All Forum Posts by: Jonathan Chan
Jonathan Chan has started 30 posts and replied 130 times.
Post: Best Strategy for Starting Out in Real Estate
- Lender
- Clermont, FL
- Posts 143
- Votes 78
Quote from @Doug Kirk:
Newbie in the North Central Ohio area (Lucky me) who hopes to have about somewhere around 6 digits near the new year to start out with and cannot decide which way to go. I make good money and am single. Goal is to try for 8-10 Properties and try to leave my W-2 in 3-5 years. I can't decide whether to be aggressive on buying and paying down one or spread on a couple and pay down slower. I want to limit my risk as not knowing where the economy may be going.
Have you looked into becoming a lender? I honestly wish I had done that before accumulating 30 doors.
Post: Looking to Scale
- Lender
- Clermont, FL
- Posts 143
- Votes 78
Hi, any fix and flippers in here picking up at least 1 project a month?
Post: Turn key or BRRRR
- Lender
- Clermont, FL
- Posts 143
- Votes 78
Quote from @Joey Samudio:
I am looking at doing my first remote deal. I am considering BRRR as well as just purchasing a turn key property that cash flows. Any recommendations on how to proceed?
If I go with the BRRR strategy would love to hear some tips on how to successfully manage the rehab remotely.
Do the BRRRR. You'll make mistakes but you'll learn so much more than buying turnkey. Pick a market, go onto Zillow Agent finder, look for reviews that mention something about investments, call the person to make sure they invest themselves and go from there.
Post: Biggest Lesson Learned?
- Lender
- Clermont, FL
- Posts 143
- Votes 78
Hi All, what's been your biggest lesson you learned after getting into real estate. I'll go first. I had a W2 I wanted to leave and thought that owning 30 rental properties would be enough to retire from corporate life. While I was able to leave my job after 30, it hasn't been comfortable. Focus on creating active income and use LTRs to shelter your money.
Post: Fix and Flippers and Gap Funding?
- Lender
- Clermont, FL
- Posts 143
- Votes 78
Are there any fix and flippers in here who are doing volume? How do you find reliable GAP funders?
Post: Is Pace Morby a Scam?
- Lender
- Clermont, FL
- Posts 143
- Votes 78
Quote from @Tanya Maslach:
Quote from @Jonathan Chan:
I'm actually in the subto group and it's not a scam. I'm curious to see what experiences Mike's had within the community. I'd be happy to jump on a call or even a zoom to show you what's available.
I would love to chat with you. I'm actually considering that Sub To community now. Along with another. Would be great to chat and learn how you've done since joining.
Just sent you a request to connect
Post: Pace Morby Subto Mentorship
- Lender
- Clermont, FL
- Posts 143
- Votes 78
Quote from @Ralph Godwin:
Johnathan, does the pace Morby way ever require a private lender in 2nd position? Or do you ALWAYS get the seller to carry?
There's no specific, one way to do anything. The methods taught and talked about are just tools to be used. You can bring in a 2nd position lender, you can use your own funds, you can try to get the seller to get you 0% down....it really depends on you and your situation. I hope that helps....
Post: Pace Morby Subto Mentorship
- Lender
- Clermont, FL
- Posts 143
- Votes 78
Quote from @Brad Dubis:
@Jonathan Chan I'm thinking about joining the mentorship program as I know somebody else (year in) who's having great success.
Would you say you made your money back on the upfront cost within a year of your membership? Would like to know what I'm realistically up against. This would be a pretty big investment in myself.
It's hard to say within a year. It takes a different amount of time for each person. What kind of work are you willing to put into it? I'd say that this is the best program I've ever been in and whether it's 1 year, 3 years or 5 years before you "earn" your money back...it's worth it.
Post: How did you buy more rentals without crushing your savings account?
- Lender
- Clermont, FL
- Posts 143
- Votes 78
Quote from @Masud Khan:
Looking for advice on growing my rental portfolio without crushing my savings account in this market. I have two rentals, both cash flowing and purchased 3 years ago with 25% down and at the record-low interest rates. Looking to expand my portfolio of rentals, but minimizing eating into my savings account for a 25% down payment each time. For those who have successfully moved from 2 properties to a third and fourth property, what strategies worked for you? A few options I hear (on paper).
1) sell the existing units and 1031 into a larger unit property. This is the advice in every textbook, but hard to stomach in this market because the cash flow is good and interest rates are low on the current property. I would like to keep those and expand my portfolio.
2) Find a fix and flip with 100% financing, using a HML. Then refi into a 30 year.
3) Achieve 100% financing via a HELOC from equity in the current rentals? Not sure a traditional lender would offer a mortgage on 80% unless I bring 20% down.
Any and all suggestions are welcome!
Great question. I started out self funding and then started doing the BRRRR method, however, but fixing up fixer uppers got old, fast. I'm now buying rent ready homes for section 8 off the MLS using a DSCR loan for 80%. The other 20% is getting raised through private money lenders at 10%. The caveat is that I still need to cash flow at least $300 per door after PML interest only payment, saving for R&M, CapEx and vacancy as well as PM fees and the DSCR debt service. It's harder to find, but they're out there.
The term I've been offering is 1 year but I'm going to be only taking on PML at 5 year terms. The first question people usually ask is what happens after that 1st year and you have to pay off the PML? You have a couple options, you can ask the PML to reup for another year (two of my PMLs just reupped a couple months ago). You can also use that year to continue to build your list of private money lenders and just replace the old one with a new one.
What do you need to do to protect your lender? You need to make sure they're protected with a promissory note, personal guarantee, a lien on the property and title insurance. Your lenders should never send the money directly to you. Everything should go through title to ensure that it's all recorded with the state. Hope that helps!
Post: Is Pace Morby a Scam?
- Lender
- Clermont, FL
- Posts 143
- Votes 78
To each their own....doesn't mean we can't do business in the future.
I'll DM you my phone number. Let's connect.