All Forum Posts by: Sam Yin

@Nathan Gesner

What Nathan said.

I have a Lease Amendment template I use with all the necessary changes. Change of ownership. Change of lease terms, if any. Payment and contact information.

That should be it. You will learn how each tenant has their specific needs as time passes.

On top of it all, the likely hood you will move out/on from this house is high, statistically speaking.

Keep your cash. Park it or invest it elsewhere. If you are in a fast appreciation area, you can still get that HELOC later to add onto your cash stash.

@Stephanie P.

That's about how I translated too!

I want to find that unicorn as well...

@Scott Williamson

DITTO!

@Jorge Gonzalez

If you are really serious about REI, just do it. Dont wait for your credit score and all that jazz. Many people will give you answers based on their experiences, just as I am about to do. Some people will qualify their answers with their profession on lending, banking, buying and credit stuff.

So here is my qualifications: I made purchases while getting foreclosed. I made purchases immediately after foreclosure with WITH wife's BK filing. I refis after foreclosure. More investment purchases, etc... credit was down to 580s then (2015), and over 10 transactions later, now 800+. I did it SOLO. looking back, I could have made it easier on myself if I found a partner.

Can it be done, YES. Is it easy, NO. is it possible based on what you have told us so far and with your savings, YES. You just need DL keep shopping for the right lender that is willing to work with you. Be honest and have a realistic plan to present. Shop banks, CUs, Brokers, Private Money, etc...

First, have the courage and dont fear rejection. What's the worse... you end up where you started. That's how I approached it when I crawled back up.

I'm still buying. However, I am much more picky and I have been making much lower offers than the asking price. As a result, I have lost several deals in the last month based on 50K to 300K difference from the asking.

A part of me feels like I missed put on opportunities that could have been fruitful with longer hold time. But the other part of me feels that by rearranging the buy box and strategies, it would introduce more uncertainty and speculation. That change can alter my growth strategy and increase the risks substantially.

Thus, I stick to my buy box, continue to hold steady and keep on throwing fair offers out there. Many sellers are clinging on to the hype and the recent market boom. But all will come down to earth eventually, either through price adjustments or rate adjustments.

I closed on a deal early April. Final asking dropped to $825K. I held steady to my numbers. I ended up COE on it for $765K.

Yesterday, I got a call on a property that I initially pursued for $880K. Seller wanted $1.3M and was willing to drop to $1.1M. I moved on and made several other offers to other properties and did not get anything. Well... yesterday, that seller called and asked if I was willing to put $880K in writing. Darn right I was! Scrambled to get updated funding quotes all afternoon. Sent the PSA over last night with proof of funds and we should open escrow.

On top of that, I got another call for OOS for another building that fit the buy box. Suddenly, my problem has shifted to not enough capital to capture it all.

Lesson: stick you your guns. Adjust accordingly, but do not put yourself at risk or bank on speculation and time. Although time will always heal a bad purchase, it will rob you of good opportunities and growth.

That's my 0.02 on buying in this current cycle. It may nor apply to everyone's personal goals or investment locations, but it is what I am experiencing in So Cal. Good deals are harder to create, but they are out there.

You make it happen and do not expect it to be handed to you on a platter like 2020 or 2021... or 2008 to 2014.😎

@Bill Brandt

That is awesome quote. That's is a wise BP member. Very true.

 There is no single right or wrong answer, just the right answer for you. Your challenge is to find that right answer for you. No one here on this forum, or on earth, will have the perfect answer because they are not in your shoes. They do not have your tolerance, fears, and ambitions. They do not make your money or do not worry about what troubles you.

At the beginning of my REI journey, my W2 was my primary income. To leave my W2, I had to guarantee I can generate the same income and compensation package, or darn close to it, but rather, even more. The trade off is the release from those golden handcuffs and the freedom of choice in all that you do. Think about it, do you not factor in your employer when you are about to make some personal choices? Your employer and your salary is always in the back of your mind. Thus, you are not making a truly free choice. And for those that claim to make the exact same decisions regardless, then you either live the life of the employer's policies/goals or you are lying to yourself. If it's the former, then you are the lucky one that have a job you love... and it's not a job, because you love it and would do it for free. Get my drift??

To your question about playing devils advocate, that can be played in every possible scenario put forth. Because their is always that what if. Somethings we mitigate using what we know and trust, others we either keep worrying about of forget about.

For me, I established a family trust with 3 sub trusts. Within it are rules for the successors and beneficiaries.  The assets accumulated in my lifetime is a bonus to the beneficiaries,  not a guarantee. At the same token, if I am incapacitated,  it really does not matter, but I get it, some people cannot accept that. Therefore, the rules within the trust has dictated what I believe to be the best method of asset preservation since I believe there has been enough created to take care of my bloodline for many generations to come. This is as long as they follow those established protocols. 

The parameters include regular drug testing, incentives for education, business and entrepreneurship,  as well as producing heirs. Full distribution occurs when they are 40 yrs old, when I believe most people mature. The heirs also have an obligation to continue to deposit into the trust to increase the pot for capital investments, etc... this happens to be my way of preservation and growth. You have to figure what works for you and your goals. 

This take effect if I'm incapacitated. But then again, if it didn't, it would not matter. But that's the person I am. I am a refugee from Cambodia that survived mass genocide of millions in a few short years.  America was my land of opportunity and I seized it. I have been down to zero more than once and crawled back up. Your upbringing, morals and ethics will have the most influence on your fears and anxieties. 

Food for thought: I had a great government job with a guaranteed 6figure pension, and I found I'm better off without it. I was only a few years away from maxing my pension but I chose to walk away. Many at work say I'm crazy. But I think I did the right thing.

 EXACTLY!

@Luka Milicevic

My point exactly.

This post has generated a lot of good information for those that are trying to figure out their path. And that is awesome.

However, for those that have found their path, a solid strategy, or have the end goal in sight, the active vs passive debate is more significant.

I love RE and all its advantages. But I am well aware of its actual passivity. At the same time, my life situation woul lean me more towards a super passive income stream and $5M to start can go far in the more passive path.

If I was in a position to prioritize wealth building and growth, I woul definitely go with RE.

Heck, my ATT, 3M, and Ketchup has been losing massive stock value... but their are awesome because the dividends keep on coming in. That's what many fail to understand about aristocratic stocks. And lately, Tbills and even bank accounts are doing good. For example, my local banks are giving 5% on their savings. The minimum is 100K. But that's a drop in the bucket for the hypothetical person with $5M to play with.

To each their own. Great thread.