@Max Dicce
@Leo Blandon
@John Smith
@Jhana Cayton
@Tzvi Ausubel
@Shane M.
@Paul Doherty
@Lacey N.
@Umer M. Chaudhry
@Mikki McIntyre
@Cecilia Arnulphi
Alright, Think I have everyone tagged who asked questions. Sorry my phone is exploding with responses and I appreciate all of you saying such kind words and encouragement. Ill try to answer everyones questions as best as I can but don't get mad if I forget to answer 1 or 2!
How I got money:
I purchased my primary in Seattle in Aug 2012 for $395k put 20% down on this. Just recently refi'd at 600k and pulled out 100k for investing. Paired this with some of my other properties cash flow reserves I have saved. I was looking to buy apartment complex but realized I would have to invest a lot of time into doing this. I run a insurance agency and this requires a lot of my time to do so I didn't want to spend a ton of time on this but wanted more returns that stock market. Thus TK emerged as my front runner.
Lender:
So to answer your questions on leverage. I put 25% down on each property and use the lender Talmer Bank (shawnhuss.com) to get my deals done. Simple and close on time.
You use all the typical process on closing (appraisal, inspection, etc.)
My loans are all locked for 30 year fixed at 4.35-5% interest. Payments are anywhere from $275-$500 a month depending on the insurance and the prop taxes. (this is where cash flow comes in)
Turn-key provider:
Like I said prior I use @Sean Tarpenning with USREEB. I have done majority of my deals with him and his great team. They do everything from screening tenant to rehab. Its full service deal so they take car of everything which is what I was wanting. I don't have time to rehab, find tenant, etc... and for how much extra are you really making on this? Time is money and I would rather find more deals than find a tenant etc...
You can go on their website to check out their inventory or just get in Touch with Mackaylee Beach, which is USREEB sales dept. PM me if you want her direct info.
Properties:
I stuck with all "B" neighborhoods with 2 year leases in place. I went out to look at the neighborhoods to see difference from "B" to "C" too see what my comfort level was. To be honest, there is nothing wrong with a C either its just felt 100% confident with a B.
All properties are off the MLS and direct through USREEB.
Properties range from 50k-85k on ones I have purchased.
My 2 cents:
This is way to go for any person who doesn't have the time to do REI full time. My thought process is all income is good income. So for all those people that asked me about cap gains, taxes etc. Thats a good problem to have! New problems are good problems. If you don't have new problems in your life then you aren't growing. This is why I wanted to try to close 10 of these TK's in 6 months and why I will have 25 before end of 2017.
For me SFR's are great because I haven't found a deal (i'm sure they are out there) that gets me better cash flow on MFRs. If you have some PM me :) Also SFR's you can sell to a regular home buyer whereas MF you can't. I liked having the option for "oh sh*t I need to sell this now." You are cutting out 50% of your options for exit strategy for me with MF.
Plan is to use the cash flow from all properties to pay off 1 property at a time. 40k a year will pay off 1 loan after 12 months not including any of my savings from my personal income or other 4 plex I have. I plan to have all these paid off in next 4 years while adding another 15 through leverage. Who knows though, things can change and I just need to be ready to change with them.
*****Thanks again for all your notice and such kind words. I truly wouldn't have had a shot without BP so thank you! Let me know if you have any other questions and I will try to answer******
P.S sorry if I misspelled anything. I don't edit. I just post.
