All Forum Posts by: Thomas Willingham

Originally posted by @Danny Randazzo:

@Thomas Willingham I hope @Carlos Casanueva bought the largest property he could!

Hope so. I'm thinking with $250k and great banking relationships from my previous business, I can get into a $1m project, BRRR it and then look bigger. I'm at a point where I could just do passive, but that's not how I roll. If I'm going to do something, I'm all in. The other option is to get in o a syndication that would serve as a mentor ship.

I’m a big fan of Dan’s podcast btw.

Bringing up an old thread.   what did you end up doing?  I currently have quite a bit of commercial (40k sqft) medical space.  I exited from another business and want to put about $200-250k into multi family.  I want to cut my teeth solo if possible before risking other peoples money.

Originally posted by @Whitney Hutten:

@Thomas Willingham What Mark says is part of the equation. The other half is how much equity you are leaving in the property (velocity of money). The more equity you leave in the higher the CF has to be. For context, if you invested all $500K in $2M in RE and it earned a 10% monthly distribution, that is $50K annually. But what if you recycled the funds (BRRRR style) and invested $500K in $5M of RE, then you are amplifying your cashflow returns. Then, what if you syndicated your own deals, invested alongside your investors, and earned a management fee, acquisition fee, and a monthly distribution...? So I would say you have to find a BRRRR strategy (SFR, MF, commercial, etc) where you can recycle money and then bring on other funds eventually to hit $200K.

Yes!  This is what I’m talking about.  I used to own a lot of dental offices across the south East before I sold out.  I know I can do it in dentistry, but that’s far from passive and I have no desire to have 100 employees again.  I don’t mind getting after it a d being aggressive for a few years. 

I want to develop a 3-5y plan to turn $500k into $200k/year cash flow.  I’m comfortable in the commercial space but also considering Multi Family.  Most of my current 40k sqft is healthcare.

Help me develop my game plan.

Far from the most popular answer, but over funded whole life policy ala Nelson Nash be your own banker.  

Give me a game plan on where you would put $250k into RE.  Open to most all ideas.  Would like to parlay that $250k into $100k cash flow over the next couple of years.

I already have about 40k sqft of commercial, mostly medical with a Gym and boutique store thrown in.  I have about $250k sitting on the sidelines.  I've considered Syndicate, but prefer to get my hands dirty and actually be involved.  If I go syndicate, I want somebody to mentor me.  Other option that tempts me is Multi-Family.

How much percentage are you guys putting back for maintenance on a medium sized Multi-Family (50-100 units)?

So I own an occupied commercial building with a partner.  The building is in an LLC owned 50/50 with a partner.  I have somebody who wants to buy my half.  There is a loan on the property, but also quite a bit of equity.  How would the financing work because the bank is going to want to hold the first lien.  Partner is not going to want to take on additional debt.

For the refi portion, are the banks still lending?

Do a live in flip, especially if you aren't married or your spouse is on board with it.  Do that a couple of times to learn about contractors, buying and selling, evaluating a deal.  It seems a lot of people either lose money on their first flip but learn a lot, or make a boat load of money giving them some traction.  Either way, it's invaluable experience.