All Forum Posts by: Jon Kelly

@Lynn Anthony you're pretty good at finding excuses and reasons NOT to take the leap and become an active real estate investor. 

For someone in your situation it sounds like being a passive investor would be good. Look into real estate syndications to earn 6-12% annually. 

@Josh Ridgely you will refinance based on the current market value of the property (e.g. $140k). You have the option to select the amount you will borrow. Most lenders these days allow up to 75% LTV (some still allow 80%). Assuming you go with 75% LTV your loan amount will be $98k. Your rate will be ~6% or whatever the lender is charging.

You're deciding between the age old question of "debt" or "no debt." Using debt will increase your overall ROI assuming your interest rate (e.g. 6%) is lower than your annual return. You're young and can live with a little bit of risk. Use debt. Use the $98k to repeat the process.

@Kaustubh Johri as many as it takes to close a deal 

@Shane Burlingame My qualifications were 12%+ COC return and $200/month per door. This doesn't even take into consideration the tax benefits, appreciation, etc. It's different for everyone, but I tried to keep it simple.

The best way to learn the average return in your market is to analyze deals! Analyze deals over and over again. You can share your results with local agents, investors, or on BP to get feedback. 

@Jason R. Besanceney work and live slightly below your means. Pick up a side gig (e.g. real estate agent, wholesaler, etc.) 

@Eric V Harding reread your first 2 sentences again. They are completely contradictory. 

Your goal has always been to start BRRRRing? Now you have some cash and the first thing you are going to do is the complete opposite of a BRRRR?

I'd reconsider the strategy. A lot of good posts on this thread for you to follow. 

@Leo R. you kind of answered your own question throughout your post. Prices are up. Inflation is real. Interest rates are rising to help cool inflation. 

We've had numerous cycles throughout America's young history... The average cost of a loaf of bread is still $2.5. We have a long ways to go to get to $100/loaf 

@Matthew Palacios either are great options. Underwrite both deals and let the numbers guide you. Take the emotions out of it

@Ashley McWilliams you're in the same boat as 99% of the other real estate investors... Everyone is busy, but we just got started. 

Find your market, connect with a local agent and start making offers! 

@Robert Reynolds try it yourself and see how it goes. I would also network with Property Managers who can take over if/when you decide to switch. You don't want to be in a position where you are desperate for help and don't know where to turn.