All Forum Posts by: Jack B.

First your question was that being a multi millionaire could mean many things (no, it can't) and rambled on about that possibly being total portfolio including debt. I TWICE explained to you what it means. Now you claim I haven't answered the question YET on how I made my money. 

Listen close. Your question keeps changing every time I point out you're trolling. You never asked me until now how I made my money. If you actually bothered to read the thread, you'd see I actually mentioned it in one of my posts already. A little bit of reading comprehension goes a long way. Buzz off, you're not adding to the thread and you've been reported to the mods.

 And I went through your post history, I didn't find any posts about you owning anything at all. Not even a single question. All I saw in my cursory review of a few dozen posts in your short time here was that you like to tell other people what to do but you have literally no posts that I could find that showed you talking about your own portfolio at all like the rest of us who actually own something do....please post a link if you have one.

You should absolutely NOT start out out of state. You won't know the area, and can't keep your eye on it. Being a landlord can be difficult, and it's always better to be NEAR your properties with exception to large MF. But a single house out of state won't justify a PM and you can get a bad PM that is dishonest and incompetent. Start out local. Then expand out if you want. I'm currently trying to figure out how to manage remote if I move out of state. Either that or sell and buy when I move or sell to a REIT (being an accredited investor you can work with them through an investment firm) and 1031 to a large MF so I don't manage at all. Then I can be free to do whatever without worrying about single family home type issues. That said, the financing on commercial real estate is pretty risky.

 Possibly. I have a number of friends I went to my MBA program with that are syndicators and I still don't partner with them. But as I plan to be less actively involved in property management due to wanting to relocate out of state, large apartment complexes are attractive to me as they justify a PM on site so I don't have to liquidate and move my portfolio.

 Very important to understand the market trends in your area, good job! Yes I am buying in 2021. I bought last year, I bought two new houses this year and am actively making offers trying to tie up four more deals this year. 

You might be surprised that I buy retail, off the MLS. I buy quality real estate in good locations. Although I have a strategy to wedge the deal and get it at a discount, I often pay full asking because I recognize an opportunity. I'm not going to walk from a deal over 5-30K that they won't give me a discount for, when that property makes me 125K a year in some years, but typically 75K a year. Like I said to the other guy, if you're sitting watching the insane prices that went from 75 to 150K, sitting on the sidelines waiting for a crash, you'll be kicking yourself when those properties are 500K and you lost out. Real estate is almost always a good thing to buy, the reason being that I view it as a thirty year play. Appreciation, tax benefits, cash flow, fixed costs, someone else pays it off for me and it's an inflation hedge. Even if it goes down for a bit, the long term play is important. Hence why buying is almost always a good thing...but that said I keep just around 1.5 mil in cash at all times to buy on dips if opportunities present themselves. But do I stop buying because the properties I bought for 145 or 300 are now 450 and 700K? Nope. I just cash out and keep buying. This year I will make almost 1 million between W2 income and investments.

The bigger the gains, the bigger the risk. Taking on MF at 18 for example is VERY risky and likely to end in disaster for most 18 year olds. I have tenants that were multi millionaires. Lost everything during the crash because they were over extended. Met a few realtors that did too. They over extended themselves. I always keep a heavy cash position though. Whether eviction moratoriums or some other issue, I can pay them off or buy myself time by paying the mortgages for years, even if just to wait for a recovery to sell while they all sit empty. Luckily, my tenants paid their rent. One skipped out on a years worth of utilities but it came out of their deposit. 

Ultimately, it's better to get started small anyways because that's what is possible to start with. Grant Cardone started with a house. As you gain experience and decide that yes, this is for me, you take your equity and expand. Luckily I'm in a highly paid profession so I didn't need to tap equity and didn't at first, I'm basically using cash out refinances to fund new deals rather than taking savings on hand to the market. I don't want to be all in RE nor do I want to have 50% or 75% equity positions. I sold my paid off house years ago after I realized I should leverage up.

 

I did, you asked what that means. You thought it also could mean how much debt someone has or total porfolio. No, it means you have TWO million dollars or more to be a multi millionaire. Not total debt, not total portfolio. Two million or more dollars. I'm not going to break out an accounting equation to explain how to tally net worth, because you obviously think it's impossible that anyone could be a multi millionaire, after over a decade of real estate investing, most of the time being a member on here, in the 6th most expensive housing market in the country, on a real estate investing forum. You're a very new member here, I've been here for almost a decade. You're clearly a newb and a troll. I got that. In fact I looked through your posting history, not one post I read out of dozens do you actually make any mention of owning anything. You just troll the forum.

 Man I couldn't remember how long it was. That's INSANE! Professional tenants and a tenant friendly system. Glad you made out though. But yes of course, appreciation is the play on our coast. I think about that when I deal with expenses of say 2to 10K once in a while for capex or repairs. In the broad scheme of things, I'm making money hand over fist on appreciation.

Well if you don't want partners that would put a larger down payment down then you're either going to have to go smaller or find a place with seller financing. If you have partners you'd have the same or less returns as if you went smaller since you have to split the proceeds and you have the headaches and risks of partners. I'd go smaller. The trend I'm seeing is everyone wants to start out big out of the gate. Several 17 and 18 year olds in this thread talked about getting MF out of the gate. How? With no income, no credit and no savings? People have to be more practical. Start small, build up. Use the equity from the smaller deal as it appreciates to buy another duplex, then you basically have a four plex. Then keep doing bigger and better deals over time.

Google portfolio lenders in your area and around the country. I know of a few here but I've never used them but know others that have.

Someone who has millions of dollars. Not that hard to figure out bud....