All Forum Posts by: Brian Wilson

@Matt Pritchard thank you for the insight! So basically if I want to maximize the money I get back (in general) going with a government backed loan is going to allow me to extract more or all of my money invested if I buy right. While a portfolio lender will only finance 80% of the actual project cost (so I will always have money tied up in a property, unless I get a better deal with a lender) rather than the appraised value after the rehab work. Is that correct? If so I think the government method is the best way of steadily growing until we have more experience. Have you ever ran multiple properties at once while using both means of financing? Or do you usually just stick with one method? 

@Matt Pritchard

I appreciate the insight. You're absolutely right, nothing in life ever goes according to plan! However I've learned one thing through my endeavors: Adjust. While I have goals of "retiring" in three years, I will obviously still be working in real-estate very actively. The goal was to establish a certain amount of passive income just so I would have the option to not work at all or at the very least leave my 9-5. I also set my goals for annual income to "retire" at a much higher amount than I actually need, because like you said things don't always workout like we plan. 

In regard to the portfolio lending, I didn't know that! I was aware of the "seasoning" clause they put on refinancing so I expected some of my assets to be tied up for 6-8 months. When you say a % of the project do you mean they only lend on a certain amount of the rehab or of the property? Does the amount they lend increase as my portfolio grows? 

I'm currently in the process of trying to understand the ins and outs of creative financing, so that I can leverage and expand in a rapid yet responsible manner, as well as have a few exit strategies in place in case things go sideways. I understand that short of sitting down with a lender I won't know exactly what I qualify for, but I would like to know the options that exist and in what situations they would be best implemented. 

Thank you for your response! I will definitely reach out when my partner and I decide to start executing. 

V/r,

Brian M. Wilson

Cliff,

Financing is an area I still need more knowledge in. The way I understand leveraging is using a property you already own to allow you to expand and buy more properties. My question is, is this meaning pulling built up equity out as you would in the BRRRR method? Or is it something completely different?

My general plan thus far was to buy a property, fix it up, rent it out (let it season), refinance, and use all of the money I get back toward the next property. Ideally I would like to find a portfolio lender in my local area to work with. I'll have cash reserves to pull from if/when unexpected expenses come up. Additionally whatever profit I make in the first 3 years was going to be reinvested into the business so I can grow more rapidly. 

Good afternoon everyone!

My name is Brian and I joined this forum per the advice of my investment partner. 

BLUF: I want to retire from my government job and move back to KC in 3 years. My investment partner and I will be buying properties in the Kansas City area. We are currently looking at Multifamily homes to BRRRR and establish passive income. I'm a beginner to this industry but have been religiously learning the fundamentals through BP podcasts. I welcome all insight and advice! 

Short term goal: buy 7 units within the first year.

Long term goal: Have enough passive income to retire in 3 years. 

I am starting off with zero knowledge or experience in real estate or investing in general. However after being referred to this website a few months ago I have listened to many podcasts and read a fair amount of articles concerning topics such as BRRRR and other various methods and aspects of this industry. That being said I now have a very basic understanding of what I need, want, and the bare bones construct to be successful in real estate. However I recognize that there is still very much I want and need to learn. Therefore any advice and insight is always welcome, as you can never have too many tools in your box!

I work for the government as an analyst in DC however, I'm originally from Kansas City, Missouri and would like to be able to "retire", move back, and do real estate full time. Therefore I'm currently developing a 3 year plan that would allow me to maintain my lifestyle on passive income from Multi-family properties. However I don't want to stop there, after I move back I would like to BRRRR 2-4 single family properties per year, hold these homes for 5 years and then sell them 2-4 per year. This would allow me to have additional stream of income starting in 5 years, that I can reinvest into my portfolio and generating more wealth.

V/r,

Brian M. Wilson