All Forum Posts by: Todd Pultz

@Grace Esteban I certainly do not know your HOA rules and you would have to research them or maybe you already know, but could you do a master lease to the organization that is bringing in the traveling nurses to skate around the 6 month rule? They can then place the nurses into the unit with your approval. Just a thought

@Julian White NO you should not offer him anything for sending you listings. I’m sure he set you on an automatic listing email to send any listing to you that meets your criteria correct? That doesn’t take much time

Now, I am an investor first, property manager second and realtor last. I set these listing emails up for a ton of my clients and I expect nothing except them allowing me to represent them when they find a deal they like. If he is truly representing you, he should send whatever offer you want to make into the seller. If he doesn’t agree with your strategy he should let you know he’s not a right fit. You also have to make sure you are not be unrealistic with crazy low ball offers that have no chance.

Real estate is a business and your team has to be in align with your goals. Remove your emotions and interview other agents to see if there is a better fit.

If you want a Taco, you don’t go to McDonald’s because your afraid to hurt their feelings.

@Christine Sierra

Worst: if your buying cheap properties......(this was 2012 and we could buy quads for 20-30k). You don’t need insurance. You’ll pay more for insurance than you did the property. Made sense lol!

Result: 2nd property I bought which was a 6 unit for 21k and needed 40-50k rehab burnt to the ground 2 mornings after I closed with no insurance. I still pay taxes on the green space to this day. I could get that donated off to city and stop paying taxes, but every 6 months I want a reminder to how I failed so I don’t do it again.

My advice: attach your carriage to the fast horses and be a sponge to what they are doing. Overcoming fear is the first step! You will face adversity and you need to be prepared to handle it. Real estate done right will provide a life for you and your family with financial freedom that many dream of! When you see a speed bump, jump over it......when you face a brick wall, break that S$*^ down and when your feeling down about something lean on other successful investors for encouragement and direction to overcome and accelerate forward!

You got this and you can do it, but you are the only one that can stand in your way!

@James Hamling I’m a simple guy that grew up in a trailer poor. Became a cop with no education around this stuff, so absolutely anybody can do this.

Networking is key and finding partners that align with your goals can be key. There are lots of people with a lot of money out there that are looking for an honest person to trust and get honest returns on their money with little effort

@Joe Villeneuve now we are cooking with hot grease!

@James Hamling @Kris H. @Joe Villeneuve now I’m going to add the icing on our strategy......

Through networking we have a large resource of individuals that loan private money to us, so we NEVER use our own cash to fund down payment or gap money. We get the loan on new property and have our private investor loan us unsecured cash to cover gap for 6-8months at 8-12% return. Now we fix up, raise rents and refinance at 6 months pulling 75-80% out paying off our loan and the private money loan. Now we are in fully amortized loan on our own. We do not even need to do anything with the original 2 properties in this scenario and now they work as an asset for income to the lenders. You have to buy right though.

If you really do it well, on a larger property, you can pay all that off and get cash back to buy another property. It’s all I’m off market deals and hustle

@James Hamling you guys are killing me lol, but the conversation is fun to say the least. I am not missing anything, I completely understand lol!

What you missed in your math was you just gave up two properties by selling them......so instead of having 7 properties cash flowing, you now have 5. Your right, refinance gets less than selling. Typically we can pull 80% out on all of our deals. So yes we are 20k shorter by refi than selling.

This however is not a one night stand! We are going to buy value add properties with the refinance money. At 6 months we’re going to refinance those. Then we are going to rinse and repeat that money. And we’re going to do this over and over and over and over until our little hearts are content.

If you are building wealth and continue to scale, your 15/20 year math means nothing. If your only talking about buying 5 more properties you have a very minimal true fact. However, run your math again by refinancing and keeping your original two properties and use the below strategy..........see what you come up with

Now if you don’t want to do that rinse and repeat cycle, let’s just buy 4 to start with the 80k. In my area and other parts of the Midwest, a 100k quad will cash flow $1k-$1200 per month, so if we buy 4 of those we are cash flowing (true cash flow) $4k per month minimum. So in 5 months we can reinvest the true cash flow and buy that 5th property.

AND.............WAIT FOR IT........we still have our original 2 properties! AND.....if we do it right and buy right, we REFINANCE them all and we have our original capital back out. Now decide what you want to do it with it.

@Kris H. Lol, don’t take things personally. I asked an honest question about a strategy for scaling without using leverage. Remember that healthy conflict creates positives outcomes. There are incredible people on here with amazing strategies different than that of all of ours and individuals with portfolios that most of us will only dream of having. So if you had a strategy for not using leverage, I am very curious as I always want to learn from others. Connecting with others in real estate to learn their method is a huge upside to being on here. Online, the context, facial expressions, delivery and tone of messages delivered can easily be confused or come across wrong. There was no I’ll intent in asking you for your strategy

@Joe Villeneuve now I’m really confused Joe! Like I said before, I follow your posts and we tend to agree often, so I was perplexed by our disagreement on this. After you said you published a book I wanted to read your strategy. I came across a website of yours and this was one of your strategy’s you listed.....

“Buy with Cash, Refinance to Hold.

That is a variation of our basic philosophy. Buy, Rehab, flip, then use the profits to buy SF homes to cash flow. The difference is we are buying with all cash instead of some type of debt. This isn’t really anything revolutionary either. This has been going on for centuries too, and will continue for centuries…as long as there are investors with cash. Most ofthe time investors will want to buy all cash and leave their cash in the property thinking (incorrectly) that it is safer and doing the most good since they have no debt on their property and 100% equity. They would be wrong. Equity is where an investor’s cash goes to “die”. It has no use or value until you tap into it either selling the house (now why would you sell a perfectly good cash flowing house only to buy another) or by refinancing the house to get some of that equity out. We choose that latter. That way, we can re-use that original cash again (and again, and again, and…), but get to keep the house AND the cash flow from it. Yes, the cash flow goes down, but if you are using the same cash on the next house you will recover that “lost” cash flow there, plus even more on each subsequent refinancing. All of those houses are using the same cash. In the end, when you refinance the last house, you get your cash back…never spending it…just using/moving it from one house to the next…then out.”

So, what is difference in this post on this forum that is different from one of your strategy’s listed on your website that I pasted above?

I’m sure there is reason, just trying to understand it.

@Kris H. That's an obvious call out and I think everybody using BRRR understands that. Not leveraging reduces scalability and reduces COC return. Also, new investors with limited capital can not follow a strategy of non leveraging if they want to scale. While being free and clear on a property, you have to make a devision what's more important to you to achieve your long term strategy. If you have unlimited capital, go and buy everything cash and call it a day.

Curious if you have found a strategy without leveraging at all that allowed you to build a huge portfolio.

Let’s talk honestly. You and Joe are advocating for selling and not leveraging but joes example after selling is to use those funds from sell as down payment for more properties. Sounds like leveraging to me?

The real answer to the original question depends on other factors. If you have a solid property that cash flows and continues to appreciate and has good returns, there is no reason to sell and it should be used to leverage for scalability. If it’s a property that doesn’t treat you great and you might sell it in next few years anyway, dump it now while market is hot. Holding properties is the true way to build wealth if they are the right properties

Every property we use a very specific formula on whether to hold or flip. The question is not as an easy as putting a hard fast rule on a forum.

We flip properties as well and do not hold all, but they have to meet the criteria.