All Forum Posts by: Aaron Hunt

@Will M.

Nope. Still buying. Actually, one of my low-balls just went into escrow with a relatively eager seller yesterday (in Vegas). And I live >2,000 miles away. Deal fell out of escrow and I happen to get lucky. Cash flows from day 1, all-day.

Snagged it for ~10% less than appraisal, and ~20% less than most recent model match comp. Even that model match is still under what the seller paid for it pre-crash, so they just want out and bad. They’ll have to bring cash to table for the close.

Paying for it with the dead equity/appreciation HELOC on my first property in Vegas, that I bought with just 5% down, cash flowing all day, but appreciated 25% on top and I was able to drop PMI with re-appraisal. Crazy market!

Will slow down when the deals dry up!

Originally posted by @David Zheng:

I would like to hit $1.5 million in annual rents by next year. (halfway there now)
Cashflow at least 30k/month
Run a sub 3:00 marathon/sub 1:15 half marathon
win some triathlons

Gets some high powered bboy moves completed

finish three to four really cool cosplays
upgrade my Gallardo to a huracan or a 458!

o I strayed pretty far from real estate lol..

Need to know more about this Gallardo -> Huracan. You selling the Gallardo? 

Now I’m off RE...

Started in June 2016, with my target of buying one, headache free, Class A rental per year that cash flows (with minimal down payment). Learned it is a lot easier said than done finding these deals. 

However, I was able to achieve it. My 3rd closes later this month. My rates currently range from 3.875% to 6.125%.

For 2019, will be the first year I finally size up into multi-family. Initial target is a 10+ unit building.

Crsytal City is flush with new condos/development. It was suppressing the current condo rental market a bit based on our experience. Already was a very expensive area. Barely seemed to get touched by the recession compared to other areas so appreciation has been weak too. There were tons of short sales/foreclosures at the time. We got lucky and picked a few condos at the bottom of the recession and the appreciation over the last 8-9 yrs is equivalent to the appreciation in 2 years of investing in smaller ”Tier 2” cities. Hopefully this should be a catalyst and allow the marlet to pick up steam now!

@Petra M. Yep. Heard it on the radio. Looks like Crystal City, VA and Long Island City, Queens. Stoked!

I’ll be the first to say it and deliver the political uncorrectness: Age matters.

Your ability to leverage TIME (when you do not have money) is lost if you start late.

The 25-35 age zone is the money spot for acquisition and where future wealth can actually be secured. And in my opinion, real estate acquisition is one of the last few ways someone with an average income/lifestyle can reach the promised land and actually map it out...unlike pretty much every other investment out there. This is based on the fact that the average American lives till 78-79.

Not saying it’s not worth doing later as a form of forced investment or savings when you have more income.

However, for the average person, it’s much easier to lock money away early in investments rather than finding earned income for investments later on in life. Also, earned incomes have never kept up. 

Sure, some will triple/quadruple their earned income, and can invest more aggressively in their 40s, but more likely, the majority will triple or quadruple their family size instead (going from being single, to having a spouse and two kids, on the same earned income...ouch!)

So better to acquire fast, acquire hard, and leverage into places you yoursef would consider living if you absolutely had to.

Worse case, you let someone else pay the mortgages over the next 20-30 yrs. Accelerate payments as you get older and rents go up.

Enjoy your hard earned income and smart investment strategy during quality years of life.

And maybe you get lucky and catch an awesome wave of appreciation and you never have to look back again.

I saw one relative buy their first at 31, “forever home” at 39, and then next rental acquisition was not until 53, followed by 4 more strategic buys during the crash (he had money saved up and equity in their primary from not investing in his 40s). By 60, they had ~$150k/yr passive (pre-tax, after expenses).

I saw another who just wouldn’t stop acquiring properties in his 30s. This included when interest rates were 10-15%! By 65, he managed to have a portfolio that put him in the ultra-high net worth category (~$20-30 million). Real estate was the first step to securing the future trajectory, then the real money started to come in because RE income opened up significant new opportunities that weren’t open to others.

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@Brandon Hall Interested in learning more about this. Where/how would one find a land conservation easement?

One thing which for some reason which is never discussed on here...mortality. How old you are is a HUGE factor in the decision to leverage or not. (Depending on your long term goals - most seem to want retire early, or at the very least “on-time” (65). If you are in your 20s and 30s, leverage your a$$ off. Stock up on hella debt early at 5% interest and ride it out for tge next 30 years. Balls to the walls. Secure your retirement while you are young, can recover, can make it thru the downturns, and never look back. Once you have a few properties on auto-pilot. Your earned income can be used to enjoy life. If you are 50+, avoid leverage like the plague. You just don‘t need it. If you are an average American you are not likely to outlive a 30 yr mortgage to reap the benefits of your leveraging in any meaningful way. Sad but true!

@Wayne Brooks Nah. I just dropped mine in 2 years at 80% on one of my 5% down rentals that I moved out of after 12 months. It’s just lender dependent.