All Forum Posts by: Steven Baca

I started with a $50k down off-market 10 unit below market value, seasoned for 17 years with constant and diligent DIY management and repairs, then 1031'd into an off-market plex community below market value, improved and stabilized that Ben Franklin style for 2 years, then sold it on an interest only contract for a bit over a mil +10%.

This is the bottom line. Doing it safely will require time, effort and education. The benefit of that is you won't be limited to watering and tending the one plant outlined above. Your cf, skills and work ethic can yield many plants.

I would be disappointed if my starting $50k only netted $1M, but I put 20 years into this. What are you willing to do and for how long?

keep in mind when you read BP you have value of portfolio and you have EQUITY big difference.. give me Steve's 1 mil of TRUE equity or 1 mil portfolio or whatever size that has max leverage huge difference on NET cash flow. And how hard U have to work for it and if your in the business or passive. All these issues play into it.

Thank you Mr. Hinrichs, I agree with you on 1mil true equity vs 1mil portfolio. I am striving for that TRUE equity without question! Here is my current situation if you have any advice as this is where this post stemmed from-

Expert advice needed!!

I bought a townhouse in 2016 for $95k and have been renting it out since 2018 (creating ~$300+ monthly cash flow), as of today current mortgage due us $74k. This townhouse has now appreciated to a value of ~$140k.

I bought a 3bd/1.5 bath home in 2019 for $113k, rehabbed it for 3 years and sold it for cash ($165,5k) and walked away with ~$55k in cash which I closed 9/2/22.

I just started reading the BRRRR book two days ago and need some solid advice on the direction I should take as this could narrow my road to that $1M+ goal sooner...

Which option should I take?

Option 1: HELOC/ Cash Back refinance my townhome and pull out enough equity to add to my $55k in purchasing a 2nd property? With rates being as high as they are this is a worrisome option

-OR-

Option 2: Pull out $19k from my 401k, add that to my $55k and pay off the townhouse note. Invest a small amount of capital into it by adding some make up and then refinance it in order to purchase my second investment property?

My current situation: I just moved my family of 3 into my folks home while making this next investment transition and would like to have my next property by end of year. My tenant moves out of townhome on 11/11/22 which I plan to move my family into the townhome for a 6-8month stint until a 3rd property is purchased which would be out slow-2-3yr-primary-residence-rehab-project.

Any straight forward advice would be GREATLY APPRECIATED. Or if there is a 3rd option I'm missing please indulge me!

Thank you in advance BP colleagues!

0 Votes

Galveston, Texas

Quote from @Chris Seveney:

@Steven Baca

Besides roulette and doing black black red black…

As mentioned rule of 72 is divide 72 by your projected return and that’s approx how many years to 2x your money. If anyone says they can do this quickly or in a decade they are not being honest. Can it be done in that time, well yes but it will take a ton of time and sweat equity.

Also don’t fall for the OPM people saying use OPM when just getting started. It’s a bad idea.

I really need to learn blackjack just cause I plan on being wealthy enough to play sometime in the future! But here is my current situation Mr. Seveney, any input on this would be great!

Expert advice needed!!

I just started reading the BRRRR book two days ago and need some solid advice on the direction I should take as this could narrow my road to that $1M+ goal sooner...

Which option should I take?

Option 1: HELOC/ Cash Back refinance my townhome and pull out enough equity to add to my $55k in purchasing a 2nd property? With rates being as high as they are this is a worrisome option

-OR-

Any straight forward advice would be GREATLY APPRECIATED. Or if there is a 3rd option I'm missing please indulge me!

Thank you in advance BP colleagues!

0 Votes

Galveston, Texas

Quote from @Ned Carey:

@Steven Baca I think @Greg Scott put it best. Yes you actually can theoretically turn $55k into $1M in one deal. You can also buy one lottery ticket and win hundreds of millions of dollars. But I am not betting my retirement on it.

$55k is a solid amount of money to start your journey. but turning that into $1M will be full of twists and turns and many years of making good decisions. The way to do this, is keep investing at the best risk reward ratio you can. Keep making good deals one after the other. Some deals will be home runs, some will flop but you just keep moving forward. Keep dong really good deals.

There is no one way to do this. The opportunities you see will be different from the opportunities I see. Your strategy may change over time. It may change with the market. That is why no one can give you an easy answer.

Keep reading and learning here. Go out into the marketplace and learn your market. Then always keep you eyes out for opportunities. Good luck.

Ned, I agree with his methods and would like to make that happen sooner than later but here is my current situation if you have some more input.

Expert advice needed!!

I just started reading the BRRRR book two days ago and need some solid advice on the direction I should take as this could narrow my road to that $1M+ goal sooner...

Which option should I take?

Option 1: HELOC/ Cash Back refinance my townhome and pull out enough equity to add to my $55k in purchasing a 2nd property? With rates being as high as they are this is a worrisome option

-OR-

Any straight forward advice would be GREATLY APPRECIATED. Or if there is a 3rd option I'm missing please indulge me!

Thank you in advance BP colleagues!

0 Votes

Galveston, Texas

Quote from @Jeff Copeland:

There is no "get rich quick" scheme that will get you a 20X return in a short period of time.

If you invested $55k in a portfolio earning a healthy 8% compound interest, you'd get to $1M in just under 40 years.

But I'm assuming your real question is How long would it take to turn $55k into $1M?. And I'm guessing you want to speed up that 40 year horizon?

Therein lies the beauty of real estate...

If you invested in stocks, bonds, or just about anything else, your $55k would get you...well, $55k worth of stocks and bonds or whatever.

But by strategically using leverage, your $55k could get you $220k worth of real estate (at 75% LTV).

If your $220k property appreciates at a very reasonable 8% annually, your get to $1M in under 20 years.

Of course you have to account for the financing costs, etc. But on the other hand you could conceivably get better financing terms (96.5% LTV with FHA for example), and/or much better appreciation than 8% in some markets.

This is just a crude example to show that real estate can get you there in half as much time as many other options.

Thanks Jeff! Great advice and strategies that I'll consider no doubt. Here is my current situation if you have any further advice sir!

Expert advice needed!!

I just started reading the BRRRR book two days ago and need some solid advice on the direction I should take as this could narrow my road to that $1M+ goal sooner...

Which option should I take?

Option 1: HELOC/ Cash Back refinance my townhome and pull out enough equity to add to my $55k in purchasing a 2nd property? With rates being as high as they are this is a worrisome option

-OR-

Any straight forward advice would be GREATLY APPRECIATED. Or if there is a 3rd option I'm missing please indulge me!

Thank you in advance BP colleagues!

0 Votes

Galveston, Texas

Quote from @Greg Scott:

Any one deal that promises to turn $55K into $1M is unrealistic, unless you are willing to wait a long time. More likely it will be a process of multiple deals that get bigger and bigger or grow from one deal at a time to many at a time.

First, you turn $55K into $110K

Then you turn $110K into $220K

Then you turn $220K into $440K

Next you turn $440K into $880K

Finally, you double the $880K. To be helpful, if you really want to stop at $1M, you can send me the extra $760K as consulting fee. ;-)

Thank you Mr. Scott!

Here is more clarity on my situation if you have more advice on the path I should take:

Expert advice needed!!

I just started reading the BRRRR book two days ago and need some solid advice on the direction I should take as this could narrow my road to that $1M+ goal sooner...

Which option should I take?

Option 1: HELOC/ Cash Back refinance my townhome and pull out enough equity to add to my $55k in purchasing a 2nd property? With rates being as high as they are this is a worrisome option

-OR-

Any straight forward advice would be GREATLY APPRECIATED. Or if there is a 3rd option I'm missing please indulge me!

Thank you in advance BP colleagues!

0 Votes

Galveston, Texas

Quote from @Steve Vaughan:

I would be disappointed if my starting $50k only netted $1M, but I put 20 years into this. What are you willing to do and for how long?

I appreciate the feedback and think this is some great advice and path you've taken. Here is my current situation if you have more input...

Expert advice needed!!

I just started reading the BRRRR book two days ago and need some solid advice on the direction I should take as this could narrow my road to that $1M+ goal sooner...

Which option should I take?

Option 1: HELOC/ Cash Back refinance my townhome and pull out enough equity to add to my $55k in purchasing a 2nd property? With rates being as high as they are this is a worrisome option

-OR-

Any straight forward advice would be GREATLY APPRECIATED. Or if there is a 3rd option I'm missing please indulge me!

Thank you in advance BP colleagues!

0 Votes

Galveston, Texas

Quote from @Steven Foster Wilson:

Quote from @Steven Baca:

Quote from @Steven Foster Wilson:

Quote from @Steven Baca:

BP Colleagues,

Open to new formulas on turning ~$55k into $1M. Seeking suggestions, mentorships, possible partner(s) and new ideas. Willing to discuss in person if within a 100 mile radius from Victoria Texas!

I only had $550 to my name when I started out here in Columbus Ohio, I have since turned that into a $3M portfolio and do not plan on stopping. I think there is so much value in networking, reading, and just being willing to take action.

That's awesome! I've got one townhome producing cash flow monthly and enough equity to refinance but the rates are REALLY high compared the the 4% I currently have.

I've just finished Rich Dad Poor Dad and reading BRRRR by David Greene

That is great! you could always do a HELOC. I like Million Dollar RE agent by Gary Keller, Million dollar investor by Gary Keller, and The Abcs of Commercial Real Estate Investing by Ken McElroy.

Any advice on this updated scenario Mr. Wilson?

Expert advice needed!!

I just started reading the BRRRR book two days ago and need some solid advice on the direction I should take as this could narrow my road to that $1M+ goal sooner...

Which option should I take?

Option 1: HELOC/ Cash Back refinance my townhome and pull out enough equity to add to my $55k in purchasing a 2nd property? With rates being as high as they are this is a worrisome option

-OR-

Any straight forward advice would be GREATLY APPRECIATED. Or if there is a 3rd option I'm missing please indulge me!

Thank you in advance BP colleagues!

0 Votes

Galveston, Texas

All Forum Posts by: Steven Baca

Steven Baca has started 11 posts and replied 42 times.

Post: How do I turn $55k if $1M?

Post: How do I turn $55k if $1M?

Post: Galveston Island Real Estate meetup

Post: How do I turn $55k if $1M?

Post: How do I turn $55k if $1M?

Post: How do I turn $55k if $1M?

Post: How do I turn $55k if $1M?

Post: How do I turn $55k if $1M?

Post: How do I turn $55k if $1M?

Post: How do I turn $55k if $1M?