All Forum Posts by: Peter Mac

Hi Jeremiah. Good job on building a company. A commercial lender will view you as slightly less risk due to your background. If you run into cash problems, the lender will be confident that you can provide and keep the payments up so they would not have to foreclose. I would highly recommend speaking to a loan officer, but lenders will not feel easier with the fact that you have no background in REI.

The next best step is to take action. Call 3 commercial loan officers from banks, credit unions, or even a mortgage broker. I'd like to hear what they say.

Hi @Donovon Rogers - There's not much risk to wholesaling, the hardest part is finding the motivated sellers. If I can talk to an owner who would sell their house at 50% of ARV, I would put that under contract right away. Finding the cash buyers is very very easy. I can look up all properties nearby the property that I have under contract and find out who bought properties there recently with cash and can reach out to them to buy my deal. Getting the good deals is the hardest part.

Chris - sounds like you're very motivated to get into real estate to get financial freedom. And I am glad that you like your job. There is SO much to learn in real estate. Creative real estate financing, fix n flips, buy n holds, wholesaling, least options, . . . not only that, you get to learn about contracts, meet people, make money, and crunch numbers. . .

Have you watched webinars on the BRRRR strategy that Brandon talks about? He breaks down rental properties into:

Income

Expenses (taxes, insurance, property management, vacancies, maintenance, capital expenditures)

Income - Expenses = Net operating income (NOI)

Then you subtract the monthly Principal and Interest payments to get a cash on cash return. Check it out. Also, will send you a message and you can ask me questions anytime.

Donovon - although I like your ambition. Wholesaling sounds great because you don't need money and you can make a ton of it with little risk. However, wholesaling is not easy. Read this article on other things that you can do within real estate that will give you some experience. This might require you to get a job so you can purchase some rental properties (and while you wholesale on the side). Lenders typically require 2 years of work experience to qualify you for a purchase. Although this is the slower path, you'll grow organically.

Also, you don't need a real estate agent's license, but taking real estate agent courses will be very very helpful because it will teach you the language of real estate (like lien, quit claim deed, contracts, etc). Very very very helpful.

https://www.biggerpockets.com/renewsblog/2016/01/1...

Kevin - this sounds tough. BUT, I like the fact that you're trying to take action. Action brings results. Never stop trying! Let me know how it goes.

Forgot to mention this @Nitin S.: the home sale exclusion -- homeowners are entitled to when they sell their primary residence for a gain after having lived in the home for at least two of the five years immediately preceding the sale. Singles can shelter $250,000, and couples can shelter $500,000. Talk to your real estate CPA to verify.

Daniel, this is what I was told from an experienced investor . . . put the property under contract ONLY IF IT'S A GOOD DEAL, and try to get 21 days of escrow before you close. Put some earnest money down.

Then call and set up interviews with a bunch of general contractors (GCs). To find GCs, look at:

Angie's List

Yelp (search for General contractor in Augusta, GA)

Call a few real estate agents in the area and tell them that you're looking to purchase properties in the area as an investment. Most agents would only help you if you provide them the listing

Call the person in charge of the local REI group in the area and see if you can get a contractor referral (usually they'll do it for free, maybe?)

After you've gathered all these contacts for contractors, set up a time and day to interview each of them in person (fly out there on a weekend!). Make sure you research on what to ask your contractors so you know how to interview them. Make sure to ask the GCs if they have any current, on-going projects going on. Then during your down time in Augusta, GA, randomly drop by these project sites to see if you'd hire them.

After you've decided on a GC and have flown back to NY, you can use your boots on the ground contacts to regularly check in on the progress.

my reactions were "oh my god" and then "holy s***" because you guys did a great job!

@Nitin S. No problem. Feel free to reach out anytime. Networking is very fun for me. It'll allow me to share ideas that may help you, and if you have great ideas that I can learn from, it will be valuable.

Single family homes are great for appreciation. If you believe your property will no longer appreciate, then it has reached its maximum value. . . I do agree with you on selling your primary and downsizing to something smaller. 2.75% interest rate is low, but the current rates in the 4% is not too bad either.

Maybe you can look into multi-family investing for cash flow. . . I've seen homes in Milwaukee that go for $30k and rents for like $700/mo. . . which is a GREAT return on your money. You'd have to develop a trust-worth team out there to make sure it works right. Feel free to message me, or comment on here.