All Forum Posts by: Gabriel Garces

Hello BP,

I am a beginner investor and I need advice on getting money out of my investment property. 

I am fortunate that my father gifted me a single family house that I currently rent out. This house is currently worth around $150,000. I wish to take out a $100,000 loan against this property and use that money as a down payment for three other houses. 

Now I spoke to a lender and he said he is willing to do a Cash-out Refinance for a fixed rate of 4.5 % for 30 years. However, I have had other people including my father and other bankers tell me that a Home Equity Loan would be better? I was wondering if someone could tell me the big difference the two and what would actually be more beneficial for me. Is it true that with a cash-out refinance that the rate stays locked for full term, while a home equity loan does not? And l I plan to hold on to these properties for at least 10 years or longer, seeing how I am only 23. Also besides a change in rate, would anything change if I decided to live in the house? Thanks in advance.

Hi Casey,

I'll tell you my story so far and hopefully it'll help you out.

I'm 22 and I recently graduated college. I studied Civil Engineering and am making $3,200 month. I still live with my parents and I'm saving $2000 a month. After one or two years, I'll be able to put a down payment on my first rental property through traditional financing with a bank. In this time, I'll be building my credit, learning more about real estate through books, seminars/webinars, biggerpockets, and networking. Having a steady job will allow me to get financing easier and having guaranteed income is great. Luckily for me, I do not have any student loans, so you do have to take this into account.

If you choose college, choose a great major with good job prospects. 

However, I do suggest you get your real estate license and be an agent. After a couple years you could learn your area really well and learn a lot about real estate in general. And you'll make money in the process. If you're extremely dedicated, get a regular job as well, so you'll have a steady income. Or go to college and be an agent. 

We're lucky because we have time on our hands. The more work we put in now, the better. I would also recommend finding other investors in your area and learning from them. I helped this one investor with this rehab; it was a good experience. 

I hope this helps you out. Best of luck

Hi,

I want to learn about rehabbing, so I figured helping someone with their project is the best way. Ideally, I would be able to help after 5pm mon-fri or on the weekends. Please contact me if you have a project around Clifton or Cranford, NJ. 

Best,

Gabe

Hi,

I am a college student graduating in May 2014 with a degree in Civil Engineering. Since the summer I've been reading financial success books such as "Think and Grow Rich" and "The E-myth". Having the right mindset and implementing systems are key to a successful business. Real Estate has peaked my interest and I've been reading books and blogs, attending seminars and networking.

I'm sure some of you have heard of Fortune Builders and their Mastery Program. I am currently considering it for its abundance of resources, information, and coaching. However due to its very steep price, I looking into local coaches in my area.

I want to start 2014 off right by getting my feet wet in Real Estate. I ultimately want to rehab a house. However I rather have someone show me the logistics of investing and divide the profits, than losing money on my first deal on my own. For the next 5 months, I can dedicate most of my time towards gaining experience and producing results. If you are an investor with years of experience and proven success, I'm interested in leveraging your experience and knowledge and using it to make us deals and create wealth. I look forward towards hearing from you.

-Gabriel Garces