All Forum Posts by: Ben Lin

Quote from @Kara Leboeuf:

Hey Everyone,
Just want to share an awesome deal we have under contract.
Our goal this year is to purchase a house a month, or more. And we have been focusing more on the creative financing side. We posted an ad and found a landlord off market who was looking to get rid of a property due to a tenant not paying because of covid. The property is in decent shape but he wanted to wash his hands of it and not have to go through an eviction. 
We negotiated a purchase price of 0% down, $99,000 for 15 years at 0 % interest!!!
He really just wants a reliable check written to him each month. The market rent for this property is 1300/month. 
As pace morby says, I can give you the price you want, if you can give me the terms I need. And we did it!
Seller financing for the win!

Congrats that sounds like an awesome deal. Pace is da man! Find one for me LOL. 

I've been investing in RE since 2011. I am currently not buying in places like CA, UT, TX or FL because as we all know prices have gone up too much. In fact I just sold one of my properties in CA last year, and will be selling another one next month. I am now focusing on NYC and Philly markets. We all know NYC has been plagued with mass exodus and the property market is still about 15% lower than 2017-2018. As for Philly, well besides the prices haven't moved up that much since 2019, I just love Philly. The city has so much of history, very charming and so underrated. Just make sure you avoid certain areas. I like University City because the area is gentrifying daily. 

So yeah I am not buying in places where prices have gone up 30% in the past year, but I am definitely continue to buy in places with stable prices. And most importantly I strongly believe NYC and Philly will bounce back when this unfortunate pandemic is over. This pandemic will end one day, hopefully soon.

I personally don't see a crash coming. Lending is still very strict. Maybe a correction for 10-15% mostly due to massively slow growth of US population and stricter immigration policy.

I'd buy in East LA. Why not? I think East LA is an up and coming neighborhood, especially in the future when the downtown area is totally cleaned up. Also, don't forget LA will be hosting the Olympics in 2028. Do you think the local government will let visitors and Olympians from every corner of the world see Skid Row's?

East LA is a short drive to downtown and easy access to Pasadena.

Just make sure the number makes sense for you.

Rent controlled buildings are not too bad if you have good tenants. Non rent controlled buildings can be a nightmare if you get bad tenants. Just make sure you screen your tenants very carefully. Most people are decent tenants and they don't want to be evicted.

I'd look into Philadelphia. Properties close to Penn, Drexler U are still quite affordable and can be rented in days. Cash flow is good too. I just closed a deal, walking distance to Penn and Drexler, last October, cash flowing at almost 8%. Philly is such as historical and vibrant city too. Best thing is West Philly is gentrifying everyday.

I'd rather find a city where gentrification is happening than a small nice/ quiet city where nothing is happening. 

Have you had experience with converting multi family (triplex or fourplex) in San Fransisco into Tenant In Common and sell each unit individually? Did you make money? Thanks for sharing. 

Save every penny. You need some capital to start investing. While saving every penny read more real estate investing books and most importantly get a good mentor. 

A building with 4 free market rental units but two units are occupied by section 8 tenants. Decent area in BK, any advice about section 8 tenants in NYC? 

I never liked markets with high cash flow and low appreciation. I would not sell my property in CA to buy properties in Ohio or Tennessee. Owning a property in CA is like owning cash. 3% is not bad at all. If I were you I would find a way to increase the rent so I can achieve 4 percent.

Maybe I would sell my CA property and buy in cheaper states if I can achieve 10 - 15 percent cap rate, and if I was older and ready to retire. 

I played tennis in 92 Olympics. When I was 22 all I could think was chasing girls and how to win more tournaments LOL! After many years investing in real estate I wish I started investing when I was in my 20s. Timing is everything in real estate.

You can't do much with $250K in the markets I prefer, but if I had $250K to invest in real estate and I was 22 I would do the followings:
1. Buy 1 SFR cash in cities like Huntsville or Gainesville or any city with a good university and growing population.
2. Pool my money with other investors (or NFL players) and buy a bigger project in cash or with a big down payment so the property would cash flow.

Then repeat after I sign a new contract. So hopefully after you play for 10 years you have at least 10 paid up rental properties collecting $20K/ month.

The reason I don't like getting a mortgage because I remember when I was 22 years old playing tennis I was traveling all over the world and had no time to think about applying for mortgages. At 22 I wanted to focus on my tennis career and just experiencing life in general. I also don't want to worry about the market going up or down.

With both of my options the key is to find a good broker. The broker can make or break you, so choose wisely. If you find a good broker it's as good as finding a good wife LOL.

Good luck.

Hi Konrad,

If I have a day job and my income is enough to cover my monthly expenses I would put down as little as possible and buy as many property as possible. If I rely on rental income to live I would put down as much as possible, maybe even buying it free and clear.