All Forum Posts by: David Singyee

Hi BP fam, I'm a 24 year old kid who loves his job in digital marketing analytics and also freelances projects in the field on the side. I have invested a lot of time and money into my education about REI on both the passive and active sides. My goal is to have 20K passive income a month and then start and join charity projects and organizations. Not sure what parts of the world or what type of people in need I'll be helping yet, I'm kind of a I want to try everything type of person over laser focused. My question is am I wrong to work my 9-5 where I love the work but dislike the corporate structure, freelance my skill set for additional income and because I geniuniely like the work, and but turn key investments to grow my portfolio OVER starting both active and passive strategies of REI until I can exit my full time gig and achieve my 20k a month goal even faster? I'm very lost in my thoughts of my highest and best use, what type of work I love, and what type I of work i think I love but I might just be lying to myself. Thanks in advance

Have you tried getting conventional financing from a national bank, local banks, and/or national/local credit unions? DTI ratios need to be no larger than .42 I believe is the current standard. Additionally, lenders typically want to see 2 years of solid w-2 income but are sometimes lenient for only 1 year of w-2 income if you are a recent college graduate which is your case. Also what is your strategy for starting out? Depending on your plan, alternative, creative methods of leveraging capital might suit you better

I would say research turn key investment property companies and if their company morals align with yours or what you seem fit for such a company explore purchasing one from a provider or two. Then while you're truly close to as passive real estate income study their systems and processes. This will mitigate your risks from starting out by taking down a multi unit apartment complex from the get go and provide valuable insight on what they do that works, what they could do better, and what they aren't doing that you should do when operating your portfolio or training someone to operate it for you. You can get hit on a small all cash single family home if the company you vet out turns out to be bologna or you can gain valuable insight on companies that are doing things right and take it up to handle things on your own over losing hundreds of thousands with rookie mistakes. After all taking that one year to learn won't teach you how to avoid every mistake, in fact it could deter from even getting started at all from all the horror stories you'll learn from your education period. Why not learn mistakes and successful models on another company's dime?

Hello everyone,

I am a newbie investor and haven't done purchased any properties yet, but am looking to do my first House hack in San Diego next summer. I'm looking for all the Devil's Advocates out there who can provide me cautionary insight. I'm 23 and am one year out of college renting with some friends from college for $675/mo. 

My mom just inherited some money from her mom and she has agreed to loan me the money for a  down payment on a 1-4 unit property when I plan to be purchasing next summer. I'm also lucky enough to have a 0% interest on it. My caveat here is, with as good of a deal the financing is, should I look to pursue this in San Diego with the current market conditions, or should I move to another area and take her up on that offer? I'm in digital marketing as analyst and my skills are pretty transferable, but I am looking to eventually transition into full time real estate investing. Let me know what yall think, if you need any more information about my situation, and suggestions or other things to think about. Thanks!

Hi Mary, welcome to BP. I'm also a fairly new REI. I'd love to connect and be in your buyers pool and vice versa. Let me know if you'd like to connect!

Hey Steve, great question. Here is my take on this but hopefully you get various opinions and get to formulate what you think is best for you and your situation. After all you know your situation and yourself better than anyone on BP's community. Paying off these mortgages early is not the smartest thing to do for a number of reasons. First of all we live in a time where interest rates have been the lowest in all of our history. On top of that interest rates are only going one way in the future, up. You have a locked in interest rate for 30 years!! Leverage that. Second think about inflation. Your dollars you would use to pay off your mortgages today might give you that feelin of being debt free. But the small incremental cash flow you'd get from no mortgage payments would have to accrue year after year until you can buy another cash following property. And by the time it gives you that amount inflation would of depleted their value and you'd need even more dollars to get a property you could get today. Instead of using your dollars today to pay off your mortgages early, utilize your capital to acquire more properties faster. After all your playing the CASH FLOW game not the DEBT FREE game. Put it like this: if I let you borrow money from me at a locked in 4% how much would you borrow and when would you like to repay all debts and interest? If you ask any big time investor out there they would answer as much money as I let them borrow and for an infinite amount of time to pay back the loan. That's because great investors know that debt doesn't matter as long as you can make returns above your debt. If you could cash flow 10% from that deal and make 6% returns off my money with me putting up all the risk for an indefinite amount of times and an indefinite amount of cash flow would you say no? Well there's my two cents on your questions I hoped it gave you some value. Cheers and good luck with your investing career!