All Forum Posts by: David Detweiler

@Jamison Janicki

Hey! Congrats on getting started so young. I also started pretty early myself there in manhattan. Looking for a 4plex you are severely limiting yourself as there are only a few in town. Do you have 20% down or will you be using an FHA loan? The market right now is down 15 to 20 % from the highs, so now would be a great time to buy. Just be aware in town they will tout 3% vacancy, it is closer to 15% right now. The highest I have ever known it to be. How familiar are you with town? Are you going to KSU or working there?

Have an opportunity to potentially purchase a shopping center/strip mall type situation with established renters. What type of loan and rates should I be looking at? What should be my expected income? Double net leases I believe. Things to be on the lookout for? All input appreciated. Asking price of 4.62M.

@Javier D'Espaux Thank you. By 25 I plan on being a multimillionaire, owning 100 doors, 1,000 acres of land, then atleast 3 other side businesses that pump out 50k a year after debt servicing. Originally the goal was to have a $250,000 cash flow by 25 annually, but I have surpassed that. As far as long term goals, don’t laugh at me, but by 45 I intend on being worth 25 million, atleast 5 in cash. I plan on retiring then and setting things to auto pilot. Men in my family typically don’t live to see 60, so I want to enjoy life before I die. Hopefully I will be married by 30 and start to raise a family, allow my wife to be a sahm if she wants and put my kids through college plus have a little left over for them to start with. Most importantly I want to have the power through money, intelligence, skill, luck, however to earn a spot in a history text book, so my name will be mentioned in 100 years. No big goals here at all :)

@Javier D'Espaux Yes! I totally agree. It sounds like you are in a little less risky boat than myself. Being only 23, as of today :), I haven’t had the time to build the collateral. I am still purely in acquisition mode while trying to keep a reasonable amount of money in cash reserves or semi liquid form. I guess this goes to show how a couple different situations hold completely different options. But at the end of the day, it just matters how well you played the cards you were dealt because 9 times of 10 that will beat hoping to be dealt the right cards!

@Terrell Garren Thank you! Yes, actually it started with me investing in a guy that was trying to make vodka from Milo in western Kansas. I did end up buying a couple stills funny enough. Next thing I know I was balls deep in the booze business. It was an accident really lol.

@Javier D'Espaux You say smaller pockets and forces you to diversify like it is a bad thing. While I think real estate is a very good tool, it is simply that, a tool. Most people would like to have a full tool box at their disposal, not simply a hammer. Look at me. I farm full time (run row crops, small graIns, hogs, cattle, and sheep), own rentals 20+ (sfh, multiplex, and commercial), own two turn key liquor businesses, dabble in the stock market and mutual funds. While I am not have the outstanding overall years someone that is non diversified does, at the same time I never have the horrible years. At the end of the day it is all about what allows you to sleep at night. Diversification is my primary risk management tool.

@Javier D'Espaux So it’s like say I bought a multiplex for $2.3M, then a year later after some work refinanced it. Original loan was $1,840,000 or 80%. Upon refinance it appraised at $3M. I took out $450,000 ($410,000 from forced appreciation and $40,000 from equity gained) say its 4.5% at 30 years that is $2,280 a month. Then ignoring buy in costs on stocks for simplicities sake, $450,000 times 9.1% = $40,950 annually. After servicing the debt from earlier, it leaves $13,590 to either reinvest or take profit from. This allows me to keep the original $450,000 that I refinanced out semi liquid, plus pay the note off, plus gain a little compound interest. Triple win in my books.

I am primarily a farmer, self employed, making ok money. Have tried and tried to acquire and refinance properties on long term fixed rates through Fannie and Freddie. Worked with Plaza, Flagstar, and many others. No one can get anything done because they look at my farming income and say I am losing my butt. Showing 50 to 70k losses on paper the last few years. (This is from machinery depreciation, carry over grain, and carry over breeding stock (cattle and hogs). This forces me to purchase rentals in a portfolio type situation through local bank. They are very straight forward. 20% down. Check. Does it cash flow at 100%. Check. Yes sir, buy it. But I cannot get beyond a 25 year 5/1 arm. Suggestions on who to work with and how to get some long term locked rate properties pushed through on my self employed agriculture income?

@Medi Sarwary I put 100% in my self directed ira and keep a percentage semi liquid.

@Thomas S. What do your deals look like? That is the pursuit that I am taking as well, maintain my reserves and funds, but anything else I pour into the stock market and see returns there. I refinanced once and took the cash out and invested in the stock market. Risky, but I figure $480,000 at 4.5% on my mortgage but then I average close to 9.1% in the stock market let’s me scalp 4.6%. I take that $19,000 return and deposit in my retirement account. It has worked well the last few years.