All Forum Posts by: Matthew G.

@Matthew McNeil It can be risky.

Just because your cashflow isn't negative doesn't mean you can't have other issues that will make your investment negative. If your roof starts to leak, AC breaks down, etc., you'll have to deal with expensive repairs while hoping your home's appreciation will come out positive.

If the market corrects and you have to hold on to the property longer, you could be losing money from having to handle repairs while you wait for the home price to go up.

Forced appreciation through rehab is your way to minimize these unexpected costs, not speculative appreciation.

@Marc Weisi Being a real estate agent is really a full-time job. Developing relationships, getting pocket listing and off-market deals don't just happen because you're a licensed agent. A real estate agent is like being a small business owner. You have to market yourself and nurture your leads. How are you going to keep customers happy when you can only talk or meet with them at night or on weekends?

My recommendation is just to continue building your network. As an investor you should focus on creating a team rather than trying to fill a role in your team. If you become an expert at building great teams, then you'll be able to invest anywhere.

@Anders Jax Can you describe exactly the type of deal you are envisioning? Why would they be adding additional increasing amount of funds to the same project?

@Amul Sutaria I think what @Matthew Perry means to "work backwards" is once you know what goals you want to hit, it will give you an idea of what you need to do to get there. If my goal was to turn $100,000 into $1,000,000 in 10 years, it would require a different game plan than if my goal was to turn $100,000 into $250,000 in 10 years. If my goal was just to get to $250,000 I could invest passively and get a 10% return annually and meet that goal. To get to $1,000,000 in 10 years requires a lot higher annual return than what passive investing could achieve, so I'll need to fix and flip or BRRRR.

@Curtis Robbins I would suggest you figure out what your goals are. There are a lot of types of real estate investors on this forum, some are active investors because they might have little capital and need to leverage and grow their capital. Others investors are passive, so they become equity partners, invest in apartment syndications or do private lending. Active investors are really like business owners, you need to put time and effort to market, network and manage projects. Even rentals require a lot of management. Passive investing is probably the type of investing you would want to do if you had a lot of capital, but this will really depend on your goals.

You say you can easily get financing and have friends/family with cash, but the only way to leverage their money is if you are actively investing. If you find your own deals, start your own apartment syndication, etc. then you can use their money, but if you are just passively investing you won't be able to really make money off their money.

I've been to FIBI and LAREIA which can both be found on meetup.com. They are both great for networking and they don't try to sell you anything.

@John Moore Are you talking about LAREIA in San Gabriel? If so I've been to that one and I would recommend it. It gets a good amount of investors at each meeting, so you can network with many different types of investors. I think the next one is tomorrow.

Have you tried contacting anyone on BP hard money lender list? https://www.biggerpockets.com/hardmoneylenders

@Tyler L. If you don't have the capital to put the required down payment and cover rehab costs, you are going to want to find an equity partner who can. The idea of no money down and using other people's money is possible, but without experience and an existing relationship with the lender will be very difficult.

@Chanoch Moller, If your mentor is a real estate investor, you should talk to him about creating a Joint Venture so that he can advise you in your first few projects. That will allow you to tell lenders that you have X years experience on your team.