All Forum Posts by: Joshua D.

@Clancy Catelli

Sadly there is no right or wrong answer here.  I think you need to do what you are most comfortable with.  

Are you saying you can build free and clear? 

If so, What I would do is finish your house free and clear and then get a a $200k LOC on your place that you can draw from at a LOW rate, interest only. This then can be your base to do BRRRR or flips.

Why are building such a fancy place? Can you delay the dream home for a few years to get you way further ahead in your wealth building? 

@John J.

Well to address your mindset I think you are missing a huge factor in your fear of RISK as you have called it.

The biggest question you you need to ask is, how many millions of dollars will I miss out on if I do not begin my investing career.  To me that is WAY more risky than handling some tenant issues.

As far as your parents as renters I think that is a BAD idea!  First off the whole reason they want to move is because rents  are going up. That is a great thing for the landlord in the market rents are increasing! So next year when rents go up again are you going to be able to jack them up on your parents or continue to subsidize their lifestyle because they cannot afford the place... 

what if the stop paying.... you gonna evict them... if you chose not to will Christmas gatherings still be the same? 

Don’t rent to your parents...  but you should find a deal that cashflows and buy it! 

Listen to the podcast that came out this week. It’s got tons of nugets in there for you. 

@Phillip Lanier

We did not get the house.   But we should have. We saw the lady a few days later grabing some stuff from her house. She was staining in her front yard. I was gonna stop but I thought “naaa she prolly won’t want to sell” “don’t want to bug her” “what would I say”  found out a few months later that she sold her house to a stranger for 30k.   

It was worth well over 75 k as is, and now would be worth over 100k. Rents would have been 750 and now over 900...

ALWAYS ASK!!!!!!!!!!!!!

@Mari Tomkins

“Can anyone advise the best way forward to attain financial independence and begin building my own equity , without sacrificing the comfort and security that comes with living somewhere...” 

If you are looking for a simple or easy way forward their is none. Real estate takes a ton of work and sacrifice, but that’s ok! Embrace it and as others have said keep that optimism running high. 

Good luck out there! 

@Joshua Hollandsworth

You can transfer the debt to someone else by selling the car... get a 3k commuter, and 10 years from now when your rolling in greasy piles of cashflow you can buy whatever car you want.

Compounding interest is a butiful thing and it works in realestate as well. 

I like the 10k number that was thrown out.  We had about 6k in the bank when we got our first house hack and I was suprised when a few months later we were down to 4K.  Suprise repairs on the first few months were prevalent.  

We quickly got our reserves back up to 10k and have not gone below that since. 

Once we hit 8 units this past summer and averaging 2 flips per year, we bumped that number up to 25k just to be safe. 

That money don’t get touched. It just chills there for bad days. It’s funny how even when we have bad days now we just cashflow the problems and we hardly ever have to touch the fund. 

I think it is a vital piece to the puzzle. 

well said @Nathan Gesner

Do it right. The. You never have to look over your shoulder. 

@Raina B.

The best indicator of a good market is high prices that are selling.  Aka demand.... I have been to port Huron mi before. Honestly can’t remember what it’s like though. 

Look for good job growth. 

@William S.

We use a LOC secured by one of our free and clear rentals that we buy most of our brrrrrs with. 100k arm 5.5%. Revolving line. Interest only.

Just got approved last week for a 45k unsecured line @ 7% 

They are super handy tools. But you have to be confident of the refi... you really don’t want to get stuck in those. They are just tools. 

Check out my podcast with BP for more info on what we do. 

@Ramsey Blankenship

1. Wake up at 6:00

2. Spend 30 min reading the Bible and praying.

3. Spend the next 30 min reading other good books (mostly realestate related) 

4. Kids wake up around 7... help my wife get them ready and leave for work by 8. 

(I never eat food in the morning)