21 Properties 2 Years

31 Replies

Hit my goal of 20 properties in December, and grabbed 1 more in January for a total of 21! It’s been fun working with everyone, and I’m glad to have met some people I work with here on BP. I started buying real estate before this, but wasn’t on the buy and hold path. In a previous post, I hit 10 Properties, you can see all that through my profile page. Since then I’ve been pushing like crazy to get more CASHFLOW! Most of my properties are SFH in Pueblo CO I did purchase 1 Industrial lot in Denver / Arvada area. Was about 1 acre. Purchased for $280k. $25k down -aprx $1,500/Month for 20years. Has a power pole with outlets on the box. Paid $7k to fence the lot. Rent it for $1,000 per quarter acre. 3/4 rented for $3,000/month. $1,500/month Cashflow. $18k per year. Was one of my best deals of last year! Gaining a lot of equity monthly as well. I did find a guy who buys properties at auction, and sells them owner carry. I’ve been blessed to pick up a lot of them for $5,000-$15,000 down. These are in Pueblo as well. Cashflow is starting to get up there. I think I’ll make over $100k this year with mostly with passive income from Real Estate and my Oil Company based in Denver. Thank you all for being a part of my journey! Happy Investing Everyone!

Awesome story thanks for the inspiration and congrats on the success so far!

@Robert Herrera that pretty awesome man! keep it up!

Can you explain this lot some more? Seems pretty interesting!

Nice work, and we are neighbors. I have been thinking of branching into Pueblo. 

Nice work Robert,

Those are some awesome accomplishments. I am currently working on acquiring our first flip property here in Pueblo but am having some difficulty as the market is currently squeezed pretty tight. You think once you have the money in place the hard part is done. Not even close! I would be very interested in your contact for owner carry if you wouldn't mind. You can pm me anytime.

Cheers,

Van 

@Rigo V. It was definitely a great buy. I use a quarter acre for my Oil Business, so I get a free space. It’s zoned Industrial-2 in Arvada. Hard to find this land this close to Denver. We used to rent it, but the lady who owned it passed away. Her sons get it and wanted to sell. The manager of the property talked them into an owner carry. To make it more enticing, I’m sure we paid over market. Having to only pay $25k down made the deal worth it all. If I was renting out the other quarter acre I’m using, I’d have over a 100% return in the first year. Kinda forced into this niche because of my business. Seems very lucrative and I would like to repeat this. Currently looking at 10 acres in Pueblo zoned industrial to get some major returns on it. It’s already fenced. I’m estimating $1,000+ per acre. So hopefully $10,000+ per month gross. No toilets or carpets. No paint, or any real major maintenance. Need power but just needs to be connected to the lot. I’ll probably have to team up with some investors.

Interested to hear how you scaled so quickly.

Ned Jackson

    Great Job Robert and investing all the way down in Pueblo. Nothing stands in your way. Thanks for sharing.

    @Robert Herrera Can you go into more detail on how you finance these properties? Did you start with just a few conventional loans with money from your oil business and then get creative from there? Please expand!  Thanks.

    Originally posted by @Robert Herrera :

    Rigo V. It was definitely a great buy. I use a quarter acre for my Oil Business, so I get a free space. It’s zoned Industrial-2 in Arvada. Hard to find this land this close to Denver. We used to rent it, but the lady who owned it passed away. Her sons get it and wanted to sell. The manager of the property talked them into an owner carry. To make it more enticing, I’m sure we paid over market. Having to only pay $25k down made the deal worth it all. If I was renting out the other quarter acre I’m using, I’d have over a 100% return in the first year. Kinda forced into this niche because of my business. Seems very lucrative and I would like to repeat this. Currently looking at 10 acres in Pueblo zoned industrial to get some major returns on it. It’s already fenced. I’m estimating $1,000+ per acre. So hopefully $10,000+ per month gross. No toilets or carpets. No paint, or any real major maintenance. Need power but just needs to be connected to the lot. I’ll probably have to team up with some investors.

    Can you go into more details about your land. It's a power plant oil companies must have access to to operate? I wonder if this is a thing where I live.

    @Philippe Busque it is not an “oil plant.” I own a Motor Oil Recycling business. I have a few storage tanks and some shipping containers to store equipment. We collect the oil from lube shops, auto repair shops, etc. we bring it back and store it in our tanks. It’s then shipped in bulk to a Rerefinery that makes it into brand new motor oil. The other 3/4 of the lot is rented as yard space for businesses. 1 business is a main line plumbing excavation company. They take up 1/2 acre. The other is a tow guy, and takes up 1/4 acre. There is a power pole in the lot with an electric box and about 5 outlets.

    @Ned Jackson @Tim Kaminski I purchased my first property in Commerce city. We bought with an FHA loan. We lived there for a year per owner occupied requirements of FHA. Purchase price was $120k. Mortgage was aprx $900/month PITI. I rented it for about a year and a half for $1,900/month. Cashflow of $1,000. During that time, I purchased a few homes owner carry with my auctions guy on Pueblo. Mostly $5,000 down- $9,000 down.

    I sold my commerce city home beginning of 2017. Market was crazy, and It sold for $215k. We gained $75k after closing and realtors. Took that money and started buying more from my auctions guy. Kind of steam rolled with that cash infusion and the Cashflow together and purchased everything I could get my hands on.

    I did 1 deal with a friend of mine. His house was in foreclosure. We partnered together on an LLC. We put the property title in the LLC. I paid the loan the current around $6K. I repaired the place for around $9K. Rented it out. I get my money back first, then we split the Cashflow going forward, as well as equity. We are 50/50 Partners. Currently working with a bank to refinance this property into the LLC. We have a lot of equity so it looks like a cash out Refinance will be happening with this one.

    Haven’t used a bank 1 time this whole experience, except for our FHA home and this current refinance. I will be going forward though, as I have been building my credit since my Cashflow covers my bills.

    @Ian Walsh I would guess around 90% or more on average. I put down as little as possible. I don’t mind giving up some % points if I can acquire for cheap down payments.

    @Ned Jackson I was able to scale quickly because I use long term LEASE OPTIONS. I receive between $5,000-$9,000 down on average, as a non-refundable option fee. I then use that option fee towards the next house. Rinse and repeat. Read The Straight Path To Real Estate by Kris Krohn to better see the methods and strategies I use Personally.

    @Robert Herrera You say your mortgage was $900/mo, rented for $1900/mo and cashflowed $1,000/mo?  Are you not saving for capital expenses?

    @Tim Kaminski actually, I do lease options. So they gave me $5,000 down to move in. Also tenants were responsible for all utilities, repairs and maintenance. I sold that property already though.

    @Robert Herrera

    Great to hear your update. I'm glad you're doing well in the Pueblo market. We have 19 properties there with 26 units and love the market. Low property taxes. High demand for rentals. We have a great team on the ground.

    With your lease options, how long do the tenants have until they have to pick up the option to purchase? Have any of them done that yet?

    Mike

    @Michael Wentzel I actually do A LOOONG term lease option. 35 years. If they can't get financing, and rent to own for that long, I'll sign the title over. Non Refundable Option Fee. No one has ever completed one, but I have had some long term tenants for years, and only about a handful of evictions over all the properties. Statistically somewhere along the lines of 90% won't complete it. That's ok with me. If they leave, i put a couple grand back into making the home BETTER than it was before. Do another lease option for higher rent as they keep going up and it's upgraded.

    Awesome job Robert!

    Jolene P. Neal

      Originally posted by @Robert Herrera :

      @Michael Wentzel I actually do A LOOONG term lease option. 35 years. If they can't get financing, and rent to own for that long, I'll sign the title over. Non Refundable Option Fee. No one has ever completed one, but I have had some long term tenants for years, and only about a handful of evictions over all the properties. Statistically somewhere along the lines of 90% won't complete it. That's ok with me. If they leave, i put a couple grand back into making the home BETTER than it was before. Do another lease option for higher rent as they keep going up and it's upgraded.

       I would love to see numbers on one of your properties and how it is set up.  Purchase price, Reno amount, lease option amount, and rent amount.  Please share if you don't mind.

      Free eBook from BiggerPockets!

      Ultimate Beginner's Guide Book Cover

      Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

      • Actionable advice for getting started,
      • Discover the 10 Most Lucrative Real Estate Niches,
      • Learn how to get started with or without money,
      • Explore Real-Life Strategies for Building Wealth,
      • And a LOT more.

      Lock We hate spam just as much as you

      Join the Largest Real Estate Investing Community

      Basic membership is free, forever.