All Forum Posts by: Cody L.

I just hit 2,000 doors (without investors).  But I wouldn't say it was "so fast"  In fact, it was almost exactly 15 years.  There is no way around it.  It's going to take time -- unless you're raising money by giving up equity -- in which case do you really own it?

If I have a $1m property with no investors and $500k of debt, I feel like I own the property 100%.  But if I have a $1m property with $500k of investor equity (let's assume they have 1/2 the deal) and no debt, I'd feel like I only have 1/2 the property 

Just accept the fact it's a long game.  The good news is once you start building a portfolio, it really starts feeding on itself.  Cash flow issues go away and you're really just dealing with lenders to take advantage of the equity to fund more purchases. 

Also stop listing to podcasts.  You won't likely learn anything that'll help and you'll likely hear people taking nonsense.  Remember if they're on youtube or a podcast, they're doing that for a reason.  Likely to build their own brand.  And so, personally, I wouldn't put much stock in anything they say. 

I buy those types of deals all the time in Houston (well, not homes, but multi).  But it's mostly situations where a building is 1/2 empty or some other type of issue.   Under market rents, a good deal on a non performing property, etc. 

How much cash flow has my BTC made me that I mined way way back?

I love all my cash flow properties, but unless you're gaining equity it's going to be hard to scale as it takes a lot of years of cash flow to get that next building. 

If you have a good deal in Houston you're welcome to message me.  However, I get the foreclosure list every month.  Are you talking about deals other than what's on there? 

What specifically are you looking for in a partner?  I'm sure cash is one thing.  But what % of the overall deal.  For example, the SA deal that's $600k + $400k.  What % of the $1m are you bringing vs. needing to raise?

 I don't live in North County.  I did grow up in Escondido but moved to Pacific Beach as my first apartment.  Then downtown.  Then 'middletown' where I bought my first house (if you know where "Sassafras" is off India St.).   Recently I moved from that Mission Hills / middtown location to more 'real mission hills' -- i.e. north of Washington.  Sort of by Presidio Park.

Crazy...  Growing up in San Diego we used to call Chula Vista "Chula-juana" since it was basically like Mexico (a play on Tijuana for those outside of SD) 

 zero times.  Though I did have one deal where the guy partially paid me off, so I removed my lien on some of the properties.  The rest of the loan was heavily secured by remaining properties.  He stopped paying.  I went to foreclose.  His partner sued me to stop the foreclosure saying they didn't have his permission, etc.   That's still an ongoing issue but pretty sure it'll resolve in my favor. 

 I'm not a lender by profession.  I started doing lending when I'd get outbid on a property.  Meaning I was doing a loan on a property that I wanted (and tried to buy) anyway.   Thus if the loan went upside down, I'd be happy with the asset. 

Example, I bid $4m on a property.  Someone else bids $4.5m on a property.  They get it.  They ask me to do a loan for $3.5m.  I say 'okay' since I get a nice return and if something goes wrong I can get the property at a basis that's lower than I was willing to pay.

Rates vary depending on risk, borrower, asset, etc.  Most of my deals are low risk to me (due to the asset, as mentioned) and over around 8-10%.

I've done 1st liens on purchases, and I've done seconds when there is enough equity (i.e. I did one where a guy has a $2m property with $1m of debt -- I did a $500k loan.  That's pretty safe to me even though I'm a second)

I don't want to do anything that messes with construction or draws or any of that.  The most basic rule is my loan amount (or my loan + the 1st lien, if applicable) has to be less than I'd be happy to buy the property for

Your best bet might be just to get a higher rate private loan (as you mentioned, 9%) and eat the higher payment until rates move down.  Then refi. 

I've been in that spot.  Hopefully you've done the math and concluded that your higher borrowing cost is offset by what you're able to do with that capital.

I've started to do more and more private loans (to people like you) as they're safe and pay returns that are high on a risk adjusted basis.

Good luck!

 There never is.  Most "I have a property to sell" posts are fishing for contact info (IMO)

Thanks.  But I think I'm too lazy to ever get started in this business.  I'll stick to just trolling BP.  Maybe one day.