All Forum Posts by: Account Closed

@Isaias Boesi 

There are a lot of different areas all over the city that can work for you depending on what your goals are and what price range you want to get started in. 

There are cheaper areas (below 500k) like South LA and Riverside county where you could grab a rental or a flip on the lower end of the LA market. If you're willing to travel to the high desert you can get into deals for below 300k in cities like Victorville and Apple Valley.

I thought I would jump on here and share the results that we generated in my flipping business this last year. I want to get more active on BP to inspire some of you young entrepreneurs out there, and to share some the knowledge that I've acquired over the last few years of doing this full time and growing my real estate business from absolutely nothing. 

but first...

I want everyone reading to understand that this does not happen overnight... I bought my first property when I was 17, and although it was only $750 it really started me on my journey. Since then I've been learning, putting in the work, and improving day in and day out. I want to make it very clear that the real estate business, no matter which strategy you focus on, is difficult to get into, and you will be tested. 

Anything worthwhile takes time and Real Estate is most definitely not an exception. I have been wholesaling full time and learning through trial and error for 3+ years. I have spent tens of thousands of dollars on conferences and education and have developed strategies, put systems in place, and developed relationships that allowed me to have the year that I had in 2018.

I started with no money, no connections, and didn't look a day over 14 when I started making my rounds at meetups. Anyone can do this, but do not underestimate the amount of hard work, will power and persistence that it's going to take.

These are the numbers exclusively for the flipping side of the business, it does not include my holds or 10+ wholesale deals that we did.

All of these deals were done between Denver, CO and Orlando, FL.

We = Me, My partner who is also 22, and the team we built.

My 2018 in Review

• Purchased  ~$8.6M worth of real estate across 35 properties for ~$5.7M
• We sold and closed on 20 of these properties in 2018 for a gross profit of ~$1.15M after realtor commissions
• and we still own 15 of those properties with about $1.2M in equity, all of which are scheduled to be sold and closed in early Q1 2019.

Total Equity Created in 2018 was $2.35M

Total Equity Realized/Cashed Out was $1.15M

Total Equity in Assets We Still Own is $1.2M

We acquired the majority of these deals off market through our own marketing, and bought three of them off of the MLS

Takeaways

• You can buy your first property before you're 25 :)
• Leverage is a powerful tool if you use it correctly (we stay under ~70% LTV across the portfolio at all times)
• The reason this worked is because of years of experience in off market acquisitions and an up market. 
  • All we needed to do was plug in capital and learn how to manage contractors along the way.
• Leverage is a very powerful tool if you use it correctly (had to put that twice haha.)

And like I said above, similar to any other business; Real Estate is hard to get into, especially in the beginning. It takes thousands of hours of focused and intentional work/studying, but if you commit and put in the work you can make it happen. I'm an immigrant, english is my second language, and no one in my family is in Real Estate. If I can see success in this business then you can too. 

This is just the beginning of the road and I'm beyond excited to keep growing and building with great people that have similar visions. 

I'm anticipating a market correction in 2019, with that in mind we are continuing to flip (more cautiously) and are doubling down on building large rental portfolios in a few select markets. My goal for 2019 is to purchase 500 properties and we won't be able to do it alone! Anyone that wants to connect just shoot me a colleague request! Im usually in LA and between Denver and Orlando all the time! Im always looking to meet people and develop positive relationships so shoot me a message!

Wishing everyone a kick *** 2019 and many many closings!

Thats all I've got! Feel free to ask any questions you have below and I'll try and help as much as I can! 

Ouch 50% LTV probably wont be doable, Ill still give them a shot. Thanks @Arpan Patel

@Marcin Nurek 80% would be perfect, Ill call them tomorrow.

@Dante Pirouz Ill try to give them a call tomorrow as well.

Thank you guys, anyone else that has suggestions that think might be even a close fit Id love to hear them, Im sure Ill need to talk to a few banks before I get someone who can meet this criteria.

I have a property Im currently flipping in Crown Point, IN that I would like to refi rather then sell on the retail market. I just wanted to reach out here and see if anyone knows of any banks in Northwest Indiana that could help me with this kind of thing.

Here are the criteria that I need:

• No seasoning period
• Based off of Appraisal, Not purchase price
• Qualifying based on the asset, not on w2 (I have no w-2, and about a 650 credit score)

The property would appraise for $220,000+ and there is currently a $115,000 first position on it that I would like to get paid off, and put the remaining cash in my pocket. Ideally I would like to pull out 90% LTV but am willing to settle as low as 70% LTV If I really really needed to.

If you know of anyone or any local credit unions, banks, or portfolio lenders that could help with this please let me know!

Thanks!

I would call around some smaller portfolio lenders on this one, usually at least 6 months seasoning, and they usually pick the lower of the appraisal or the purchase price to determine value. I say usually because it depends. If they're held in your personal name you may be able to refi them into an LLC but again, it all depends on your situation. Just start calling!

@Curt Smith I agree, Philippines have cheaper help then anyone you could find in the U.S. but the quality is also sub par, maybe someone who has experience in real estate or experience talking with people would be good, if that person can be found, and they would want more then the standard $5/hour anyways. I'd rather pay the extra few bucks an hour to have a person physically in the office that I can train in person.

I just don't want my people to sound like every other call center on the planet, people already hate getting cold calls, especially when its someone speaking broken English on the other end that really doesn't care about them.

I would like some good people in the office that can call the people and have a genuine conversation about their situation, and determine how we can help them. 

Office space just opened up in my building right next to mine, space is totally ready for a call center, and so it has me thinking...

Is anyone here currently marketing for motivated sellers by cold calling? I have had my lead manager trying it on a very small scale whenever the phone isnt ringing inbound, but Im curious to see how it's working for some the other guys on here, or if anyone is even doing it.

What kind of lists do you call on?

How do you filter for DNC?

How many people do you have calling?

How do you pay them?

What do the KPIs look like in your cold calling operation?

And anything else that you would like to add.

Thanks!

If the loan isn't assumable you can still easily make the deal happen. Just do a land contract with the deed held in escrow, call your local real estate attorney and they'll be able to help, I've done this exact thing before in Indiana. So you'll do a land contract for $280,000 and shell just make the payments to the bank like normal. 

Personally I wouldn't do this deal, It sounds like you'll be in it at $20,000-$40,000 over retail but that's ultimately up to you.

Best of luck!

I have a creative investment Im working on in Maryville, IL, which is near St. Louis. and I need an attorneys input and help in regards to structuring this thing, Im of course willing to pay for these services.

Basically Im going to be partnering up with the owner of a property to rehab his house and sell it. I am going to be paying for the repairs, and we'll split sale proceeds in half. So ultimately I need to be half owner of the property, and have the controlling stake/decision making power for the entire project. 

If anyone has any recommendations for a good attorney in that area, or you are one yourself, please let me know!

Thanks.