All Forum Posts by: Joel Florek

@Raj MulchandaniThank you for the words of caution. I completely agree. I have been rehabbing my 4 unit over the past 8 months and have added a bit of value into that property. Needless to say when I went to buy the 16 unit the banks suggested refinancing that property to pull out the equity I had available. I didn't.

 My goal is to the best of my ability not touch my equity in other properties and focus more on creatively financing the new property and being frugal to get what is needed to close the deal. If its not a good deal standing on its own under the financing structure that gets put in place then I shouldn't be doing the deal.

Plus, if I keep the properties with the same bank they look at the overall portfolio. So there is no reason to increase my transactional costs by moving equity from one property to the other.

That being said I kept my owner financing portion amortized at 10 years rather then negotiating to push that out. While it hurts my cash flow initially, it forces rapid principle pay down and in 3 years I will be in an LTV position that allows me to refinance under more normal lending standards.

@Jack ChuTake a look through the pages. I detailed some of the cash flow analysis and financing structure in a few of my replies. Ill be sure to just do that in the primary post in the future! 

@Luka MilicevicThanks for the comments! This is what keeps me going when I see people reaching out to give their good wishes. 

@Tristan CortezThanks my friend! Its been a lot of fun through the closing process and very fun to see people read my story and comment back! Much appreciated. 

@Ryan HeywoodHappy to hear! I always got inspired through others stories and of course still do. Its how we push ourselves to keep moving forward. Seeing everyone post back on this gets me excited for the next deal so I can put another story up on the forums! 

@Scott Rosengrants@Joe Splitrock

Agree with both of you. And I put the "22" in the title in the hopes that others who might get discouraged by those who push back on the youth piece might take my successes as a boost of courage to take their leap of faith into trying to achieve the goals they have for themselves. 

@Joe SplitrockThanks for the comments. And I agree with you on the young part being an advantage. I found that all the people I dealt with saw me work hard, prepare material and almost seemed more willing to take a risk on me. On paper I dont have a long credit history, track record in business, or many assets. But when I walked into the bank and had a presentation ready to go on the property the local branch president told me I was the first investor who had prepared any sort of material for the investment property. 

And I am single. One day Ill stumble upon someone hopefully. But for now its build build build so I can travel the world and not stress about how I will pay for the next flight, hotel, or meal!

@Brie SchmidtHey, thanks for the post. Its amazing to see everyone hop on and comment on a post after so many months of hard work to close a deal. So happy to be apart of this community! 

@Victor N.I certainly hope to keep closing deals so that hopefully @Joshua Dorkin@Brandon Turnerwill invite me on someday. Its actually one of the goals I have that I use to push me to try and do some cool/creative deals. I had an investor come speak to a college entrepreneurs group I was apart of a few years back. He dropped out of school to do real estate and probably has 80 units now all as new construction. Hearing his story was a big boost of encouragement and inspiration for me. I can only hope that I might have an impact on others like he had to me. 

@Shelby PrachtCongrats! I hope to be in your position by 27 as well. I am looking for a little more monthly income but just hit 20 units and I turn 23 in a month and a half.  My cash flow is now at $1500 to $2000. My next task is to set up my systems that will allow me to step away for months at a time and only have to answer a few emails or phone calls as needed. It will take time, but thats why we start young right! Thanks for the post and super excited for you and your husband!