All Forum Posts by: Mart B.

@Kyle Wilkins

Hey Kyle, 

So have you decided what type of REI you want to get in (rentals, flips, wholesale, etc.)? I'm in a similar boat as you and plan on getting the wheels turning and taking more actions within 1-2 years. My plan is to get into "BRRR" or turnkey rentals (if deal is good enough). I see you're from my "neck of the woods" and was wondering if you have attending any local REIA? One hard money lender I'm considering is Chicago Funding, which I recall they offer up to 75% LTV of ARV, and 100% for the rehab. Factors they look into are your FICO score, all sources of income/assets to determine your qualified loan amount. If I recall, they can offer a loan up to 5x your income/assets. They also can help with refinancing into a conventional 30 year loan, once the rehab has been completed. The sooner you can refi cash out of the hard money loan the better. As most (if not all) hard money lenders have high interest.

@Whitney Anne Kwek

I'm I the same boat as you with and do prefer books like BP and that cover more into REI. I find audio books work well for my busy schedule, so I would listen during my commute and workouts. I've listened to Think and Grow Rich, How to Win Friends and Influence People and the Richest Man in Babylon. They have some nuggets to take away, but didn't interest me much.

Currently I'm listening to the 4 Hour Work Week and when time permits BP: How to Est. Rehab Cost. Both books have provided me lots of knowledge that are sharpen my skills and would recommend. Another book I would recommend is The Millionaire Real Estate Investor. Definitely a good resource to use with REI. I've enjoyed that audio book so much I also got the leadership hardcover edition. Which they add tabs for quick referencing, which lays the book out more like a guide.

@Will C.

I definitely agree with what you and many have advise

@Trevis Kelley

I'm in a similar situation as you are, where I acquired a large amount of credit debt. I've spent a large amount of researching and trying to figure out ways to pay off my debt, so I can begin my REI. This is the plan I laid out for myself that maybe you can get some ideas from:

1. Created a spread sheet and listed all my expenses and entered all my spending and all forms of income. With that i was able to analyze the data and see where I can cut back on in order for me to increase extra cash left at the end of the month. You'll be surprised how creative you can get when you're able to figure out ways to increase extra cash.

2. Use whatever extra cash to pay down that large amount of debt, which in return will help improve your credit. Having good standing credit opens more doors for you when it comes down to financing. I know you're ready to pull the trigger on RE, but being able to have that burden of "bad" debt off your shoulders does make a difference.

3. Once you begin to see you're credit score improve and outstanding debt decrease. You can begin to start saving aside income for your REI.

My credit was bad condition where I couldn't even qualify for a consolidated loan. That's where I got creative and made the decision to loan out a large chunk out of my 401K. I planned out to assure that the loan will go straight to paying off all the "bad debt" I could. Doing that and discipling myself to live frugal as possible has paid off. My credit score has been improving (jumped over 110+ pts in a few months). I'm actually able to save more, which I put a percent aside for my REI. I almost have all my "bad debts" paid off, where I only have to worry about the 401K loan and fixed reoccurring expenses (auto, mortgage, etc.). With now being able to save much more, I'm forecasting to be able to pull the trigger on REI in about two years, where I'll have enough for 20% down (20-30K) on my first property.

@Jerell Edmonds

It really all depends in the market you plan to invest. Certain markets can be dominant with rental multi-families, where there are some that SFH are more popular. Do your dodulgence and see what type of properties you want to invest and see what markets seem to share your interest.

Not basing this off your deal, but with having access to funds through a family member can be a huge benefit. I would talk to your family member and ask them what are they looking to get in return. They obviously have the funds to invest and either don't know where or how to invest their funds, but are sure looking for a good return. So sit down with them, find out their needs and see if they correlate with what you can offer them and draft up a contract. Access to private money especially without having to prove yourself (as much), since you already have built a relationship with prior.

@Chris T. Are all welcome to attend?

@Bill Plymouth first off thanks for sharing. I believe creating an affirmation for yourself that you know will help get you siked. Aside from that I would suggest that you brainstorm what are these negative aspects of your life and figure a means to overcome them. First start off small working piece by piece. Soon you will begin to notice at each small victory, it becomes a snowball effect where you're wanting more. As soon you get in that habit of conquering each negative aspect. You will continue to push forward not allowing things to bring you down again.

Even after you feel you have overcome all those negative aspects. You can keep going by adding positive goals for yourself. All hope is lost when you begin to give up and not care anymore.

@Mike Cruz sounds like you would be set having a trusted family member take over it. For the fact that you were able to find someone you can trust to take over payments by renting, is a hell of a deal. That way you continue cash flowing while you get things back in order. I would suggest look into another rental you can invest, that's if you don't already have a multiple rental portfolio. Might as well continue to cash flow and make enough where you get that "perfect" house you've been wanting down the road.

@Brian Orr

Always have to have an exit strategy when one door closes. Did you consider running the number as both a rental & flip before purchasing? To see what would have benefited the most.

@Tim Herman

Suggested a great idea! I'm actually planning to do the same thing "house-hack" my first investment and repeat. Once I have a few rentals in my portfolio, then look into a primary residence. That way I'm making passive cash flow and have a primary residence.