All Forum Posts by: Josh Young

@Justin Fantazier are the points, fees, prepayment penalty, balloon and amortization schedule all the same and just the rate is lower? All of those other terms and details can make a big impact on the rate..

Investment Info:

Townhouse buy & hold investment.

Purchase price: $200,000
Cash invested: $48,000

Bought for $200k with 10% down private money loan and put about $22k into the rehab, new floors, paint, appliances, fixtures, and artificial turf.

What made you interested in investing in this type of deal?

This was a perfect little project that didn’t need too big of a rehab, but enough to really to look nice.

How did you find this deal and how did you negotiate it?

This was an off market deal from a reputable wholesaler who I’ve bought from before. I didn’t negotiate, it was a good enough deal that it would definitely sell same day so I jumped on it.

How did you finance this deal?

A private money loan with 10% down and I paid cash for the rehab.

How did you add value to the deal?

I spent about $22k on new floors, paint, scraped the popcorn ceilings, new appliances, new fixtures, and artificial grass.

What was the outcome?

It took about 6 weeks to finish the rehab and 2 days to get it rented out. I’m working on the refinance now and should have that done next week.

Lessons learned? Challenges?

I did some of the work myself, which really enjoyed, but took me a little longer than I thought I did take away from some other things I had going on, so I’ll probably hire out more of the work next time.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I’m an agent myself and love helping others with these type of projects; my wholesaler, private money lender, contractor and refinance loan officer are all superstars!

@Ying Tang

There are lots of good deals here in Arizona, it’s just not as easy as it used to be so you need to have a little more capital since interest rates are higher than they were. Our fundamentals are very good though, population growth, job growth, lots of development, and very low property taxes. My top books are:

Rich Dad Poor Dad

The Millionaire Real Estate Investor 

The Richest Man in Babylon

@Anthony Barragan

I live in Gilbert and own five rentals here, I also manage rentals for other investors and represent buyers and sellers as an agent. I have some time this week if you want to connect, I'd be happy to talk with you and give you some advice/guidance. The first thing in your situation that comes to mind is why don't you keep your current home as a rental and buy another primary residence using a low down payment loan. I know everyone's situation is different and we can talk more about it, but I've done this several times and it really can be a great strategy. Call or text me anytime and we can meet for coffee.

Calling all aspiring real estate investors! Join us at the Gilbert Real Estate Investors Meetup Group for an informative session on the fundamentals of real estate investing. Whether you are new to the game or looking to expand your knowledge, this event is perfect for those eager to dive into the world of real estate. Learn about different investment strategies, market trends, and tips for success from experienced professionals in the industry. Network with fellow investors, ask questions, and gain valuable insights to kickstart your journey towards financial freedom through real estate. Don't miss this opportunity to take the first step towards becoming a successful real estate investor!

@Ashley Chris

Having an LLC won't necessarily help you with problem tenants. The best thing to do is have proper screening processes in place to help reduce the potential for problem tenants. I would think that self managing from out of state would make it very difficult to meet potential applicants and to do showings, it could also make it more expensive to handle maintenance requests if you don't have boots on the ground. Have you only tried big management companies or have you considered using a small property manager that is also an investor?

@Simon Delony 

My wife is my partner on all of our deals, that doesn't mean that she is involved in much or any of the day to day, and she only listens to the podcast if I have it on in the car, but I do run everything by her and explaining deals to her and asking if she is good with it makes me understand the deals even better. 

Since your wife will probably never want to learn as much as you do about real estate investing I would use it as an opportunity to really make sure you understand it by explaining it to her, if you can teach it to her you will gain a much deeper understanding for yourself.

My question is though, if you want to be a real estate investor, why did you sell your only real estate investment to become a renter? You don't build a portfolio by selling. I would recommend that you start with buying a primary residence using a low down payment loan, like a 5% down conventional loan, live in it for a year or two and then keep it as a rental when you go and buy your next primary residence using another 5% down conventional loan. Keep buying properties and borrow money against them, don't sell them.

@Rene Sherwin 

I just sent you a DM, I own 5 SF rentals in Gilbert and also work as an agent and property manager, I’d be happy to help you. Feel free to reach out to me anytime.

@Bryce Miller

Welcome, and congratulations on making the decision to leverage the owner occupied loan to get started in real estate investing. I have built a portfolio using owner occupied loans and I also help other investors do the same. The first step is talking to a lender and getting pre-qualified. Then generally the best advice is to buy in the best area that you can afford, even if the cash flow isn’t as good in year one you will get more market appreciation in equity and rent growth in the better area. From there once a deal makes sense, pull the trigger, a lot of folks get stuck in analysis paralysis and I’m not saying don’t do your due diligence or be smart about it, but acting quickly and with intention will benefit you greatly in the long run. I’d love to help, feel free to reach out if you want more advice/guidance.

@Shiloh Lundahl

Your posts are always entertaining, the banter cracks me up. A while back you ripped on my style of slow and steady long term investing in buy and hold real estate with low down payment conventional loans because it's not as fast as your style and the potential of cash on cash returns isn't as high. Your model of fix and flip with lease options does have big upside potential, but also has more risk for most people starting out, and you have done great at scaling your business, so no doubt having you in the deal does mitigate a lot of that risk. My question though is why do you want to bring on equity partners? I understand needing more capital to scale, but why not bring on debt partners and keep more upside for yourself?