All Forum Posts by: Lionel Mosby Jr

Hey Norb, I'll second what Matthew said. There are others who've been down the path you are looking to thread right now. So connecting with them can help you shorten the time you'd need to put your team together. Of course, there's nothing that brings out the real estate community like a good deal. Having one can bring a lot of quality resources to your door step. I'm also a big proponent of Facebook REI groups. I've connected with multiple good people through that resource just as I have through BP. I would use both of those to your advantage.

BTW What made you choose Houston as a target to invest in?

@Deisy P. I have a friend who did a fix & flip deal last year and got conned by multiple contractors ON THE SAME HOUSE! He could have definitely used "the woman of the house" to use her intuition and keep him from dealing with her. For a while after that project he was in a place to quit, but now he is back ready to go and we understand he just needed a partner to handle where he is weak. I say this to say...

You are currently in the valley of despair and success is the next phase IF you don't give up here. This is where many people fall off and lose the opportunities that are in their grasp. I would encourage you to take a deep breathe, enjoy a few days with the family & friends this holiday season and then walk through what happened & identify the actual problems. From there contemplate who or what could provide a solution for your problems. I believe what you have experienced just shows you why you need to build a team. Synergy works wonders. Don't use this to give up. Use this to find a couple or two in your area who are managing properties. Build a relationship with them, pick their brain & ask them how they manage contractors. Use this situation to find that one contractor that you will refer out for the next 20 years of your business. The one who has the highest level of integrity and who feels more like a partner than a highered hand. Most importantly, use this situation to build rapport with other investors and strike strategic partnerships. I know you won't give up and therefore I know you'll reach success soon. Blessings on your endeavors!

I sent you a DM!

@Ronnie Galindo I know you "feel" frozen, but definitely take a moment and recognize the work you have put in thus far. You have been educating yourself by listening to the podcasts and reading books. That's a HUGE part of preparing yourself to be successful. You know your financial position already and you have started building a team in OOS markets. Bravo! Now, based on where you are at I would suggest you both 1) knuckle down, pick up overtime and save for the next 6 months, 2) start virtual wholesaling & 3) look into rental arbitrage. Leverage those connections you have back into partnerships & joint ventures on distressed properties you find in the two markets you are looking to jump into. Most of the strategies you would be using as a wholesaler to find distressed properties can be implemented while you reside in Cali as much as in the actual market. Partner with someone local to verify the condition of the property, market and collect the assignment fee. Also, short term rentals can be very profitable if set up right. Use a portion of your funds to rent a small condo or apartment in a market with great returns. It will cost some cash to furnish the place, but the returns could more than cover what you put in and it can become a nice cash flow to help you fund other deals.

Also, with your brother, you have a total of 40k. if your brother is looking to do a deal with you then why not go in 75/25 with him? After the flip is done, he gets his 30k = 75% of the profit and you get your 10k + 25% of the profit. I always believe synergy and partnerships is how you really scale. See if you and him can get on the same page, draw up the agreement and then you can fix & flip a few properties with him.

Either way, blessings on your real estate investing endeavors. I'm here if you ever need any assistance.

 Thanks for that information. Very helpful in making a determination of which route to go in.

My dad has two properties in Louisiana that he acquired years ago in his early thirties which are both free and clear. Both of the properties are rented out currently (home #1 on month to month for $400/month & home #2 on year lease for $550/month). My dad is older now and wants to be done being a landlord & being called upon to fix minor problems here and there, though he does still love the cash flow they bring every month. Each of the homes are older & would certainly need a lot of work, but I was wondering if there was any possibility of me working with a lender to pull funds out of the two properties as-is and then using those funds to toward acquiring another investment property? I believe the current value for each of the properties is under $100k (home #1: $50k/home #2: $70k). Has anybody dealt with a situation like this before?

What type of financing are you looking to use for the property you want to acquire? All cash? Hard money? Traditional bank loan?

Hey @Leroy Williams thanks for providing this example! I'm really interested in understanding subject to deals better. 

I do have a few questions regarding this deal. 1) Why did you have her restructure her loan and can you provide the structure for it before and after? How did restructuring affect the past due balance? 2) The $5,025 that you invested in the deal. Did that money go straight to the home owner for the purchase of the house or what? 3) The $204,000 is the price you purchased for or the ARV for the home?

Thanks for the help and much success on your future endeavors!

Gotcha! I appreciate the response.

@Brian Pownall Welcome to BP and the wonderful world of Real Estate Investing! Multi-families provide great opportunities to build your door count quickly and create an abundant amount of cash flow. I will say that if you are unfamiliar with renovations start networking with experienced rehabbers in Houston who you can partner with on your projects. Many multi-family units in Houston are badly in need of an overhaul in order to get you top dollar in a REFI situation and in order for you to rent the units out & cash flow what you want from each door. You're starting at a good place here with all of the knowledge available.