All Forum Posts by: Jack B.

You can setup title once you have a contract if you like, or wait for a buyer. I'd wait in case you don't find a buyer and walk. Less work.

That it is for everyone, and that if you just do what someone else did you will reap the same result. It takes a certain kind of person to do this. Many of my high paid colleagues tried it and failed, bankrupt. 

Also that it beats the stock market. It doesn't. I've shown chart after chart that RE only keeps pace with inflation. The undeducated will come back with, oh I'll just cherry pick markets. OK buddy. Even then the charts show an index fund beats RE 3 to 1. But if I cherry pick stocks too it beats RE 1,000 to 1. Then they argue but you can leverage RE!!! You can leverage stocks too....like I said, uneducated....comparing cherry picking leveraged houses in specific markets to a broad index fund...then get schooled that the index fund still beats that and if you cherry pick stocks and leverage them, RE can never come close to that kind of return. But RE is good to have in your portfolio. It's a no brainer for asset diversification and a hedge against inflation. It's much less risky than stock picking too, despite the fact that in RE, you're investing in what is basically a single stock. The difference is though...everyone needs shelter, the population is exploding and they aren't making anymore land. Basic economics.

Someone who has never owned a home is going to buy raw land and have a multi family built on it? It's like saying I've never owned or driven a car, but I'm going to go build a lambo and become a race car driver because I sell cars at a dealership. Rethink your strategy. There is a pattern of people with little experience or money or credit (lot's of 18 year olds wanting to buy apartment complexes as soon as they turn 18 in this thread) who have more ambition than strategy. You need to be realistic. This could work but is very risky. Contractors will take advantage of you. 

 No, debt is money. If you can use debt to make money, debt IS money. The CONVENTIONAL wisdom is pay down debt based on interest rate, rates of return, etc. That's dumb. I paid cash for my first house in my mid twenties (tech career, no inheritance or help from family or anything like that) because it was a paid off place to LIVE. Instead of paying off my student loans. I sold that house for 3x what I paid for it a few years later, used the money to buy two more properties, etc. Had I used the money to pay off debt like my student loans I would never have been able to do that at that perfect time. I made 700K instead of paying off 42K of student loans. Plus I had a guaranteed roof over my head. Paying off student loans would have been dumb. Great I have no loans but now I'm homeless, whoopty doo. THINK. RE has utility value. You can live in it, you can grow/raise food on it. Food, water, shelter. Get that down before you invest or pay off debt like cars, student loans, personal debt, etc. 

 I don't understand your question. You want to underwrite? You mean underwriting? I don't think you know what that means or what it has to do with syndication.  If you want to be a guy to gather money from investors to buy and manage properties for them, you need to have some experience and knowledge of the terms. Unlikely anyone is handing you any money to invest if you don't even know the terms and have no experience or track record...

I don't see anything wrong with your strategy, I know a girl in my area who does BRRR(R) [you missed an R] very successfully. It's a bit of a slow boat but if you lack capital, it works.

LLC's don't provide the protection you think they do. You can't put a mortgaged property in an LLC and getting insurance is a problem. LLC's are easily pierced with charging orders. Get insurance and an attorney for asset protection advice.

 Did you ever get that tenant that hadn't paid in over a year out? I remember your avatar...How did that end?

 This has less to do with cash flow than your ability to do your own taxes. schedule E is not hard to figure out. It get's more complicated when you do 1031's. This has more to do with your own aptitude than money. I've corrected CPA's on three occasions. I lost faith in most of them unless they specialize in RE.

 All my tenants are 700 + FICO for a reason, much less headaches.