All Forum Posts by: Joe S.

In my own case, I'll be putting the $1M in Crossing 5 from BAM capital. That's what I actually plan to do IRL. This is just the latest deal due diligence has been completed on, I've got no financial connection to the project. I like ground up multifamily development, and participating in such projects as an LP. Love addressing housing shortages. This will take me from 2200+ doors to 2500+ doors as an LP.

After 15 years I can say I am successful in Real Estate.  I have a Brokerage, multi million dollar Construction company, Property Management company and a sizable portfolio.

Here are the Ugly Truths about Real Estate I have learned along the way: 

1. You have to sacrifice years of your life.  When I first started I worked full time and invested on the side, before going all in on investing and building the business.  Those days required 60-100 hour work weeks and almost all of the work on Real Estate was done nights and weekends.  The idea that you can be a start up investor, be passive, and be rich is false.  Bootstrapping in Real Estate is the furthest thing from passive I have ever experienced. 

2. Our team started as a rag tag bunch of laborers that specialized in trash outs, cleaning toilets (that was my job), and painting. Now our rag tag bunch characters are doing full home renovations, apartment complex's, and large scale construction jobs. Through it all we have had the same core team members driving the team forward, and have experienced (even through Covid), almost NO turnover!!!

3. BRRR investing is not for newbie's. Its highly complex and your unknown-unknowns will absolutely crush you. I HIGHLY suggest the house hack strategy for new investors. Yes its a lot of work. Yes moving sucks. Yes its not sexy. However, its safe and achievable. You need a strategy you can pull off.

4. Investing in Real Estate is RISKY. Lots of rosy colored glasses in this industry and people telling me how safe Real Estate investing is. From 2010 to 2015 Real estate investing was fairly safe and it was tough to lose. With labor costs skyrocketing, interest rates up, and inventory low, its very hard to invest in Real Estate now. Lots of investors lose money, don't kid yourself that you can't lose in Real Estate. Sometimes the CapEx and cost to maintain properties well outweighs the income and investors absolutely end up selling for losses.

5. Investing long term is a wealth diversification strategy, not a lifestyle decision.  If you come into Real Estate with the mindset of your life getting easier, you have more wealth, and less cognitive complexity you are going to fail quickly and miserably.  You need W-2 income to invest.  You have to work off  hours on investing and instead of relaxing at night you will be staying up late crunching numbers and learning.  The reality is if you get 20 doors you will retire in your 60's far better off than you would have without those doors.  Acquiring those doors requires you to live below your means, save precious Capital for your investments, and work your A** off in your free time. 

You can become a successful Real Estate investor, but the amount of time, effort, elbow grease, and the realistic chance of losing principle should not be underestimated.   

Ok @Austin Fowler you really want to know what I'd do if dropped $1m liquid in my hands and I gotta utilize it in Real Estate, even though all of 7 people on BP will comprehend it...... 

About $5k into website, 2 VA's and system.

From there 1 VA calls on active buyers agents in designated markets presenting pitch to fill my calendly.

From there I pitch my C4D program for "nearly financed" buyers. When the buyers agent get's leads, works em, and finds there buyers are oh-so-close to approval but not there, they can still earn that commission via my C4D program. 

Everything would revolve around "median" world of things. 

Required minimum down payment is 20%. No exceptions. Everything else, there would be guidelines but just that, guidelines and negotiable whereas down has 0-flex. 

All app's via website. Va#2 process's per training. 

Buyers get a pre-qual budget. Buyers agent then helps them shop for such. When they find the right one, buyers enter agreement and post held escrowed down with me. Buyers agent submits PA, myself as buyer. 

At end of day, it's infinite investing, because when closing is done and all $ has cleared I am personally $0 into any property, that $1m was simply used to launch the biz and then to leverage to landing the PA's. 

The tenant-buyers financed the purchase via there down, which I utilize to unlock financing on the purchase. I would be using portfolio lending on DSCR underwriting, cross securitized by, you got it, the giant pile of cash sitting in an account spinning round n round.

Now being C4D buyers there is 2 spreads. First is on purchase price, second is interest rate. 

I only have to capitalize risk exposure, overhead and profits because I have $0 invested capitol. Thus a small spread can equal sizable returns. 

Now if you understand the math here, buyers doing 20% down on a buy price that has a profitable margin built in, then you understand how it would be more then 20% on my actual purchase. Probably more-so 30%. 

In summary, I wouldn't deploy 90% of the $1m, I would leverage the lions share of the $1m to unlock infinite returns via OPM. 

And I am now well liquid to cover any potential default issues if such were to occur. But being "median" focused and with C4D buyers who put 20%+ down aka significant skin into it, well one would have to chop off there own preverbal legs to give me a bloody nose. And I'd be well liquid to more then amply take care of any bloody-nose. 

My risk exposure would be less then that of standard landlording, as the tenants would have far more securitization. So risk wise, it's a low-risk strategy in real estate. 

And end of day, everybody is winning, the agents win, the end buyers win, and I win. 

The trick to it all is setting and keeping good fences. 

100% of C4D's I have seen blow-up have all had the common component of neglect on behalf of the investor. Selling to persons they shouldn't have, under securitizing, not keeping strong fences. 

There ya-go Austin, that's what I'd do. And I'd dedicate as-much-as 20hrs a week to it. I'd fund my va's for 90 days and from there forward I'd require the venture to self-fund all operations from revenues. And that would be my "stop-loss". The moment it stops self-operating, I'd end it, regardless of a causation. 

Thus preserving my capitol. 

 Hi Jakub, I also like mixing single-family long-term rentals with passive multifamily. I don’t personally focus on specific markets, rather I like diversity. I have assets in AL, AR, CA, FL, GA, IL, IN, MA, MO, MS, OH, OK, PA, TN, TX, WA, and additional assets in Australia, Canada, and Brazil. When it comes to single-family, I like cash flow, so I’m not buying at the moment because both prices and interest rates are too high relative to rents. When it comes to multifamily, my due diligence starts with the operator. I like publicly discoverable operators that you can find easily with a Google search, managing hundreds of millions to a few billion in assets, with a focus on single assets, not funds, at least 10 years of experience in their current form, at least 10 buildings taken full cycle, an excellent track record of delivering outstanding investor returns throughout their history, and deals on offer that are similar to the deals they have completed successful. I like ground-up development, particularly affordable housing, and my ideal deal is building the last multifamily community in an otherwise built out and bustling neighborhood with lots of entertainment, transport, and employment diversity.

He got me...... I hadn't noticed this at all, wow..... I shouldn't feel dumb for falling for it, what I shared is valid and true but I do feel dumb for falling for it.... The 1 time I don't research the poster before reply........

 I dont believe they have 5% rates for any loans, much less fix and flip. Ten yr treasury is around 4.3% right and that's risk free with high liquidity and a tax advantage. No shot that some private loan at 5% isnt a trap of some form. 

Hello,

My company manages a little over 100 residential and commercial properties we've grown this number mainly by referrals through our brokerage. The problem we have run into is inventory, it is extremely low. I have tenants reaching out to me asking about homes I have rented and if I have any others and it is discouraging to have to turn them down when I know they are quality and would be great. 

My question is how are other property managers growing their portfolio?

Renting out the properties is not a problem, but finding new landlords is. This has not happened to our team before and we are trying to figure out solutions.

If you have any ideas, anything at all, I would love to hear!

Thank you,

Madison

Firstly you should ask more questions before you make assumptions. It’s extremely unprofessional of you to assume without asking the proper questions. I see that you are a lender and have experience but lack the knowledge of the company I’m a white label with and it’s making you feel you know my business better than I do. Not sure if you’re trying to get points on here or how that works. However I specifically mentioned what OUR program offers thing most lenders do not “creative financing “ if you’d like to connect on a professional level I’m available but I do not go back in fourth it’s unprofessional. 

I purchase a property recently subject-to, and got the deed to the property.  I'm planning to hold it long term. 

Though I have the deed, I'm wondering if I should go ahead and 'file it' with the county.  I haven't cured the default on the mortgage yet (it was 6 months behind, and in default).  

I have considered just wholesaling the property as well.  

Are there reasons I would NOT want to file the deed?  My thought is that having too many properties in my name could be a problem.  And/or that having the property change hands too rapidly (I file the deed in my name, then sell it soon after) could create various kinds of problems.

Also if I file the deed, then need to Quit Claim the property back to the seller, could that create weird title issues that creates a liability for myself and/or the original seller?

Thank you very much for your help!

Hey Jason, totally get the skepticism but this really did happen—I haven’t even deleted the post so people can see it for themselves: https://www.facebook.com/Broker.Jorge.Vazquez/posts/pfbid02UETqYVorUx7b9i35aEYQDTC3XCrHcSsYmzpuEXUpSHcW9C7ArfXd32U5wsXRQ8B1l?rdid=XHd10dAtcXu2qnWj. Check out all the Facebook accounts involved, it’s crazy. All of my stories are real—either they come straight from me, from one of my 75 agents, my database of 25,000 investors, or my wholesaler partners. I only write real stuff because I love educating and writing—been doing it for over 20 years and probably enjoy it even more than real estate. Thanks for reading my content… do you write too?