All Forum Posts by: Darius Kellar

@Ofek Koz I would invest in an index fund and re-invest the yearly gainz into real estate. 

@Payton Pearson

I invested in Pontiac, MI. Between me and my network we have 20+ properties in this area. Keep in mind this is a low income area surrounded High income cities, which gives it alot of upside. and historically there has been. I know this area extremely well and as well as rehab construction. 

Current Rental Property on double lot small Investment: 

Previous owner paid 69K

My Purchase price- 2,500 (yes! twenty five hundred dollars )

Full Rehab cost-  22K

total investment- 24,500

Property Taxes- 700 per year. 

Current rent=900 monthly 

Net= 10,100 yr. 

Current value appraised value = 65K 

ROI=41% Used all my own cash

This is typical in this area. The internet makes people/investors feel like they need to take out alot of debt to make high returns that is not true at all.  

@Payton Pearson

You need a bigger monthly return for the amount of money spent. 

@Richard Phan Nothing in the rule book says you "need" a mentor. REI is not rocket science. Society's marketing makes people feel like we need mentors so they can take our money.

@Lance Leonard Taking on debt was tough for me to come around. But what totally changed my mind was really Facebook. My third year into RE, we posted a house for rent on Facebook. At that time it was my first time renting a property utilizing something else other than word of mouth marketing. When we posted the property to FB I got so many phone calls and messages that it was literally breath taking especially considering I inflated the rent price. So that's what ignited me to get more financing and buy anything and everything in my area. Many are afraid of investing in low income areas but the rent margins and demand for rentals is ALARMING here.

@Nicholas Munford

My why is to get out of working as an employee while maintaining the current lifestyle I have. Working in the corporate environment while facing discrimination was more than enough reason to pursue real estate. 

@Lance Leonard 

5 Years ago when I started investing in real estate the one thing I would have done differently was refinanced faster.  At that time the market was still coming down in my (Pontiac) area. Thank god I was still able to get really good deals but I probably missed out on an extra 500K because I could not buy fast enough while home prices were low.  

Understanding how quickly the market can change I would have refinanced a hell of alot sooner and took on as much debt as I could. I see it this, as long as I'm able to cash flow really well and get the properties under value then why not max the cash out refi and go make triple the money back. I am not sure how Highlands market is though...?

@Joe Pearson LOL This is a good question for Dave Ramsey .

When I started investing I chose to try real estate before doing what everyone else was doing at my job which is 401K or stock investing. Looking back I am thankful I took the real estate route because all of my investments have doubled with the ability to get a liquid check every single month. Even with the success Iv'e had, it has been extremely hard to get other people in the real estate game for example family members. Sharing my success has not been enough to motivate the people around me. When given an excuse to not invest in RE, it is usually " I don't have enough money, I got a bad realtor, there is not any good deals, the dogs sick and so on LOL....

With that being said what are ways I can help change their mindset and motivate people around me to get in the RE game? 

Is there a way to delete this thread ?