All Forum Posts by: Justin Cabral

Thank you for reading my post. Reason for my subject line is because I would like to ask Grant Cardone this question but I know that would be pretty difficult to get a hold of him. The townhome I currently live in is in Doral, Florida. It is an area of Miami that has fully recovered from the 2008 market adjustment and where there continues to be new development of high end residential and commercial development as well. I purchased in 2011 for about 215k and have been paying a bi-weekly amount that would have it paid off by 2026 (when my oldest daughter graduates from high school). I figured that eliminating a mortgage payment when my first child goes into college would he a good financial move. I currently owe about 172k and it is worth about 330k today based on recent comps. So I have lets say 150k in equity to be somewhat conservative. My monthly mortgage plus taxes and association is $1690 and I could probably rent for $2100 - $2300. I like the idea of having a paid off home (townhome in this case) in my neighborhood in 10 years. One reason is because I am in the medical sales field and the older I get the more difficult it is to get hired if God forbid I were to lose my job (I am 34 now). At the same time I don't want to be kicking myself in the butt in the future when the market readjusts again and I realize that maybe I should have readjusted my plan and sold in 2016. I don't feel like I need the 150k right now because I have a good amount of savings that I am not doing anything with anyways (not because I don't want to, just haven't had the time to really explore in depth what I can do investment-wise). What are your thoughts? Given all this info and your knowledge and experience of the market, what would you suggest I do? All input is appreciated. Thanks in advance.

I am really glad I created this post. Although it has not exactly resulted in any advise that would clearly lead me to the next step in my due diligence, the information is constructive.

So far what I am getting out of this discussion is that some feel that the BP podcasts have a hidden agenda and don't reflect the full reality of RE investing.

The other thing that is difficult to not notice from the above discussion is that "newbie" investors are easily put into a category and labeled as dreamers looking for pie in the sky when in reality that is not always the case. In my case, I am here to learn what it takes to grow my hard earned savings in RE without quiting my day job. 

I really appreciate @Dion DePaoli and @Jay Hinrichs taking the time to read and contribute their expertise to this thread however the subliminal message I feel like I am reading at times is "DON'T DO IT--RUN" and its coming from guru's that do this for a living. I hope you understand how that looks. 

As a newbie myself, I want to understand the real risk and potential benefits involved with NPN investing but ultimately what I am looking for in creating this thread is some direction and guidance from experts that believe that a newbie can be successful in this space with the right guidance.

You asked what do I want? What I want will probably evolve with time, experience, and situational circumstances however RIGHT NOW what I am looking for is a way to grow my savings in double digit percentage without requiring too much time away from my day job and family and without taking on too much risk. So far NPN investing sounds like something that may possibly be a fit to accomplish this.

@Dion DePaoli

Thanks for dropping in and sharing your expertise. I could probably have continued to read through the forums and watch dozens more youtube videos about the subject and not have tripped over the real world details you mention. This was very helpful for me to get my mind in the right place.

As you probably know, much of the info you shared goes right over my head given that I am the "newbie investor" you mention and have no experience in dealing with mortgage notes what so ever.

So.....now that you have my full attention and have done an excellent job of detailing the "bad and ugly" with NPN and their misconcieved "various exit strategies", can you go into detail about why YOU have focused your business in the note investing sector and what recommendations you have for the newbie investor (with a full time day job that has nothing to do with RE) that has the cash to educate themselves and purchase notes but no map on how to get there and mitigate their risk in the process?

@Jay Hinrichs

Thanks for replying to the post. Can you share what some of those risks are. Even all of the youtube videos I have watched about non-performing note investing do not mention or cover any of the potential risk factors relating to investing in non-performing notes. In fact, it looks like there are a variety of exit strategies an investor has with non-performing notes with the plus of not having l be a landlord.

Can you please enlighten me with some reality so I can assess the risk involved with these?

Not sure about you guys but I thought last weeks Podcast was pretty powerful. It really got me interested in looking into purchasing non-performing notes. 

I read up on it since and have a better understanding of how it works. I just don't entirely understand the level of risk involved yet. In all the due diligence I have done I have only seen the positives which kind of scares me because I don't want to be surprised with the negatives after already making a move.

Any suggestions on how someone should get started or how I should go about finding a mentor that is well experienced in note investing? 

Solid feedback!  

To help me chose what area of my state I should look for commercial brokers to contact, is there a recommended site where I can look at average rents per unit and sales to study the different inter-state geographics? 

Awesome tips! This was very helpful. Thank you. 

@Paul Timmins nice pic with Barbara

Newbie here looking for guidance from all you experienced gurus on the forum. I am looking to make my first of what I hope to be many real estate investments. I would like to find buy and hold opportunities in multi-family properties of 5+ units.

I have no deals in my funnel right now to evaluate and would like to know how are you guys finding your deals.

I don't plan on jumping on the first thing I come across and want to start looking at as many deals as possible.

I am grateful for all input.

Originally posted by @Eric Odum:

@Justin Cabral What are your goals? Cash flow? Value add? pretty much every market in Florida provides higher CAP rates than S Flo, but there are significant differences in economy and access to capital. (you get what you pay for, in other words) So Fl is considered a core market now to many of the institutional guys, so that rolls down hill and puts pressure on all asset classes and sizes. If are more interested in cash flow than capital appreciation, you can still find decent deals the tertiary markets in Central Florida (Polk, Pasco, etc) ....I don't think finding deals anywhere is easy, though. It is tough slog.

Hi Eric, 

Based on the podcasts I have been listening to I think it is clear to me that I should not be going into a rental property expecting any appreciation except for the equity I will earn as I pay off the investment over time. If it goes up in value, that is just gravy. 

Cash flow is what I am most interested in. Parking my savings in down payments for rental properties that give me a high enough cap rate to afford a property manager and still net a 10%++ NOI while the property is paying itself off long-term is what I am looking to do. I am about to turn 34 and I feel like I am already late to the game if I want to really build wealth and retire from the corporate world at a decent age.

How difficult is it to find a deal like that in Central Florida? Anyone you could refer me to hook up with to either find or partner on deals?

Originally posted by @Account Closed:

@Justin Cabral Welcome to BP! It all depends on what you are looking for, how much money you want and cap rate. Grant just bought 103 units in Boca Raton, and he told me he knows that he over paid for them. If you look at all of his deals and talk with him he will say he is all about the market. I see you are new and we are having a great meetup this week in Ft Lauderdals. There would be dozens of local BP guys there! Check it out.

http://www.meetup.com/GREAT-Opportunity-Las-Olas-R...

Hey Nick,

Thanks for the invite. I heard Grant talking about that purchase in Boca and how he may have overpaid for it. I get his philosophy and he really likes the south florida market but I would assume that he will test the waters with that investment before picking anything else up down here.

I went to the last meetup you organized and it was pretty enlightening. I met some really knowledgeable people in specific niches (commercial and high end construction specifically) and very open to letting me pick their brain. 

I'm at that stage where I would like to have narrowed down what cities in Florida I want to invest in and how to find multifamily in those places so that I can begin building a broker funnel and analyze deals they find.