All Forum Posts by: Tom Weglarz

Hello Ranjit!

When you say that the 5th unit is "burnt," do you mean that the unit has suffered fire damage?

When securing a residential or commercial loan, the only way to know for sure is to

1. Visit the property and see for CERTAIN: how many units are in that specific building.

2. Ask your lender how they would like to lend on that amount of units, and tell them whether the owner will live in the unit(s) or not. Remember, the only way you can get a loan is if a lender writes the paperwork! However they are willing to lend, are your options.

Definitely call a lender who has some years of experience; maybe they've been in this situation before!

Good luck!

-Tom

Hey Joe, great question!

Every business owner who reaches this point begins to realize...

"I'm not in the car business, the mattress business or the candy business... I'm in the business of scaling!"

If you're not using hard money loans (and I'm sure you know the difference after using a mix of your own funds, and hard money loans), you'll want to use a mix of Seller Financing and Limited Partnership.

Seller Financing means that you can get a seller to leave money in the deal immediately, since they hold the value of the property. Check out Pace Morby's interview with Bigger Pockets, and Pace Morby's youtube videos.

Limited Partnership (Investopedia Definition), means that you get control of a silent investor's cash, and that silent investor gets control of your time and income. How do you find this silent investor?

This is where you work on your networking game. If you're serious about investing, I recommend going to a top 100 city in the US (population wise) and approach your city's Chamber of Commerce, Investor Groups and Clubs, and social networking clubs like the Four Seasons.

If you can dress and speak the part of a well-educated person, investors will see that fire in you! This can be the hardest part of attracting the right relationship, especially for introverts, but the best way to form investing relationships is to... form relationships!

If you'd like me to elaborate, just say the word!

Good luck!

Tom Weglarz

 I agree! There wont be a shortage of houses! Exactly. However, this means that there will definitely be a buy-low, sell-high opportunity with home prices. That's why I recommend that Rachel buys income-heavy properties until then, and she needs to be careful about putting in a small down payment. If you owe a 500k mortgage on a 600k house, and the 600k home value drops to 500k, then you owe the lender on the entire value of the house. The mortgage is a piece of paper with a written agreement whose price doesnt change, while home values WILL fall in recession.

My evidence for you, so that you can invest well:

Robert Kiyosaki and Patrick Bet-David have said that they believe the recession between 2023 and 2025 will be worse than the recession in 2008. They have both cited a number of factors for this belief, including:

1. The current level of debt in the United States is much higher than it was in 2008.
2. The Federal Reserve has already used up most of its tools to stimulate the economy.
3. The global economy is more interconnected than ever before, which could lead to a more severe recession if one country experiences a financial crisis.

However, Patrick Bet-David has also said that he believes the recession will be a "reset" for the economy and that it will ultimately lead to a stronger economy in the long run. He has advised people to take advantage of the recession by investing in assets that will hold their value, such as real estate, gold, and other precious metals.

It's important to note that Bet-David is not an economist, so his predictions shouldn't be taken as gospel. But, I think his and Robert's insights are worth considering, because of their vast experience in investing. 

For Rachel, check out this video from Morris Invest, on investing for INCOME in recession: <youtube.com/watch?v=GwDAHvlDKm0>

And also check out this Bigger Pockets video for a guide on how to invest for massive gains during the recession (which is a market correction): <youtube.com/watch?v=-oSOUMojiPU)>

And finally, Clint Coons is a great real estate resource, here's a "Buy and Hold" video from him:  <youtube.com/watch?v=ZlAr_HaLar0>

Good Luck!

Tom Weglarz

Great question Rachel!

Since recession is coming, and during recession, equity values go down, and collectible rent goes down, what should you buy?

Watch the recent videos on bigger pockets YouTube channel about inveting in a recession, and you'll see a few things:

1. Equity always takes a bigger hit than rent during a market crash. Before a recession, its better to invest for healthy income from people who wont lose their jobs (police, nurses, mail-deliverers) at mid-low rent. I'm not saying be a slum lord, but rather, invest in people who are the backbone of our society.

2. AFTER MARKET CRASH, there will be many deals available to get in at low equity, and ride that equity as it climbs up over many years.

3. Be ready for your "buy low, sell high" opportunities when the market crashes. If you want to buy now, then buy for income! Since income gets hit less than equity, AND you'll have cash flow during a recession. 

Good luck!


Tom Weglarz
391 Las Colinas Blvd E #302, Irving, TX 75039
Licensed Texas Realtor | Las Colinas Realty Associates