Need advice/tips on taking my investing to the next level. Thanks

Need advice/tips on taking my investing to the next level. Thanks

Wholesaler/ Investor · Houston, TX · Member since 2014 · 491 posts · 113 votes

Hello everyone,

I just wanted to throw my situation out there for others to read and possibly give me some tips or advice on what they would do.

My ultimate goal is to have rental properties that cover my monthly needs and to become financially free. I have a wife and 2 kids and we recently (4 months ago) purchased our first home with a conventional loan.

I started wholesaling about 8 months ago and have 2 wholesale deals under my belt. Prior to wholesaling I purchased 3 vacant lots that I'm currently financing out to three people for $300 a month each. But Of course those will all be paid for soon and the passive income will stop coming in. I'm wanting to acquire my first rental property as soon as possible and just not sure which route I should take. My plan is to wholesale more deals and save up enough capital to purchase my first one. Is that an ok plan? Should I try and get another loan for an investment property? I've also been looking into BRRRR… Maybe I'm suffering from the shiny object syndrome, Yikes!!!

I’m not a Dr. or big corporate guy making 6 figures either. I’m just an average guy with a decent income that allows my family and I to live comfortably. I hate being comfortable though, so that’s why I’m so hungry for success and want to take my investing to a whole other level.

Any advice would be highly appreciated. If you are in the Houston area and would like to talk more in depth about things I’m always open to buy someone lunch/coffee/beer so feel free to reach out.

Thanks,

Ben

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Kevan SheltonPro Member
Developer · Houston, TX · Member since 2016 · 54 posts · 29 votes
9y
Hey Benjamin Blackburn my Wife and I are investors in the houston market. It would be great to meet and connect and we can talk more about your strategy and the Houston Market send me a PM.
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  • Kevan SheltonPro Member
    Developer · Houston, TX · Member since 2016 · 54 posts · 29 votes
    9y
    Hey Benjamin Blackburn my Wife and I are investors in the houston market. It would be great to meet and connect and we can talk more about your strategy and the Houston Market send me a PM.
  • Wholesaler/ Investor · Houston, TX · Member since 2014 · 491 posts · 113 votes
    9y

    Hey @Kevan Shelton 

    I will reach out now

  • Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    9y

    I would save while I learn all about the different niches available to you.  Hopefully you're not living so 'comfortably' that you sacrifice your investing opportunities later.  That's what happens to most.

    2 payments in the driveway, eating out, vacationing -  too comfortable.  None of my broke friends have assets.  They have boats, bikes, RVs and payments up to their eyeballs in their $500k houses.  But not assets or time.  They are always working.

    Congrats on deciding to take the plunge @Benjamin Blackburn!

  • Wholesaler/ Investor · Houston, TX · Member since 2014 · 491 posts · 113 votes
    9y

    Thanks @Steve Vaughan for that wise advice.  That makes tremendous sense and I will take that and run with it.  Have an awesome day sir!

  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    9y

    Focus on your money working for you instead of you working for your money.  Your money has an unlimited amount of "time"...something you and I are limited to.

    Atthis point, if you "spend" you own money, you are only getting one use out of it...not good.  If you "use" it instead, you will get many uses from it, and won't have the need to constantly replace it after every time you "spend" it.  This concept is what I'm referring to when I say "let your money work for you".

    To do this, you must get your cash out of every deal you put it into ASAP.  Flipping, or buying/holding and selling equity shares of your properties to get your cash back out with profit.  This is my preferred way since I can still retain a % of the property's CF, after I recovered all (+) of my cash

  • Wholesaler/ Investor · Houston, TX · Member since 2014 · 491 posts · 113 votes
    9y

    Hello @Joe Villeneuve

    Thank you for your input.  I'm all about "Letting money work for you" so thanks a lot.  This is a response I am going to have to read a few times to make sure it is instilled into my brain permanently.  "Getting your cash out of every deal ASAP" is such a good point and makes tremendous sense.  Thanks again for this valuable information.  

  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    9y

     @Benjamin Blackburnit doesn't make cents...it makes dollars.

  • Flipper · Spring, TX · Member since 2013 · 68 posts · 19 votes
    9y

    @ Benjamin Blackburn if you want to be a landlord I would focus on finding cash flowing deals that make sense for you.  I would also focus on small local banks and asset based lenders who are willing to assist you in growing your portfolio.  If wholesaling is not your "end game" I wouldn't spend too much time chasing after it.  

    Having said that... in order to be a great investor or wholesaler you need to be able to consistently find good deals.  If you can figure out the marketing / deal creation end of the puzzle I believe you can be successful in any area of real estate. Landlord, wholesaler, flipper, etc.  

    Finally, if you figured out a way to make money with vacant lots I would see if you can't amplify that and seriously build up your passive income this way.  Less risk, less capital and potentially greater rewards. 

    Best of luck! 

  • Investor · Bellevue PA · Member since 2016 · 52 posts · 10 votes
    9y

    @Benjamin Blackburn

    Hi Ben

    I would find a local real estate investment club and plan to attend regularly - especially if you find one that has an educational component.  Next, build your network in a given market. 

    One of our strategies is to buy distressed properties, renovate and rent.  

    Best of luck

    Mark

    @Steve Vaughan Have to love Rich Dad, Poor Day advice - buy those assets!

  • Wholesaler · Jamaica, NY · Member since 2016 · 42 posts · 7 votes
    9y

     @Benjamin Blackburn

    Merry Christmas and many blessings to you and your family. You are in a better position then you think. First check with your bank and see if they would give you another loan on your next property. Or you can use a equity loan or hard money loan as you know. Some of the hard money companies will finance you 100% if the arv is higher then your purchase price and your repairs they say 80% of the ARV. So you could get your next property with little to no money down but just the fees and inspection cost paid out if both are under the 80%. Then you can switch over to conventional financing later. Research a little more but don't wait because your in a good position now. Good luck and much success. I hope this can help you go to the next level your looking for or get you started in that direction.

  • Wholesaler/ Investor · Houston, TX · Member since 2014 · 491 posts · 113 votes
    9y

    @Mark OGara Thank you for the advice.  I will work on building my network here in Houston.  If you do't mind me asking... How are you all financing your investments?

  • Wholesaler/ Investor · Houston, TX · Member since 2014 · 491 posts · 113 votes
    9y

    Hey there @Luke Moses I really like that piece of advice.  I agree with you about the Marketing/deal creation part to the fullest.  That seems to be key for sure!  Also,  I have thought about focusing on the lots...  I just hate that they will all come to an end at some point.  But you're right... If I could amplify it and keep it going consistently things might work.  Thanks a lot for the good points.

  • Wholesaler/ Investor · Houston, TX · Member since 2014 · 491 posts · 113 votes
    9y

    Hello @Andrew Jenkins Jr. merry xmas you your family as well, Thanks.  I feel like checking with a bank first to see if I qualify for the next loan is what i need to do asap.  I've definitely thought about using hard money but the thing I'm questioning is if I could switch it over to a conventional loan before the hard money is due... I would have to really look into that.  Now that you mention it, I remember there was a post from @Iman Yu regarding something like that.  I will have to go back and read her post again.  Thanks a lot and have a great evening Andrew!

  • Real Estate Agent · Port Saint Lucie, FL · Member since 2016 · 6 posts · 2 votes
    9y

    @ Andrew Jenkins, Jr.

    Do you have some hard money lenders that finance at that rate that you can share with us?  I haven't found one with those percentages yet.  Thank you, this is a great tip.  Happy New Year!!!

  • Fort Lauderdale, FL · Member since 2016 · 16 posts · 0 votes
    9y

    I like to invest in Port St. Lucie and also in Ft. Pierce - love the area - 

    @Kate Sansone

  • Investor · Bellevue PA · Member since 2016 · 52 posts · 10 votes
    9y

    @Benjamin Blackburn

    Hi Ben

    To fund our deals we use three sources:  local bank in Pittsburgh, self directed IRAs and self fund.

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