All Forum Posts by: Junior Soares

Good morning Brian,

I wouldn't recommend it especially if you don't know the market. with a ROI that good, there's a reason hes trying to sell it along with financing!

As an OOS Investor myself, I recommend picking a market and get studying. There's money to be made in almost all markets it's just all dependent on your personal risk tolerance. You can never eliminate risk just mitigate it and do plenty of due diligence. 

What I did before I got started was first educated myself, read tons of books, attended RE meet ups and when I felt ready, I picked a market and went to town. Studied the city left to right, up and down, what neighborhoods are sought after, best schools, low crime rate, jobs, walk-scores etc. I analyzed probably over 50 properties to get a feel for what the ROI in that market looked like and then I jumped on a plane and flew over, met a few realtors, property managers, brokers, etc who are now my backbone there and great friends. I personally walked about 15 properties before ultimately purchasing the one that was most fit for me. it's been 2 years now since my first purchase and all has been well thanks to due diligence. I buy all of my properties the same way since. People say it's a waste of money to fly and this and that, but it's all a write off because in the end, this is a business.

Best of luck! 

Junior 

@Joe Pearson Hi Joe, Everyone's risk tolerance is different. But if your asking for opinions I can definitely give you mine. I personally wouldn't do it. (No offense) Before I buy a property I like to have at least 3-6 months reserved for that specific property and keep that amount for the life of my ownership with it. It gives me some capital to fix what needs to be fixed before replacing a renter because no property is perfect. I've purchased a property with a squeaky clean inspection report and still needed a couple grand in work. And if I cant place a tenant within 6 months I shouldn't own that property. Just my own 2 cents. But hey, no risk no reward right? I wish you the best of luck

@Jane A. Jane* I apologize for the typo in your name.

@Jane A. Hi Jand, All of my properties are in different states reporting to its owner. (Main LLC) The best way I've found for me is to tax them all as pass through entities, and legal isnt very expensive at all! Besides the California property which is $800 year for LLC, all others are less than $150 per. I typically pay $800 for tax prep and filing from my CPA

@Axel Meierhoefer @Axel Meierhoefer Good evening Axel, Everyone has different ways on how they manage and protect their assets. I can explain to you how I do it which makes my life much easier since I run 2 separate businesses. Most people say this is too much, but it's just what I prefer to do. For my rental Business, I created a holding LLC which holds all funding for, new investment opportunities as well as capX funds. Each of my rentals have their own LLC and their own bank accounts with 6-12 months reserves in each. My rentals are all owned by my holding LLC not me personally. I have excel spreadsheets for each rental with all formulas in place for all income and expenses that way by the end of the year it takes me about 10 minutes to generate my P&Ls for each property before I see my CPA to file. Clean, simple and easy for me to manage so that I can focus on buying more property. Best of luck!

@Adrienne Medina Hi Adrienne, You mentioned you were self employed and cannot qualify for traditional financing. There are tons of ways around that as I myself am self employed. (Hard money, SF, friends, family, partners etc.) Here's what I would do if I were starting all over again and had $50,000 to invest assuming I dont have any high interest debt and I have 3-6 months emergency fund in cash. I would put $25,000 into an index fund and completely forget about that money like it never existed for 25 years. Invest $100 a month into that fund and you will end up with about $200,000 (conservatively speaking) in 25 years assuming the average rate of 7% as history shows. I would then take the other $25k and purchase a SFR in the midwest priced below market value. Put some sweat equity into the home to get it rent ready. In 6 months you can refinance most if not all of your money out since now the bank will use the rent as income for the purchase, then rinse and repeat every couple years if you can. The results: in 25 years, you've got about 200k in cash from your stock portfolio and about 12 properties (if purchased every 2 years) producing cashflow monthly. Dont stop there though this is where compounding works, keep working and use your cashflow to buy you 1 property a year for a few more years and voila, you've made it! Getting wealthy isnt rocket science, it's truly just putting in the work and making smart calculated investments throughout your working career. Best of luck! Junior

@Jarrin Benson Do what your heart desires brother, life is too short and you only live once. Money can always be made as there is no shortage of it out there, you just have to go get it!

@Megan Kline It's really tough to sit here and give you a per door number because there are alot of factors to consider. Someone can say 200 per door but what does that mean? You dump 60k of your own money into the purchase and upgrades and you get 200 per door after all expenses? Then that's a not so good of a deal because it would equate to 4% return on your money. The right question to ask is what is the ROI you look for when looking at a deal. For me personally, I look for 10 points on all of my investments. When I analyze a property for example and factor in all expenses, capx, maintenance, property management, taxes, insurance, mortgage etc if that end number isnt at least 10% COC I dont persue the deal because if it shows 10% on paper the actual look more like 8-9% because stuff always happens and I'm very content with those returns. Then there are those investors who dont care for cash flow and persue appreciation properties. Best of luck, Junior

@Greg Gibson Is this 25k in cash excluding your E-fund and liabilities? (High interest Credit cards etc, bad debt) if not I would consider paying those off first, you won't get a better return of 18-21% that credit cards charge you anywhere else. If that is straight up extra free cash that you dont need I would buy a nice 80-100k property in the midwest, financed at 5-6% cash flowing a very decent 8-9% COC. But that's my personal opinion since I am primarily buy and hold myself. You can open a small business, franchise a Mrs. Fields for 25k down, the possibilities are endless these Days. Just put it to work for you so it can grow and mature Best of luck Junior

My goal for 2019 is adding $150,000 to my net-worth as well as $500-$1000 in positive cash flow added to my rental property portfolio. 

Aside from RE, I'd like to shoot for a 10-15% growth with both of my companies.