All Forum Posts by: Jim Pellerin

I'm a tech investor currently evaluating a startup idea centered around that’s offering simple 10% loans against signed rent agreements (i.e. if you have $2K/mo rent, you can get paid $22K up-front, instead of $24K over the course of the year). I’m curious - would this be desired by landlords/real estate investors? Or do most investors not need this kind of working capital / can already access it on better terms?

It certainly is an interesting idea. It could help reduce your mortgage obligation by pre-paring a years worth of mortgage payments. But I think most people like the monthly installments to offset the monthly obligations.

Thanks Jim! Do you think having access to that additional cash flow earlier on would help a real estate investor buy another property quicker? Or, is an investor not usually relying on the returns from their rental property to make a new investment?

Most of the rent money is targeted for their mortgage payments, taxes, insurance, etc. So it's not "cash flow". Cash flow is rent income minus expenses minus debt obligation. Most rental property owners only have real cash flows of $200 to maybe $400 per month.

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Quote from @Shadman Uddin:

Hey y'all,

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I think people who fail in real estate do so not because they dont know what they are doing or dont have enough knowledge.

There is tons of information available on just about every type of activity related to every type of real estate. And what you dont know you can always hire professionals like lawyers and accountants.

I think people who fail in real estate investing do so because they are following the wrong strategy. Everybody's situation is different. What's right for some people may not be right for other people.

Yet, most people who want to get started in estate investing, usually do so by trying to buy their first property. And for a lot of people this may not be the right thing to do.

To be successful in real estate investing you want to make sure you understand your situation completely and choose the strategy that's right for you.

By doing so, you can avoid a lot of pain and effort and greatly increase your chance of success.

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Quote from @Kaustubh Johri:

Fix and Flip is my bread and butter, however, looking to expand operations into wholesaling for internal lead generation and wholesaling the properties to other flippers.

I am seeking recommendations for inbound marketing ( on social media ) service providers. Looked into REI reply but they looked a little flaky. Any other recommendations/suggestions ?

My background is IT, Real Estate investing and Digital Marketing. I did a lot of research looking for the same. Check out Sean Terry's program, specifically using Google Adwords. It's the best.

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Quote from @Guillermo Vladimir Robles:

I've been trying to buy real estate for about a year and a half now but got stuck with analysis paralyses and have a basic understanding of creative finance but have not been able to close a deal. I don't want to quit real estate investing but feel like I'm going backwards because I have less money to invest than I had a year ago. Any advice would be welcomed. Thanks.

A lot of people hesitate to make their first investment. Its natural. Sure there's lots of information out there but nothing beats doing it.

First thing you need to figure out is why you want to invest in real estate in the first plan. What are your short term and long term goals.

Maybe "buying" real estate is not for you? Maybe you want to be a passuve investor. Maybe wholesaling is the right choice for you?

Maybe this is why you have been procrastinating.

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Los Angeles County, California

Quote from @Jay Ben:

Hello, I find many deals and motivated sellers but I need an equity partner with money. I have no money but I get many deals on the daily.

I think you need to do some assignments or charge an acquisition fee until you can raise enough capital to start your own syndication.

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Los Angeles County, California

Not sure what your question is?

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Quote from @Kimothy Bynum:

I was wondering if cash flow is taxed? Once I'm fully rented out I'll receive around 500 in cash flow. Should I save a percentage of that for taxes?

You will be taxed on net income. And that will be more than your cashflow because you are only allowed to deduct your interest portion of any mortgage payments.

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"If you need to use a computer or a calculator to make the calculation, you shouldn't buy it." Warren Buffet

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Quote from @Steve Thompson:

I've been gaining wealth over the years by a more conventional way of flipping and now want to start to BRRR. I have 500k and no debt to start off with, so what is my best bet? I assume buying and rehabbing one property where the total cost will not go over 500k? After that obviously rent out and cash out refinance, etc.? Is that the best way I can use this money to invest? Thanks in advance for the help.

Easy. Syndication.

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Minneapolis, Minnesota

All Forum Posts by: Jim Pellerin

Jim Pellerin has started 8 posts and replied 870 times.

Post: Feedback on Real Estate Financing Startup Idea

Post: Feedback on Real Estate Financing Startup Idea

Post: Why People Fail in Real Estate

Post: In bound marketing on social media - suggestions needed

Post: ADVICE NEEDED PLEASE

Post: I find many deals and motivated sellers but need equity partners

Post: What's the way to structure a private equity

Post: Is cash flow taxed? Let me know.

Post: How to Calculate an Investment

Post: Best investment for 500k for newbie to BRRR