All Forum Posts by: Alec McGinn

@Jerry Padilla I want to invest in some type of multi family whether it be a duplex or greater, but I can’t decide whether to stay local or go out of state. Syndication is something I would ultimately want to get into, but I need to establish credibility as an investor first. Where do you invest?

@Jerry Padilla nothing is holding me back I am just assessing all available options out there for real estate and I have trouble understanding how you bring a deal to the table and rally investors to join on a syndication. How do you attract investors with a deal if you can’t put an offer out there to show what the seller is actually willing to accept? My head is spinning because I want to buy my first rental property by the end of this year or beginning of next year and I cannot decide which route I want to go with.

I was listening to bigger pockets podcast the other week and I can’t remember which episode it was, but the guest talked about how when he got started, he just started submitting offers on everything on the market. My question is what happens if the seller accepts your offer and you do not have adequate funds. I know this is where your network and syndication is key, but what happens if you just can’t line up the investors to make the deal happen?

Where do you like to put your capital while you are saving for a real estate deal? Currently my capital is sitting in a savings account gaining nothing. I’m wondering if I should be putting my capital somewhere that makes a modest gain until I am ready to make a buy and hold investment about 1.5 years from now? What do you do?

@Drew A Roque

Saving 30k in 4months making 90k per year will be challenging after taxes, insurance, and retirement contributions come out of your paycheck. The BRRRR strategy will be challenging if you can't visit the property while at sea. I would definitely pay off the loans, but have a more realistic timeline. Educate yourself as much as possible while paying down the debt. Or just make the student loan payments and put that 30k toward a rental property. Fortunately, time is on your side! If the loans are all federal, the interest is pretty cheap money and you can choose to extend the loan payment to 25 years lowering the monthly payment by half allowing for more capital to be saved.

My goals are to build a solid rental portfolio as passively as possible that cash flows enough for my wife to retire and for me to eventually work part time. I don’t want to leave the rat race because my current job is rewarding and I am a part of company that makes a difference in people lives. Not to mention we have great affordable benefits. I would like to get to $12,000k of monthly cash flow in the next 20 years. From there I just want to scale consistently to keep increasing my net worth.

I listened to the bigger pockets podcast episode with Grant Cardone today while at work. The number one point I took from him was to go bigger. Just when I think I have my investing strategy figured out starting out with duplex and 4-plex properties and scaling from there Grant says that is a waste of time. Other points Grant made that stuck out to me are to never buy real estate with a budget, to analyze 100s of properties before buying one, and buy properties that rent in the 800-1000$ range for various reasons. Now obviously listening to Grant Cardone gets me all jacked up wanting to go big, but is this feasible to go straight for the big deals and raise the capital? Where would you start if you are trying to go big?

Currently, I have one credit card and pay the balance off every month. How do you all use credit cards as a tool? Let me know your thoughts!

@Mike Schmidt I guess these are the questions I need to be asking myself. How much credit do you have and how long did it take you to build it? The only credit card I have is from Wells Fargo and I’ve had it for 6 years. When has credit come in handy for you and how do you go about paying off the credit once you acquire the debt?

I’m looking to buy my second property and I’m wondering how much cash I should have on hand in case of emergency? Obviously I factor in vacancy and maintenance when I calculate cash flow, but how much do you like to have on hand per door in case troubles arise?