All Forum Posts by: Pavlos Kasselouris

After reading the book of the millionaire real estate investor by Gary Keller, where it says to track your net worth frequently, I started few months ago to track my net worth and see it how it performs during time. I must say that I got really obsessed with this, and try to improve constantly the rate of increase with a combination of control my personal spending and getting the most out of my real estate endeavors and investments. I created a excel sheet where I insert data and it shows also a graph. I'm sure I can make it a lot more complex, but its not something I need right now. Because I moved to the states beginning of 2013 and know exactly how much capital I brought with me and with combination of the monthly bank statements I was able to use approximate numbers to have a historical view. It fascinated to see the history...   

I use Mint where I have logged in all my assets and liabilities and it calculates most of this automatically. Market value of my real estate and personal notes I calculate my self, everything else it gets the data automatically. For budget watch I prefer using my banks online system (wells fargo)

Currently I see an average increase of approximately 1.1% monthly and so far it looks that it increases as time goes by and I leverage my capital more. After I file my taxes next year I should have a better view of things. 

Anyone else has this habit and how much increase have you seen with your REI?

Real Estate gave me a vehicle to pursue my end goal, which is retire young and rich (for my standards at least). Of course down the road I might change my end goal and become a full time investor and scale up, but thats something that I will decide later and it will be easy for me to transition.

I was always thinking about ways to build wealth, and RE is a way that doesnt require me working in my business but on my business. For a buy and hold investor like myself, risk is minimal, especially when I always put at least 20% down, and planning for a worst case scenario. 

Summarizing I would say RE gave the right to DREAM BIG!

I have short credit history and employment in the US, and this was the cause of the rejection through a credit union. So I need a lender that could go pass that, but at the same time since I am a buy and hold investor, I dont want  hard money options. I would not pay anything above 5.5%. Credit score 730.

The property I own 100%, and looking to get out 70% LTV.

I would appreciate any referrals. 

A couple hours ago I found out that I was rejected for the Refi I applied for (supposendly I was prequalified)...

Now that I relaxed and steamed off on my elliptical, I am able to write about it, and ask about advice on what to do next.

It really pisses me off because I have a good credit score (730), I have a good paying job the last 7 months(before that I served tables, which is something that was negative for them...), I wanted to refi 70% (which means I would have a huge collateral to risk) on a positive cashflow property, have another 2 properties, and I have never one late bill! I even told them that I will pay off my vehicle to reduce the debt to income ratio because they believed the rent I pay is a lot, and have not 3, not 6 months of reserves, but over a years worth.

I was told by a banker not to say that I want to buy another property, because underwriters think it is negative. Its better to say that I'll buy a boat, or go vacation...pfff. But I told them the truth. 

I dont want to wait one to two years of steady employment...thats stupid!! 

@Mark Smith

One thing is managing yourself (thats what I do with only 3 properties) another is doing labor yourself. I didnt start investing to be a plumber, a lawn career etc...I did paint, but thats because my time was worth it ($2000 for a weekend...hell yeah) and I like it!

My plan is to start hiring a PM as soon as I feel that my REI business starts to take me more time than I want to put in. Probably it will be gradually, as soon as a property increases in cash flow. I have found that a property after a year of me managing it stabilizes and takes small amount in money to maintain it, calls are very few(something like 2-3 a month...), plus the standard increase in rent every year (I plan to always increase rent even if it is $10). The way I run my business I think I can handle up to 10 properties with ease...not sure how it will continue but I have already started to implementing systems.

Good idea! I wasnt aware all members could start a blog in there.

 I would estimate 5-7k per unit just to come to a starting negotiation price plus some overall needed projects (replumbing, upgrading electrical, Central HVACetc) , but a big factor would be the fact that it will be vacant for at least 2 months before the first tenant would move in. Not many people would pay to be in a under reno building. During my due diligence I would get more accurate estimates and renegotiate price.

If the preliminary analisys went well I would put a plan for financing which would include  a good chunk in from me and possibly partnering. Then after few month refinance it. Or if we could get a good commercial loan would be good plan as well. 

Cant say a lot until i visit the property.

You have to be really careful when analyzing these deals because usually banks refi LTV 70-75% on investment properties, if you want to get most of your cash you put in or more.

I wanted to add an accountability, type bloggish, post, where I'm going to post my goals, my successes, my mistakes, hopefully no failures, challenges, and other cool stuff as they occur? I used to do this when I was playing poker, where I started a $200 bankroll and by playing $2 tourneys I ended up playing a lot higher stakes to $215 tourneys.  I found a ton of value doing that.

The only negative is that since I'm a buy and hold type investor, the progress will be slooow! But still it will fun to read after a couple years...lol

 Sean estimate for the rehab if i dont walk it i cant say for sure.