All Forum Posts by: Derrick Aragon

@Kevin Jorgensen I don't know your situation... Appreciation is a speculation.. Unless you have a really good handle on the market and you feel really comfortable.. With your comments, it seems like it would be more of speculation. 

I have some friends that just purchased a home for around $450k in your area and it is a lot of house and it is relatively new build. 

If you sell the house you are in capitalize on the appreciation in hand. Purchase a little bit less of a house you will have a lot to invest in a rental. 

Best of luck.. 

@Tom Reid I don't have time to read all these comments. This may or may not been said...

Where you went wrong is you didn't tell the forum what you want.. 

And what you can financially contribute % of the deal.

If you are going for 100% financing from this one guy, and it sounds like you have none or small amount to invest.

No money to invest ie have this guy do 100% of the deal:

Give them 100% of the cash flow and give them all of the available capital capable during the ref point. 

100%= 100k buy + 100k remodel and to give him your first example 10%roi 220k back but if it appraisal is $300k 80% LTV refinance you can give him $230.. Which would be 15% roi and whatever cash flow so maybe total irr of 20-25%.

To pay for your work add project management fee to pay for the management of construction and all that things you mentioned.

Sounds like your long term goal is acquiring assets so don't be short sided. 

Other option is file the other half of the 50% up with another investor. 

Something to think of if it is a long term hold how are you going to pull off the perm financing on your own. Keep them part of the long term plan with equity you might need a sponsor. You do all the work get PM fee or a acquisition fee 1-3% (typical syndication) give them 100% of cash flow and 10% preffered and 20% of back end long term play. Get him to committee to long term capital commitment. You do this and if you meet expectations he keeps his investment in the partnership to do it again. Execute again.. Then scale up if you can.. 

Honestly it seems like you have not worked out a relationship partnership with the person and they are getting hyper focused on the investment not the partnership.

@Kevin Jorgensen I would ask if you really need a bigger house...

Could you move into $400-$500k house instead of $700k don't max yourself out...

Have some money to invest and not be house poor... Put 20-25% have $100k left.. Invest in a rental property.. If you want to unlock some of the equity you drop in the house do Heloc on the new house.

Or seat on the cash and wait until the buying market comes back around... That could be years..

House is a liability don't max yourself out...

When it is good it will be bad and when it is bad it will be good again..

I think we are some ways away from a pop.. 

The town is small start asking around .. Pick out some of the top ones and start asking the people you grew up with and also look them up on fb

I would go to a loan broker and see what you would qualify for a loan. Inwould look into buikding an adu and you are young and hope you have some friends and rent out the rooms and live for free... $500 a month each room and live like 19 year old.. You could get an abnormal cash flow. 

If you want a carrier in real estate you could be a broker... Or if you want to make some more money learn how to sell.. Learn how to be an increasable sales person.. Sale cars or anything...

You do need more income.. 

You can flip stuff online buy stuff from yard sales and flip them on amazon and eBay and if you learn 10-15 category you can make side hustle money,

Marketing if you know social media marketing you can make a lot of.money... 

Making money is easy once you figure out what you like...

Sales is the best skill no traditional school wil teach you.

Read 5 books a week and don't over think things...

I personally wouldn't invest REIT, but plenty of people do.. I would partner up with a developer or syndicated.. There are also some crowd funding sites but I am not sure the default process has been testes.. You could also loan your money to a project but you typically don't get any back end upside..

If you are interested in portland marker in would be open to talking to you.

Pm me... Go with 2 plexs so you don't have to do sprinklers. 

Send me some info

Stack more cash... Stay laser focused and get to 100k.... 

PM me some information we can chat

Seems that the Adu option and renting could be a great option for cash flow but I think $50k is probably little low if the whole basement has to be dug out.

I can come take a look if you want as I build adus all the time. I have property management company as well.

I can help you analyze the 4 Plex option too... 

Pm if you are interested