All Forum Posts by: David J.

How are other folks getting 20 loans?

 Yeah well NorCal is literally ON FIRE.. the air is so smokey, But, that would be off topic. 

I get your point though. I like local because I love to be in the property and keep and eye on it. It's rough because I happen to be in a very expensive market.  

 I have heard of joint venture investments like this. I tried finding youtube videos on the subject because I have lots of questions. Like, Who is on the loan?   This kind of deal likely will involve lots of trust with a partner.  I tried something like this with a girlfriend who is now an (ex) and got burned but I think the personal relationship was the mistake in that deal.  

It's a great idea, that I need to think over more.

Do you think in the long run, the terms of a commercial loan would set me up for success better than hanging onto great 30 year loans at low rates? Would love to hear your analysis, as this could be a great idea. That SFH 5 cash flows like a beast.. Maybe I sell 4 of these and get an apartment out of California? ..

Small apartments in California Cost $2 million.. LOL

 Single Family home 1,2 and duplex were all purchased within the last year. Duplex I have only made 1 mortgage payment on so far. (It's new and I am hoping to raise rents soon) 

where SFH 5 was purchased in 2012. I wish deals like SFH5 existed now but I think it's near impossible to find them at this point. I guess I could sell a bunch of stuff and wait with dry power for the market to tank. But then I am realistically just taking inflation kick in the teeth. Not sure about all that. I have made myself crazy trying to figure this puzzle out which is exactly why I am turning to this forum for advice.

Thank you :)

 I think the next loan (#8), the reserve requirements would be %6 ~$125,000. Plus I would need a down payment. Let's assume 25% of $400,000  which is another $100,000.  So I would need about $225,000 dry powder to get 1 more loan. 

Even if I could pull this feat off by some miracle, This won't get me to 20 homes. Much less, how on earth would I get 9 or 10? Not even considering I am hard capped at 10 by Fannie/Freddie. 

At this rate I should achieve financial freedom at approximately 212 years old :( 
(this isn't working, which is the problem)

Hi 

I am having trouble breaking though to the next level (and trying to not become discouraged).  I managed to secure 7 loans with my own money and now I am mostly out of money (and options?)

With each loan acquired, the next one is more difficult than the last. Now I am hitting road blocks such as LARGE reserve fund requirements for each prior loan in order to secure a new loan.

I have heard of people getting 20+ loans and using BRRRR, but I don't know how to get over the hurdles to make this happen. Firstly, seems the lenders won't give out more than 10 loans, and reserve fund requirements are massive!

I am going to share with everyone my actual portfolio numbers and kindly seek your advice. I want to achieve financial freedom and I need to get to the next level somehow. 

Attached are my actual numbers- All on 30 Yr fixed ~< 5% rates

(all in NorCal market). Please give me your input or ideas. 

What would you do if you were starting now right where I am at?

It's one of those things where most people won't care until it happens in their city. :(

I did! I bought the renters portable ACs and called it a day.

Exactly, this kind of stuff is getting out of hand. Where does it  end? 

Each time a city over spends and runs out of money they keep turning to the "greedy" landlords to squeeze. 

Soon enough, the real estate model won't be worth effort. Other investment (non real estate) opportunities look more attractive as time goes on.