All Forum Posts by: Account Closed

@Account Closed

Solid work on paying down your house! That's not easy for most. You have an incredible opportunity to jump into a BRRRR method, but what you really want to take a look at is your strategy. Ideally, the BRRR works anytime, but where a lot of people miss out is they hold the property for faaaaar too long. You may want to connect with a strategist to go over your goals and what you want to achieve by investing in real estate.

@Jessica Parker That's actually what I do, its not so much that the BRRR is different, he is just employing actual real estate strategy instead of using just the BRRR method. I use this for my investors and myself, it's a solid way to help yourself achieve your real estate goals. If you ever want to connect on the subject, I am always available for a zoom call.

Seeing It Correctly:

How many of you are utilizing a solid strategy for taking investment action? I don't mean BRRRS or flips, or even rentals. I mean, what is the strategy that is earning you more rental income and helping you get to your financial goals? The method of "get property and collect rent" that most of us use is just that, a method. A strategy allows you to not only plan your real estate investment growth it gives you the ability to track it. 

The Problem:

I used to believe that you could hold on to a property and get "rich", for many back in the day, it worked, and it worked well. What changed? The honest answer is that there is more access to what we didn't know then; everyone and their mother is a "real estate investor," or so they thought. See, collecting rental income is solid, but only if the market around you is going up and you can collect more rent over time and experience greater appreciation in value. Many of you find the markets where that is already taking place and purchase what you can with what you have, which in most cases is 1 or 2 homes that you hold for 5-10 years. By doing this, you continue to increase the price of housing and rentals and ultimately eliminate yourself from being able to participate in the market. You may have sold your homes for an "amazing" profit of 10%-15%, but that won't be enough to enter back into that market. This is called the primary market effect, where everyone flocks to one place to invest, thus increasing the cost of literally everything in that market, and they price themselves and others out of the market entirely (usually the middle-class and the first time investors). 

The Solution:

Invest strategically, not methodically. While I am a big fan of the owner finance BRRR, I don't singularly rely on it as my income method. it would be silly to think one form of an asset could give me all the money I need for my lifestyle, yet that's how most people approach real estate investing. By implementing strategy, you can increase your COC (Cash on Cash Return) by 10%, simply by utilizing asset diversification in the SAME area as your current assets. That last part is extremely important because many people will buy single-family in one state and then commercial in another. The one practice I use in all of my and my clients' investments is Neighborhood Reinvestment, allowing us to guide real estate growth and cap the ceiling on pricing so that there is no outside influence that causes uncontrolled growth. The moral of the story is that, if you want to keep up in this new age of real estate investing, you're going to need to start using the tools that others won't.

For those who would like more info on this, please feel free to connect with me on Bigger Pockets, LinkedIn, or by email.

Thank You!

@Caressa Wilkinson

Thank you for your service. I would ask if you could put their commission in the purchase price, that way the buyer has to cover the cost so instead of selling for $345K you sell for $345K + 6%= $365,700.00. Hopefully,that helps.

Hey @Arron Paulino, 

Congrats on knocking down two of these, it's not easy and you did you twice! There are a few options for yourself here, you can go with hard money or you can do a non-conventional loan to get where you want to go. The other option is a line of credit from a bank, but given these COVID times,they may have some different restrictions. I have a few lenders I would be happy to connect you with if that was something you wanted to explore. 

Investment Info:

Single-family residence wholesale investment.

Purchase price: $35,000
Cash invested: $59,000

This deal was an amazing wholesale opportunity. I was able to connect with a seller who owned 35 properties and wanted to get out of them as fast as possible, so I suggested that she give me a year to sell all of her homes. I put them all under contract for that year with the only money I had. Shortly after that, I hit the phones and email list hard, trying to get everyone interested in properties 2+ hours away from where they felt "comfortable" investing. Within the first two months, I had sold

What made you interested in investing in this type of deal?

I saw an opportunity. These homes were so gross and disgusting, yet people were paying high rental prices; I couldn't figure it out. One day I went and knocked on a few doors and talked with the people who lived in these homes, they told me that the reason they choose to live here out of all places was that there was nowhere else to go. That lit a fire under my *** so quickly because it helped me to realize, people will pay for better, if better is offered.

How did you find this deal and how did you negotiate it?

Finding the deal was the easy part. I was able to identify the seller because she had all these for rent signs on the old homes. I thought it would be a great idea to ask her how much she would sell them for, and she replied, "I would love to sell them all and get out of this place". I spent four months negotiating the price with her and finally came to a solid deal.

How did you finance this deal?

A lot of owner financing of cheap homes, so it made it a small investment for those who wanted to get their feet wet.

How did you add value to the deal?

I eventually started my own construction company and that made life sooooooo much easier for myself and my investors.

What was the outcome?

I sold all 35 homes, and it allowed me to create Reunion Investments. Now we have over 100 investors and have built over 300 units of property across the country.

@Ivan Kost send me a connection request with your email. No worries at all, it's what the site is designed for!

@Robert Hillier II yes, go ahead and send it to my inbox.

@Jason Delgado Alonzo, 

The first thing I would make sure happens is that you have a strategy in place to ensure the maximum efficiency of your returns. Ideally, you would want to build this out like you would your stock portfolio (what do you like, what don't you like, what are the market conditions going to be for the next year or so?). I see many people invest without a strategy and it takes them so much longer to adapt to market changes. I also would encourage you to view homes outside of your backyard, you have to keep your mind open to where you see the opportunity for both appreciation in home value and in rent.

@Ivan Kost good work on starting the education process. I can connect you with a few agents in the area who know what they are talking about.