All Forum Posts by: Mo Farraj

@Paul G. Thank you for the comment, I think you should firstly take a step back here and not make too many assumptions. I've traded over 7 years now, you believing I don't know Toys-R-Us is private is absurd. I apologize if I wasn't clear in saying private investors, but I thought you were a bit out of line here.  Working in the industry now, I have learned about every single thing that can wrong in your investment, and trust me - some things are just beyond your control. My point here was, random news flashes by me multiple times every day. These random news event can make the market swing at uncontrollable levels. Compare the types of things that can effect your stock investment, as compared to what can effect your property investment, and imo stock investments are much riskier. Algorithms have taken over stock trading, even watching the news cant help you from these millisecond drops and changes in stock prices.  

@Desmond Price Hello, hope all is well. I can share some knowledge in the stock investing side of your question. I've been trading for over 7 years, and also work in the field. Imo stock investing is one of the most risky and dangerous types of investments. Companies go bankrupt all the time, unexpected news makes headlines every other second, and these random events can make or break your account. Though stock investing may seem glorious now, I've seen countless people loss life times of wealth because of a random unforeseen event. Real estate can be measured, and hedged against in an easier and more effective ways. Sure in RE unforeseen events happen, but not at the degree in the stock market world. How do you think investors in Toys R Us are feeling right now? Did you expect that?

 Not sure where the properties you have seen go for $100-200, but that all depends on area. Im new to RE as well, Ill let the other professionals on this help you with the cash flow details. Let me know what you think.

Thanks,

Mo

@Rafael Norat Appreciate the response man. Ill try and find some local REAs to attend. I see you're an investor in NJ. This is one of the areas I am shooting toward to making my first flip. Any tips/advice in your experiences with Jersey? Any areas to look for or avoid at all costs? Thank you

@Will Barnard Thank you very much for the reply. I agree with you on that. I don't want to be stuck with a home in the middle of nowhere just because it is cheap. Relatable to my stock trading past, you never want onto hold cheap worthless stock just because its in your current budget and you are hoping for a home run. I will take your advice and look for the in-between while I grow my network and net worth. I appreciate your help.

Thank you very much for the reply @Will, thought that was a very entertaining yet knowledge rich comment. I feel like growing a private money investor network would be a bit challenging at this stage. Don't have much experience with flips, why would people trust me with their money trees? In addition, the houses I want to start to flip are not the most luxurious, and also in not in the most dense/populated areas. They may seem unattractive to a lot because they might not sell too quickly. I want to target these spots (upstate NY/ jersey) just to get the swing of things. I won't spend too much of my money, but in turn would get the ball rolling for myself. Or do I have this game all wrong? Should I go all in for private investing, and look for expensive city flips? What are your thoughts on how someone should start. Should I go the slow route and do the upstate NY/Jersey things with less traffic for a while until I'm ready for the bigger stuff? Or should I push all my chips in?

Thank you for the reply Jaysen Medhurst , really appreciate it. So I'm only 22, just graduated school and lucky enough to score a great job in Finance. To answer one of your questions - I'm fortunate to say my credit is really great. As of right now I don't have all the money in the world. For now I'm shooting for upstate/Jersey. Some of the ARV go for right around 100-150k. Since this is my first project I don't want to bite off more than I can chew. I was hoping to invest 20k of my own money. I don't want to take on a project too large for my budget, and also too time consuming. What worries me the most is the below. 1. If I only invest 20k and take out a loan for the rest of the house; once all is said and done, what if I can't sell the house and mortgage payments start piling up? Would a mortgage even be worth it? Or should I just pump the breaks a bit and try day in and day out for investor capital contributions? Happy to hear your thoughts, thanks

Hello All, Though I am still fresh spanking new to house flipping, the word funding constantly runs through my mind. Should I take out a loan? Should I find a high net worth investor to help me? Should I test my luck with the mafia? I was hoping to purchase my first flip for 45-80k. What is a good rule of thumb to how much of my own capital I should invest? Most likely leaning toward taking out a loan from the bank, but would love to hear how that played out for you guys who have done it. Can someone share their go to method for funding if they have one. Thank you, Mo

Erik - Thank you very much for that, learned a lot. I would love to take you up on that offer.

Brian - Thank you Brian for that input, unfortunately NY real estate is out of this world. A newbie like me starting out cant afford to play with the high rollers just yet.  

Brian - Thank you for that, really appreciate your perspective. Will - Appreciate you taking the time out and writing this. Question for the both of you and general public. Does anyone suggest starting out with out of state property's? I live NY, city prices are out of hand as many of you already know. I was thinking about starting off with Staten Island or upstate NY. I have the sense that demand there will be fairly low. Would this be a good enough reason to maybe start looking in other states? Do I have any New Yorkers here who can offer a tip or two? Thank you!

Hello all, my name is Mo. Very happy to be part of this forum, and was hoping I could gain some advice from you wonderful people. I have a finance background, I've been day trading for over 7 years now. I've decided to move my focus into real estate because trading has become almost impossible with the growing use of algorithms. From listening to the podcast, and reading over some of your posts - I have some questions I hope you guys can help me answer.

1. Any big advantage/disadvantage to buying and flipping vs leasing out to tenants? What is your preference?

2. What is the average time to flip a property in your own experience? (I see many people take 2+ years to do so - I was hoping someone can elaborate to why it takes so long.)

3. What are 3 things you look for when you want to make a flip, what is on your checklist before actually making the commitment in an investment?

4. For those who have tested the waters - would you mind sharing your biggest mistake and how you could've avoided it when you first made an investment in a property?

5. What is something you wish you had known before making your first investment? What could have saved you thousands of dollars?

6. Last but not least - I would love to know your personal motivation in real estate. Throughout my life I've met people who flip homes and only make a few grand on a deal that took 6+ months. Why not get a full time job as opposed to waiting so long to make a few bucks? (I'm hoping someone can prove me wrong - and share a success story or the potential in real estate).

Thank you all for any help, have a wonderful day!

Best,
Mo