All Forum Posts by: Lyle Quillin

Hey @Susan Elliott, long time no hear! I havn't logged in for a while but saw your reply right away. 

I read e-myth revisited in 2009 for the first time but have read it a few times since. Mastery has been sitting on my shelf for a while and I finally decided to commit the time to  reading and working through it. Since its been about 9 months since we last chatted, how is your endeavor going with e-myth and  your vision for life/real estate goals?

@Susan Elliott

Just finished Vivid Vision. It was an okay book, but E-Myth Mastery was a much better tool for this endeavor. It is a much longer commitment to read and work through though.

Have you already written your vision statement?

@Marlon Fong I appreciate the quick response. Merry Christmas Marlon

Maybe somebody can help me find the digital copy of the journal. After ordering, I got the email with the bonus content access link. After you follow the link, you arrive at this message:

"If you ordered a pricing package that included physical copies, they will be shipped to your house soon. Typically, books arrive 10-14 days after being ordered. But you can start reading the books right now with the digital versions below!"

I can't seem to find the digital version. Anybody find it or know where to look?

Thanks, 

@Don Konipol I really appreciate your input. Flipping a few first is still going to be the plan because we want to generate enough cash to have more working capital but I have yet to run my assumption by my CPA. I will do that so I'm not blindsided by my ignorance. Thanks Don!

4 flips. I was an agent for 4 years in California before deciding to join the Air Force. I'm familiar with what it takes to find an awesome deal, though I realize there are no guarantees. 

I'm looking for advice on the financial strategy side of the house. Do you see any great alternatives to this plan of action? 

 Our goal is to develop a financial strategy for moving forward on purchasing investments this upcoming year. I think I have a decent plan of attack despite a recent setback, but would love to hear what advice the BP community might have.

We currently own 3 homes:

Home 1: Cash flows about zero, but has about $150k in equity. For the time being this home is off the table as we may move back here after my Air Force contract is up.

Home 2: We own this home outright and the details can be found on my profile. Purchased April 2018 for 76k, rehabbed for about $22k, current value $160k. 

Home 3: Current residence, Purchased for $180,000 in April 2018 and current principle is at $170,000 on a VA loan.

We orig. planned to do a HELOC on home 2. Wells Fargo assured us we would have no problems getting a HELOC in the amount of $100,000 after being completely transparent everything including how long we have owned it's purchase price. This was going to be our vehicle to purchase other properties when we find a good deal, and provide great cash flow while we are in between deals.

After applying, their reason for denying the line of credit was because they wanted to value the property at the last purchase price and there not being enough time of ownership. Despite pushing back and asking them to do our double check everything, they still came back with a hard no. 

Moving Forward:

I think we ought to refi home 2 @ $128k, take the cash and invest primarily in flips. This would reduce home 2' cash flow to about $160/mo. Once we have enough in cash to pay off our primary residence, do that and open a HELOC - which we would be able to get around $150k. We would essentially be cash flowing an extra $1100/mo (thats what home 3's mortgage currently is) and also have the cash to invest further.

I would prefer to do a few flips for now rather than more buy and holds since we currently are carrying over a loss from the last 2 years tax returns that we would like to take advantage of. After that, we would like to pursue more cash flow to put my wife out of a job. 

Any feedback/comments would be awesome. Thanks!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $76,500
Cash invested: $22,000

SFH in a solid neighborhood. Town's economy primarily is supported by the local military base which in this case means not a whole lot of growth but long term stability.

What made you interested in investing in this type of deal?

I wanted an investment that I could own outright and take out a HELOC. This gives us monthly cash flow and available capital when we find our next deal.

How did you finance this deal?

Cash

How did you add value to the deal?

New tile flooring, carpet, baseboards, granite, paint, bathrooms, doors

What was the outcome?

Tenents paying $1100 and opening up a heloc soon

Wow, seriously this is an incredible community. Thanks for the encouragement and direction. Hats off to all of you Vets and active duty folk as well. 

Working on enlisting as a PJ. battling a financial waiver at the moment given the amount of business debt compared to my future salary. Workaround package should meet the commanders desk this week. This is keeping me from getting a firmer ship date but I hope for it to be by late May. 

I really like the buy and hold near military bases strategy. Are they these types of properties usually able to see a fair cash flow (assuming you use a 20% conv.)? What kind of vacancy factor should be used? How about maintenance reserves, given that military are often younger men and sometimes live together? Other things to look out for or things I can glean from your experience?

:: Quote ::

I am active duty now and would like to give you some recommendations but I think we need more information. For one, when you say "shipping out" what do you mean? Do you know where you will be stationed? What will you be doing in the air force and when will you deploy? Are you interested in being a long distance landlord? Can your wife/does your wife want to handle things while you are on deployment? Will you continue to invest where you are now? Do you have a good network to help you there while you are out of state or country (it sounds like you may with all the rehabbing you have been doing)? What are your overall RE goals? All of these things will come into play when making a decision of what to do with the cash.

:: End Quote :: 

Long Distance Landlord - I'm open to any challenge as long as the risk can be calculated. 

Wife interested - not a ton but she can answer the phone when the property management company calls... shes a nurse and doesn't really like the idea of this kind of business responsibility.

I think the only feasible way to continue investing in Fresno is to buy a few homes to rent out prior to BMT. 

As far as RE Goals... I don't have a goal just yet. Up until this point it has been flip until we have enough to buy a rental or two and continue flipping. What are your goals? Realistic goals for me to consider?

Thanks again, 

I faced the same issue with my first home purchase. I was 22 just out of college and made a teachers salary with a small business I started in college. I didn't have 2 years tax returns but found a great first home. Very fortunately my folks did a non-occupier co-borrower loan with me. Almost every financial institution will do this type of loan. We did it with an FHA so I only had to do 3.5% down.

Purchase price was $116k. The first year I didn't do much to the house. I had room mates who ended up paying about 80% of my mortgage. This allowed me to save up and get married and have a little left over for rehab. Sweat equity and about $10k in materials gave us a sales price of $178,000. This helped us buy 4 more houses over the next 2 years. It really helped get the ball rolling. Finding the right first purchase is very important in this equation. Don't let emotion play a role. 

Bottom line - play your cards right and you could be a big player in the real estate world in a few years.