Newbie to 5 units in 7 months!

Newbie to 5 units in 7 months!

Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
I want to personally thank the BP Community for being so helpful and very humble with all of the questions us newbies always have. With the help of this great network my wife and I were able to start our OOS investing career at the close of 2017 and we are very blessed and thankful to say that we currently have 5 units under our belt and are in the midst of acquiring 2 more before the close of this year with the amazing growth that we gained from our first unit which we are in the process of doing a cash out Refi on. Alot of people here in the Bay Area think that OOS investing is crazy, that I'm out of my mind and that you can never grow wealth this way and that you should invest here in the Bay and blah blah blah so it was very difficult to learn and go at this alone until I found this beautiful network of good folks doing it everyday! My thing was always, sure I can invest here in the Bay Area but by the time it would take me to acquire $150k down payment I could have taken the opportunity and purchased 5 properties out of state that cash flow positively getting more bang for my buck. All I needed was a good team in place which I'm blessed to say I have in the 2 markets that I'm currently vested in. Our first deal (SFR ranch is sitting at a 10% COC return after all expenses, vacancy, maintenance, capx,property management, PITI etc.. our second deal (4plex is sitting at an 8% after the same expenses with meat on the bone to get me closer to a 9.5%) For all of those that were newbies like me hearing negative things and that you cannot build wealth, I'm here to tell you that yes you can! We have so much valuable information at our fingertips to make this possible especially with the amazing community here on BP! Thank you again all, I'm humbled and very much appreciate all of you! Junior
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Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
8y

You never mentioned where you are investing out-of-state.

See this reply in the discussion

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  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    @DJ Tosh thank you brother, that sincerely means alot! Junior
  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    @Caleb Heimsoth That's perfect! My wife and I are relocating to Texas so I will definitely contact you
  • Specialist · Fort Lauderdale, FL · Member since 2016 · 187 posts · 128 votes
    8y

    Really great to hear !!! 

    It’s all about execution and you are on your way.  It only gets easier from here.  Good luck! 

  • Member since 2018 · 2 posts · 0 votes
    8y
    @Junior Picanco I agree, BP offers invaluable insight. This is a wonderful resource. To Junior, kudos to you for taking the risk. In my experience as a landlord/investor, high risk can equal high reward . Just be sure to do your homework! Best!
  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    @Eric Jacobs Thank you Eric, although I'm still a newbie and only have 2 properties I can see the power of cash flow. It's all a numbers game. In a few short years your investments eventually buy you more investments! Amazing Junior
  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    @Jose Harnett Thank you Jose, I very much appreciate it. And I completely agree, due diligence is key! Cheers, Junior
  • Flipper/Rehabber · New York City, NY · Member since 2017 · 16 posts · 8 votes
    8y

    @Junior Soares congrats on the success so far,what made you pick michigan and ohio and how did you find the properties?

  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    @Manny Martinez Hi Manny thank you brother. I decided to start with Michigan because I personally like the area of Midland and the really cool Tridge. And the house to rental prices still made sense so I decided to jump on it. As for Ohio I really just fell with the numbers the returns are amazing there. I'm looking into Cincinatti next!
  • Member since 2018 · 3 posts · 0 votes
    8y

    Congrats Junior.  I am currently in research mode before starting my real estate investing journey. Do you recommend any literature or other resources that can assist in choosing the right entity structure? Is it common for most investors to set it up before making their first purchase?

  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    @Guy Ritt Jr thank you brother and yes! I really learned alot from a book called the ABCs of real estate investing by Ken McElroy as well as a book called Aggressive Tax Avoidance for Real Estate investors by John T. Reeds. These 2 books helped me a ton!
  • Blue Bell, PA · Member since 2016 · 4 posts · 2 votes
    8y

    Nice job!! good details shared. Do you see yourself continuing to invest in those two cities now that you have built a relationships/ a network out there? 

  • Flipper/Rehabber · New York City, NY · Member since 2017 · 16 posts · 8 votes
    8y

    @Junior Soares how did you find the properties from BP or other sites like zillow loopnet etc?

  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    @Matt Soffer Hi Matt, yes sir Definitely! However there are about 5 more markets I'd like to be in but I definitely want to give my team more doors since they take very good care of me thus far.
  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    @Matt Soffer Hi Matt, yes sir Definitely! Ideally there about 5-6 markets I'd like to be in but right now since my team is thriving I'd like to give them more doors so that they prioritize me more and so that they make good money at the same time. But definitely looking at 10-20 doors in each state that I'm interested in
  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    @Manny Martinez Hi Manny, my first deal believe it or not was from Zillow! It was sale by owner so I had my team contact the owner directly and we ended up with good deal out of the sale. The quad was from a now friend of mine that I met on BP! He and his wife wanted to free up money so I purchased from him at 15% less than what he was asking which really was already a good deal to begin with being that it was already kissing the 2% rule
  • Real Estate Investor · Marysville, OH · Member since 2014 · 242 posts · 196 votes
    8y

    @Junior Soares

    I was about to call BS on your 4-unit in Marysville until I saw your edit.  Who is your PM company?  I'll check them out since they are local.

    ... And most importantly, congratulations on taking action!

  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    @Marc Hanson Hi Marc, I use Stephanie at RE Max/Winners on Maple Street. They are all family and are amazing people to work with I highly recommend them. And thank you for the kind words I appreciate it.
  • Real Estate Investor · Marysville, OH · Member since 2014 · 242 posts · 196 votes
    8y

    I am very familiar with them.  (More in the brokerage sense than the PM aspects)  Used them to buy our house when we moved (back) to Ohio from Texas, and I went to HS with one of the owners.  Good people.

  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    @Marc Hanson Nice! Yes they are very good people. What part of Texas did you live? My wife and I are looking to relocate there to the Austin area
  • Real Estate Investor · Marysville, OH · Member since 2014 · 242 posts · 196 votes
    8y

    I lived in the Dallas area.  I won't dump on TX too much, it was a good place to live while we were there (13 years) but I was glad to leave and go back to the mid west.  If you are just looking at relocating, I'd make sure to visit some during July/August (aka now-ish) to make sure the weather works for you.  After several years of hating life during the summer, the year we had like 100 days of 100+ degree heat and I had a pregnant wife was the year that it was a bit too far for our family.

  • Rental Property Investor · Los Angeles, CA · Member since 2016 · 137 posts · 80 votes
    8y
    @Junior Picanco way to go! Great job so far! Where are you going to buy the next property? Did you go through an agent for the 4 plex?
  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    @Marc Hanson yea that's completely understandable we were just there a couple of weeks ago and I must admit it was very humid! I do like the midwest personally but for my wife she says snow is a no go for her 😂
  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    @Tony Mai Thank you Tony, I appreciate it brother. We are currently working on a duplex in the same Michigan area but I'm being turned on right now by Indy and Milwaukee. I dont know too much about the areas but can always learn. What Markets are you currently vested in? Junior
  • Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
    8y
    @Tony Mai I apologize I didn't answer your other question. No I purchased directly from the seller with my LLC
  • Columbus, OH · Member since 2018 · 218 posts · 134 votes
    8y

    Thanks for sharing! Needed a little motivation and you provided it!

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