All Forum Posts by: Account Closed

@Mark Allen Long term. My strategy is all long term. The way I see it is this: If I flip a property and make 25k, I only make 25k, one time. But when I get a property for free (through financing), own 30% equity, and charge a $1200 rent, I can make my money back in about 5 years. You do that 20 times in a year for 5 years, you have some serious cash flow and enough earning power/assets to do anything you want. Ever. 

One of my mentors who is worth around $500m asked me 6 months ago: "Beau, why are you selling your houses. Why would you want to give away net worth?"

And I thought about it. For example, say I make 25k off a 100k flip house. But through financing I can retain that house for FREE and have had a 30% equity, or 30k (increase your net worth). So technically, I am making LESS money up front selling the house , and loosing infinite money down the road through rent. 

The way to make your money back through retention is to slap a home equity line of credit on that house. Usually around 70-80% of your equity holding which would be 21-24k disposable money for business. So, what would you rather have? 25k profit up front OR 21-24k profit up front, a 30% equity stake and rent for many years to come? 

Negative cash flow in a bull market? This deal is starting to stink! Replacing some AC units and PAINTING is not very expensive. There is something fishy about this. I ran into a 20 unit in Lubbock a few weeks ago. They had negative cash flow last year BUT they were paying for ALL of the utilities. Even if I regained the lost 33k per year in utilities, the occupancy rate will start to lower drastically. Make sure and do your DD on this. $48k per unit is a pretty normal price. But with neg cap rate, I am not totally sure..

@Christopher Winkler @Mark Allen If y'all do some rough math. I actually made "money" financing all 16 houses

@Chris Gould If the deal is right, I will work anywhere. What do you have down there?

@Christopher Winkler What type of marketing are you doing? 

14/16 rentals are in the same neighborhood when it was STARTING to get hot. Avg price was about 85-90k. You can't get into that neighborhood now without spending at least 130k. It was all timing. I'm not going to pretend that it was anything else.

@Mark Allen Only 16 rentals. Juts becuase the market is record high doesn't mean opportunity is withheld.  They ALL have gone up at least 35% in 12 months. I know that because I just slapped a line of credit on them and you have to get an appraiser. That's my cash power. And I signed a 7 year deal. So it doesn't matter what the market will do until the 7 years is up.

@Benjamin Fritz I agree with you. If the numbers work I would go to the moon. Hah! No limits! I hang my license with a small local broker. I pay them a monthly fee and a listing fee so they stay out of my business. (I am not about to give 30% commission on my own project!) The first thing I did after I got my license was establish my construction company. I have 2 full time guys who save me 1000s a week, a few part timers and dozens of contractors. I have some overhead but that motivates me even more to get some deals done! How are you going to syndicate these multis?

Hey Guys,

My name is Beau Gumbert and I have been in REI for about a year. I am looking for wholesalers in the DFW area. I prefer Fort Worth but if there is good deals out in Dallas, I am game!

So far this year I have done about $5.3 mil in deals. I bought 16 rental properties, flipped 2 houses with massive additions, and scrape & built 3 houses. The point is, I am an active buyer.

I am looking to expand my lead stream so I can buy more properties. I have an in-house construction company so my labor costs are the lowest of anyone I know. I also bulk buy about 75% of my materials so my material cost is very low as well. I bring this up to show you that I am very real and very ready to buy the properties you send my way.

Let me know if you have any questions. Thank you!

@Benjamin Fritz I am only in Fort Worth right now. Dallas and Arlington don't really interest me. The competition is CRAZY out there, and it is kinda a far drive for me. I am looking south but mainly north. Benbrook, burleson, denton, sherman for my next big moves. What about you?

Hey Guys,

My name is Beau Gumbert and I have been in real estate for a year now. In the last 13 months I received my license, bought 16 rent houses, flipped two houses with 500+ sq ft additions, and scraped three 1000 sq ft houses and build new 2600 sq ft homes. I have done about $3.5 mil in deals so far and I WANT MORE!

I love this business. I'm kind of a workaholic so real estate works with my schedule. Hah! I want to get into commercial soon, but I want to get 30-40 rent houses cash flowing before I do. Hedging my risk!

I just changed my strategy in real estate. I am looking for ARC70 deals. (I made up the term, it means "AFTER REPAIR COST @ 70% of appraisal". Certain financing has allowed me to get properties for FREE and maintain a 30% equity to get there. There is not alot of deals out there that will qualify for my equation so I am looking for wholesalers. 

Looking forward to dig in deep in this site and see if I can find anything useful. Any tips or ideas for BiggerPockets?

CHEERS!