All Forum Posts by: Bo S.

bump

Do you mind sharing the info on banks you worked with to pull this off? Thanks!

pm sent

@Matthew Runfola

Do you have any construction experience? 

Find a GC who will mentor you and show you the ropes. It probably won't pay much, or at all if you have no experience, but its a huge investment in your future. Managing and maintaining contractors within budget, scope, and schedule is something you have to learn by doing. Reach out to a few and find one who will take you under their wing.

If you're feeling altruistic, another way to learn and get construction experience is to volunteer for non-profits like Habitat for Humanity.

"A nonprofit organization that helps people in your community and around the world build or improve a place they can call home."

Fulfillment by Amazon. Not RE related but can be a nice side hustle. Basically, you're buying items from China (Alibaba) and reselling them with FBA. There are a ton of resources on how to do this online.

First off, if you have a great deal and you’re a hard worker, the money will come quicker than you can spend it.

Saving money and being frugal is fine, but least effective and boring for me. I’d rather find money (OPM) or make more of it to fund deals. 

HUSTLE. Be creative. Be different and outwork everyone else. 

Aside from saving off my primary job in tech, I drive Uber/Lyft, Caviar, Fiverr, and did Taskrabbit. Selling on amazon (FBA) has been fruitful, but requires some capital and time. 

I even considered exotic dancing, but alas I have a dad bod so that wouldn’t work out 😀

Balance transfer credit cards at 0% for 12-15 months. Fees are 3-5% for the major banks or 0% for some credit unions. Some banks will mail you a check, some only transfer the funds directly to another lender, or the option to transfer into any checking/savings account. I chose to have the 40k deposited into my checking acct. It helped fund one of my BRRRRs. Keep in mind, if you miss a payment or carry a balance past the intro period, it will become the most expensive loan you’ve ever had. 

HELOC, Personal Loans, and Unsecured Line of Credit, depending on your credit and DTI. Be smart and cautious of leverage and being over leveraged. These options require an exit strategy in the short term. When I was starting out and building my credit, I got rejected by 8 out of 9 banks for a personal LOC. A local CU eventually gave me a line for a whopping $500. I improved my credit and built a relationship with that CU over the years. As a result, my credit limit has increased exponentially. For the right deal, I can now use my HELOC/LOCs to buy properties cash or provide short term loans at a higher rate.

Since you mentioned this is for a “low deal,” I assume low or no money down conventional financing is not an option. 

HML and private money requires some skin in the game, you need a sizeable down payment if you're inexperienced.

Wholesaling. Use the search bar, BP has a wealth of info. 

Several years ago, I barely had money for food when starting out, let alone to wholesale. I didn’t have a computer or internet. I used computers at the public library to learn about wholesaling and to find owner info/records. I hand wrote letters on their “free” printer paper, and individually taped them to mailboxes. Although the first campaign yielded 0 deals, it was an incredible life changing experience, bc I found my first mentor. He called me from one of my letters, asking to be on my cash buyers list. 

You’re welcome. 

 Home equity line of credit

 Can you pm me the lender as well. 

The Intelligent Investor by Benjamin Graham (mentor to Warren Buffet).

Contents of the book apply to general investing, in the stock market or real estate.

Best $4, in overdue library fines, ever invested when I was starting out.

You're welcome.

In order of most to least passive:

1. Stocks/Index/ETFs (FTEC, HDV, MCHI, AAXJ). The initial due diligence was substantial, researching and reading financial statements. Returns were attractive in 2017, but I expect 2018 will be a different story. 

2. Fundrise. 2017 return was close to 9%-10% after fees and discounting my initial time spent on due diligence. 

3. Crypto. Lowest initial cost ($0) and riskiest.  A couple of years ago, we mined one of the top 5 coins in my college’s computer lab. Bought the graphics cards for ~350 each and resold them for a small profit when we graduated. All gains are unrealized. Currently spending 5-10hrs/week on keeping up with regulation and research. Looking to exit, due to the volatility, market manipulation, and current regulation (lack of). 

4. Coin Op Laundromat. Did Owner Financing on a dirstressed laundry. Rehabbed the property and equipment, added other services (wash and fold). 10hrs/week. COC ~18%.

5. Real Estate (buy & hold). COC return of ~22% on average. Bought SFRs in the wrong neighborhood (E. Nashville) at the right time. E. Nashville and Inglewood was highly undesirable several years ago, but I grew up there. I used OPM and sourced deals by going door to door and networking. Initial legwork was the highest. The appreciation has been great, due to gentrification and hipsters with range rovers moving in.

Returns would be higher if I self managed. 

Currently spending ~20hrs/week on REI: learning (taking a class on RE Project Management), networking, going to trustee/sheriff auctions in Seattle, and managing my Property Managers.

 Hi Adam,

Can you also PM me the other banks that'll do HELOC zone a rental.

I know of only WF and PENFED, but haven’t had experience dealing with either. 

Thanks!