All Forum Posts by: Richard Jumonville

I agree with a lot of what investors are saying here. The way I found to add value to various people is to use their services in a real way. Before I bought my first 4 plex,  We flew in and had meetings on the hour all day for 2 days straight. We lined up 3 Property Managers, 3 General Contractors, 3 roofers ect... It was a weekend so only 1 Property manager was not so primidone to meet us on a weekend. 

She won the account and has been invaluable to my success being a long distance investor, Thanks to David Greene's "Long distance Real-estate Investing". 

After having all these survey's / meetings we were able to put processes in place that met our goals and budget. What I found was once I "added Value" to each person I hired by "Hiring Them". I was able to get referrals to continue building my team. I must say that my insurance agent was by far the most resourceful at giving me quality leads to team members. So with all this said, my takeaway advice is:

1) Get multiple Quotes and get them itemized with time lines

2) Get your funding and Deal lined up and the rest of your team will come as you need them. 

3) Keep reading and learning and it will happen, great people on BP to help you along the way. 

Hello Cos, just wondering if you ended up selling your units individually and how was that structured? Did you have to put a HOH in place with a cap ex fund for shared expenses? I figure this would have to be in place in order to sell individual units under 1 roof.

Sean, 

Hey Shawn, just curious, what happened here? How did it turn out? 

We have been 100% on receiving rents from existing Tenants, Just having trouble filling our last vacant unit.  

@Chaise Carter

I agree, I listen to everything and finally found millionaire real estate investor

Very to the point and loaded with a very complete depiction of what’s possible

I too looked at this and saw some advantages, just depends on what your up to in your investing. I'm not doing this due to I need my cash.

There are some interest saving advantages by not holding cash in your savings or checking when you have debt which helps escalate the principal pay down.

The heloc allows you to have access cash when needed.

With this said you can use 100% of your savings and 100% of your income to put towards principal.

So with this strategy you are paying down your principle faster than a typical family for 2 reasons. Your paying extra our of your income directly to principal and you are not paying interest on loans due to your savings is covering a chunk of loan principal.

Only thing is that the heloc can be called due at any time.

I found a spread sheet and I ran the calculations both ways. 

1st using 100% of heloc on primary principal of mortgage.

2nd using only 10% of heloc on primary principal of mortgage. 

Both of the above came out with a similar outcome. Because you are just moving debt.

The big advantages came from, not paying interest on loans due to dead cash in savings and using 100% of your income towards principal.

Correct me if I'm wrong Mr. John, but another thing to consider is if you have a single policy for multiple properties, All of your properties will be listed on a single declaration page. This might expose any anonymity you might be looking for when a plaintiff's lawyer asks for the declaration page.

I just closed on a 4 plex and I must say, although I stay steady and am very ambitious to expand, im glad I have 6 months to stabilize the asset and work to get all my systems in place. Get your first deal and make sure you can actually get you investment out when the time comes!

I will be paying both as there is no profit in the deal for the seller that I'm aware of.