All Forum Posts by: Tommy Adeoye

https://www.biggerpockets.com/blog/wp-content/uploads/2015/10/7-Years-to-7-Figure-Wealth.pdf

@Jessica Prak Like you, I am only about 2 weeks into Biggerpockets and there is more than enough information on here to consume. You'd be surprised how much money people pay for what is being offered here free of charge. 

An interesting observation is how many members are willing to share their success stories shared as much as lessons learnt. One common advise that is being thrown around, is simply pick a Niche(i.e Multi-family homes, Single family homes, mobile homes, et cetera) and pick a strategy( i.e buy and flip, rent , BRRR, et cetera) , become comfortable in your owned area , watch podcasts, weekly webinar, read blogs and connect with others.

Majority of success stories I have come across from new investors is mostly single family homes and multifamily homes.  With MFH - You have access to flexible financing if you live in the property. You could do that, live in the property for a year and then move back to your parents and rent your unit out . While residing in the property , you would experience first hand what it's like to be a landlord. 

As someone aspiring to become an entrepreneur/ Real Estate Investor , a relevant point to stress is - your tenants are not helping you pay your mortgage. They are paying for accommodation , they are paying for shelter. You are responsible ultimately for the mortgage. With that being said, I strongly recommend you follow the below mentioned introduction to real estate investing crash course

https://www.biggerpockets.com/...

Consume what you can and do not fall into the analysis-paralysis hole. Do some about research creative financing as well . I hear this is a good book too - https://www.biggerpockets.com/store/no-money-down-audiobook.

Jose - I must commend you. This is a bold seed you are about to sow that will eventually reap benefits down the road. I say pick a niche and a strategy you feel comfortable with and stick with it. There is light at the end of the tunnel but you would have to visualize and own that tunnel. I say if I were 18 again and I were in your shoes AND about to get out of bootcamp. I will consider house hack - triplex , duplex, fourplex. I'll try not use up all I have saved and explore the possibility of OPM ( Other People's money). FHA loans are lenient with DP requirements. Now lets say I have a POI ( Proof of Income ) impediment, then I talk to family/friend that make good money to jump on board with me.

You are young , you are a sailor, house hack all the way. If you TDY, you can move and then you would have your employee( Your cash flow asset) working for you. I like the idea of a storage and you can always turn around and invest in those down the road. One thing to note most importantly with house hack- you may pay very little or no rent at all, extra savings yeah? Most 18 yr old fantasize about luxury , liabilities, I must say either approach you decide to embark on, you'll do very well. Move without fear and congratulations.

Ryan - Way to go with creative financing. Have you tried talking to a few private lenders? When you say sellers, Are you referring to the owner(s) of the property or the  agent ? 

Is it really a great idea to delay cash flow for another 5 years?I think even if it's $100/door, you must allow for cash flow .

Your idea seem great however, I doubt its sustainability but maybe a more experienced member may have a better insight about this approach - I do believe all the time and energy invested in trying to court the "seller" into a deal can be channeled to a private investor . Cash is king ultimately. I'm certain if someone were to offer him cash, they would be worth listening to.  

If I had a deal -> I'll analyze the deal -> negotiate the deal -> if there is a huge profit margin in the deal -> own the deal( always work around with a contract with back out clauses) -> talk to investors (Bank, hard money lenders, private lenders, friends, family) -> what do I stand to loose,the worst answer i'll get is a NO which is way better than not asking . If I get that , then I'll ask What do I need do to acquire financing(WHY). -> In the event I find no investor,I'll wholesale the deal -> acquire down-payment for the next one( At least I know what is required for the next deal) . There are other better ways , If you keep digging.

 Hey, I like to learn more if you are able to pull it off.

Perhaps if you provided a little more detail, that would help BigPocketers provide you elaborate answers. Are you looking for creative financing? Do you have a deal ? Have you analyzed the deal ? Some people out here get contacted by private investors even but you would have to spill the beans.

If Creative financing is what you are looking for. They are multiple avenues:

- Family, Friends,

- 401k cash out - best time given the current circumstance but not also a great idea.

- Bank Loan

-  Private lender - Bigger pockets has a lot of them

- Hard money lender ( bad timing but would not hurt to try)

- peer to peer lending with good credit

- partner with a co-signer with good credit and cut her/him on the deal

- collateral asset.

- unsecured loan.

be creative and hit it hard.

The most important area to identify is whether or not you have a deal at hand. Analyze your deal in details, that's the key, the foundation , your bread and butter. 

If you are certain you have a deal, find a private lender on here - connect with as much as people as you can and let them know your current situation. Make sure you know exactly what you have in hand before pitching to your potential investors(private lenders).

With decent credit your bank should be able to work some sort of unsecured loan. If you posses any- your stock investment portfolio sometimes can be used as collateral - I don't how that is going to like amid the current situation. Your vehicle/car can be used for a collateral loan,if it's paid off or you have positive equity in it. 

Friends, Family, significant other,ex-girlfriends(if you promise to pay them back with interest) perhaps?

How about a second mortgage on a property? 

I would not advise this in anyway except as a last resort and only if you are that desperate and expect a positive cash flow , a credit card may come in handy - I really will advise against this . 

Another option will be pay the mandatory insurance for a short while and refinance the loan 90 days after with the 20% DP - assuming by then you would have figured out a creative way to raise the  cash. They are numerous ways to come with creative financing and if you keep digging in this forum alone, you come across novel ideas. Good luck and stay in the saddle.

@Clint G. You aren't too far from the truth. I am beginning to see the trends . I am keeping my eyes out there.

I am about 2 weeks into BP and I analyze deals daily from pure MLS listings in the above mentioned websites. I want to get right in the process before I go into analysis paralysis mode. I thought about investing in some direct mailing services or just waiting out to see what post-covid has to offer, however it looks like that is going to take a little bit of time which I am not willing to wait out.

I like to fail fast than take very slow action which some may see as impatience . I have decided I will go with this listings and then try to negotiate the prices with the agents if the ROI is unreasonable. Does this seem like the proper approach?

@Justin Thorpe . The saying is just pure analogy. In clear text, location! location! location! plays a big role in determining your success as a Real Estate entrepreneur and the network you build. The question may or may not necessarily pertain to me in particular.