All Forum Posts by: Joseph Back

It is 100% possible to be financially free at 35 if you start at 25. I am 22 currently with the goal to be financially free by 25 for which I am on track to hit. Plan is to just keep living like I am on a college budget while making real money and investing every dollar I can into high return rental properties. By utilizing hard money and partners I am able to scale up to enough rentals to cover all of my living expenses fairly quickly. Its all about education paired with action. 

@Cody L. Like to use BRRRR strategy so need lenders who can give me the cash for the full purchase price and rehab up front and then I use local banks for the refinance.

@Mark Butler It comes down to what the lender will quote as the properties value when underwriting the refinance and unfortunately for a lot of banks they have a requirement that this "value" be the "lessor of appraised value or purchase price over past 6 months". This means they see the value of your property as whatever you paid for it for those first 6 months, even you have done significant renovations. I see your only two options being to wait it out with current bank and then fund future deals with bank that does not have these requirements or refinance these properties with a different bank that doesn't have seasoning requirements, unfortunately the second option could be expensive depending on pre-payment penalties and loan origination costs of new loan.

@Peter Pratti That is amazing man! Really impressive! I myself just got started this past year and am looking to scale up. Currently have 5 rental units and am in the middle of my first flip. Would love to connect and chat about strategies you are using for lead generation as well as how you are financing these deals.

@Cassidy Burns I would definitely evict if they continue to cause problems being that you are self managing. Got to put a price on the time you are spending dealing with these tenants each month, not to mention the stress I am sure it is causing. As long as you are not really leveraged and can afford to have a vacancy or two for a month or so I would go ahead and evict.

@Tim Kaminski First off congratulations man! The first is always the hardest. I would recommend finding some hard money lenders in your market and utilizing their money along with your $50k to buy, rehab, rent and refinance a 2-4 unit. Most hard money lenders will require you to have some skin in the game on your first deal with them so maybe they would lend 90-100% of purchase price and you use your $50k for the rehab. This lack of capital will continue to be a problem if you want to keep buying so the sooner you can get some deals done with a hard money lender and establish that relationship the better in my opinion.

@Nicholas Jose Great story. Love hearing from other young professionals pursuing financial freedom. My story if very similar to yours except I was where you are at now about a year ago. I now have 5 rental units and am in the middle of renovations on my first flip. The best things to help you get to investment number 1 are the following:

- Join any local real estate investor groups in your local market and volunteer to work for free on other people's projects. You never really learn until you get directly involved. This will also provide you with a ton of great contacts in the industry that will be a part of your team as you progress

- Listen to the BP Podcast every week and try to read any book you can on the subject. These learning materials will not only teach you but keep you inspired and motivated to keep pushing towards financial freedom

- Start analyzing deals and viewing properties. You are never going to be comfortable with your first investment,  you will be worrying all the way up to the day of closing that you might be making a mistake, but by analyzing and seeing hundreds of other potential deals beforehand you will be much calmer and sure of your decision

- Take action. As soon as you possibly can, start making offers on properties, even if they are for 30, 40 or even 50% less than asking price. Knowledge is NOT power unless it is married with purposeful action

BRRRR is the best strategy out their in my opinion. The boss I currently work for started with about $250,000 back in 2015 and now owns over 80 properties using that same capital recycled over and over using the Buy Rehab Rent Refi Repeat strategy for just 3 years. I don't know any other way to have the same amount of capital have as big of an impact in such a short amount of time.

Congratulations man. Currently 22 and have 6 under my belt. Goal is to have 50 units by 25 and already know the biggest challenge is going to be finding the financing. Any recommendations on where to find Private Lenders? Only been able to find and talk with two hard money lenders in my town so far and am struggling to find where these guys hang out so that I can talk with them.

The way we do it is as follows:

1) Find and communicate with motivated seller (Most important and hardest step)

2) If we can reach agreed upon price we sign a 30-day as-is cash contract with a 15-day inspection contingency

3) At this point we will market deal to buyers list

4) Usually within 2 weeks we will have a buyer willing to buy at our price (contracted price + wholesale fee). We will have buyer sign an assignment contract that assigns the right of the original contract to them and away from us

5) Collect check after closing