questions and responses welcomed.  

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $255,000
Cash invested: $40,000

I bought a home for myself within my means with the intention of saving money on rent and getting the home to pay for itself through room rentals, also to investigate the model of real estate rentals I wanted to pursue to see if it would be feasible. This was incredibly easy to do. I rented my three extra rooms out to amazing tenants within a week of posting ads for $750/month each with a months rent deposit.

What made you interested in investing in this type of deal?

It was a good way for me to begin pursuing real estate, get some experience, and there was an overlap in what I wanted for myself personally.

How did you find this deal and how did you negotiate it?

Zillow, I used an agent and a loan for a primary residence. Then I used Facebook marketplace and groups to find tenants.

How did you finance this deal?

Cardinal Financial as a first time home buyer

How did you add value to the deal?

I refinished the floors myself and added a security camera system and coded locks to the home.

What was the outcome?

My home pays for itself as well as a portion of the utilities.

Lessons learned? Challenges?

It all went perfect. In order to generate passive income though, I need a second property with more rooms, ideally with a lower cost to room ratio.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, I worked with agents and lenders I can recommend. I am currently in the process pursuing partnerships that may be able to finance me at half market rate.