21 Properties 2 Years

21 Properties 2 Years

Investor · Denver, CO · Member since 2015 · 492 posts · 267 votes
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!
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Anaheim, CA · Member since 2015 · 48 posts · 11 votes
8y

Great job @Robert Herrera !

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  • Independence, OH · Member since 2017 · 17 posts · 4 votes
    8y

    Wow!!! I envy you.

  • Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
    8y

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

  • Investor · Morris Plains, NJ · Member since 2017 · 294 posts · 47 votes
    8y

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

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

  • Independence, OH · Member since 2017 · 17 posts · 4 votes
    8y

    Wow!!! I envy you.

  • Pueblo, CO · Member since 2018 · 64 posts · 32 votes
    8y

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

  • Pueblo, CO · Member since 2017 · 4 posts · 1 vote
    8y

    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 

  • Investor · Denver, CO · Member since 2015 · 492 posts · 267 votes
    8y
    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.
  • Ned J.Pro Member
    Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
    8y

    Interested to hear how you scaled so quickly.

  • Investor · Seminole, FL · Member since 2016 · 94 posts · 41 votes
    8y
    Great Job Robert and investing all the way down in Pueblo. Nothing stands in your way. Thanks for sharing.
  • St. Petersburg, FL · Member since 2015 · 317 posts · 71 votes
    8y

    @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.

  • Investor · Saint Nicolas, Québec · Member since 2016 · 53 posts · 20 votes
    8y
    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.

  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    8y

    Nice!  Cash flow is key on any rental.  How leveraged are you?

  • Investor · Denver, CO · Member since 2015 · 492 posts · 267 votes
    8y
    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.
  • Investor · Denver, CO · Member since 2015 · 492 posts · 267 votes
    8y
    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.
  • Investor · Denver, CO · Member since 2015 · 492 posts · 267 votes
    8y
    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.
  • Investor · Denver, CO · Member since 2015 · 492 posts · 267 votes
    8y
    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.
  • Anaheim, CA · Member since 2015 · 48 posts · 11 votes
    8y

    Great job @Robert Herrera !

  • St. Petersburg, FL · Member since 2015 · 317 posts · 71 votes
    8y

    @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?

  • Investor · Denver, CO · Member since 2015 · 492 posts · 267 votes
    8y
    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.
  • Investor · Colorado Springs, CO · Member since 2013 · 643 posts · 280 votes
    8y

    @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

  • Investor · Denver, CO · Member since 2015 · 492 posts · 267 votes
    8y

    @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.

  • New York City, NY · Member since 2016 · 33 posts · 22 votes
    8y
    Awesome job Robert!
  • Investor · Denver, CO · Member since 2015 · 492 posts · 267 votes
    8y
    Jolene P. Neal thanks. I just hit 24 Properties last weekend! Mostly in Pueblo. Real estate is Awesome!
  • Investor · Grand Junction, CO · Member since 2017 · 207 posts · 201 votes
    8y
    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.

  • Investor · Denver, CO · Member since 2015 · 492 posts · 267 votes
    8y
    Eric C. Here are the numbers on the most recent property. Purchase price $85k, down payment 10% at $8,500. Mortgage payment is $660/month PITI 30 year. First payment due May 1st. House needs patches and paint. Needs carpet and a window replaced. Old T-loc roof no leaks. Renovations- $0. I was planning on changing out the window, paint and carpet. Didn’t need to do any of that. Tenant Buyer- saw the house and wanted it. $10,000 down Non-Refundable option fee. (That’s $1,500 profit and all my money back) $1,100/month rent. That’s $440/month Cashflow. $120k Option to Purchase Price. This is what it’s worth fixed up and through a bank.($35k equity add) Tenant responsible for all Utilities, Repairs, and Maintenance. Tenant gets free rent for the rest of March and all of April in exchange for doing the repairs. First payment due May 1st.
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