All Forum Posts by: Jeremiah Leonard

Hey @Mike Eigenmann, I'm still in the researching phase right now to learn more about real estate and build my network. I'm looking into doing a bit of a BRRRR househack combo when I move in 6 months or so. I'm going to try and hustle the money rather than touch my savings. I'v basically been pretending my whole life that I made it this far without any of that money so it's not hard to keep on ignoring it. It certainly would make it easier but It seems pretty hard to set up a multifamily househack and not be saving money. I currently rent at 1k a month and where I'm moving I'd be looking at close to 2k a month. If I can manage to just get a fixer upper property with at least one other unit and a mortgage under 4k then I will be paying less than any of my neighbors, I'm optimistic that with 6 months to hunt around I'll be able to do even better than that.

Sorry I don't have any solid numbers for you yet but that's the plan, house hacking seems like a really safe first step into the real estate biz because of how even if you're still left paying a little extra on the mortgage at least that going into a property you own instead of just disappearing. And general if you're doing your research you will probably still be paying less than what the local rents are.

@Eric Jacobs

Thanks for the reply for sure, after all this feedback and other research I've been doing the whole scenario interests me, I want to learn more about Notes and the potential there but when it comes down to it there's no way I'd be ready for the timeline this guy has set up (another red flag among many) and like you said I am definitely following this adage, I'm going to learn what I can but it's pretty clear this is too good to be true. I don't want to be a statistic so I'm going to avoid this deal but I'm going to use what could have been a terrible idea as a way to learn more about the whole process.

@Bill F.

For sure, Which is one of the reasons I'm glad everyone here is without fail saying "This is way too good to be true."

I'd hope most people vet their investments but as you said with Madoff for hundreds of people his credibility was enough, and it's knowing about previous horror stories that has me here in the forums watching everyone throw up their own red flags on this deal.

It's seriously appreciated.

@Andrew Smith

Thanks for the reply, it makes sense for a long term investment, have you Flipped any properties with Solar?

@Chad U.

Pretty cool to see that the numbers aren't unrealistic given your own personal experience, but like everyone else has said the the timeline and the scalability seem unfeasible. That said the ROI you're seeing are for yourself, with his proposed 50/50 split with investors it would still be 35% and 30% respectively. Which don't get me wrong is great, but way way under what he's saying. And the 1 year timeline just seems crazy, especially to do two houses.

As I mentioned in my reply to Andy I'm really stumped by how well respected and well known this guy is at the meetups I'm going to. Everyone knows him, everyone seems to suggest him, and several of the more successful people are working with him. I just don't know how exactly they're working with him. To that end I'll be asking him about references from previous deals and I'd like to gauge how many returning investors he has.

I'll PM yourself and @Chris Seveney later today with his info, maybe he'll be someone on your radar. He's based out of Florida but his note deals are not local.

@Andy Mirza Thank you very much for the good questions, I'll definitely try and address each of these when I'm meeting with him. The only reason I wasn't immediately adverse to his sales pitch is because he is and has been a trusted member of the real estate group in attending, he's well established here, many people in the meeting know him and trust him. What I don't know is how many people actually invest with him or if they're just friends. I figured the thing that would make me look more stupid than posting on here for advice would be to jump on this deal without it. I've already gotten a ton of really great advice and there's all but zero chance I go through with it thanks to you guys, I'll definitely see how much detail I can get out of him to try and get more accurate numbers. Just because I've already agreed to meet and I'm curious about it.

@Wayne Brooks Thanks Wayne! I'm sure your skepticism is well founded, my understanding from the current market is that this deal was certainly blown out of proportion. I'm meeting with this guy anyways on Sunday to learn more about it, do you have any suggestions for what questions I can ask to break it down more?

@Chris Seveney I admitted my ignorance in my original post and I'll admit it again; I was not going to even look into going forward with this deal unless everyone posting here was saying "that's an awesome deal how can I get in on it." Since that's not the case I really want to learn more about what this deal looks more like realistically, I have a meeting with this guy on Sunday to talk to him and I want to be question ready to see if I can boil away the fluff. Thank you so much! I beleive the properties are located in the Midwest but I'll need to check my notes and ask the guy pitching the idea. He mentioned being able to have his agents look into the properties before buying so I'll ask how he plans to do that because you are confirming my suspicions that you can't really do that without permission of the home owner... I beleive his idealized scenario was that they send an agent, explain that if they can check out the property before hand they might be able to wipe out the debt for them, and on that possibility be allowed to see the property. Sounded like an ideal scenario so I'll ask if that's a requirement before they buy a property. Would you be able to do a brief call this week to help me prepare for my chat with the this guy so I can know what to ask and what to look for in the deal? Maybe 30 minutes or so?

@Jay Hinrichs I think you're right that the numbers he was giving were the optimistic best. He has done this the year previously with a smaller batch and said the numbers were actual numbers he was getting. I am meeting with him again to learn more about the opportunity (especially after hearing from you all I doubt I'll look into it further but I already set this up). Can you give advice on what questions I should be asking to get closer to the average values he was seeing last time rather than the best case which is what I'm sure he was pitching? Also I don't beleive his market is in Florida, I don't have the notes I wrote down but I beleive it was in the Midwest. Thank you again for your advice here!

During a local Meetup one of the head honchos of the group pitched a BOGO offer on mortgage notes. Yes I mean buy one get one. The BOGO is a bit misleading because he essentially plans to buy one house for around $50,000 renovate for a bit more, and resell at $100,000 or maybe slightly more. That is then leveraged to buy the second house, which is again rehabbed and resold at again $100,000. His timeline for this is 6 months per house, so in a year after the two properties are essentially flipped and resold or the mortgage refinanced with the existing owner the profit is split 50/50 so I the investor gets $75,000 from the $50,000 I put in, hence the 50%ROI. (These are my conservative numbers, the numbers he gave were: first house bought at 50k+20k rehab sold at 125k, second house bought at 50k w/7% +20k rehab sold at 140k profit of 96k after expenses and ROI of 96%, split 50/50 I the investor make 48k and the 50k back) He's planning on buying at least 200 notes and has already secured millions in investments to make this happen, each note would be around 50 cents on the dollar because of the quantity he's getting. I really need advice here, I know very little about notes and was planning on looking into BRRRR honestly. But I also have money I'm investing around, currently stocks but those have been averaging 7% annual ROI and with the market so high they've been doing worse this past year. So this seems like a really good alternate option to put that into truly passive income. Is this the real deal, have people done deals like this before? What sort of questions should I bounce off this guy and why is he willing to split the profits 50/50 with ridiculously high ROI, the way he pitches it I feel like he could pitch 25% ROI and make that much more for himself. I would really appreciate guidance and would love to be able to even call someone over the phone and really hash everything out. What I'm looking for most of all is for someone to immediately see this and go "no way Jose this guy is peddling snake oil." And tell me why.