All Forum Posts by: Junior Soares

@Alvaro Rodriguez

I wouldn't sweat the 5k brother, a property is only worth what someone is willing to pay for it. Chances are over a long time it will appreciate and you'll make your 5k loss back and then plenty more. If you're putting a mortgage on it? Thar extra $5k or even $10k makes hardly any difference on the loan payment amount. If you like the house, buy it. If 5k is a deal breaker for you, walk away.

My .02

I agree with @Caleb Heimsoth 100% on this one. That's what their insurance is for and the really have no case against you when it really comes down to it. Worse case you lose a tenant and get a better one. =). If they threaten to sue, they have no case unless you make it to Judge Judy then you get free advertisement haha. Best of luck! 

@Jay Hinrichs

Beautiful truck, I look forward to seeing my stocks rise hahaha

@Marduk Mooshoolzadeh

I believe it is certainly attainable! I purchased my first rental in 2017 with $17k down on a sub $100k property. I've seen many on this platform do it with way less.

If it were me, I would take that 10k and try to double it in a years time via buying and flipping cars and goods. I still do that today because its fun!

@James Wise

I'm currently 33,

Grew up poor for much of my young life by a single mom working 2-3 jobs to support herself, my sister and I. It wasnt until I was about 6 or so that she met my stepfather who at first didnt help much because he had no idea where he was going. I got my first job at age 13 at Raging waters in the summer just to help mom out and be able to hit the movies and what not. Moved out of my moms house at 18 and lived in my car for 6 months because my stepfather and I just didnt mesh well together.

Worked in the auto parts Industry from the age of 16-27 climbing up the

corporate ladder pretty much making it to DM at Oreilly Auto Parts with a sub 70k salary. I also had a part time automotive detailing business that I started when I was 17. I Was going nowhere in life with working at Oreilly so I decided purchased a dying stucco business and going full time with my detailing company on my 27th birthday with a negative net worth.

Today, 6 years later I turned the stucco company around from barely making it to a million dollar company 6 years straight with each year netting approximately 5% above the previous. My detailing business has also exploded. I manage a total of 20 employees and have prepped the stucco business for the new owner who will take over at the close of 2020 as my family and I relocate to Austin, TX to further grow my detailing business.

During these past 6 years as an entrepreneur, I've mingled with a few other businesses like FedEx routes which did well and a few other businesses didnt do well.

I've also built a nice starter real estate rental portfolio consisting of 12 solid total units that are worth roughly $2 million. That cashflow on average 9% yearly combined (3 years now)

For me personally, I feel my 30s are and will be my best years because I'm still young enough to put in 80 hour weeks, as I still grind like I'm poor because now I have a wife, daughter and twins on the way to worry about.

My 5 year plan when I move to Austin(age 34) is to aquire a franchise or 2 while continuing to build my rental portfolio and grow my detailing business.

Sorry for the lengthy detail!

Junior

Good afternoon Stephanie, 

Do you have a signed contract with this unlicensed guy? I had one of my clients in the past have a similar situation with their previous stucco sub before hiring me. They unfortunately were forced to pay the unlicensed guy by the court because they had a signed proposal/contract with this guy. You may be able to fight it if they told you they were licensed and come to find out they weren't. 

Best of luck to you with the remainder of your rennovation

Best,

Junior

 Yes sir, i'd say for this particular deal at least $10,000-$15,000 of your own money on the table. Don't get me wrong, you can totally fund the entire thing with OPM, it's all dependent on your own personal risk tolerance. Just have a solid backup plan in case things turn and you have a hard money lender knocking on your door. 

I learned the hard way  and am now a little more conservative as I like to personally own at least 20-30% of my buy and holds. This allows me more control and options to move money around and have some cushion.  

@John Thompson

When I personally loan hard money, I look for 10% minimum plus points. 4% will not attract anyone. Your expenses are also calculated a little on the end of the spectrum.

I also strongly suggest you bring some of your own money to the table so that you have some skin in the game. If you go at your first couple deals with your own money you will look more attractive to hard money lenders and they'll take you more seriously.

Try not to overleverage yourself although BP is all about leverage, I've seen too many people fold in a downmarket because of this. Keep a healthy LTV ratio on your portfolio and you'll do very well

Best of luck

@Angeli Noordin

You're putting yourself in a bad financial situation if you're needing to borrow the down payment for your home. This would mean you owe 0% of it and have no reserves. In the next economic downcycle you'll fold. I apologize to be the bearer of bad news but this is a recipe for disaster if you ask me.

@Ben Feder

In today's economy, I look for a 4-6% cash on cash return on my Investment. Some think that's not good but mind you thats after all expenses including maintenance AND thats not counting the loan pay down as well as any future appreciation which is all positive cashflow in the end. IRR (Internal Rate of Return) is more important than the Cash on Cash return that most look for in the present.

Take what you read on this platform with a grain of salt. Although this is an AMAZING platform with tons of free knowledge from big players in the game, 80% of the folks on here will never pull the trigger and invest in RE.