All Forum Posts by: Steve A.

Hi Bob,

That sounds like a dream come true. It's impossible to grow at a reasonable pace buying in cash. I left you a voicemail and will shoot you an email now, since I will be tied up off and on today.

I am in a bizarre situation. I own more than 20 units but acquired them all last year. I've had some for only 2-3 months. There are eleven buildings, half were cash purchases and half have conventional 30 years. I have two years of tax returns, but it take advantage of all my writeoffs, so they only say 13k and 13k. I cashflow much more than that, obviously.

I quit my 50k salaried finance job last year and took a job in oil and gas. The base for this job is 24k/year but we get day rate bonuses that drives this up to 120-150k per year.

I am struggling to find financing. I will be acquiring new properties in June. I don't think I will be able to go conventional. Does anyone have a good portfolio lender who would work with me? I have to finance and stop buying in cash if I want to grow.

dude, this is awesome!

I am a fellow minimalist/frugal guy. In fact, I don't even live in a house myself... I live in a Winnebago Rialta and I love it!

Cut your expenses down to $500/mo and you will have money to invest in RE no matter your income 

Inspirational!

Thanks, I am hoping my current strategy works out the same way, as planned.  I really hope oil goes up or stabilizes, because if not, this entire plan can be scrapped.  There's no other industry that will hire me for six figures.

The Warren Buffett quote sold me. I'll be using leverage, probably only 70% though.  Hopefully it works out. If things get tight I can always go back to a job.

 Yes, they are.  I plan to diversify out eventually, but probably not until I hit 60 or so units, maybe not even then.  

It's cool that you guys are recommending leverage, as the numbers with leverage certainly look alot juicier than without.  Would you recommend this to a "normal" person or are you just doing so because of my high paying job and crazy low expenses?  The reason I ask is because I see alot of cautionary leverage posts around here, too.

If I stick around for 3 years, the amount of property I could get using 70% leverage would be pretty sickening. 

Thanks Travis, I actually mapped all this out in excel awhile back, but thought I would post the plan on here to make sure I'm not crazy.  I have never dealt with this much cash before.  I see what you're saying in that you can expand faster with loans, but at what point does one start buying in cash to take slower growth for more security?

Interesting, I will consider this.  Do you have a recommendation for a lender offering what you mentioned?

Good call...I always get colloquialisms wrong.  For the financed ones, I still had a job at that point.  The rest were cash.  I was able to buy so many because I made a load of money from the internet.

Yes indeed!  Thank you for the words of caution.  I do have an exit plan that would allow me to make an active $10k/month, but it wouldn't qualify me for financing and I would go insane if I had to do it year round.