All Forum Posts by: Jonathon Weber

There's no way around it. You will get a score drop. But they are usually off the report within 2 years.   You are better off getting a copy of your report and take your banking statements and paycheck stubs to the bank and ask them what you could qualify for before going down the path of them doing things formally on their own side. 

Real estate is debt. Debt is money. Even if you have the money to buy in cash you will want to take the debt for tax benefits. The more money you make the more tax reduction benefits you will want. Even Warren Buffet has said he would take out low interest mortgages for 30 years and buy a few thousand homes. I know that isn't allowed to be done in a literally sense, but its the point he is making. 

To succeed in Midwest investing, IMO, you really need to know the local markets. There are lot of retail stores going out of business and some pockets in the Midwest states are declining in population (smaller families). But there are places like Madison, WI that are growing and there is money to be made with student housing (rental homes) and apartments from young professionals getting their first or second jobs out of college. Income isn't that great though for a city of that size. You would get a lot of healthcare, Epic, university, and finance workers. 

Hudson and River Falls are growing. Northern WI is really struggling but there can be good deals to be made, but you have to know the risks to best get around those risks. 

@Tim Simmons yeah, I know banks will be hard but the challenge is one of the things that draws me to it. I didn't get to where I am by doing things the common or easy way.

@John Collins i buy it from developers if building new or the owners if it has been around for a while. Rent is usually around $845 to $950 a month in my market. The middle is usually $845 and the outside unit $950.

Hello Everyone, 

I'm a 2% income earner and getting started with note investing. I already invest in small multi family rentals (luxury apartment homes and duplexes) and will continue to work my way up. I decided to get involved with note investing since I like negotiating deals and working with banks and other investors to get great deals with non-performing and performing notes is really appealing to me. I have a few hundred thousand dollars saved up to start note investing. 

My question is, for those involved in note investing, have you seen better returns starting out with local banks in your community vs buying notes from brokers, hedge funds, or marketplaces? Personally I am leaning towards going direct to banks and then I can package them together, if I want to, to others to buy. 

OP, what you stated to do in the original post is not a smart way to go about it. If you go with homes, buy one at a time, get it cash flowing and then buy another.  What you describe is throwing all of your money to the wall and hoping it pans out. 

I would recommend multifamily with $500k. 

What is the down payment that would be needed to close on a $5M deal for multifamily? Is it 20%? The rest would be financed. 

I've been following Grant Cardone for more than a year now and watched a lot of his older videos. I spent some time reading threads that other members have posted and I just wanted to add my two cents. Personally I think a good percentage of people (not saying people here) take him too literally. When he is talking about 10X he is talking about having bigger goals and thinking bigger in life in general. 

The average millionaire has 7 cash flows. That is the 10X mentality. 

When it comes to investing in the stock market, family homes, or multifamily investing, investing in a building that doesn't get disrupted by technology and owning more than one door is the concept he pushes. He isn't wrong, just that there are more than one ways to invest in real estate. He pushes his way and personally it is the way that I also look at real estate investing. 

You have to remember that he is a business man pushing his own products. His products are better suited for B2C than B2B, especially a complex, long sales cycle with multiple stakeholders involved. 

His own income really didn't take off until the last several years. 

Personally I think he teaches good live lessons but at the end of the day he is a business man selling his own products and offerings like any other business owner does. 

More doors means a management team will manage the property, allowing you to focus on other stuff. Small deals that need more of your attention take your attention away from doing other stuff. That is why he pushes larger deals. It isn't that some small deals can't provide a good return, they can, it's just the mindset/approach of it all.