All Forum Posts by: Diego Curbelo

HI Sven, I think that you're on the right track to starting your real estate journey. With the reading you've done I have reason to believe you're prepared to undertake buying a property and working on it. This is by far and away the best way to learn the business and what it truly takes to succeed. 

Some key pointers so that your operations go smoothly:

Underwriting: Don’t shy away from the process of analyzing hundreds of deals before finding one that fits your criteria. The more deals you analyze, the more you'll develop an intuitive sense of what numbers make sense. Enjoy the process—after the first few hundred, you’ll find it becomes second nature.

Focus on Value: One of the keys to success in real estate—and business in general—is finding a good deal. Don’t buy a property just for the sake of buying it. Instead, make sure you’re securing the best deal possible. This is why we analyze hundreds of deals but typically move forward with further research on fewer than 10.

Be Mindful of Leverage: A lot of the risk in real estate comes from borrowing, not the asset itself. I recommend aiming for 35-40% down to avoid being burdened by debt service. This gives you more flexibility and protection in uncertain economic times.

Scaling: Once your investment is stabilized and your systems are running smoothly, start planning to scale. Don’t get too bogged down with just one property—real estate provides great opportunities for expansion, so keep looking ahead.

Wishing you the best on all your ventures moving forward!

I recently attended this event, thank you guys for the hospitality. Great people and speakers. Looking forward to returning soon!

Hey Thomas, we're based a little further south and there's a great networking event that Keyrenter puts on in Coral Gables. Might be a bit of a drive but we've met some great people there. Still a pleasure to meet you! We work in both Miami-Dade and Broward county, wishing you the best on your current deals!

Opportunities will naturally present themselves as you continue learning. Nathan's comment offers an excellent starting point. I personally dealt with analysis paralysis too, but nothing truly changes until you take that first step. Focus on mastering the basics and building your network—the path will start to become clear from there.

Hello Selena!

Nicholas is right, the most important thing to do to succeed in real estate is to develop a team of professionals you feel confident working with and the best way to do that is by networking and getting to know people. You're already on the right track starting here, take advantage of the learning materials here on BP but also get out there and meet people. We live in a great city with an active community of intelligent investors and professionals.

We're here if you need anything!

Congratulations Brandon, BP has so many good resources for when you're starting out.
Would love to be a resource for you anytime! 

Hello Alfredo, great to hear back from you.

It sounds like you have a solid plan to offset the capital gains with your passive losses. When using the remaining $200K in passive losses, they can be applied to the gains from the sale of your properties. You’re on the right track, but make sure to consult with your CPA to confirm your plan aligns with your situation. In terms of REPS, this can indeed be a valuable strategy for offsetting your W-2 income. However, you’re right to be cautious. It is vital to ensure you and your wife genuinely meet all the requirements, including material participation.

I don’t have exact statistics, but the IRS does scrutinize REPS claims, especially when they are used to offset significant W-2 income. Be prepared to substantiate your claims. If you decide to pursue REPS, creating a detailed time log of all rental activities is essential. It’s a good idea to start now and document as you go. You can find templates or examples of material participation logs online or possibly from real estate forums. I recommend looking at IRS guidelines to ensure you’re capturing the right information.

I understand the concern about the complexities of REPS and the risk of audits, especially with the amount at stake. However, if the benefits significantly outweigh the risks and you have a strong CPA to guide you, it might be worth pursuing. Just make sure everything is well-documented and compliant.

I want to reiterate how crucial it is to maintain a close relationship with your CPA and keep the communication lines open. They can provide tailored advice based on your specific circumstances. Hope this helps, and good  luck!

Hello Danilo, I just came across your post and called a few of my friends in lending to explain your situation. I just wanted to get some extra details to make sure I'm relaying the information correctly. Then I can likely get you in touch with someone that might be a good fit. 

Also, if you'd prefer to talk privately feel free to DM me.

Here are a few questions that might help me clarify everything:

1. How much equity do you have in your investment properties? This could help me understand how much you might be able to leverage through a HELOC or cash-out refinance.
   
2. What’s your Debt Service Ratio (DSR) on those properties? Lenders often use this to determine if they can extend further financing, so knowing this could give us a better idea of how much equity you can tap into.
3. How much in carrying costs are you expecting to need during construction? Getting a rough estimate will help us see what kind of financing options you might be looking at.
4. What timeline are you working with for your construction project? Lenders might be more flexible if they know it’s a short-term loan, especially if you plan to sell the property quickly.
5. Have you considered working with hard money lenders or other asset-based financing? This might help narrow down the best fit in terms of lender type.
6. Do you have any prior construction experience or a builder on board? Lenders often look for this when assessing the viability of construction projects, so it’s good to know if you have experience or a solid team in place.
7. Are you looking to retain ownership after the build or sell the property? This could influence whether equity partners or certain types of financing will work better for you.

Once I get these details, I’ll be in a better position to pass the info along and connect you with the right person. Looking forward to hearing back!

Love meeting the Easy Street guys anytime I'm at a networking event.

All the best Robin!

Hey Jesse, welcome to Miami! A lot of my business partners went there and I'm sure you're going to enjoy it. 

There's a lot of great advice here from a lot of extremely qualified people here so run with that. My small piece I'd like to add is that clearly, since you're here, Real Estate seems to be something you really enjoy. So seek opportunities to learn more advanced concepts away from university, keep sharpening the sword. 

When you finish college in 4 years you'll still be in a large pool of people with Real Estate/Finance degree. What will set you apart is the experience you gain through the advice others have given on the subject and the amount of time you've dedicated outside of school to learning your craft is your alpha.

Wishing you the best!