All Forum Posts by: Arron Paulino

Quote from @Arron Paulino:

I can see the benefits of real estate investing and want to learn how to explain this to my spouse. How do I go about making this a great tool to lead to financial independence? My spouse sees the cash flow coming in but is also worried about the risks that come with it such as having a loan for a property rather than having it all cash/paid off. How do I instill confidence rather than fear of failure in a sense? Does anyone else have this scenario when trying to reassure their partner that this is the way to go? I am all for real estate investing and preparing our future so we can be financially stable from real estate and not have to rely on our W2 income to survive.

I have been investing for four years now and have a few properties under my belt. I think at this stage it is seeing the capex items pop up and kind of wash away my cash flow is where this may come up also. Overall, I have been on the positive side and I think just seeing the breakeven is where the worry comes from.

As guys, we often say "happy wife, happy life"!  This REI business is hard and you need to embrace the ebb and flow of it like any business.  Sometimes its feast, while other times its famine.  Having your spouse's support is absolutely critical, otherwise, its a up hill battle all the way.  We've had our share of CAPEX expenses on a few of our buy and holds which definitely takes away from the Piggy Bank.  Yes, some days it an be soul sucking.... However, we also have fix and flips along with PML and wholesale deals that provide a level of cash-flow diversity.  I think teaming up with other investor couples helps as well!  Sometimes a investor wife needs to talk to another investor wife versus their investor husband -- where in some cases,  I just dig myself a bigger hole :).  In any case, I am a big advocate for investor couples -- I've seen many of them do extremely well in this REI business.  Please please let me know if you have any questions.  HTHS!  Blessings,  Joel 

Quote from @Stewart VanValkenburg:

Was it this guy? He did the LinkedIn version of a friend request to me.

David W Owens

1st degree connection1stCEO/Owner Owens Financial

• Owens Financial Group
• Goethe University

San Francisco, California, United States Contact infowww.owensfinancialgroupllc.com

I think so different profile photo on my linked in but everything else matches.  I definitely would be careful if you decide to consider them- he had all the right answers, until it was time to actually move forward.  Then ghosted us when I questioned the “no escrow” piece.  Here is what his linked in looks like for me:

Was it this guy? He did the LinkedIn version of a friend request to me.

David W Owens

1st degree connection1stCEO/Owner Owens Financial

• Owens Financial Group
• Goethe University

San Francisco, California, United States Contact infowww.owensfinancialgroupllc.com

@Arron Paulino what property Classes are your current properties?

Class C is most likely what you'll need to get your $5k monthly number.

Class A & B rarely cashflow when you buy them, but you make your money via appreciation.

$100k won't get you far!

MFR require 20-25% down, so that's max $500k purchase. In some areas that won't get you anything.

Quote from @Arron Paulino:

Let me ask a different question: if you made mistakes with your current properties, what are you going to do differently that would make a different property perform any better?

I think you should focus your energy on learning to manage your properties well. When you've proven you can put up with scammers, non-paying renters, bad contractors, etc., then you can apply those same skills to a better asset class.

Buying new properties won't make those problems go away, and it may make them worse because you'll be at a higher price point and have more to risk.

Quote from @Arron Paulino:

I decided to make a post here to essentially reset. I was a newbie who started investing in real estate during the pandemic so I've been at it for a few years now. I am planning on liquidating a couple of my properties to "start over" and see how I can better achieve my personal goal of attaining $5,000/month in positive cash flow and keep some money in the bank to be liquid. I now have an LLC with a business checking account and credit card that I just established to separate my business transactions and personal. I have been in the ringer through real estate investing (negative cash flow, scammers, bad contractor, obtaining more than ARV, getting less than ARV, plumbing issues, positive cash flow) learning head-first the whole way. I know the obvious answer is to keep educating, but I knew I learned best diving right in and so I really experienced the good and bad of real estate investing firsthand.

With this said, any advice on how to proceed with decent liquidity? I've grown to learn what to do, how to do it properly, and continually educate myself to do better on the next deal. I read somewhere that it may be a good idea to buy large multifamily in a decent area (just don't really know what market is decent for this) or buy turnkey properties (I know of a couple reputable sellers that I can invest with). I have been doing the BRRRR as my exit strategy to obtain properties in my rental portfolio. Looking to hear from everyone and specifically from those that have obtained their financial freedom goal within a span of a few years.

 Have you considered private lending? People on here are pushing omg now is the best time to buy real estate but guess what. ITS NOT. IF that was the case then we would not have homes sitting on markets and prices declining/softening. Now is an awful time to buy real estate because it is over inflated and most people require leverage which is expensive. Now thats not to say you cannot get a good deal here or there, but overall its an awful time.

Quote from @Arron Paulino:

Quote from @Carlos A.:

Hello Arron! 

Your question is a little vague. “How to proceed with decent liquidity?”. Depending on how your reserves/portfolio look like, there could be numerous strategies. 1031 exchage? Cash or refi? Finding partners? A bunch of different ways. 

A large multifamily in a decent area may be mutliple Millions of dollars depending on where you look. But depending on your ability to fund something like that, you could hit your mark (5k/mo) in one deal

 I think that's what I am looking for right now. I'm thinking, hypothetically, being liquid about $100k and seeing where that can put me in terms of building up my rental portfolio and/or seeking flipping opportunities to grow my capital to get into bigger projects. What do you suggest?

With 100k you could probably find some decent properties. Personally, I dont think that alone will be enough to generate your goal (5k/mo) regardless of what you put it in. Cashflow in general is pretty difficult to come by in today’s market. 
You might be able to find some larger multifamily buildings in the midwest (just guessing here) that you can use that 100k as the downpayment? But…if it were me, I would focus on buying 1 or two nice houses in great appreciating areas…best of luck with your investing!!

Hello Arron! 

Your question is a little vague. “How to proceed with decent liquidity?”. Depending on how your reserves/portfolio look like, there could be numerous strategies. 1031 exchage? Cash or refi? Finding partners? A bunch of different ways. 

A large multifamily in a decent area may be mutliple Millions of dollars depending on where you look. But depending on your ability to fund something like that, you could hit your mark (5k/mo) in one deal

Hello,

It's great to see that you've been on a real estate investing journey for a few years now, learning from both the ups and downs along the way. As you plan to reset and pursue your goal of attaining $5,000/month in positive cash flow with decent liquidity, partnering with other investors could be a valuable option to consider.

There's a famous quote that says, "If you want to travel fast, travel alone; however, if you want to travel far, travel in a group." By partnering with other investors, you can leverage their knowledge, resources, and experiences to help you achieve your financial goals more efficiently.

Here are a few potential benefits of partnering with others:

1. Increased Capital: Partnering allows you to pool financial resources, giving you a stronger position to pursue larger investments and potentially increase your positive cash flow.
2. Shared Expertise: Collaborating with experienced investors who have achieved similar goals can provide valuable guidance and insights. They can help navigate challenges, identify market opportunities, and offer sound advice based on their own successes and failures.
3. Risk Mitigation: Sharing the risk with other investors can reduce your exposure and help protect your assets. By spreading the risk across multiple parties, you can minimize the impact of any individual investment setbacks.
4. Expanded Network: Partnering provides access to a broader network of contacts, which can lead to new opportunities and potential deals. The connections of your partners, combined with your own network, can open doors to beneficial collaborations and increased deal flow.

When considering partnership opportunities, look for investors who share your goals, values, and investment strategies. Networking within real estate investment clubs, attending industry conferences, and engaging with online forums can help you connect with like-minded individuals.

Apart from partnerships, continue focusing on education and self-improvement. Learn from your past experiences and adapt your strategies accordingly. Consider exploring opportunities in markets that align with your investment goals and offer decent potential for positive cash flow. Researching and understanding market trends, rental demand, and economic indicators can inform your investment decisions.

Keep refining your business operations and systems as you scale your portfolio. Strive to build a strong team of professionals, including property managers, contractors, and advisers, to help support and streamline your investment efforts.

Remember, achieving financial freedom takes time, dedication, and smart decision-making. Leveraging the expertise and resources of others in a partnership can help you achieve your goals more efficiently and maximize your chances of success.

Best regards,