All Forum Posts by: Tab Teehee

@Ronan Donnelly

It sounds like the career you left exposed you to potential investors. I guess that is another area to consider, the guys i work with are all big earners that are at least active investors in their 401k's, which have exploded in the last year by the way, and many have been intrigued by my real estate endeavors and could be potential investors.

@Pat L.

Having the support of your wife was HUGE! Sounds like it worked out well for you both! Congrats

@Chris Collins

If you love what you do for a living you'll never "work" a day in your life...or at least i've been told!

Having the ability to freelance your current profession should give you a bit more confidence in your ability to walk away, but hopefully you won't have to play that card unless you want to, on your terms!

If it wasn't for paying for professional property management, i'd be close to matching my W2 income, just not my full benefit package.

I'm 52, earn a 6 figure income, raising two grandchildren....don't want to work another 10-15 years and miss out on spending time with them before they grow up and abandon us, lol. However, losing company sponsored health care at my age while raising a family is scary! I have reached my earring potential at my job, and the only bonus for me is working overtime. Ironically, i'm at work right now, got called in to cover someone who's ill.

My wife and I just finished the purchase, rehab and repositioning of a 20 unit multifamily, and I want more! I'm also afraid that giving up my W2 income would greatly affect any large real estate deals, and at this point that's really all I'd be interested in. Getting my wife on board is another thing....she loves my job, steady, good income, good benefits...it is a GREAT job, but it's still a JOB!

@David Klefeker

How does "private equity" come into play when leveraging 25k into 900k? Very curious how a deal like this is structured

I'd love to hear from those who are on the cusp of leaving their 9-5's, their cubicles, their corporate golden handcuffs, for a new life as a passive or not so passive real estate investor.

Will it be this year? Are you ready? Are you worried or optimistic? Does your employer and co-workers already see it coming?

@Erik Whiting

I think you nailed the "in layman's terms", lol!

@Patrick Liska

@Greg Dickerson

@Josh Ridpath 

Well in my situation I have an older property (1972) that we just renovated and put about 18k into 20 units...all new interiors, appliances, hvac, landscaping, etc.. I'd consider it a strong B class property now. We've had little trouble filling all the units at above market rents competing with other properties in the area that are "all bills paid" while ours is separately metered. The NOI is around 136k and the management has actually increased the rent for any upcoming leases. All that being said I still don't know what a realistic cap rate/ market value should be. Not looking to sell just possibly borrowing against the equity for another project.

@Greg Dickerson

Definitely valid points here! Bottom line as Greg puts it...you can speculate on cap rate or true market value but it's the buyer that actually controls the market. Back when I was a realtor they used to say there were three opinions of property value...the sellers, the buyers and the appraisers...all most likely different.

I guess what I'm trying to determine here is what the value of my property is if I were to borrow against it?

When looking at multifamily properties for sale, it's typical to see an advertised cap rate. Where does this cap rate come from! Who determines what it should be? As an owner myself, I know what my NOI is and I could divide that by whatever cap rate and come up with market value? It seems like I'm missing something here? The value of my property goes up if the cap rate goes down, so what determines how low of a cap rate makes sense? My basis for all of this is trying to determine my equity in this property for borrowing, credit lines, etc.

@Edward Lee

Hey thanks! Just curious because I never read about anyone using them.