All Forum Posts by: Craig Jeppesen

A few options for you: 1: partner with a flipper and you provide the funds and split the profits. 2: become a private or hard money lender. 3: invest with large apartments sindicators. 4: invest in re crowdfunding. 5: invest in class a turnkey rentals and use a property manager.

If I was in your shoes, I would pay off the mortgage and get a 80% ltv heloc. It won’t cost you a penny in closing costs, and you get the lowest rate by staying 80% ltv. You have reserves and ample cash and you have a re portfolio so time to pay them off. if something comes up you have the heloc and you can always refinance  the paid off property in the future if you need to or you find a deal to add to your portfolio.

I recommend you read the millionaire next door and rich dad poor dad. No one says you have to live on $20 k a year; only you can decide your budget. The best way to get started as a successful re investor is to first have your financial house in order and second use your income to purchase things that go up in value instead of down. If I can save up $20 k a year for example I can buy 5 $100 k houses in five years with leverage.  If I only save $2k a year it will take me 10 years to buy one house. See how my net worth and cash flow will increase significantly by sacrificing a little and saving an extra $18 k a year. Most people waste that $18 k anyway and have no idea where it went.

You have to decide your standard of living and what % you spend and what you invest each month. Some of us want financial freedom sooner so we sacrifice more now. I consider myself pretty frugal, but I definitely have chilled out and spend a little more money now that my income, assets and net worth is up, but I am still meeting my savings and investment goals each month. It is easier with higher income.

You did a loan, you report it as interest income.

Yes that is a great way to make more money or get more deals as you can offer a little more money than those who will hire a contractor. There will be a time when you want to scale and sub out more work but nothing wrong with being the general or doing all the work yourself, especially when first starting out.

It’s hard to tell from the pic, but the sink might be centered with the base cabinet it sets in. Sometimes using stock cabinets makes it impossible to line up with a window. It will be just fine. I would take a drywall knife and scrape down some of the thicker texture and it will look better.

I just noticed you are from Utah/ID. I live and invest in east Idaho.

It seems your goal/business plan is to own multi family, but not the entire project. You also have a buyer for the entire development and have potential projects coming up. Although I think this buyer is changing your original plan, I would sell as long as you will make good money on the deal. Put your profits into your next project and continue your original business plan on the next project. Oppurtunities often only come around once. 

For your buy new question, I would love to buy new, but most times the cash flow or returns are not there or the initial investment requirement is too much. In my market I can buy a fourplex that is 10 years old for about $100k less than a new triplex and the gross rents would be more from having an extra unit.

Yes this is obviously a scam. There are a lot of red flags here. No real potential tenant would send you a check in the mail before you have a signed lease. The check is fake and they will soon be asking you to send some of it back to them. Idiots deposit these checks, send money back then are horrified when their bank takes their account negative as the check bounces and now they owe money to the bank. Always use common sense, for some reason it is not so common these days.

Congratulations! This is quite an accomplishment but you are not done and you shouldn’t give up the money management habits that got you here. lifestyle also has a lot to do with it. Some people can easily live off the income from the wealth of $1 million while others want to have a better lifestyle. Also it depends how much of that million is tied up in non earning assets like your house and cars vs your investments. Keep investing and let that million grow to 2 and 3 million.