All Forum Posts by: Joe Villeneuve

I feel like with the stock market you can at least buy something like the s&p 500 which gives you some diversification. With real estate, you have to make sure each property is functioning at full capacity or you’ll be losing money.

You can analyze properties and be pretty sure (as long as you don't rationalize bad deals into good ones) what your numbers will be. The stock market rises and drops daily (hourly). RE is much more stable.
You can't leverage the SM, you can with RE. That's the number one reason. When you buy a stock worth $100k, you pay 100k. When you take that same 100k and buy RE, you can buy $500k worth of RE value. When that 100k value in R=the SM goes up 15%, your stock is worth 115k. When that 500k RE value goes up only 5%, you now have 525k in value. That 5% appreciation in RE is better than the 15% in the SM, starting with the same 100k.
There's more, but what I just wrote should be enough.

15 Votes

Detroit, Michigan

Riskier than the SM?

3 Votes

Detroit, Michigan

Your looking at the wrong markets. You need to learn how to analyze markets, not properties. Property numbers are based on the market, not the other way around. Properties are pieces of a market.

You're not doing anything wrong with your property analysis, you are doing wrong in your choice of markets. If when you tell the doctor your arm hurts when you raise it, the first thing the doctor tells you is, "don't raise your arm".

1 Vote

Let's start one then. I have a lot of experience in building one. I used to be the person doing the education side of it for years. If you ore anyone else is interested, let me know.

0 Votes

Ann Arbor, Michigan

Quote from @Greg Scott:

Talk with your lender about this proposal...

1) Get a solid quote on the roof replacement and share it with your lender.

2) Put the funds in escrow with your bank for the sole purpose of replacing the roof.

3) Close on the property.

4) Install the roof.

5) Get reimbursed for roof expense out of escrow.

Most banks are fine with something like this if they know their downside is covered. They will probably let you close.

that's the way to do it, based on what options you have left.

2 Votes

The best way to get into rentals is by flipping into them. That cash you moved through your flips should be used to generate rentals...but just the profits from the flips. the initial cash, your seed money, should stay with the flips so it can continue to generate the profits to buy added rentals.

How you do it, depends on your ability to properly analyze markets (not properties), learn creative strategies, and to be able set structure a REI plan that lays out the steps taken using your profits from flipping.

1 Vote

Quote from @Alex Mocanu:

Quote from @Joseph E.:

Hello All,

I am a 28 year old in commercial construction (project management). I have recently been getting more into the idea of wanting to become a builder. I am set to get my Michigan Residential builders license later this month. After that I am thinking about going right for my real estate license.

My question is: how do I start with little personal capital? I have about 10k MAX to start. What is the forecast I should be looking for? What level should I start at? I eventually want to get into building 5-10 houses a year, building myself up to the somewhat more recession proof market (Im thinking $650k+ builds, I also really enjoy lakefront.) I know that is a big goal to reach, however, where should I start? I am getting really into code, building systems, job cost, etc. I have heard the key to making the money is in the price of the land. Is this true? I really need a play by play, please.

OPM, construction loans, etc. I think I would really enjoy spec home building. Maybe some flips, too. Again, I work in commercial construction management at a top ENR GC. It has slowly groomed my work ethic and I am still always learning. However, it has shown me that that type of contracting is not my passion and I want to really take my life into my own hands. I am just looking for a little guidance or a point in the right direction.

Thanks,

Hey Joseph! I know that this post is old, but I was curious if you ended up pursuing your idea. I have similar aspirations and I'd love to connect. I am located in Livonia :)

OK. Then let's connect, and discuss this. PM me.

0 Votes

Quote from @Daniel D Huffmaster:

Quote from @Joe Villeneuve:

If you don't want to sell the properties, then sell the equity. Take on cash (silent,...VERY silent) partners. They buy in and get part of the cash flow, you get the cash.

The alternative, and the best one at this point, is to refi. The cash you get coming out isn't income, it's a loan, so you have very favorable (non-existent) tax issues. If the properties can handle (as in still have positive CF) a 15 year mortgage, do that...and refi 2 properties every year. This way, you get that Freelike cash every year on 2 houses at a time, every year for 15 years. Then, since year 16 will have payoffs of the first pair of properties, you start the rotation all over again.

Joe,
Your a genius, I'm so glad I read this post. I've been trying to figure out how to retire and still leave everything for my boys. Been praying about this for over a year. I was looking at selling a few properties and moving that into syndication or lending the funds. But it all seems a little risky. I have 12 rentals and most of them have massive equity. Thought about using that equity to buy a larger apartment complex but from what I've seen most of them in my price range <3m barely service the debt.
But, doing a cashout refi on 1 property per year gives me about 10k per month for at least 12 years. I'm coining this strategy as CORR, Cash Out Refi Retire.
Im sure there are many people doing this, ive just never heard of it. I probably cant do the 15 year refi and i do see how that is super beneficial when you restart with the 1st property again, ill call that recycle. Ill retire in just a few months with CORR. Lol
thank you Joe

I've already coined all of these things, and more. Others have done these things. I like to think I've perfected them in a way where it's all part of a system, rather than a separate knee reaction. It works better that way.

1 Vote

Quote from @Matt Sharp:

Thanks Joe! That’s the path I am currently on hoping for some luck. Most of these prefab companies either don’t have a contractor to recommend in my area or will tell me about all the projects they do in CA then disappear when I ask them to get me in touch for a build quote. Will keep probing though there are many more to reach out to. Appreciate your insight.

I've designed using both panelized and module construction. Both are great. I'm not familiar with the California area for this, but if you have any general or specific questions on these options PM me.

0 Votes

Orange County, California

Quote from @Matt Sharp:

I'm exploring different options for building on vacant land here in CA and am very intrigued by pre-fab home designs (Walls etc.. are assembled in a factory and shipped to site). Pacific Modern Homes is a great example - we built one of their kits in the 1990's and it was beautiful/ really minimized labor and scrap onsite. The problem: I'm on contractor #10 in Southern CA and so far nobody wants to quote the project!! Any recommendations are appreciated.

If you're just getting the walls done in the factory, and they have to be assembled onsite, you're going to have a hard time finding contractors on your own. The manufacturer should be able to provide you with a list of contractors that will do that in your area. Check with them.

0 Votes

Orange County, California

All Forum Posts by: Joe Villeneuve

Joe Villeneuve has started 0 posts and replied 12916 times.

Post: Why Real Estate Over Stock Market?

Post: Why Real Estate Over Stock Market?

Post: Getting major negative cash flow on deal analysis

Post: Michigan Networking Events???

Post: How to cover roof repair before purchase

Post: Seeking Mentorship from Experienced Long-Term Rental Investors

Post: Michigan Home Building and Spec Building Start Up

Post: What to do with $3 million in equity

Post: Pre-Fab/ Panelized Home Building

Post: Pre-Fab/ Panelized Home Building

Joe Villeneuve has started 0 posts and replied 12916 times.

Biggerpockets Logo Post: Why Real Estate Over Stock Market?

Biggerpockets Logo Post: Why Real Estate Over Stock Market?

Biggerpockets Logo Post: Getting major negative cash flow on deal analysis

Biggerpockets Logo Post: Michigan Networking Events???

Biggerpockets Logo Post: How to cover roof repair before purchase

Biggerpockets Logo Post: Seeking Mentorship from Experienced Long-Term Rental Investors

Biggerpockets Logo Post: Michigan Home Building and Spec Building Start Up

Biggerpockets Logo Post: What to do with $3 million in equity

Biggerpockets Logo Post: Pre-Fab/ Panelized Home Building

Biggerpockets Logo Post: Pre-Fab/ Panelized Home Building

Post: Why Real Estate Over Stock Market?

Post: Why Real Estate Over Stock Market?

Post: Getting major negative cash flow on deal analysis

Post: Michigan Networking Events???

Post: How to cover roof repair before purchase

Post: Seeking Mentorship from Experienced Long-Term Rental Investors

Post: Michigan Home Building and Spec Building Start Up

Post: What to do with $3 million in equity

Post: Pre-Fab/ Panelized Home Building

Post: Pre-Fab/ Panelized Home Building