All Forum Posts by: Justin Spaulding

@Connie Miles, I direct messaged you. Check that out and we can setup a time to chat.

Thanks @Alex Franks. Happy new year, have an oustanding day as we close 2015. BE GREAT in 2016!

Awesome man...post some before and after pics if the deal goes through! @Nino Alfano

Nice! @Bill Pennington, go for the 4 unit or larger! So many different ways to do it. But the only way I would touch a single family is if I could flip and invest the proceeds into a 4 or bigger. Excited for you!

Love the fact that this problem doesn't scare you away! Best of luck!

Awesome @Bill Pennington! Have you started to look for deals!? Looking at multi-family, single family, office?

So many ways to skin a cat. I would flip it, invest in a 4 unit or greater and rent that.  What I am looking at doing as using single family houses as flips...I've seen the power of having multiple units under one roof. Flip and take proceeds to make multi-family purchase and repeat. This will be your quickest way to build wealth!!....in my opinion. Great work!

Long story short:

All american college football player. Loved Donald Trump. First investment at age 19 paid me $80 every month through college. Needed a business to take that money and purchase real estate. KILLED IT with direct sales company, AdvoCare. First 4 unit purchase in 2013 - it cash flowed from day 1. TLC has allowed rents to more than double in just 2 years. Now a CASH COW! Second 4 unit purchase in 2014, right next door to first building. Same deal...low rents, poor management, seller wanted out and this time held a second mortgage. Took control of property by writing a $5,000 check. Removed a hoarder in unit #3. Fixed up the place. Rents have since doubled after 1 year...cash cowS!

At 26, I now make a 6 figure income from my direct sales business on 15 hours a week - and its growing. I have numerous others who want to invest in my next project. I will be closing on 8 units across the street from my current 8 in 30-60 days and working on acquiring a 32-64 unit building in 2016.

My goal in real estate is to own 50,000 units at a 12% return/year.  Look forward to engaging with you all, and to hear your stories!

--Justin

Hey guys,

Question for ya'll to stab at.

I bought a four unit in 2013 for $210,000 ($10,000 sat in escrow for repairs) and the rents were at $500. We did the repiars and now the 4 rents are up to $640. (Leases are up in a few months and rents will be raised).

I bought my second four unit (right next door to the first) in 2014 for $190,000. The rents were $420 per month and one united needed complete remodel. We have since raised the rents in this building to $650, $775, $725, and $725. 

We obviously are cash flowing like crazy and have some hidden value in these properties. The appraisals have been messed up. They only go off previous purchases which we are the only people purchasing so they value off our previous purchase price even though we have turned them around.

I know there are numerous ways to value this cash flow and these properties. We use the gross monthly rents multiplied by 100 as one way to value but then we also have a financier who is involved in both buildings who adds up YEARLY rents and gives it a Gross Rent Multiplier of 9.2.

Just curious as to how you guys who are in the same boat as me put a dollar value on these.

Thanks!

Justin

(P.S. I just joined Bigger Pockets, and this thing is awesome!)

Thanks guys!