All Forum Posts by: Justin Green

I am in a similar situation and have learned a few tips.

If you can live in it for a bit you can do owner occupy and they don't count in the 10 limit. (not an easy option of course)

Consider ones with low balances rolling into 1 bigger loan by moving payoffs around, Pay off a lower balance unit and refi others for higher balances lower rates.

I have been looking for portfolio lenders that are easy to find with primary units no so much investment loans these days.

Commercial is 1-2% higher and gets the deal done, some of my commercial loans do show on credit and count against the 10 limit

In general most LO's won't touch us at 10 loans so you have to think outside the box. I personally am refinancing some to payoff others to free up # of loans and carry higher balances at these low rates on the great performing units.

I am also curious about this as I have an inquiry for one of our rentals. Will explore and see what the outcome is.

Key is does your seller understand he doesn't get 1st position on the lien. Not many sellers would take a 2nd position unless secured by something else. Even if you get a bank to say OK to 2 liens and educated seller may not be ok sitting in second.

Banks will work on a timeline. If no offers within x amount of time the systematically drop price vs a way lowball offer. Getting them to counter before the price drop usually is best. After the 21 day period it is open to everyone. As an owner occupy you have an advantage for the first 21 days. Also timelines are usually much slower for responses on the banks end I have seen counters take 2 weeks to come back its also a strategy to test the market at the price if a better offer comes in. Hopefully you have someone that knows homepath well.

I live a few minutes away but will be at an event that week. Next meet Stickman is great

Hey guys its been a while figured I would update this post vs a new "year 2/3 update"

I have not been online nearly as much this year but have been lurking more and continuing to learn. I do find RE is so local so much of the norms and number don't make sense for my area. I did just finish reading "the savy real estate investor" great read from here.

Year 1 was great so was year 2 and 3 midway.

In the last 18 months or so I have built up a small SFR portfolio using all creative methods. Cash flow is more than primary mortgage payment (in our market your lucky to make $100 a door going in and starters are around $300-350K). I have structured a great RE business doing all kinds of deals and partnered to run an independent broker shop. I am hands off most rentals and now fully financeable. I have learned a lot and kept my head up no matter how bad it got and there were days it got bad.

Some lessons learned in these years.

The hustle never stops, the moment you let off the gas it can all come crashing down. Systems can be put in place but I do not ever see truly passive investments.

Setting goals and breaking them down matters. Still close over 50 deals a year still a top producing agent and growing a team now.

Talent is incredibly hard to find and I keep my talent very happy.

No matter how much money a person has it only makes them more of what they are inside. A good person at heart will be good and do better. A bad person will be worse. Too many focus only on the money and money doesn't bring happiness.

Taxes still suck. I have changed tax advisors and formed a corp to reduce taxes. Have paid more in taxes than I ever made at a W2.

Most solo agents turn into a zombie at about 10 transactions at a time you need help after that.

I still focus on others before myself. Naturally want to help.

learn to let go of bad people faster and identify them faster. No respect for me, No time from me.

Keep good people closer and form great mentorships and partnerships.

Public speaking and mentoring teaches yourself about yourself.

Exercise and focus on the good. It took a good 10 mile run this weekend to get the funk of a lying tenant off my mind.

This community is a wealth of information and I appreciate all the positive feedback. My goals continue to expand as I continue to grow. I have always had this dream it just took over a decade to act on it and I wake up and work on it everyday.

@Jerry W. I was just reminded of that this morning reading Steve Jobs last words. I'm taking today off with family and went for a run this morning. Thank you.

@Robert Blanchard I work with all types as long as there is mutual respect. When someone approaches me calling themselves an investor I usually run (kidding but the term is too vague like most feel about RE agents also). I find the wealthiest people don't even say the word and just live the life of one. 1/3 of my clients do repeat business with me so Yes they are investors also.

@Jay Hinrichs you are telling me the same thing my father in law says. I will move into multifamily down the road. SFR's are the building blocks for now (be bankable then sell a few SFR's to get down payment for the larger assets). I am now using a PM and do not know the tenants they are hands off after the above expensive lesson. I also thank you for taking my newbie calls about previous overpriced dirt (newbie agent dirt deals we have to learn somewhere) I did put a few together finally. I am focusing on the Agent business primarily and the new goal for 2016 is 75+ transactions. If I help enough people I will get whatever I want. Shoot me your Palmbad stuff and Ill be happy to bring some buyers :)

Thank you all for the support and comments.

Hello BP. I just wanted to give a big thank you to all the talent we have here in 1 place. Thought I would type up a summary of my first year working on my dream. 

January 2015- Have been licensed RE broker for 1 year W2 job 12 years. Part time RE Full time travel W2. Closed 20+ RE deals for others 1 for me previous year. RE Broker is not a career everyone would do or should do it is truly hard work nothing is given. Wake up every day and hustle. Found I love it got so busy was showing homes on lunch breaks working till 10-11pm keeping things together 6am-8:30am work all day at the W2. W2 averaged 70 hours a week RE all the spare time between.

Mid January- RE going so well had to chose W2 or RE. I chose RE. GO 100% self-employed

February- Outstanding 401K loan due within 30 days of leaving W2. Big $$$ due liquidate as much as possible to pay back loan without huge tax penalties. Get it done go down to less than $3K to my name supporting my family.

February- Wife is laid off from W2.

March- Scared... Hustle

April- Taxes Due huge $$$ again closed a few deals to cover nothing extra left.

June- Tenant stops paying rent. Long story basically in his mind his excuse is completely valid to him (lost job) so I should be able to cover rent for him. NO evict.

Meanwhile keep my head up and continue to pursue my goal of 50 deals in year 2 as broker.

June-October- Tenant rides eviction all the way through court pleads not guilty borrows money to pay into court to prolong the eviction gets very nasty threatens us and says he will ride out the eviction as long as possible then leave the day before the judge rules. Finally get him out while he is in jail for beating his wife find drug use in house $5K of rehab plus court, lost rent, and moving the wife out. NEVER rent to a previous felon they know how to use the law against you. (my fault for giving second chances, I did screen well)

September- Self Employment taxes set in again and I know this. More $$$ to the man, Working on other forms of business ownership. Work on depreciating asset schedule. Contemplating switching CPA's.

September- After saving for 2 years and losing it multiple times above buy a new to me car. 30 miles in wreck it. Ouch....

November - working the details for next rental.

Every month helping people buy sell and invest 3-10 monthly.

Taxes plain suck. I plan for them yes but I could have bought 2-3 more rentals instead of throwing it away in the mailbox.

Currently not fanciable, great credit, good income.

Almost December- Sounds scary so far but, I have risen to #3 broker in my firm. On track to close 50 transactions this year. Have rental occupied. Hired my first assistant. Still wake up every day and hustle Stay up every night and hustle. Very thankful to have our health, a loving family, a Home.

Looking back on this year a bit early. I do not regret leaving the W2. I will continue to acquire rentals. I will help more and more people. I will keep working on my dream.

Its very true nothing good comes easy. Thought I would share my success some may call it a struggle, some call it an entrepreneur. Call it what you want just don't call it easy when I'm 20 years on the other side of this.

@Cody Stone from experience I did this to speed up my investing portfolio. Big caution when you leave your job weather your choice or theirs you must pay all of it back within 30 days. I had $48K out when I had to choose Real Estate or W2 job. I chose Real Estate and scraped up every penny to payback that loan earlier this year. When you loose your job is the worst time to have a $50K loan due in full. I do not regret my decision and Real Estate has been very good to me just giving you something that weighs heavy and often not considered. I suggest a good emergency fund or be able to liquidate enough funds to cover when you don't have the income. For me add in a terrible tenant that cost another $15k.

I would recommend Summa I looked at many brokerages when deciding to hang my license somewhere. Most are interested in collecting agents and collecting fee's. Fee's are not the only thing to consider when choosing who will help you grow. Single brokerage houses may be fine if you want just 1 persons direction. You need a good culture to surrounds yourself in and be able to reach out to many people with experience. I have 3 go to on staff PB's in just my office (10-15 licensed make regular appearances). Everyone will want to collect you as an agent looks at a few and choose wisely. Your surroundings will determine your success.