All Forum Posts by: Morris Geyser

@Bruce Woodruff I'd say you're far off by stating college time is wasted time nowadays. You seem to have constructed a nice retirement for yourself in N Arizona (which is arguably more beautiful than Joshua Tree) as a contractor and I don't doubt that you have ten lifetimes worth of trials and tribulations we can all learn from but without a bachelors degree you hardly have a shot at a customer service job at any credible corporation that can offer an employee upside, benefits and a respectable culture. @Payson Scott, there are millionaires who built their businesses with $75k and the comments, admittedly like mine, downplaying the significance of your $75k are just trying to prepare you for life expenses and obstacles that you may not see now. @Sean McCluskey gives a great summary of why it's important to have a consistent job in the same industry (because banks won't lend to you at a fair price otherwise) and @Account Closed, which is correct ;) 

A lot to consider. Your acquisition strategy moving forward being a major part (what to purchase, where to purchase, when and how to purchase). If you sell now you'll walk away with a lot of money but depending on the specifics of your job you may or may not have to put a significant portion of it back into purchasing a new primary residence, you'll likely be purchasing high as well if it's within the next 6 months. Do you want to sell for any personal reasons? Because you're tired of where you're living, want to relocate? If yes, that's an important conversation but if no then it seems like you have a good platform to continue building on...a primary residence that is mostly paid off + 2 investment units + a job that you can leverage for a loan. Refinance and put that money towards as many purchases as possible seems like your best bet towards being a full time investor. 

Definitely depends on what your plan is. If you're not going to keep up with the fees and continued education after a year or two then what's the point but if you know you will be in the real estate world for several years then it's absolutely worth it but not entirely for the reasons you list - the verbiage and industry can be learned anywhere and deals will be brought to you. If you're going to be buying and selling you'll be leaving thousands of dollars on the table if you're not licensed. Yes, the seller pays buyer commission but if you are licensed yourself you can negotiate directly with the seller's agent  + list your own projects. You can argue that any buyer, licensed or not, has the ability to negotiate directly with the seller's agent but there will be more respect and trust in the conversation if you are licensed. I live in CA, with the property prices here being what they are you can easily save $50k on an investment. Neighbors will see your work and want to talk to you and if you're licensed they will sell through you too. 

Do you have a job that supports you or do you depend on the rent from the two other dwellings you rent out? 

How about both. 

The risky side in me says take $20k of it now and buy 20 acres of land in Joshua Tree and hold it (if you've never heard of Joshua Tree google it, it's a beautiful national park in CA). Doesn't have to be Joshua Tree, can be anywhere that will be worth more in the future. Land is a long term investment but you can buy a lot of land with the money you have. It's true that $75k won't take you all that far but you have it now, you may not have it later so better to spend it wisely than not spend it at all, especially if you're making enough money through your internship to cover most if not all of your tuition. 

The even riskier side of me (think about that) says a a good career can give you the power to borrow a lot of money from banks which can take you a lot farther in real estate. Start to learn about what it takes to borrow money to purchase real estate (mortgages). Unless you have enough cash to buy a property you will need to borrow money from a bank and to get approved for a loan from a bank you need to have consistent, stable employment. Is your internship in Information Systems? I'd keep growing in that field, sounds like you're good at it, try to get better and higher paying internships every semester in Information Systems and make sure that by junior year, because of all the work experience you have in Information Systems and your grades, you have a solid job lined up for once you graduate. With that approach you'll be in position to purchase a property within the first year or two after graduating. Which means you'll have 20 acres of land AND a rental property ;) good luck!

CAP rate vs ROI : https://www.stessa.com/blog/ca...
This site uses 50% rule for operating expenses, I've also seen 30-35% used - use your own judgement when calculating, depends on several factors like age of property, type of tenants, weather/location, etc.

Yeah it makes sense.If you don't have any partners who have the capital to help you purchase a property I would start by finding out what it takes to finance a home that you would want to purchase in a year or two from now and from there work backwards and set your wholesale goals accordingly. Depending on your area you'll likely have enough for a downpayment after a few deals but you'll also have to qualify based on income & employment requirements, filing your tax returns a specific way, etc.