All Forum Posts by: Frank Wong

You said, "Con, the new payments may not be able to be covered by the current rent."

I never want to be in a position where I pull more cash out and kill my cash flow and be negative. Some will say BRRRR keep cashing out buying and repeat the process. I see more risk and being out of position. There is a right time to cash out and leverage and a wrong time. Choose carefully you don't want to blow up all the years of hard work over leveraging.

If you are RE broker I don't understand why you don't list the property for sale on the MLS. The little money that you are trying to save will be made up at a higher price and time it will take you to sell the property. If it's an SFR I give notice to the tenants if they are on a month to month and sell the house vacant.

When I sell my properties I always have it listed and I always pay a high commission.  I understand the game and I want as many buyers and agents seeing my property for sale. 

Hi Aaron,

I am mixed on this about your realtor.  In my case when my investor clients are in a similar situation where they send me properties for comps and opinion.  I know my market so well that I can just look at the deal and tell them if it will work or not.  Its case by case on deals but in those instances, I don't need to waste further time on it and I can just cut to the chase and give my clients what they need which is the answer to their pressing question.  "Will this deal work or not for me?" 

On the properties that need to be explained further, I will break down the comps for them and rehab numbers and rent. I give my clients a complete analysis and do all the heavy lifting for them.  I guess in your case you have further investigating to do with your realtor. Yes, sometimes realtors are just flat out lazy and don't want to put in the work. I have no idea which type of agent you have.  Good luck. 

It simple. At least how I view it. Lol

Do you want the same life we have now in 10yrs?  Are you going to be happy with that? 

I'm not happy with that and I want a better future. Honey lets do it together and have a better future we deserve it.

This is how I view it for "AS-IS" at least in CA.  You offered to buy the property "AS-IS" with an inspection contingency.   

1. The seller has an inspection reports termite and general inspection. You review everything prior to making an offer. For the most part, you know where the house stands. So you accept the house in its AS-IS condition and act in good faith not to renegotiate anything during your inspection period.  You can reinspect the house and if nothing new or major turns up from the known facts then you proceed with the purchase and stick to your word. 

2. The seller has no reports. You initially submit an offer "AS-IS" with your inspection contingency. During the inspection, you find electrical termite or foundation issues.  These are all unknown items discovered. You can cancel the deal or go back to the seller and ask for concessions.  I see no issues if this was the situation.  Seller at this point can accept or negotiate the concessions or ask you to remove your contingency and move forward or the deal can be cancelled. 

It all depends on your intention and if you are acting in good faith. I recently did a deal in Oakland. Seller provided home and termite report.  We got a foundation inspection from an engineer. During the inspection, we found issues with the foundation. We went back to the seller with the report and I negotiated $25k off the price. The seller was understanding. We acted in good faith.  I think that is what it really comes down to. How are your intentions?  Are you being shady buyer saying As-Is getting the deal knowing you plan to negotiate from the beginning?   

In both cases in CA if you have your contingency you can cancel and your deposit returned.  You are 100% within your right. 

 Boom! Right there guys. Write this down. What great advice by Tyler.  There is nothing really taught in college that will help give you an edge or prepare you for RE investing. No major in RE will be applicable. 

#1 thing you need is MONEY.  People always forget that. NO MONEY = NO INVESTMENTS. Don't believe this I bought with no money down and scaled with $10k stories.  I am not saying these people are lying what I am saying is these are the low low exceptions to the norm.  I play high probability plays not these fantasy dream scenarios.  

Hi Lucas,

What you want is to buy nice solid rental homes in a good solid B area. The price will be$100-150k depending on the market. You can buy with 30% down and start from there. The homes will be in good condition and ready to move in so you don't have to BRRR.

Then you work on making more money so when you begin to scale you can start buying them with more down and eventually have them paid off.  In 6-10yrs you will have about 5-8 rentals netting you a high amount and you will achieve your $3-5k a month.  Around 15yrs you should be netting yourself an even higher amount and portfolio much higher. Should be snowballing at this point.

This works because I have done it. This plan gives you a life and low risk. In order for this to work, you must focus 100% of your energy and time on making more money.  I think too often people get distracted with real estate investing and try to make it their primary income. RE should be a compliment to what you do not a replacement in the beginning. Then 15yrs down the road you can decide if you want to work for the man still. 

BTW there is no easy way to get to $3-5k. Investing is hard, owning rentals is hard, people lose thousands every day. The bright side is that you can do it everyone can. Just have to have the right mindset, plan, and unwavering work ethic to make it happen. 

Hi Jacob,

You don't want to quit because you are a high achiever maybe that' what you are struggling with.  Quitting and doing nothing is boring at 26.  Maybe your current job is easy and you got it down. Why give up the money when you can continue to do it and stack cash and buy more. $10k a month might sound great now, but the cost of living is going to go up and you never know when you need to be at $15k a month or $20k a month.  

I don't have a set age or time for me I created a life where I want to continue growing and also have the free time to do whatever I want.  I tried to golf 3x a week and it gets boring. Nothing gives me more enjoyment then growing and stacking more cash. 

To me, it matters if I was buying the house for the end buyer I think the dishwasher and stove should match. The fridge can be whatever brand as long as its all matching stainless steel. Yes, I go stainless steel for a flip or a rental.  Prices have come down so much that it's a no brainer. It makes the kitchen pop and that's what you want.  I personally buy everything whirlpool for my rentals.  The price works and the brand is well known. 

Find one niche stick with it and dominate it.  Don't jump around trying a bunch of different things.