We raised $500K in equity from private investors and secured a local construction loan for the remainder of the capital stack.

I’ve got around $180K in equity based on recent sales in the same development, and I’m now looking to put that to work and expand into more properties.I spent over a decade as an automotive technician before recently transitioning into the tech industry.

What happened to our “built in equity” touted by Wagner, who sold us on a purchase price of $225k?

These guy is talking a lot about how great the city in his targeted investment but very little time going deep dive into his Financial.Our friend Grocapitus is targeting the naivest tech-background rich folks that's rich in equity but poor in financial analysis capacity (and bit arrogant too sometimes because they think because they rich due to tech so everything else was easy).Our friend here  likes to cherrypick market stats that's irrelevant for his investment at his deck.

Say they have $200,000 in equity but they only need $50,000 and are willing or want to take payments on the rest called a "carry back". 

You started with a 5 to 1 ratio.4 - Sell that property and that $40k in equity, the same equity, now goes back to a 5 to 1 ratio, and buys you a property worth $200k. 

Note I didn't include an expected 4% appreciation which means you'll be adding ~40k in equity each year. 

Even if I broke even for the next 10 years, I know that I will be sitting pretty with at least 70K+ in equity in the right locations.

Many of those investors have millions in equity to protect, which is when an LLC starts making sense.

With the deal I made, I only ended up needing to pay $10k out of pocket, and I will be getting a cash flowing duplex property, and an instant $60K in equity according to the appraisal and comparable in the area once rehab is done (assuming all goes well!).