All Forum Posts by: Jeff Filali

@Donnell Walker Call Gus Placeres, he's been a realtor since the early 1990's and also is a real estate investor. He's Fluent in English, Spanish, Portuguese and Italian. Google him and you can get his phone number as BP doesn't allow posting contact info

Make sure you run your numbers right including ongoing repairs, insurance etc.  That's the major issue with rehabbing old MH's, they were not built to last 40+ years.  Yes you can make money doing what your planning, a lot of people do it. but must know your numbers or that $200 month will get ate up with repairs and time.  Another strategy a lot of people use is fix them up and seller finance them to the tenant so they're responsible for repairs and eventually own them.  But you have to make sure you're Dodd Frank compliant.

You make money in real estate by BUYING at the best price, regardless of terms.  First step is to have the buildings appraised to make sure the purchase price is a good deal (preferably below appraisal).  Next, seller financing is great for both parties as long as the terms are fair to both.  Its beneficial to him because he or his heirs would have cash flow coming in and it would also spread out the taxes for him.  Its beneficial to you because its easier to get then a commercial loan, especially at the point you're currently at.  But you shouldn't have to pay him interest rates that are much higher then the bank would charge, maybe 1-2 points higher, but nothing more then that really.  Otherwise, seeking out a bank loan may be better option.  Also, even though he's a friend and colleague, its BUSINESS, you need your own attorney reviewing contracts for you.  You need to make sure there's no pre-payment penalty, in case you decide to refinance through the bank for a lower payment in the future.  Also, I would prefer myself to make it where my other assets are not on the line in the event of a default.  Again, this is why you need your own attorney.

Good luck!

I own 20 properties, and a few other residual business ventures allowing me to be semi-retired at age 40 and I started a lot later then you. You can do it also.  I say semi-retired because you'll probably not really retire at that point, but if you do it right, you'll have the freedom to run your business from anywhere in the world and work as little or as much as you want.

If your tech job offers 401K with matching, take advantage of that and max it out every year.  Once you leave the corp job, and become self employed, you can roll all of those funds into a solo 401K and own real estate within your 401K.

Keep the corp job until you're debt free, and your cash flow more then replaces your salary.  Invest as much as you can, and roll the real estate profits back into more properties.

Good luck!!

I read around 40-50 books a year. Here's some additional books I recommend.

1. The Millionaire Next Door - teaches how to accumulate wealth
2. Who Moved My Cheese - teaches how to deal with changes
3. Tax Strategies for the Savvy REI - should be read before ever starting in the business
4. Asset Protection for REI - should be read before ever starting in the business
5. The Pre-Foreclosure Property Investor Kit - Great book for any level
6. Millionaire REI - Another great book
7. My Life & 1000 Houses - Great book on starting in the business, and adapting. 
8. The ART of Owner Financing - BEST strategy book I've read
9. NOTE Investing - Learn more about real estate notes

Good luck!!

There's HARD Money lenders out there, but most private money people do not advertise.  The best way to get private money is consistently do successful deals and build a track record of success.  The money will come to you at that point.  I turn away money all the time, I just say I'll let them know the next time I'm ready to do a big deal.

I also use QuickBooks online, but also have other non-real estate entities to track.  I like that its cloud based and you can use it from anywhere, even from your phone.  Also, that you can set up 'Classes" to separate different businesses and properties.  That allows you to run combined reports, or separate your real estate, or even just on one property.

Your formula looks pretty accurate.  I would recommend looking at REIGuard for insurance.  Best company for investors and should save you some money.  I have 20 properties and almost all are insured with REIGuard.

From my experience they'll usually accept offers that net around 90% of the listed price.

Don't have analysis paralysis, find someone who's local to the market where you want to invest and is already successful.  Reach out to them about assisting you in locating deals.  Most of those who are very successful, will have more deals then they can buy themselves, and will have good deals available to wholesale to other investors who contact.  Make sure there's Property Managers available wherever you invest, that's not always a given.  Once you establish a local contact to assist you, and they send you some potential deals you're interested in, take a trip to see for yourself before buying.  There are dishonest people who will dump their crap on you.  Once you visit the properties, you'll be able to make an educated decision, and hopefully will have established local contacts to work with on going and not have to travel there each time.

Good luck!!