All Forum Posts by: Martin Neal

@Joe Villeneuve this is not true. Have you ever heard of Equity Optimization?? When you understand how a mortgage works and how you can pay off a mortgage in 5-7 years with the freedom to reuse that money without refinancing each time you pull out, it’s very rewarding. Why pay for a home twice with the interest cost when you can pay it off for a 1/5 of the cost?? Yes the tenant is paying for it but it’s still YOUR money. I know a lot of people preach leverage but it’s a benefit of using Equity Optimization as well. Bill Westrom wrote a short book on it and I’ve been doing it every since I read it. Paid off my home in 3 years doing it. Will pay ofc my rental properties quick as well too. 

@Jesse Unrath I take the cash flow and pay down on a HELOC. Great thing about the HELOC is I can always pull the money back out and use it as necessary. Technically, I'm paying down the mortgage, saving thousands on interest and have the benefit to use that HELOC to reinvest into another property if I choose. It's all about your investment goals.

@Mo Muigai it sounds like you are ready. Nothing will beat valuable experience of your first property/project. If you need to pick my brain, I am happy to answer questions.

@Ivan Maldonado I was once in your shoes and have to tell you, until you actually do a deal, you will always wonder. It sounds like you’re as ready as you will be. I listened to 75 podcasts twice before I pulled the trigger. Nothing is going to beat doing it. Good luck!!!

@Brianna Taylor definitely a slum lord move. Threaten to sue and find a new place to live. Did you sign anything that entitles him to your deposit??

@Jeremy Blackburn it's your personal preference. I prefer HELOC's because you are only charged on the money you use versus a refi where you are kinda stuck with a lump of cash. HELOC just use what you need and leave the rest in there.

@Dan Mackin

1. I am buying strictly for cash flow. I BRRRR nearly every property because I like creating equity. I've inadvertently created a real estate BRRRRing company and that's all I do now.

2. I’ve been renting out properties since 2015 but BRRRRing since 2018.

3. My biggest lesson is hard to say, in real estate there are so many. Recency bias, I would say don’t trust a contractor. Always use your own contracts for absolute clarity. 

@Chad Griffin Everyone has to do what’s in their best interest. While it may seem a no-brainer to flip it themselves, it may not be their company goals. Think of this way, you don’t see every farmer with a grocery store or Home Depot building houses. Some company’s enjoy making profit being a middle-supplier versus an end-supplier.

@Lisa Forde Not familiar with New York but here in Illinois, once the lease expires, it automatically turns into month to month with all the terms of the previous lease still in effect. If you want to lock them in for another year, we typically have to redo the entire lease.

@David Beckley so just for clarity, if the purchase price is $35K and the appraisal says it's worth $100K, then the bank gives him a certain percentage loan of the appraised value?? If this is correct, then this isn't necessary new but more so an agreement he has with the bank. Most banks won't lend unless you have some skin in the game. It's one thing to BRRRR and have no skin in because you had money in upfront but to give for example, 75% of the appraised value with no skin in is not a-typical.