All Forum Posts by: Shane Short

Hey everyone! 

I just wanted to put myself out there, and see what opportunities exist. I am looking for a Mentor, I understand that asking someone to give up their time and energy for me, for very little in return is asking a lot, so I wanted to see if anyone had ideas to help me along my journey!

I'm 23 years old, and I've been reading about REI for 2-3 years now. In the meantime, I've been making it my goal to pay off as much of my debt as possible so I can start out with a clean slate. Though I've paid off a very large portion of it, I'm starting to realize that I'm wasting valuable time that could be used to build a portfolio, build my education/ foundation, etc. I've realized that debt is more of a fear, and I need to use it as leverage, and a learning experience, and to stop letting it prevent me from bettering myself.

I currently work full time here in Portland, OR at Intel. I have a very good, and steady job. I have a decent savings account, and I have a steady income that I could use to my benefit. I work 3 nights one week, and 4 the next, giving me 3 - 4 days off a week. And since I work nights, if anything comes up, I have all day-time hours available throughout the week. 

Ideally, I'm looking for someone that wouldn't mind mentoring me, but like I said earlier, I completely understand that time is someones most valuable asset, and I understand that it would help if I had something to offer in return. I grew up working construction/ farming (no i'm not misspelling framing, I mean farming) with my family, it built a solid foundation for working with my hands, so I can offer most all face-lift type work, drywall, maintenance work, roofing, landscaping, painting, etc, along with operating almost all heavy equipment, from loaders to SkyTracks, to basic things like chainsaws, and different hand/power tools. I used to own an HVAC company until we sold it, so I can offer different types of refrigeration and HVAC work, including Duct, and Dryer Vent Cleaning. I'm currently an Engineer, and I know my way around electrical pretty well, along with troubleshooting various different types of equipment. I'm in school for Software Programming, so I can offer basic websites, website work, and updates. Last but not least, I also dabble with the stock market, I'm by no means saying that I'm an expert, or that I have a great portfolio to show, but I have read a lot of investment books, and have some basic experience with it, and I believe that it will help me in my journey in REI.

I'm willing to help in any way, as long as its a fair trade. I'm not sure how mentoring typically works, but I'm open for anything. REI is a passion of mine, and its the key to my dream life, not riches and material things, but a life that I can spend a majority of my time with my future family, and my wife, and traveling. A life that is worth living, and a life that in the end, I can look back on with satisfaction knowing I got to use MY most precious asset, Time, doing the things I cherish most.

I welcome any ideas or criticism as to what you all may think I'm doing wrong, or as far as what tree I should bark up, and where that tree is. 

Regards,

Shane Short

Hey Everyone, 

So I need some advice, as i'm in a very difficult decision making point in my life.

I currently have approx. 9,000 in my savings. My goal was to save 14k by the beginning of March '18 (when my lease ends for my apartment), and purchase a Duplex to house hack the one unit, and rent one of the rooms of the unit i'll be in. I was approved for an FHA loan for 3.5% down. I already have a guy wanting to rent a unit for 1500, as rent here in Portland is Insane, and that's on the cheaper side. And I have my current roommate, who'd also be moving into my unit and continue to pay 650/ mth. to rent it. All in all profit of a little over 2k a month, and my mortgage would be about 1600 at max since i'm setting my max purchase price at 400,000.

The dilemma i'm having though is this, I'm currently 22, and about 27k in debt. Credit card debt to say the worst.... long story short, lost my HVAC business a few years back and lived off of a card for a while. I've been paying it down for a while, but I don't know if I should go with the duplex, then allocate my current 3k of savings a month to my debt after buying a duplex, or to pay off all of my debt for the next 8-12 months, continue saving a little more, and then purchase a duplex. 

Choice No. 2 sounds a lot more stress appeasing, but, being able to save an additional 700 a month that i'm currently paying for my rent, plus making a 5-600 dollar profit would help tremendously, and i'd be able to pay off my debt much faster, and also get another MFR late summer/ early fall of next year.

Any help would be greatly, greatly appreciated. I'm so eager to get out and start making good money. I've been trying to situate my life for this for years. But I want to make sure i'm not making a mistake and letting desperation get in front of my decision making. My long term goal is to have 10-15 properties to provide passive income, and to be able to flip houses, go to college for whatever I feel like learning and being able to enjoy it and do it for me, not just a 9-5 career immediately after graduation, and to be able to travel and start having kids, and being able to devote my time and energy to what matters in this short life we have.

I appreciate you all listening to my rant!

Originally posted by @Mathew Wray:

Hey Shane,

I think you’ll find it hard to get a loan from anyone as a first-time investor who is owner-occupying. If you did find someone to loan you the difference, my guess is the rate would be exorbitant and the lender probably wouldn’t fund the loan if you’re borrowing part of the down payment.  I could be wrong (and if I am, please tell me who is funding those deals so I can talk with them.) 

But, you don’t need to be discouraged. You’re totally on the right path. I’d focus on getting into a duplex (and there are some in that price range,) getting roommates, building equity through improvements, and continuing to sock away cash. With rents where they are, you’ll be living rent free if you rent one side and have a roommate or two. You’ll need to set aside some cash each month to account for capex, vacancy, and repairs, but at your savings rate you’ll continue to increase your reserve. A year will fly by, and you’ll be ready to move up. 

That’s my .02 

Huh, ok. That's not a bad strategy. I could definitely do that. I have been approved for a Conventional at 5% already and an FHA at 3.5%. At 3.5%, if I can find a Duplex for around 350k, my down will only be around 11-12k, which I can do. And if i'm working for a broker by that time, I may be able to save my self a lot of closing fees i'd normally have to pay. Maybe getting in and out of the deal for only 15k, and living free of charge, or for a very small amount.

If any come your way let me know, i'd definitely be interested in taking a look. Also, i'm trying to network and see what opportunities are out there, i'm currently working on my Real Estate License, if you know any brokerages looking for entry level agents, or showing specialists let me know!

Regards,

How would I go about finding a partner? Or quickly raising the money for a MFR.

My name is Shane, I've lived here in Portland for 2 years, and after months of researching, and saving, and waiting patiently, I'd like to purchase a MFR this winter and also house hack it. I currently have 6,000 in my savings, my savings rate is approx. 2,000 per month, I'd like to buy, by March 6th, 2018. I'm currently renting, and would like to purchase before having to move into another lease term.

I've been keeping my eyes on a few MFR's, they seem to range from 375, to 650. I've been Pre-Approved for a Conventional 5% down on a MFR.

Given I find a place I decide on for approx. 550,000, I'm going to need 28k for a down payment. And closing costs, etc. 

If i'm able to save around 13,000 by that time, at the rate things are going. Is there any way I can come up with the remaining amount? via investors, hard money loan, etc.? Or am I just going to have to suck it up and keep saving, or find another first timer investment opportunity? Maybe flipping a SFR? or house hacking a Duplex?

I’m new to real estate investing here in Portland, if you’d ever consider investing here, you should keep in touch. I’d like to start networking here more and we could potentially help each other out if you’re ever interested. It is a great market. I’m looking to buy my first property by Jan. Or Feb. pm me if you wanna talk more.

I’m also in the exact same situation. Except I don’t own a home already. I’m currently renting, by March 6th of 2018 (when my current lease ends) I’d like to purchase a fourplex with 15-20 grand to use. It will be my first investment in real estate. I was going to go around Portland tomorrow and talk to some banks to see if they, or any banks they know, can do a low interest conventional loan.

Originally posted by @Daniel S McNabb:

Hi Shane,

A couple of local groups to check out are Rarebird Investments  http://rarebirdinvestors.com/ , we meet on the 2nd Thursday of each month in Multnomah Village at the Lucky Labador Tavern. Great group of investors. Also check out the NWREIA    https://www.northwestreia.com/ we meet on the first Thursday and have other meetings all month.  Let me know if you are going to the next ones and we can meet. Good luck.

Daniel

 Hey Daniel,

That sounds great, I'd love to swing by. What time do you guys meet?

Hey everyone, I’ve been on BP for a bit now and have been loving it. It’s really inspiring. I come from a very financially free family, and I’m looking to do the same with my life. I want to share my goals with you all and see what you think my next steps should be. I’m currently 22 years old, living in Portland, OR. I only have 6k currently to start. But my goal is to save until feb. and hit 12k to start investing with. I’d like to buy a MFR, hopefully a triplex, and use one of the units rent for the mortgage, 1 of them as profit, and one unit to live in, virtually free, making it possible for me to save even more not having rent. Then to save 20k and use it towards my first house flip, or another passive MFR. I have a very stable well paying job. And I have 3-4 days off weekly, making it easy for me to focus on other avenues, until I can build enough revenue to quit and invest full time. I come from a family of builders and can do most work my self involving reno. I wouldn’t do the stuff that requires licensing come time to sell, such as big electrical, etc. I’m from Michigan originally, so buying homes here that are 8 times what they would be worth back home, kind of hurts my soul. - Given this information, do you think I’m getting ahead of myself and need to save more? Or do you think the REI is something I can actually pursue this winter like I’d like to? - Should I consider out of state investing back home where I have a multitude of resources, and maybe get a much cheaper triplex or MFR there for passive income at a much lower price to start out? - What else do I need to be doing? And also, how do I find meetings in my area? - Any advice for a young buck getting into the game? Best Regards, Shane Short

@Bill Neves Sweet, I really appreciate it. I'll definitely keep doing my research. I'm about to go to Taiwan for work, but hopefully when I get back I can get in touch and get some advice. I'd like to do a flip over the summer and see how it goes. 

@Bill Neves Awesome, I appreciate it! What is the best way to search for mobile homes? Craigslist? Zillow? And with 4-5k of cash to play with, do you think that would be enough to get started with one small flip or rental? And which do you prefer? Rental or Flip.