All Forum Posts by: Christian Requejo

@Christian Requejo wholesaling, like syndication, is an advanced strategy; and definitely not advisable for beginners who don't have extensive experience in contracts and real estate law. 

A person who wholesales without the relevant experience is endangering themselves, and all of the people they're trying to do business with--it's a recipe for disaster if you don't know what you're doing.

I feel like I say this to new aspiring investors everyday: If you are a beginner, do not attempt to syndicate wholesale flip a 300 unit portfolio for your first deal. Start with the simple stuff, and then (once you have the relevant experience), gradually build up to more advanced strategies. 

Don't try to out-run Usain Bolt before you've learned to walk.

See my prior post about syndication for more info.

@Christian Requejo

Uhmmm....  Wholesaling is asked all the time..  Just peruse through the boards.  People think its a way to get started with no money, but you still need Proof of Funds to be honest about doing it, and its almost harder because you need to find the deals, know if they are any good, and have buyers to whom to assign the contracts.  Its a "job" not "investing."  The IRS even taxes you as such.

Note investing has been discussed recently on the board.  Actually, its mentioned all the time for those who really can't find money to borrow as they need to find private equity or a private investor.  Again, similar to syndications to invest in notes you need to already have the cash.  Most people posting on bp don't have the cash and are looking to get started.

Do some homework.

@Christian Requejo

Yes...  Many newbies start with brrr because the technique allows for scaling with little/less cash.  Remember, the original method was to purchase with cash, and you can only scale so fast because lending timeframes, although there are methods to address that ---- another step.

Lets face it --- EVERYTHING is saturated.  Nowadays there are more serious/active investors than you can shake a stick at.  REITs are becoming large they are actually considered (or admitted) that they are a SMALL part of the housing crunch.  Some REITs specialize in purchasing single family homes and renting them out.  That means there are tens of thousands of homes (I think that was the scale) that people can't buy to live in now...

If the rehab/construction isn't your thing, either you have to learn / figure it out to do the brrr type of investing, or perhaps you have to live with doing something else.  Maybe not even real estate.

Good luck.

@Christian Requejo

in a BRRRR you're not hoping for the market to appreciate, you're hoping to increase the value to pull all of your cash out in a refinance.  so there are actually TWO transactions from a financial perspective - BUY, and REFINANCE.  and, the hope is to refinance 3-12 months after the buy, not 2-3 years.

it's harder to illustrate a BRRRR with financing - much easier with cash.

you buy for 100K cash, fix up for 50K, and the new ARV is 200K. you'd try to refi to get your cash back. you'd get 140-150k.

in your example you bought for 20K down.  you have to do something to increase the value of the house from its 100K value at purchase. if you can't increase the value it's not a BRRRR. it might be a perfectly fine investment... again, it's just not a BRRRR.

if you can get it to 140, say, you could refi and you'll get 98000-105000 on a refi.  you have a loan for 80k (100k - 20 down).  you pay that loan off with the new loan.  you have 18k-25k left over.  you get (hopefully) some of your down payment and the rehab costs back.  in this scenario, you're going to "leave money in the deal," but you have more equity because you increased the value of the property.

make sense?

BRRRRs and syndications are miles apart on the investment spectrum - BRRRRs are hands on and syndications are hands off.

hope this helps

Been there.....it's called Analysis Paralysis.

Way to much INFO. Just go out and make offers. Be ridiculous in your offers. Very low down, no down just get out there.   

Been there.....it's called Analysis Paralysis.

Way to much INFO. Just go out and make offers. Be ridiculous in your offers. Very low down, no down just get out there.   

@Christian Requejo

How does brrr tied up all your money?  If you can pull it off, it doesn't tie up your money.

"Short term and long term rentals is very slow to see returns."  Now who is looking for a get quick rich scheme?  This is investing.  Its not a job.  Its not get rich quick.  I see why you are interested in this mentor programs --- you are being sold or are so interested in getting rich quick and retiring tomorrow.  It might somehow work for a very few people, but most of the time it doesn't work that way.  If you want to get rich quick (or get even poorer more quickly), go speculate in the stock market with leverage and options or something similar.

Is getting rich quick what you really want?

 Good morning, Actually I am, I’m doing A full remodel in Miami Springs. 

 A new area that’s being gentrified is Liberty City which is slowly becoming Magic City

@Christian Requejo

For starters, I think you also need to understand that certain investment approaches align to certain goals/strategies at certain "segments" of a person's wealth.

Do you realize that to invest with a syndication, you need to already have "wealth," i.e. cash in hand?

If you want to run a syndication / fund / whatever, do you have the "credentials" to run a such a project?  You don't want to hand your funds over to somebody, which is understandable.  However, why would somebody want to hand their funds over to you?

No, you can't "...make it in real-estate big with other people's money without technically partnering up.."  If you don't partner up somehow, how are you legally working together?  How are you getting compensated?  How are they getting compensated.  

I don't have direct experience with these mentorships, but generally to my understanding its about sales.  Your quote testimonial about getting $1m in equity is probably from a person with some background/creditibility and needed a push to learn how to "sell" the project to people.  Lets face it, you never hear the testimonals of all the people who took the mentorships and didnot suceed, for whatever reason.  As a example, look at the people and kids out there who learn to play a sport, or multiple sports.  They all don't become professional players...

I hope this helps a bit.  Good luck.