1. I recall a post you made a month ago talking about real estate just keeping up with inflation. If real estate merely paces inflation, how were able to make millions? (Obviously cash flow and debt pay down are other ways to make money in real estate, but that takes time.)
https://www.biggerpockets.com/...
2. In the same post you seemed to advocate the stock market over real estate, claiming much more opportunity for upside. How much of your wealth came from real estate versus the stock market? (I am personally about 70% real estate and 30% stock market.) Maybe you can explain your thoughts on comparing the two?
3. What market did you start investing in real estate and how did you get funding to start?
4. How has your strategy changed over time and going forward? Are you changing markets or type of property (SFH vs MFH, etc.)?
@Jack B.
You haven't answered the question yet on HOW you made your many millions. Was it appreciation off a good investment or two? Mortgage paydown over time? Sweet sweet cashflow on a great STR (you're in a fabulous market for that!)? Maybe some brrrr magic?
First your question was that being a multi millionaire could mean many things (no, it can't) and rambled on about that possibly being total portfolio including debt. I TWICE explained to you what it means. Now you claim I haven't answered the question YET on how I made my money.
Listen close. Your question keeps changing every time I point out you're trolling. You never asked me until now how I made my money. If you actually bothered to read the thread, you'd see I actually mentioned it in one of my posts already. A little bit of reading comprehension goes a long way. Buzz off, you're not adding to the thread and you've been reported to the mods.
And I went through your post history, I didn't find any posts about you owning anything at all. Not even a single question. All I saw in my cursory review of a few dozen posts in your short time here was that you like to tell other people what to do but you have literally no posts that I could find that showed you talking about your own portfolio at all like the rest of us who actually own something do....please post a link if you have one.
How do you define multi-millionaire? 2,000,000 owned with 500,000 in down payments?
Jesus. NO...learn how to do basic math. I've already explained it THREE TIMES In this thread. For that matter forget it. everyone thank the two trolls for these foolish questions, I will no longer respond to the thread. 500K down and 2 mil in property doesn't even make you a millionaire...it's like kindergarten with you and that other wannabe. Always the new members with no history of posts showing they own anything that ruin it for everyone else.
Again, if you put down 500K and own 2 mil in property, that means you have 500K and are not even a millionaire. I have more than TWO million net worth. Not debt, not total portfolio. Now go back to your middle school math class. The title says it all, I made my money in real estate. Hence why I said, real estate multi millionaire. Not 500K'er, not 5 million in debt. This isn't hard to understand for someone with an IQ above their own shoe size.
Hi Jack! I'm confused about where to look for multi-family properties for sale? I've looked on loopnet, but there's not much there.
@Jack B.
Sounds good Jack, why didn’t you just answer when I asked how you were defining multi millionaire and/ or how you made those multi millions? Did you notice that others had asked the same question(s)? They may not have read the entire thread either I suppose.
The reason I asked the question, is that some folks here and elsewhere phrase things like “I currently have a $23M portfolio” when they are a small partner, say 2-5% of that portfolio… I wouldn’t see that as accurate but some do. So when you say you’re a multimillionaire, it’s good to know that liquid cash with no lien, not equity tied up in say a house that was inherited 30 years ago.
I have a look back and see the details how you got so wealthy!
Be curious why you think asking these questions is so off side that BP would ban a fella? Maybe I just don’t understand because I haven’t the liquid millions.
Be well, bud.
Hi Jack! I'm confused about where to look for multi-family properties for sale? I've looked on loopnet, but there's not much there.
I gave up on loopnet years ago. As an accredited investor I met a company called JRW Investments. They clued me in that yes, the stuff on loopnet is trash the institutional investors left behind. You'll get garbage pro-formas but once you dig in you'll see they are pipe dreams. I found a lot of people who were trying to dump a garbage heap on me a year after buying it themselves, when they were clearly had. If you ask for the T12 vs their pro formas you'll see they are puming and dumping. Best bet is to locate commercial brokers around the country for pocket listings...There is also a YouTube channel I believe it's called Commercial Property Advisors or something like that, the guy has some excellent videos on commercial properties. Personally I'm still a bit leery of the financing for commercial.
Hello,
I’m currently assigned overseas in Europe at the time being, do you have any advice on buying property back in the states while currently away from your home of residence?
I’m active duty military, but my home is in FL, I’m married to another resident of FL and am fully capable of sending her back to look at places.
Have you dealt with investment property purchases out of your home state or living overseas before? I’m not entirely sure how I should go about it or if I just buy property in a different state entirely since I currently don’t even even live in my home state.
Any advice will be appreciated, thank you.
-Terrance
I have not dealt with that YET, but I've shopped a few services including Marble, Mynd and Renters Warehouse lately. They might be your cup of tea. I've shopped them as I plan on leaving Seattle for the midwest in the near future and want to leave my portfolio here if I can.
@Jack B. Thank you for taking the time to answer our questions. Much appreciated. I am very, very new here.
-Is there a way to pay contractor's (the deposit specifically) through a third party so they don't run off with your money? Yes, research is key, but you never know.
-If a property has been sitting on the MLS for over 30-40 days, is this a no-go/red flag? To me it says that an investor doesn't want this so why would I?
-I've seen photos of properties on the MLS (SFH specifically) where it is "As-Is" and the photos show contractor's tools and equipment. It looks like rehab was started and they just walked off. Should I be more objective? Why would they do this? To me, it looks like they found water damage or termite damage...etc. It could also mean that the owners needed to move ASAP.
@Jack B.
Okay Jack, I read the entirety of it, granted it was on my phone so not the best platform to absorb info.
The only thing I saw detailing HOW you made your millions was your reply to another member saying you buy retail off mls with a special strategy to wedge out a good deal. And that you keep about 1.5 million cash at all times. And that was after the first couple replies to me stating you’d answered it/ definition was clear and such.
I honestly don’t know what your current strategy/ previous how is other than buying mls properties in great areas.
Care to elaborate beyond your mls wedge strategy? Maybe some details of it?
Maybe the other senior members here who also thought the explanation I asked for was warranted later saw something, but I honestly did not. Yet.
Be well
How do you define multi-millionaire? 2,000,000 owned with 500,000 in down payments?
Jesus. NO...learn how to do basic math. I've already explained it THREE TIMES In this thread. For that matter forget it. everyone thank the two trolls for these foolish questions, I will no longer respond to the thread. 500K down and 2 mil in property doesn't even make you a millionaire...it's like kindergarten with you and that other wannabe. Always the new members with no history of posts showing they own anything that ruin it for everyone else.
Again, if you put down 500K and own 2 mil in property, that means you have 500K and are not even a millionaire. I have more than TWO million net worth. Not debt, not total portfolio. Now go back to your middle school math class. The title says it all, I made my money in real estate. Hence why I said, real estate multi millionaire. Not 500K'er, not 5 million in debt. This isn't hard to understand for someone with an IQ above their own shoe size.
Don't give up on this thread... your heart is in the right place and you have the choice to ignore questions where the sincerity might be questionable. I'm enjoying this thread....the grumpy rich guy dropping his knowledge to the newbies, lol.
You mentioned never take a HELOC , am really torn on this ? Why would you say this ?
Hi Jack,
I read @Debra Mazzone 's post and it's kind of the position I am in. I was looking to flip a house as my first investment, but I was really hesitant due to my lack of knowledge regarding rehab costs. I have some equity in my current home and I am looking to getting a HELOC and use it to purchase my first investment property. I have thought about renting my house as well, but I can't move for the next two years due to my son's school. I live in a high cost of living area north of Atlanta, Ga.The only deals I am able to find that would create cash flow are fixer uppers. I am 50 years old and looking for some additional income in order to retire at 55. Do you have any reccomendations on how to find good deals in an area like mine?
Helping those who are starting out.
@Jack B., thanks for offering some of your time to help us out!
I’m a new Pro Member and recently found my first “big boy” job that should pay decently. I don’t have anywhere near enough for a down payment on anything but want to own small multi-family properties to start out. I may have to go long-distance for my first property as well which is very daunting.
I suppose I’m just struggling to identify where to start and reaching out for any advice you can spare.
You are very generous to offer your time to help! Thank you again.
Personal attacks or name calling is against the forum rules and your terms of service. Please control yourselves and refrain from making personal attacks in this or any other thread.
Trolling is also against the rules so lets keep things civil here please. The original poster was kind enough to give of his time to answer questions from the membership.
Let me start by saying THank you! Im in Seattle as well. This year I did a 1031 exchange but now struggling to find a CPA in the Seattle/Eastside area with RE experience. Can you recommend anyone? Thanks again!!
Hi Jack! I have a FT 9-5 and looking to get started in REI. Looking to purchase my first investment property. Not exactly certain what my long term real estate strategy will end up being, but I am thinking of starting out with purchasing a flip at a Judicial Tax Sale since typically properties are sold free and clear there (pending a title search of course). I could also go the Zillow route and find a property there but hard to find good flips in this competitive market. I am just very motivated to get started and want to make a move. What would your recommendation be for a beginner to get started? Thanks so much in advance!
Unless you have previous construction experience, I would not recommend starting out in flips. Most people lose money on their first flip, they underestimate the costs of rehab. Also doing flips is not investing, it's a business, no different than a job. It's not passive. Once you have experience with rentals, you build a network of contractors from roofing to plumbing and in between. That's when you can do flips. But even then I still don't do them as it's not investing...
Do you own your own home? If not focus on buying your own home first. You're still gaining equity and can turn it into a rental later and use the money to buy more rentals.
Hi @Jack B, this is an interesting point you make RE purchasing a home first before investing in a rental property. What is your rationale around this? I am currently in a similar position to Debra where I am looking to buy a rental. I currently rent, and my rationale to buying a rental first is to generate net cash flow, rather than buying my own property where my equity is almost locked in to paying off a mortgage that I can only generate net cash flow if I house hack (rent out other rooms if more than a 1 bed). I'd be interested to hear your thoughts and what make sense to you.
The barrier to entry for rentals is higher. You will usually need 25% down for conventional financing. You can get into a primary residence with FHA for 3.5% down. Let the property appreciate a year or two, cash out refinance (never take a Home Equity Line of Credit) and buy a rental with the money from the primary residence you cashed out. Repeat. That will make you far more money than cash flow. I made 500K in the last 9 months in appreciation alone on 6 properties. The cash flow was barely in the low ten figures. Which is great for tax reasons.
Better yet, since you're only buying 3.5% down, get a bigger property, like a duplex or four-plex. The rents will let you live there for free, thus increasing your ability to save far above what little cash flow you'd get from a rental in this market. Another reason is that you shouldn't be investing if you don't have your basics covered. It's like gambling your paid off house away on a penny stock and losing it all. A paid off house was a huge leg up, blowing it on speculative investments is not the way to go. Get the basics of shelter down first before you invest.
Wow, this makes complete sense - I have had to think about it for some time to fully comprehend your strategy. I forgot to mention that I currently live (and rent) in London, UK so the market is slightly different. Although the market is slightly different I think the same principles apply - here it's 5% down payment for primary residence and 20% for buy-to-let. Furthermore, thinking about what you have mentioned, I may need to move out of London slightly to get a slightly bigger place, where I can lease out other rooms in the residence, which will accelerate the path to second and third properties. Thank you so much for the food for thought - definitely have my cogs ticking!!
Hi Jack. I'm ready to start investing and I'm really itching to get into the game and start building a portfolio. I know myself well enough to know that I do not want to door knock and I do not want to cold call, so I don't think wholesaling is a great option for me. What I'm struggling with is the fact that I don't currently own a home, and can't buy a primary residence because I'm tied into a lease for another 18 months. We recently moved to Atlanta from Chicago and didn't want to buy right away, plus my wife was a full-time student working on her MBA at the time, and I had just started a new business. Now we each make well over $100k per year. I've got about $60k of liquid cash in the business that I'd like to pull out, but I don't really know what my best move is. I also don't want to mess myself up when it's time to buy my primary in 2023. So I was thinking of partnering with someone with a little more experience than me and doing a few flips. I figure I can get in the game and build up some capital while we are renting. Any advice?
Hi Jack,
I'm an investor in Olympia, WA and currently househacking my primary residence. My plan is to keep leveraging my VA benefits to keep buying small multifamily homes and keep repeating the process and join syndications to invest in large multifamily projects to help my wife and I get financially independent. While I'm trying to accomplish that goal I would like to change jobs and work in the real estate field in some capacity starting in the beginning of 2022. I do have my license but don't want to be an agent or broker, also I am doing my own research but still don't know which field ( home inspector, appraiser, lender, etc) to get started in and help me learn more about real estate. I know you don't know me but if you were a college educated military veteran with a broker's license which entry level job in real estate would you pursue in the pacific northwest? Any advice would be appreciated!
- Greg B.
Hi Jack, I currently am just getting my foot in the real estate door. I currently own a condo which I live in, but I am eager to get into another place seeing that I can get some cash flow on my current place. My problem is capital at the moment. I have about 100k in equity in my current place. Thinking about cash out refi for some more buying power.. What are your thoughts on that strategy? Do you usually advise for/against that idea?
@Jack B. Thank you for the response.100% agree with you. Given my level of income and recent refinance I wasn't in a buying position for the last 2 years. I've been in these forums for a few years and understand the market trends. My brain is trying to justify where I'm at but I know inflation is burning a hole in my liquid funds.
Better question: Are you currently buying in 2021? If so what avenue(s) do you take to find leads? I'm not afraid to knock on doors and I've done it in the past.
Very important to understand the market trends in your area, good job! Yes I am buying in 2021. I bought last year, I bought two new houses this year and am actively making offers trying to tie up four more deals this year.
You might be surprised that I buy retail, off the MLS. I buy quality real estate in good locations. Although I have a strategy to wedge the deal and get it at a discount, I often pay full asking because I recognize an opportunity. I'm not going to walk from a deal over 5-30K that they won't give me a discount for, when that property makes me 125K a year in some years, but typically 75K a year. Like I said to the other guy, if you're sitting watching the insane prices that went from 75 to 150K, sitting on the sidelines waiting for a crash, you'll be kicking yourself when those properties are 500K and you lost out. Real estate is almost always a good thing to buy, the reason being that I view it as a thirty year play. Appreciation, tax benefits, cash flow, fixed costs, someone else pays it off for me and it's an inflation hedge. Even if it goes down for a bit, the long term play is important. Hence why buying is almost always a good thing...but that said I keep just around 1.5 mil in cash at all times to buy on dips if opportunities present themselves. But do I stop buying because the properties I bought for 145 or 300 are now 450 and 700K? Nope. I just cash out and keep buying. This year I will make almost 1 million between W2 income and investments.
Thank you
Thank you
This should be a sticky
So many post that you can't find a deal via MLS and paying ask
I’ve run out of money in just the last 2 weeks buying directly off listing on Zillow
GREAT thread
thank you for the time and effort