All Forum Posts by: Fernando E.

 @Fernando E. thank you, that is very kind of you. I am always happy to share. I do not do any paid coaching, however, I am happy to answer any BPer questions. I do a free call most weeks where I answer questions and if you would like to get information on how to join, please PM me. I plan to do one on October 19th. 

I wrote a book on multifamily, humbly titled The Perfect Investment, in 2016. If you PM me, I can send you a PDF copy. I absolutely do not think multifamily is undervalued. This is why our company stopped investing in multifamily for years and expanded into self-storage, mobile home parks, RV parks, etc. We do occasional multifamily, but only under rare circumstances. Multifamily in my humble opinion is the poster child for overvalued real estate in this cycle. I would stay away from it for now. Look for opportunities if the recession takes hold in the next 1-2 years. 

Good luck and happy investing!

Hello,

I got laid off from my W2 job unexpectedly this past Thursday. With this being my first time being laid off, it definitely knocked me down a few notches this weekend. I've always wanted to get into real estate ever since I graduated College in 2017. Before I started this W2 job earlier in 2022 I was on track to get my real estate license in KY. Passed the classes and right when I was going to take the exam I got a call offering me the job. I planned on taking the exam this fall. The plan was for my wife and I to work our full time time jobs and for me to do RE part time and to try and buy our first investment property. 

I keep reading articles and seeing videos of people saying the housing market is on its way to a collapse. My question is, with everything going on with the economy and interest rates going up is it a good idea for me to finish up my license? 

Maybe getting laid off was a good thing? Maybe this was God's way of closing one door and opening another?

Any advice would be greatly appreciated! 

Hello Bigger Pockets Community!

I’m new here and new to Real Estate in general, however I am very enthusiastic and determined to learn and invest wisely. Here’s a bit about myself and my goals:

Me:

• - Early 30’s, single, no kids
• - Compensation = ~$200k/yr (most of this is still W2)
• - I’ve set aside between $75 - $100k in cash to invest in RE
• - Current rent = $2100/mo.
• - Credit score is high 700’s
• - I do not own any property
• - Split time between Phoenix, San Diego, and Denver

Goals:

• - I’m a business owner, and still have a full-time job for a bit longer, so those will take my time priority for the foreseeable future
• - My time is critical to my business, so I’m hoping to avoid the more time-consuming options
• - I'm looking for the best way to achieve high ROI and monthly passive income
• - I have friends who are more versed in RE than I am, who I can partner with if needed

I am still in the education phase; however, I am trying to decide what’s the best strategy for me. I am not afraid of putting in the work, but my business will take priority for now. My initial thoughts were single family homes, but I am realizing there may be better ways to scale and reach my goals.

What strategy would you implement if you were in my situation?

Thank you all for the help! This community has been so helpful.

 I recently wrote a BP article on self-storage investing during a recession here.  I’d be happy to hear your thoughts.

Money should never be the issue. If the deal is good enough someone will close on it 

Terrible strategy.  Assumed appreciation can't be counted on. Past appreciation rates have no bearing on any future ones.  Besides, you can't substitute gains from appreciation against negative CF.  Cash flow is real...appreciation is an imaginary number that can only be real when turned into cash...as in selling the property.  Appreciation isn't cash.

Negative CF means you are adding that negative CF to your cost of the property.  Positive CF means whatever cash you put into the deal (DP) is the ONLY cost to the property.  $12-15k negative CF/year is actually an exponential loss.  If you used that money to reinvest with, instead of spending it as negative CF, you would get a "real" cash return out of it.

Fantastic discussion here. In short, you must make the numbers work regardless of the market conditions. This whole waiting on the sideline is an excuse of non-performance. I've found deals in 2010. I'm still finding deals today. Do the numbers work. As a wholesaler, all I'm concerned about is if buyers wants X, I supply them with Y. Frankly, I could CARE LESS about market conditions. As long as people need shelter and there's jobs, there's always a strategy to be executed. 

@Fernando E. there are always deals if you stick to your metrics.

I'm an open book, I have no 'secrets' so ask me any questions you want. Rent by the room, MTR, STR in certain neighborhoods where you can operate legally and avoid the 11% city of Austin hotel tax are how I'm getting cash flow for my clients right now. Here is video of my MTR strategy, super simple and easily replicated. I increased my CoC return by 17% and went from -$500/mo to $1,500-$1,700/mo in net cash flow. My revenue went from $2,450 to $5,800 just by changing my rental strategy. You couldn't get cash flow anywhere in Austin doing LTR back in 2020 when I started looking and you definitely can't get it now.