Naperville, IL · Member since 2016 · 49 posts · 11 votes
It seems like this is an impossible task with both limited funds and time. I work full time and with a kid in day care, how do you have the time and money to buy, rehab, and rent a multi family building?
What’s the best way to become financially independent?
Fort Worth, TX · Member since 2017 · 207 posts · 87 votes
6y
As far as I can tell, the answer is OVERTIME. To get ahead, we're going to have to work overtime and give up sleep, time with family, alcohol etc. But it is worth it. I fill my head with stories about people who put in the time and made it big. I just listened to THE WEALTH CHOICE. Made me feel like a spoiled brat and helped me get up earlier in the AM to get s%&$ done! Essentially, all the podcasts tell us to be Buddhist. "Life is suffering, it has a purpose, learn to deal with it, it will be worth it".
Investor · New York City, NY · Member since 2012 · 332 posts · 385 votes
6y
Hi Jeff, buy and hold is a great strategy for building long term wealth in that is leverages appreciation and debt pay down/equity build up.
Syndication is the creation of a team of people required to source, due diligence, fund, due diligence, asset manage and ultimately dispose of a deal, typically 100+ units. In return for access to the expertise (the Sponsor/GP team), the capital providers (Limited Partnership Investors) pay a fee which enables them to be passive, but to still enjoy all of the benefits of physical real estate ownership.
How to get in contact and qualify sponsors/GP’s is a great question. It requires up front work but if you find a good one then your only constraint to scale is capital. This article may help: https://www.biggerpockets.com/...
Real Estate Agent · Near Memphis, Tenn. · Member since 2019 · 88 posts · 34 votes
6y
Lots of great ideas on here Jeff.
Consider also finding a local investor willing to help you face to face and based on your specifics, get a good ACTION plan to start your journey.
Contact the local realtor association and ask for agent names who are willing to set up a MLS search for you to start getting familiar with the opportunites until you are able to act. We gladly do that for folks here in the Memphis area and I'm conifident it is the same in your area.
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
6y
I didn't do buy-rehab-rent, for exactly the reason you mention--the time involved. I went the turnkey route so everything was done for me. A lot of people who have full-time jobs and families go turnkey instead. The prices are higher, but your time and effort isn't required. And you can still get cash flow and good deals.
Real Estate Agent · Santa Barbara, CA · Member since 2016 · 518 posts · 283 votes
6y
@Jeff Adams hey Jeff, if I were you I'd look into investing in REIT's and syndications. You don't need much time to invest in these options and at least for REIT's you don't need a lot of money to start.
Rental Property Investor · Newburgh, NY · Member since 2018 · 160 posts · 117 votes
6y
@Jeff Adams
Plenty of good advice here. But, in your situation I would do one of two things. Either house hack my existing home in some way, or obtain a new home that allowed me to generate an income. A two,three, or four family home, or another property that allowed for one or more income streams.
Investor · Cincinnati, OH · Member since 2015 · 242 posts · 182 votes
6y
@Jeff Adams
1) with radical intensity, find ways to increase income and decrease spending to build up funds to invest, including selling stuff you don’t need
2) prepare to house hack, best scenario is to buy and live in a 2-4 unit building
3) become an expert in a few neighborhoods close to home, research sales, monitor properties on the market, drive and walk the neighborhoods, network with owners, figure out who the active realtors are, know the financials
4) run financial scenarios of available properties in your area, determine your decision criteria and your business model (I.e. cash on cash return, positive cash flow per door, minimum return on flip, buy and hold, etc.), you can’t recognize a good deal until you’re an expert at evaluating a deal
5) talk to lenders and determine the type and amount of funding you can attain
6) search like crazy, have fun with it, be patient, only pull the trigger if the property meets your criteria, don’t massage the numbers too hard to make it work
Investor · Milwaukee, WI · Member since 2013 · 1k+ posts · 1k+ votes
6y
Originally posted by @Account Closed:
It seems like this is an impossible task with both limited funds and time. I work full time and with a kid in day care, how do you have the time and money to buy, rehab, and rent a multi family building?
What’s the best way to become financially independent?
Investor · United States · Member since 2020 · 47 posts · 40 votes
6y
@Jeff Adams you can always start out slowly. Buy a property that you have analyzed will provide rental cash flow in the future that you can finance from a bank with an FHA or similar loan. Use it as a primary residence and fix it while your in it for the minimum allotted time. I have done this twice now with kids and a full time job. Do things on weekends, after the kids go to bed etc. Than move out and rent out. If there is equity, you can BRRRR it and do it again. If you currently own something you live in, does it make sense to move out into another property you buy and rent the current one out? You need to start somewhere. With your first rental you will learn so much about property management and how to move forward. I still have a full time job and am trying to balance the process but it is doable! Best of luck!
Flipper/Rehabber · Watertown, NY · Member since 2020 · 26 posts · 38 votes
6y
@Jeff Adams I don’t know your market so it’s a little difficult to say, but it’s all about mindset. If you tell yourself it’s possible, it will happen.
Biggest hurdle is financing. Talking to banks is huge. It absolutely amazes me how different each one will be. Actually same bank might change the rules 2 months later. If you have a house, look at equity. If you don’t, buy your first home and look at equity.
BRRRing really is a great strategy. I can buy a foreclosure cheap, get an unsecured home improvement loan, fix up the property and refinance the cash back, and start over again with even more cash than I started.
Investor · Grand Rapids, MI · Member since 2016 · 4 posts · 2 votes
6y
Hey Jeff -
Have you considered house hacking? That's how my wife and I got started. We bought a duplex for a great price (got lucky and happened to find an owner who was highly motivated) using an FHA loan - 3% down payment. We lived in one side, while collecting rent on the other. The rent when we moved in covered about 3/4 of our mortgage.
We spent about 6 months living in and fixing up the side we lived in, and then were terrified when the tenants next door told us they were moving out (this was our first rental, AND I don't know that the term "house-hacking" even existed - Ha!). So we - actually, it was my brilliant wife's idea - decided to rent out OUR side (since we put all of the time and energy into making it really nice) and move into the other side.
Because of our work, we were able to get WAY more in rent (120% of the mortgage payment). We then started on improving side 2 of the duplex.
About a year later, we rented that out, and currently use that rent money to live in our primary res. "rent free!"
We continue to expand our portfolio, but I would DEFINITELY recommend house-hacking to get started.
Rental Property Investor · Houston, TX · Member since 2019 · 212 posts · 149 votes
6y
Read all the real estate books on the bigger pockets reading list https://www.biggerpockets.com/blog/wp-content/uploads/2019/03/Best-Real-Estate-Books-Ever_1.pdf and then you can start on the buy & hold strategy. Listen to all the Bigger Pockets early podcasts from 2017 and earlier. I'm currently reading How I Turned $1,000 Into 5 Million In Real Estate in my Spare Time, a classic book in the 1980s by William Nickerson, which is the best book on real estate investing I've ever read.
Rental Property Investor · San Diego, CA · Member since 2020 · 26 posts · 32 votes
6y
@Anthony Dooley Thanks for sharing! Good info here! I’ve been racking my brain searching county district office websites and found nothing. Property tax lists make more sense!
Olympia, WA · Member since 2019 · 8 posts · 8 votes
6y
@Jeff Adams
Just a thought Jeff. I'm just getting started as well & came across a company called Dealmachine & its associated with "Driving for Dollars". Check them out on YouTube. There are fees with them but it sure saves on time.
Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
6y
Stop making excuses, a lot of us are busy and have kids in day care. You have to be obsessed with success. Check out Think and Grow Rich by Napoleon Hill.