All Forum Posts by: George W.

Yeah you probably should maybe even a accountant or book keeper could help you go over the expenses and receipts. I've heard of people doing forensic audits for devorcies hopefully it doesn't come down to something like that but if you expect your business partner was stealing money you might have to hire a lawyer and do something like that. 

 Joe, if youre able to save 4k/mo you're well ahead of what most Americans save every single month. $200+/mo is certainly possible. Right now I'm in the middle of rehabing/repairing a single family that I plan to sell to build more capital to invest in a 4plex or maybe a 6 Plex. I'm going to build amother single family home soon. The next major step for me though is to buy more multi-families that will be buy and hold deals. 

 Also theres nothing wrong with investing in other things like that too. I make way more money doing plumbing and HVAC then I do real estate currently but you've gotta think long term. I know that 30-50yrs from now I probably won't be able to do what I can now. I wouldn't plan on being able to flip things online as a retirement plan either. So having a diverse retirement plan is essential.

So I think that one of the most important things you can do financially is to pay yourself first outta every pay check before paying a single bill. Let's say you can save $1000/mo outta your paychecks at work monthly to pay yourself. That's $12,000/year I can put away. Not horrible, that's way more than the $0 most people put away. 

Let's say now I bought a multi-family that produces $300/mo after expenses and I add that to my $1,000/mo that I "pay myself". Well now I'm saving $1,300/mo 

I make some improvements to the property. Now it's got $80k in equity. I can borrow 70% of that to purchase another multi-unit that makes $400/mo now I'm saving $1,700/mo. That's $20,400/yr.

Sure it's not anything crazy but With 2 properties you can Basically double what you're "paying yourself" a year. Sure that's not crazy insane money but remember most people don't pay themselves outta their paycheck like that. This will pretty much keep compounding if you keep investing it in other properties. Eventually you'll reach a point where you'll make more through you're investments than you will at work if you keep buying more. Then in 30 years your properties all start becoming paid off one by one. 

Sure you're going to get phone calls and deal with bad tennants but remember you'll also have bad days at work making someone else tons of money while you get your little tiny slice of their wealth and you miss your child's football game because you had to work late and your stuck at a dead end job. That's the rut most people get stuck in. Investing in real estate and learning to save and spend wisely helps you avoid that rut. 

REI is a long term slow and steady investment. Getting rich over night will not happen with a few multi-family houses. But let's say you had bought this property your in it 60k and you bought it for 200k.

Eventually there will be a day many many years from now when your other 140k of the loan will be paid off fully by Tennant's, that paid your mortgage. 

You're only in it your original 60k plus your expenses over the many years. You'll have years of steady cash flow monthly. Which you can use to reinvest in other properties. Also you'll have a paid off building that probably is worth substantially more than when you bought it most likely. 

I have customers in NYC that are in their late 80s and bought properties many many years ago for prices that back then were considered Insane (40,50k) and now they're properties are worth 1-3mil and are renting 2400+/mo each apt. That seems like a awesome retirement to me! Especially when they bought them 50years ago and were paid off 20years ago. 

Now it's not a guarantee that your property will ever be worth a million dollars but If you combine this with a good paying job and a retirement plan that's diverse, you'll be ahead of the game. 

Hmm well again not sure the scope of work that it needs but if you don't have any cash reserves or a loan and good income a project like this could easily sink you financially. 

Wow that sounds like a nightmare. Maybe you should meet with your lawyer before your partner. How did your partner spend the whole budget on the duplex when in the  rough in phase of that project? 

Just out of curiosity, did she say that she wants 900k for the property when you talked to her? I'm not familiar with LA so I couldn't even guess what a good price to buy a rehab there would even be there. Figure out the price she wants for the place. Find comparable sales in the area to try and get a rough idea of arv. 

As far as the 1031 time is more on your side in this scenario and the advantage for both of you is that you can close on the deal whenever she wants. 

Welcome let's connect, I would like to meet people interested in South Jersey as well! 

 Well personally, I wouldn't try and sell the property to another person/wholesale it. Is it a multi-family? If it Is and it can produce monthly cashflow then it's a solid long term investment possibly. It sounds like you're already paying this lady rent, so if it's distressed maybe she'd sell it to you at a discount. 

As far as needing work, you can get a hard money loan. Which can help pay for repairs then refinance it and keep the place. If you wholesale the place you might sell it to someone who doesn't want a existing Tennant. 

Another option would be a 203k loan possibly. I'm not sure with the price of the property though. I think there's limits to what you can borrow.

Maybe she would owner finance the building to you. If you are paying rent to her now anyways, you might be able to handle a loan to her with interest. This would be good if you can afford the repairs. That being said there's loans for repairs. 

I think the best first step is to ask the landlord If she would consider selling the building to you. Don't get too specific about your plans with it to her. Worst case scenario she says no and that's okay too there are always other deals to be had.