Real Estate Professional · Boca Raton, FL · Member since 2016 · 116 posts · 17 votes
I borrowed $120k from a family member to buy a primary residence for me and my family (I will pay him back $1k/m for the next 10 years, starting next month, or refinance if needed).
Last night I was talking to my wife, and we just realized that maybe we can come up with something better (even if she really want little place with a little yard for the kids).
Live in flip? Duplex? Turnkey out of state? Foreclosure? I really like the BRRR strategy but it's "impossible" to find sealant here.
I live in South Florida, everything I see expensive and market always hot, market uber competitive.
What would be the advice of an experienced investor to a newbie with a young family?
Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
9y
Francesco Barbati If you borrowed $120K from a family member at 0% interest (less than that when you factor in inflation) for the purpose of a primary residence, honor that. They might look at it like "Francesco can pay me back with essentially what he would be paying in rent." That's a very different proposition than "I'm going to risk this money on a flip!" Providing a 0% interest loan to help your son/brother/cousin/etc. buy a home for his family is not the same as providing a 0% interest loan to fund that same persons investment strategy.
Not sure exactly what you talked about and maybe you already did my suggestions, but I wouldn't talk figures or numbers so much with her, but rather the dream, lifestyle that making a smart move would make. With almost all great achievements in life, they take some immediate/momentary sacrifice to get to the end of the tunnel. Relate or analogize it to something she can relate to. Such as going to school or carrying a baby for 9 months, there is sometimes some pain, tiredness, fear upfront, but when you take that risk, you reap the rewards.
You were right, talking numbers didn't work out very well the first time. But after talking for a couple of days, I got her on the same boat.
I borrowed $120k from a family member to buy a primary residence for me and my family (I will pay him back $1k/m for the next 10 years, starting next month, or refinance if needed).
Last night I was talking to my wife, and we just realized that maybe we can come up with something better (even if she really want little place with a little yard for the kids).
Live in flip? Duplex? Turnkey out of state? Foreclosure? I really like the BRRR strategy but it's "impossible" to find sealant here.
I live in South Florida, everything I see expensive and market always hot, market uber competitive.
What would be the advice of an experienced investor to a newbie with a young family?
Personally I would buy the family home 1st. Cover home base then look to invest is my motto.
I borrowed $120k from a family member to buy a primary residence for me and my family (I will pay him back $1k/m for the next 10 years, starting next month, or refinance if needed).
Last night I was talking to my wife, and we just realized that maybe we can come up with something better (even if she really want little place with a little yard for the kids).
Live in flip? Duplex? Turnkey out of state? Foreclosure? I really like the BRRR strategy but it's "impossible" to find sealant here.
I live in South Florida, everything I see expensive and market always hot, market uber competitive.
What would be the advice of an experienced investor to a newbie with a young family?
Personally I would buy the family home 1st. Cover home base then look to invest is my motto.
Thanks for your input. We actually run some numbers and buying a place now to live in might me a financial mistakes that could bring us back to square one.
I borrowed $120k from a family member to buy a primary residence for me and my family (I will pay him back $1k/m for the next 10 years, starting next month, or refinance if needed).
Last night I was talking to my wife, and we just realized that maybe we can come up with something better (even if she really want little place with a little yard for the kids).
Live in flip? Duplex? Turnkey out of state? Foreclosure? I really like the BRRR strategy but it's "impossible" to find sealant here.
I live in South Florida, everything I see expensive and market always hot, market uber competitive.
What would be the advice of an experienced investor to a newbie with a young family?
Personally I would buy the family home 1st. Cover home base then look to invest is my motto.
Thanks for your input. We actually run some numbers and buying a place now to live in might me a financial mistakes that could bring us back to square one.
Is EVERY property in Boca Raton either a Town-house or Condo? Seems to me that You SHOULD be able to take advantage of the fact that these properties CAN be hard to find a profitable exit strategy out of? How? By buying from those who are ALREADY having that exit problem!
(eg. Foreclosures? ie. Sellers who are already highly motivated to accept a steep discount!)...
Is EVERY property in Boca Raton either a Town-house or Condo? Seems to me that You SHOULD be able to take advantage of the fact that these properties CAN be hard to find a profitable exit strategy out of? How? By buying from those who are ALREADY having that exit problem!
(eg. Foreclosures? ie. Sellers who are already highly motivated to accept a steep discount!)...
I am constantly browsing Auction.com for foreclosures and CL for motivated seller. I found some but some parts of the deals was not enticing (either number or locations).