All Forum Posts by: Anthony Gayden

I have quite a huge student loan debt, which is the only type of debt I have. I would like to get into REI immediately but like to know the smartest move to make.

For those of you who don't know me, I have been investing in real estate since 1999 and I have acquired about 3,000 apartment units (and houses) and I still own 1,000 apartment units today.

I also own 45 houses and several plots of land. And I buy hotels all over the country now.

My passive income in one month is more than what an average American makes in 1 year.

And knowing what I know now...here's my realization that may shock some of you:

Small deals (singe family homes and apartment buildings below 10 units) are not good because...

1.  They don't make as much money...

2.  Too much of a hassle for my team to manage (I have in-house property management and construction/renovation companies)...

and

3. Believe it or not, takes up MORE time to manage than the bigger deals

Good thing I transitioned over to bigger deals...specially hotels.

I mean, my latest hotel acquisition already made $160,000 in tax free income with a $1.7 MILLION investment in just 3 months! And I didn't really do anything.

No stress. This is really passive income. If I die tomorrow, my kids will gladly inherit hotels and they can run them because of professional hotel management and their franchised business model.

That's a true legacy.

In contrast, my houses and smaller apartments...at best, I can classify them as "semi-passive" income. My kids will not be able to manage them and maybe even hate me for even sticking them with "problems".

So, the sooner you can transition to BIG deals, the better.

If I get enough responses to this post, I will answer the question: HOW can one go from a small deal to a BIG deal in a hurry?

I will also gladly answer other questions you may have...

Who wants to go first?

I am from a very small, and poor area. I have bought a foreclose for $19k. Probably worth at 30k. I’m a single mom on low income but save most of my money. I want to build for my future and my daughters. Any advice on how to keep going? Building? I make 2k per month and able to save around $1000 per month. I’m reading, researching and learning all that I can. I put down 5K for the house and got a bank loan for the rest. I want to keep buying and reach 10 houses in a few years!

@Micah Hensley I bought my first 5 properties under my personal name and then did my next 100 deals under a corporation. I always had these 5 deals lingering outside of my corporation because it was difficult to move under my corporation. In hindsight, I would have purchased under a corporation right from the start.

Hello BP. I have been lurking on the forums for years while I get out of debt and save my money. That's done and I'm ready to invest in Omaha or Lincoln BRRR SFH properties. I have one property under contract (close 12.20) and hope to close a second in 2019 (looking for good BRRRs).  Should that happen I'd like to close two more in 2020. I am missing some of my Core 4 and need referrals for Lenders, Property Managers and General Contractors. I'd also like to get on any wholesaler's buyer's lists as soon as possible. I've read that Collin Schwartz has the meetup to attend, and I'll make that happen! Thanks for the help and support in advance.

So I always hated hard money buy I never really knew why , probably because I use to hear so much negative stories about people experience that I never really took the time to really understand how it works so I automatically would shut it down with hearing terms or doing any calculations. But lately I've gotten more interested in learning about it & how I might be able to use it in my strategies in the future . My ideal plan was to save up down payment cash & just purchase a rental here , then another down the road & maybe cross more bridges on the way buy to really be able to hit my true goals for my vivid vision I need to shift my strategy. I want to create cash flow of $5,000/M passive by 2023 from buy & hold real estate. In my projection looks like I would need a minimum of 10 doors that would cash flow $500/door , it looks in order for me to get to that point I may need to look into creative financing & learn more about hard money , Private money , and so I can BRRRR & start my journey of pursuing those multiple doors that will creative that cashflow I'm looking for, which could turn in more like 15 doors that cash 5,000/month of income. If anyone have any pointers or ideas / tips I can use to possibly achieve that, I definitely would appreciate it.

Applicant views a house we just listed. He's very interested and has "cash in hand" to move in today. I know this guy personally because he applied to rent from me a couple years ago. He had a good application but decided to rent from someone else.

Despite my knowledge of his history, his ability to pay, and his desire to move in immediately, I stuck with my process and required him to fill out the application. It took him a week to get me everything so I could process his application. I approved his application and he still hasn't put down the deposit four days later so the house is still sitting on the market.

I had enough information to indicate this guy would probably be a good renter. At the same time, it's a red flag any time someone attempts to convince me to speed up my processes by offering cash and a desire to move in immediately. Sure enough, the guy has an OK record but he sucks at communicating and is wishy-washy about what he wants. This indicates trouble and I'm glad we stuck to our processes.

Have you ever deviated from your process? Did it come back to bite you or did it work out?

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Kansas City.

Purchase price: $100,000
Cash invested: $105,000

This one was my BRRR from hell! Beware that in KCK, the county zoning and tax assessor do not talk. I purchased this originally because it was listing on the tax assessor records as a Triplex. It had however been operating as a duplex for the last 8 years. Just as my contractor was about to start getting the 3rd unit up and running a neighbor came by and told us that the building lost it's zoning as a triplex and was a non-conforming duplex now. After some verification with zoning, we found this to be true.

This threw a large wrinkle in my plan to rehab this and increase the value. But I did not quit. Instead I pivoted and asked zoning and permits if I made the 2 sides of the duplex larger, by making them both upstairs downstairs units, would that work. They said yes, so we fully permitted all the work and ended up doing a down to the studs remodel.

I ended up putting about 185k total into this, with the lending, and it only appraised for 200k after we were done, but the cashflow is nice and I was basically at break even when I refinanced it. In the end, I took two 2bed/1bath units, and made a 3/2 and a 4/2. Rents went from a total of $1,350 a month to $2,200 a month.

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

MLS Deal, Got the sellers to drop from $120k to $100k

How did you finance this deal?

Construction loan with LendingOne, then a refinance with LendingOne

How did you add value to the deal?

Studs down remodel. Transformed two 2/1 units to one 3/2 and one 4/2

What was the outcome?

Great longterm rental property

Lessons learned? Challenges?

Call the county zoning department on all deals