All Forum Posts by: Jake K.

Actually, I am expecting to be in that position at some point this year. I am looking at using it to invest in the best commercial sized multi-family property I can, for both cash flow as well as appreciation potential. Then use it as my "seed" money for future investments.

You would use ,what? The cashflow from the property? Or would you refi and use that money?

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Originally posted by @Joe Villeneuve:

Originally posted by @Jonathan Yeh:

Originally posted by @Joe Villeneuve:

Originally posted by @Jonathan Yeh:

Originally posted by @Joe Villeneuve:

Originally posted by @Michael Ealy:

Originally posted by @Joe Villeneuve:

Originally posted by @Jonathan Yeh:

When you said you would use it over and over again, what are you referring to?

Use it like your seed money. NEver spend it. Use it as many times as you can. To do this you must flip the cash. Notice I said "cash". Every time you flip it, it comes back to you with friends. Reinvest (use/flip) both over and over. It grows exponentially. Eventually you "spend" (one use) the profits (friends)...but NEVER spend your seed money. Once spent, it's gone forever. Use it (many times), and it's the gift that keeps on giving.

I agree with Joe.

What he means is doing BRRR or value add then refi/cash out.

For example, say your "large sum" of money is $100K.

You buy a house for $70K, put in $30K in rehab, rent it for $1500/mo and now it's worth $150,000. Get 70% of that through a cash out refinance (from a bank), then you get your $100K out to do the next deal.

So, in theory, you don't run out of cash. In theory but it's predicated on the assumption you have excellent deal flow and can get good bank financing (and the bank will allow you to have an unlimited number of loans).

Depending on how large your "large sum of money" is, you can do the BRRR strategy with multi-unit apartment building or hotels. In the commercial world, we call it value-add. That's what I do. In some respects, it's easier than houses because commercial lenders don't care how many loans they give you (but with residential, in the US, their limit is 10 loans). Also, qualifying is more a function of experience, networth, credit and the income of the property itself not so much your personal income.

Hope this helps.

Keep in mind though, refinancing ISN'T getting your money back out. Your money is still in the property, and being used as collateral on the refi...which is NEW money. This is a way of funding deals, but it is NOT an example of reusing your own money.

Thanks for the reminder, my worry with refinancing is that IF the housing market crashes, then we won't be able to refinance at all..which is also why I am unsure about paying off most of the house to begin with. What do you think?

If you're talking about paying off a rental house, my answer is you shouldn't be doing it in the first place. That's your tenant's job through the rent, not your's.

Sorry, I meant my primary residence.

Same answer...different reason. Invest (Use) that money and take part of the profits (never the principle/seed) and spend that on paying off your residence. Your money works for you. When you "spend" it, you just allowed it to retire.

What SPECIFIC methods of investing would you recommend in order to reuse the money and not have to spend on it?

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Originally posted by @Tyrone Harris:

@Danielle Levins, yes. Last time I checked, they're still processing and investigating. They said it could take up to 30-90 days.

Thanks!

Hi, in my experience it could be as soon as 3 weeks (which is rare) or as long as a year nor even longer depending on the spec situation.. it is real work to make it happen,it's really not for everyone

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Anyone?

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Anyone?

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I saw one of these Facebook ads with supposedly "a better way to flip houses" called LYNK Flipping by the Ligon brothers, anyone know more info about it, on how it works, and if it's legit,etc..

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Originally posted by @Justin Lanciault:

@Jake K. What do you mean “rent as opposed to own it yourself?”

Rules are changing soon, so keep that in mind

Renting it first from the landlord and then Airbnb it

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Originally posted by @Luke Carl:

You’re looking for the Short Term Rental Forum. Although Baltimore has never been mentioned over there and I can’t imagine it’s legal.

If you’re looking to rent and then Airbnb you want Brian Page Airbnb Formula.

Thank you,I just came across Brian Page

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Originally posted by @Ozzy Sirimsi:

If you rent or own a house that you live in, you can do and airbnb in Baltimore.However, if you are an investor, and not living in the house, you will not be able to do it. They allowed 2 houses and one has to be the one you live in, and the second one has to be in the system already in August 2018 I believe, and registration is coming up, so legally you might not be able to airbnb anymore, unless you live in that house.

As far as how airbnb goes, If you have people to manage and clean the property, it works well.

If you are going to manage and don't have the cleaners who can show up on time, then you will have trouble.

Thank you Ozzy. Yeah, I am not going to do this in Baltimore anymore now that I know this info. Do you or anyone know of a good list that indicates which areas in the US are off limits for Airbnb, and which ones are the best to invest in? Thanks again

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All Forum Posts by: Jake K.

Jake K. has started 36 posts and replied 191 times.

Post: What would YOU do if you have a large sum of money?

Post: What would YOU do if you have a large sum of money?

Post: What would YOU do if you have a large sum of money?

Post: Tax sale overages process

Post: LYNK Flipping course,anyone have experience with it?....

Post: LYNK Flipping course,anyone have experience with it?....

Post: LYNK Flipping course,anyone have experience with it?....

Post: Any Airbnb investors in the Baltimore,MD area?...........

Post: Any Airbnb investors in the Baltimore,MD area?...........

Post: Any Airbnb investors in the Baltimore,MD area?...........