All Forum Posts by: Tucker Cummings

I've done that and highly recommend. As long as you cash flow on the property and don't drastically increase your primary mortgage, I would do it.

Can you network with other investors in your area to buy the one you don’t want? You could try to get an assignment fee or small finders fee. Or nothing at all just to get the deal done.

If they’re trying to sell both, it shouldn’t matter if it’s on two different pieces of paper with two different buyers

I do something similar to this. I just purchased a property for 96k, it was turnkey amd ready to go, but market value is 133k.

I used a hard money loan to fully fund the 96k, then did a rate term refinance into a 30 year fixed off the ARV and paid off the original hard money loan.

Only difference was that the 96k hard money loan had to be on the books for 90 days. But it was cash flowing day 1 as an AirBnB so it didn’t really matter.

Kick it old school - get it on paper, write down the pros and cons, weigh the risk/rewards and make a decision. 

I've finally landed my first creative deal! I started investing in Real Estate in December of 2019 and in that time I have acquired 8 doors. Each step along the way I tried to learn a new skill:

• First Deal - Dec. 2019 | Just buy the deal, understand the process and make it as easy as possible. Bought a house on MLS for 100k, 20% down conventional, rents for $1200/month
• Second Deal - October 2020 |Learn how to BRRRR. Nobody would lend to me with the pandemic so my wife and I bootstrapped and saved every penny we could. We bought a house for 78k, put 15k into it, put a HELOC on it for 80% LTV, appraised for 124k so we got 99k in liquidity out of it. The credit line is not drawn down at all and also rents for $1200. Netting about $950 after taxes, insurance and property management.
• Third, Fourth, Fifth Deal - March to April 2021 | Learn how to borrow private and hard money. I bought these deals from wholesalers, all with BRRRR intentions. I was able to acquire these deals with just closing costs and origination points for borrowing the money. These deals are getting wrapped up now for their rehab and will rent for $1250, $1285 & $1500 each. What I noticed on these deals was how much equity I was giving to wholesalers so my next skill was...
• Sixth & Seventh Deals - June 2021 | Source deals myself. I set up a website, started making content, driving traffic to my site and did outbound prospecting as well. In two months I've bought two more BRRRR properties. One is turnkey and I used a 15% down loan but I'll have 32% equity. I'll plan on refinancing in 6 months or so to get my money back.... or maybe I won't, still deciding and I have options. The other one is a BRRRR deal that I'm buying for 105k, 19k repairs and ARV of 167k - done with a subject to repairs appraisal.
• Eighth Deal - June 2021 | Do a creative finance deal. This is heart of this post and what I'm so excited about. I'm taking over the existing loan with 96.5k left on it and the property is turnkey. I also created a promissory note for 20k, which will be due when I refinance the property 6 months from now. ARV on the property is 160k, so when I refinance at 75% LTV, that will be 120k and I will have more than enough to pay off the note and the existing loan. Even if the property doesn't appraise for 160k, I'll only have to owe a little bit to pay off the note and mortgage.

Been a crazy ride, here's to getting more deals done!!

Have you considered hiring a property manager? It would create a buffer between you and your tenants and you’d never have to think about this again.

Honestly these are all very minor issues that you’re going to run into on more inspections than not. I wouldn’t let it stop you. Just portion out a few thousand dollars and fix it up after acquisition.

House hacking is an easy way to dip your toe in and subsidize your living expenses. Not house hacking is my personal biggest financial regret. You can get a low money down loan for a house pretty easily and rent out the other units. 

Outside of that, just start finding deals. Drive for dollars, hunt down a deal, then assign it (wholesale) or keep it and get funding for it. Be your own boss, get educated, learn by doing, take action.

Get a lawyer, start the eviction process. Being a wealth a** hat doesn’t excuse someone from their rent obligations.

Because a career in the NFL can be short term and come to a sudden end due to injuries, I would advise investing as much as possible as quickly as possible. I would advise the following process:

1) Live frugally (living on 50% of income) and putting the other 50% of earned income into cash flowing investments. I’d focus on bigger deals, like apartments.

2) Repeat step 1 until your income from cash flowing investments is equal to your living expenses.

3) Once your passive income pays for your existing lifestyle, live only on your passive income and allow your active income to buy more cash flow.

4) As your cash flow begins to increase from passive investments, your lifestyle increases.

Honestly, this is the same process that I, and many other investors, follow. The only difference is how much income your active investments are bringing in.

The only other thing I would advise is that because your active income brings so in so much, I wouldn't think it would be valuable to your time to be concerned with buying value add investments or BRRRR strategy investments. They just take a lot of time, stress and a huge learning curve. Things that would take the least amount of time would be (in order of least time needed to most) dividend stocks, limited partner in syndicated deals and buying stabilized cash flowing property. This is not all inclusive, but just a few examples.

Once you're/they're out of the NFL and have more time to spend on researching investments and improving them, you could start venturing into buying junk properties, adding value, stabilizing them and creating more wealth and cash flow. You could do those through single family BRRRR homes, distressed multifamily and/or buying businesses that need improvement.

There are so many ways to invest and make money in this world, I hope this helps you and your teammates. Y’all truly have the opportunity of a lifetime to build generational wealth for your families. Good luck and feel free