All Forum Posts by: Sherwin Gonzales

@Jack B. Congrats on your successful REI career and having the awesome problem of trying to figure out what to do with all your liquid cash! I believe the best way to increase your cash flow and net worth is through real estate rather than liquid assets like stocks and bonds or notes. You have more control of the value of real estate and no control over the value of a stock or bond.

With that much liquid, you need to have your money working for you rather than sitting idle! Why buy 3-4 single family homes when you can get one big commercial multi-family home with 5+ units? You mentioned that apartment complexes that cash flow seem hard to find but where are you looking? I don't have nearly the amount of liquid cash you have and am able to find multi-family deals that cash flow from day one!

Plus, with multi-family, you can control the value because the value is based on the NOI. So you can increase the revenue and find ways to decrease the expenses. Unlike SFH or MF with 4 or less units, where the value is dependent on comps around the area and based on an appraiser's opinion.

Just my two cents! Good luck on whatever you plan to do!

Great post @Wes Blackwell! Always like reading your posts. They are very insightful and informative, especially since I invest in the Sacramento and Stockton areas. Keep up the great work on these posts! Can't wait to read the next one!

Welcome @Jason S.!

Congrats on starting your journey to real estate investing! It sounds like you're in the right mindset by honing down what types of properties you're interested in and which markets you want to invest. I actually started out like you, by investing in multi-family in Sacramento. Getting that first multi-family deal under my belt has allowed me learn so much and gave me the confidence to expand to the San Joaquin Counties and looking to expand to Stanislaus and even Merced County.

I'm live the East Bay too and work in SF, so if you ever want to connect, let me know. I like sharing and exchanging experiences with fellow investors. There's a great meetup in SF that occurs the first Wednesday of every month. There's one next week Wednesday, July 11th (moved because of the holiday). PM me and I can send you details.

Good luck!

Great post @Cynthia Oistad! If you think of real estate investing as a business, which it is, the more customers you have the better right? The quality of tenants can be managed regardless if it's SFH or MFH. You can have bad tenants in a SFH and great tenants for a MFH. Also, if your tenant vacates your SFH, you're stuck covering the mortgage until you find another tenant. But if a tenant vacates a MFH, at least you have other tenants in place to cover or at least help cover expenses until you find another tenant.

I'd rather manage 1 roof with 25 tenants than 25 roofs. 

Welcome @Jamal Gaskins! As many people have already mentioned on this thread, you should really figure out what your goals are and be specific about them. You mentioned that you want to build a strong portfolio of rental properties. Do you want to invest in SFH or MFH?

You said you want to start wholesaling to start, which is good, but are you wholesaling for other people to build their portfolio and not yours? Maybe you start with wholesaling to build capital to buy deals? 

Find out what your end goal is and work backwards on what steps you need to do to achieve that goal or goals. It seems like you already have the right attitude to get this journey started! Partnering with people is another great way to gain experience. Good luck to you and enjoy the journey!

How is the Reno market? I looked into investing in Sparks a while back when I found out Tesla was moving in. Has having Tesla's factory in Sparks boosted the Reno market in any way? Has it brought more jobs into the area, increasing it's population, thus providing a need for housing?

Mykynos!

@Kevin Means, I was in the same exact situation as you! I reconnected w/ a friend whom I came across on BP and we had similar goals, so we decided to partner up to scale faster and get a bigger deal together. We formed an LLC and purchased a multi-family property through the LLC. The LLC is on the title, loan docs, tenant contracts, etc. This provides us asset protection since we don't individually have our names on any of the documents and own the property through the LLC. I hope this helps!

@Corie Carpentier, have you looked into a 203k loan?

https://thelendersnetwork.com/203k-loan/

@Billy V., congrats on your Sacramento flip! You have any interest in commercial multi-family with 5+ units?