All Forum Posts by: Brad Jacobson

It's the same for most sales positions.  Something like 75% of REALTORS only do less than two deals per year.  One to two deals fall in everyone's lap each year - sister, grandma, uncle, neighbor, etc.  It's the other 20-50 that require systems, constant work, and dedication.

Quote from @Kelly Elterman:

Starting out in the San Antonio market and having difficulty finding SFHs that cash flow well. Is this a function of the current market? Should I look elsewhere? Or are most investors still investing here despite poor cash flow because of the potential for significant appreciation in the coming years? Would love to hear how others are currently approaching this and nearby markets.

Cashflow is more brutal to find than ever in this current market.  However, I'm still all-in on real estate.

Don't forget that when investing in RE, you make money in four ways: cashflow, loan pay down, tax benefits, and appreciation.  If you're financially sound, don't be afraid to invest even with minimal cashflow because you don't want to forego the other awesome benefits of investing in RE.  Just make sure you have the funds prepped for vacancies and cap-ex.

Good luck!

Arguably the most mind blowing thing I learned when I left my W2 to do real estate full time was the tax game.

Not only is my income way higher now, I also get the income it tax free!  Thinking of having 25% tax pulled from a W2 salary blows my mind now.  Everyone needs to read up on tax strategies and be willing to fork over a healthy amount to an excellent CPA each year.  

Even if my self-employed income mirrored by W2, I would still make 25% more because of excellent tax prep.  

Agree 100%!

Quote from @Abi Horton:

Quote from @Brad Jacobson:

$200-250k doesn't buy much multifamily in most markets so I would encourage you to consider purchasing a single family residence with an ADU (accessory dwelling unit or mother-in-law apartment) as well as small multifamily options.

I know from personal experience that house hacking is a sacrifice so in order to be willing to do it long term, you still need to be comfortable where you are.  Single family homes with ADUs are an excellent alternative and I bet your budget would get you much further with an option like that in whatever market you choose!

Good luck!

Thank you, I hadn’t really considered this. Would that still be classed as a “multi family property”?

 It's definitely the best way to house hack!

And no, those type of properties are just that, single family residences but with an ADU. Almost all cities (at least in my expiernce) allow ADUs but by owning a single family home, you'll pay less property tax, have more inventory to pick from, be able to acquire the property with just 3-5%, etc. etc.

$200-250k doesn't buy much multifamily in most markets so I would encourage you to consider purchasing a single family residence with an ADU (accessory dwelling unit or mother-in-law apartment) as well as small multifamily options.

I know from personal experience that house hacking is a sacrifice so in order to be willing to do it long term, you still need to be comfortable where you are.  Single family homes with ADUs are an excellent alternative and I bet your budget would get you much further with an option like that in whatever market you choose!

Good luck!

When I got into real estate investing, I was very good at house hacking. I first rented out my three extra bedrooms to roommates, then when I got married we bought a house with an ADU that we used as an Airbnb.

Though house-hacking was awesome, I wish I would have combined it with the nomad strategy (AKA, move every year so you can accumulate multiple homes with just 3-5% down each time).  

If you can find and buy a good house-hack (with the savings you got from house-hacking) to live in every year for the next few years, you'll have a solid portfolio in no time.  That would be my recommendation.

Good luck!

Hey Gurleen,

Personally, I use US Bank for my business.  They charge more fees than a local credit union but I found that they were very open to offering business lines of credit.  

I'd recommend US Bank or something like it, get a business CC with them early, establish credit for the business, and then get a better performing credit card once you qualify via the business like AMEX, Discover, Chase, etc. 

Recently - I would guess the bigger the bank the safer as well.  These bank runs are scary business but I was happy to see that UBS acquired Credit Suisse.  That's proof the bigger banks are doing well.

Good luck!

I'm in the middle on a few of those - they do look to be more liberal than other PM contracts I've seen before.

I suggest you bounce your concerns off a local RE attorney and get his or her input.  If they agree it's standard, great, if they think they're overly liberal, explore other PM options or just edits.

Good luck!

All FHA loans should be assumable if done properly. The key here is going to be to find the right lender and title who can do it. I would recommend you ask the local real estate agents who's teaching the continuing education classes on assumptions and use that lender.

You will have to qualify for that $170k loan and then either qualify for a second $100k loan or bring the difference in cash or something.  It'll be tricky.

If you have means for the $100k, you'd probably be better off to just purchase the property and get a new loan on it at the amount that keeps more cash in your pocket.  Yes, your rate will be higher but at a loan balance below $200k, it shouldn't make too much of a difference.

Good luck!

I've played the markets game and after about five years in them, decided to simply stay local.  I suck at identifying good deals and potential value adds when I don't know an area.  However, I've become extremely good at it in my backyard so my advice is always to invest in the market you know best