All Forum Posts by: Addam Driver

@Dieudonne T Nsabishaka awesome sauce!

@Simon Obas

I did a BRRR with 3 duplexes that had tenants in them. The previous owner was a slum Lord and they were living is horrible conditions. I decided to move them out and even offered to help them. Some stuck around and waited in the renovation to be done and got first dibs on the unit. In your case, you can always empty one, renovate it and see if the other tenant wants to move into that one. Then do their unit once it's complete.

Hi @Damon Griffith,

You don't need a RE license to invest.  I won't hurt to get one though.  You will learn a lot about real estate and even be able to save on commissions as you are the agent.  Most RE investors I know don't have a license.  We normally partner up with someone like a business partner, friend, significant other, etc. This way we all can participate and work angles we are good at.

If your goal is to have rental properties for income, I recommend saving as much as you can for as long as you can, then purchase when you find a deal that makes sense.  Utilize tools at your disposal like BP to help you along the way and don't get stuck in analysis paralysis.  Like anything in life, the best education you can ever have is doing that thing.   So do the thing! :)

Hope this helps!

-Addam

Hi @Dieudonne T.,

I recommend knowing all of the numbers.  Have them take the time and explain all of the financial ins and outs.  Remove ALL EMOTION... let me say that again... Remove ALL EMOTION and understand the numbers as they are.  "The numbers don't lie" so make sure they meet your short and long term goals.  Know your risk threshold and stick to it!

Congrats and please keep us posted with your progress.

Hope this helps!

-Addam

Hi @Calvin Stemley,

Welcome to RE!  You pretty much asked a very loaded question, so you might get some loaded answers.  First, my question to you is, "What is your goal?".  Is your goal to create passive income with that $40k or to seek a larger return like turn it into $140k or more?  

My goal as an entrepreneur was to generate passive income.  As you know, working for yourself means if you don't gig, you don't get paid.  

So I took my initial $40k and purchased some duplexes that needed work.  They were already rented at the time but needed all kinds of work.  After the purchase, I fixed all of the hazards and then started one unit at a time fixing it up so my tenants can live in a much safer and comfortable environment.  

Over time, I had tenant turnover and at those moments, I was able to attract better tenants, command higher rents, and cash flow more than where I started.  It wasn't easy by a long shot, however, it was/is worth it for me.

Hope this helps!

-Addam

Ok.  Seriously.  I finally decided to get the AMEX Platinum card.   I like the perks that come with it.  Being a RE investor, I figure, why don't I put the downpayment on my Amex, and treat myself to a vacation once I finish the project.  Now, I am well aware that most banks don't allow for this, but I  have to ask.  Has anyone done something like this?  Even if you have the physical cash to cover the purchase?  Any good "Creative Financing" ideas?  ...legally of course.

Cheers!

Hi @Oliver Graybar, you sure can #brrrr an apartment building.  It will just be done at scale.  I used the method for 3 of my duplexes.  My only advice is to keep really good track of your facelift/update monies and stay on budget.  Congrats on your first property and be sure to document your adventure.  I'm confident others on BP have the same questions and would love to hear your story.

Cheers!

Hi @Joe Miller,

I don't see why you can't do all of the above.  Part of having a financial plan is to utilize the best parts of your assets for whatever situation you are ultimately aiming for.  You don't hav to sell the property right away so you can buy more and use CC's to fund the rehab work.  

Not knowing your situation in detail and based upon the information you've presented here,  I would recommend (if you don't NEED the money right away) renting the place out and allowing the rents to cover your living expenses (rent).  Use the money saved (rent) to pay down debt or save for something bigger.  The cool part is that it's real estate and over time, the property will appreciate.  You will have short term income gains while the long term gain continues.  In that time, you might decide to purchase something else and should be able to leverage the equity there without selling to do so.  This way you continue to grow your passive income portfolio.

Remember REI is a marathon and not a sprint. You got this!

Hope this helps,

-Addam

What @Kiera Underwood said!

Hi @Chris Sellers ,

I'm doing that same thing with BB&T right now. I'm re-financing 2 buildings that are under my LLC and all is well. There is no need to move it into your name. It sounds like it's out of the norm for regular banks. I had to deal with the VP of Small Business and she got me taken care of. They might ask you to guarantee the loan but that's about it.

Good luck and please let us know your progress!

-Addam