All Forum Posts by: Michael Thach

The core strategy and methods used is like a BRRRR. It's possible to copy them in any country. The problems I see

- UK is tighter with refinance loans, so getting loans close to your home value is very though- solution to this is buy, renovate and sell... increase your cash amount first. BRRRR sounds good but is slow, when you need to wait 3-5 years for it to appreciate so high, that you are allowed to refinance and get the amount back which you put it. Remember banks won't give you a loan right after you rent out your property after renovation. They want to see the tenant in there for at least 2 years.

- Not sure if 20k pound is enough for down payment and renovation, this seems tight. Is hard to buy in a nice area, even run down properties will not be cheap - but no problem go and find properties which match your budget

There is no right or wrong in real estate investing, there are more ways which will get you bigger cash amounts, then there are ways which gets you passive income, then there are ways to reduce your taxes and then there are ways to let it appreciate and tap into like a piggy bank when you need. So there are so many ways to invest and each investor need to ask themselves what they want. 

Your described a slow but high ROI investment way. If you plan to do real estate as a side hustle and preparation for retirement then this play is fine. If you want to do real estate fulltime then you need to change the strategy.

Def. possible. Everyone can make it in real estate but like everything in life it's all hard work. 90% is hard work and determination the last 10% is luck what other would describe but if you are not ready and prepared you can not even use the benefit from the 10% luck. 

When you are broke, you don't need to start investing in RE but this is nothing bad. You can start either learn to do the construction side of a real estate or you go into wholesaling and acquisition side. Construction if you like to be hands on, acquisition if you like to talk with people both will lead you to investors, to co workers, expose you to deals, contacts and if you do your job well, it will lead do new opportunities. Example you do construction, you do it good, the investor likes you and refer you to other investors or will call you for the next jobs, same is with acquisition. The key in both is to get closer to investors, when you show them you can make them money and can create win-win situation then you will have follow up jobs. Investors just want to make money with someone who is reliable and trustworthy, so when you can get a step closer, you already get a step closer to your own real estate investing. Once you have more money saved up, you can create deals or partner up with investors. 

Don't think and worry about how to become successful in real estate, just focus how to get know people who are successful in real estate. Real estate is simple and the results can be copied again and again. Is like 1 + 1 is 2. 

You pretty much answered your question. If you don't invest into another property in 3 years and you would not do any other investment with the money, then it's ok to put 25% down. Is a very passive investment style. The big question is why not putting 3.5% down and buy another property with 20-25% down within couple months ? Interest rate will go down this year. For 1% interest rate decrease we will see about 8-10% appreciation. Why missing out on 16-20% appreciation ?

Hi Eric,

I got few flips under my belt and did couple renovation projects for around 20 properties. I have a small team where the main crew basically do everything from demo, drywall, electric, plumbing, paint. So most interior stuff is handled by a small team which have a wide skillset. Roof, exterior paint and specialized electric and heavy plumbing construction will be done by specialized contractors. 

The reason is, you want flips to go fast. The quicker you can finish the project, the sooner you can put it on the market, means you money is more active. Velocity of Money ! Is a big difference if you do 4 flips with 10% a year or 8 flips for 8% a year. 

Keep the team small with good allrounders, one for interior and one for exterior. Otherwise you are running after to many individuals. It's a scheduling and organization nightmare.

its in Nevada. My biggest concern is not getting back the money out with a cashout refinance.

Hi Everyone, 

so I am going to buy a property in all cash but the properties garage was remodeled into an Airbnb unit without city permit. Can I get denied for a cashout refinance or delayed finance because of not having a permit for the remodel ?

Anyone has experience with this kind of issue ?

Thanks

Michael

Thank you everyone for those awesome questions. This just gave me more tools in my toolbox to work with. I will research each options. 

A property manager is helping you to manage the properties, they do tenant screening, collecting rent, evictions, maintenance and repairs and everything in between. You can deduct the cost of your PM of your total income.  

You can do all this is. Is not difficult but you will have to learn to make a proper contract and know what to do when stuff needs repairs. Property managers have contacts to contractors and handyman and usually get a better price than we do. 

So it really depends on how comfortable you feel like to manage your own. If you manage your own, you can not deduct it from the earnings. So there is no tax benefit when you manage your own. 

Make sure you have someone you trust or someone who got enough skin in the game. For so much rehab work .... it sounds risky. Only one need to be dishonest or do a poor job to stop the whole dream. 

If you still want to do it and think is profitable you better find a good general contractor who can manage the whole rehab for you.

You can not buy with the LLC unless your LLC is proven to make money, than you still need to be the personal guarantor and you might still run into the issue that you have +10 loans.

Buying out of state will not help. Out of country is possible. 

You can sell some loans so you get under 10

Find a portfolio lender who will bundle it up as a commercial loan. Downside is it will be +20% to +25% equity needed, so means worse case the only give you 75%. So you better have the houses at 25% equity or more. 

Other downside is 25years max and interest is higher, so expect not to get the same cashflow as before. 

So might be wise to sell the bad performing properties. 

Get into multifamily houses and get commercial loans. But this means playing with the big boys. 

Rarely you can see bundle of SFH where you can get commercial loans.