Real Estate Investing: Today, at the age of 28, I became a millionaire |
- Today, at the age of 28, I became a millionaire
- Investors with 3 doors or more, please read below:
- HELOC vs Refinance
- For those of you who have used your 401k for Real Estate
- Renting your primary to move to a LCOL area.
- LENDING question.
- What should I do?
- Real estate lawyer
- Where to buy in Lisbon
- Seller discloses bankruptcy day before closing
- Mentors, Like-Minded Friends, Mastermind Groups
- Has anyone used NJ Lenders or AmeriSave?
- Walk or buy?
- Investing overseas with Trust or LLC?
- Expediting Real Estate Purchasing
- Mentors and those whove done it.
- Looking for short term tennats
- Free Cash Flow estimate tool?
- Does anyone own an Airbnb with a pool?
- Issues with refi and equity loans -- Any other solutions to use for real estate investing?
- If you could buy the home adjacent to your primary residence, would you?
- Finished basement ceiling/code question
- Urban New Jersey Property - How would you value private rooftop or private backyard?
- Where to from here?
- Need Step By Step for Mechanics of Private Mortgage
| Today, at the age of 28, I became a millionaire Posted: 17 Mar 2021 04:41 PM PDT Obligatory: This is not to brag, but more a gratitude post for all the help over the years from people in this sub, and other mentors. Also, there are very few people in my circle outside of my wife and a few core friends that I'm able to share this with. Five years ago (2016), at the age of 23, I got my first taste of real estate. I purchased a single family home. A little 1300 sq. ft. house, with 4 bedrooms, and 2 bathrooms. I lived in the master suite, and rented out the three extra bedrooms to my buddies. I lived completely for free, which was a miracle as I was living paycheck-to-paycheck, and had a net worth of -$50k (student loans, CCs, and car loan). Little did I know that this even had a coined term -- "house hacking". Two years later, my life had changed quite a bit. I was getting married, and rather than keeping that home as a rental, my wife and I decided that we would kick out the roommates, and sell the house to pay off debt, and move into her home. When my house sold, I stood in awe, holding a check for $40k -- the same amount as my entire year's salary. Not only did I get to live completely for free for two years, I made $40k. I thought to myself, "I've got to do this again." That $40k paid off all of my remaining student loans, and all of my credit cards. With the money we had leftover ($25k), we rolled the remaining into our first rental property. We started attending our local REIA, networked, and made connections. The first rental rolled into a duplex. And then the duplex rolled into a fourplex. Then we snagged another single family property. We did our first BRRRR deal. Then we found a great deal on a commercial property. We tried GC'ing a home on our own. And then we tried an AirBnb. We've used every type of financing under the sun: FHA, Conventional, HELOC, Seller Financing, 401k Loans, Hard Money, and Cash-out Refi's. Little by little, just with consistency and patience, we've been able to build a nice little portfolio of 9 properties and 20 units. Our current NW consists of: Cash - $37k It's a really cool feeling to be able to say "I'm a millionaire." It's a fun milestone to hit, yet at the same time, feels very small now when I look at other investors with insane net worths. Regardless, I'm really pleased and grateful with what we've been able to achieve in just a few short years. We're on track to hit $1.2M or $1.3M by the end of the year. Of course, a lot of the credit goes to being privileged, as well. I realize that I won the lottery by being born into a white, middle-class family, in America. I never grew up hungry, and both of my parents were well-educated with college degrees. I'm grateful for my upbringing and know that this absolutely has attributed to our success. Anyway, I think the whole point of this post is to say that it's easy to look at others and compare and see what they have. But it's amazing how 4-5 years of consistency and hard work with laser focus can truly change your life. I have SO much to learn, but finally feel that I sort of have a decent "hang" of it. I love RE. I still work a 9-5 (mostly because it's easier to qualify for loans with a W2), but have a goal to quit by my 30th birthday. Onto the next million! [link] [comments] |
| Investors with 3 doors or more, please read below: Posted: 17 Mar 2021 03:21 PM PDT Hi all! I've spent about 14 months consistently reading, learning and doing mock deals. While I know I have a lot to learn, I feel as though I'm at the point where I have enough to make an informed decision and get into a deal, though something is preventing me from doing so. I don't want to go on about myself as I think this is a great opportunity for some of the more inexperienced investors to learn from some from more established professionals, so I'll get right to it. For those investors on this sub who have at least 3 doors under their belt, what was the final kick in the you know what that got you to pull the trigger and get into your first deal? If you'd also like to share any difficulties experienced or lessons learned throughout the entire process I'm sure everybody would be excited to hear! Looking forward to your responses! [link] [comments] |
| Posted: 17 Mar 2021 05:36 AM PDT My primary residence is paid off and I have applied for a HELOC on it to fund future investment purchases. I just bought a rental for cash and am wondering if I should refinance to pull cash out or try to get a HELOC on that too (although I've heard it's very difficult to get a HELOC on an investment property). My primary goals is to have cash available for future investments as deals come up. [link] [comments] |
| For those of you who have used your 401k for Real Estate Posted: 17 Mar 2021 08:29 AM PDT I just setup my first 401k. 4% dollar for dollar match. I'm contributing 9% and may bump it up if I can afford to because I want to minimize taxable income. I'm curious to hear from those of you who have "tapped" your 401k to work a deal. I have the option to take out a loan of up to 50k against my 401 (given it has that amount or more) "at a reasonable interest rate". But I also have the option to use an undefined portion of it toward the purchase of my primary residence (hello triplex or quad). It is my understanding that this amount does not incur the penalty. So, when you refer to "tapping", are you referring to a loan against your 401 (which maintains the account balance), or are you referring to a withdrawn amount applied toward the purchase of your primary residence (which obviously decreases the balance)? Or perhaps both? Lastly, tell me about some deals you've done taking advantage of your 401k! Thank you! [link] [comments] |
| Renting your primary to move to a LCOL area. Posted: 17 Mar 2021 10:47 PM PDT Has anyone else done this? We have a property in a prime location near major transport area and in a really nice neighborhood. Lucked out a few years ago with a needle in a haystack. Fast forward and we are considering relocating. Looking at LCOL and considering keeping our current primary and renting out. What key things have you done, or wise lessons learned? We're in the prep stages of doing this, or just wiping clean of the property and taking the sale. [link] [comments] |
| Posted: 17 Mar 2021 10:00 PM PDT Hello all. I have a PFS/3 years taxes done , and have about 12m worth of debt on 20m of property. Good businesses that flow well and great recourse w some other high net worth partners. Can you give me some good lending advice/feedback and connections if they can write loans in these numbers? The bank holding my notes wants to retain them but don't have the same vision as me. So I would like to exercise other options. Have sent to two new lenders. Looking for some advice [link] [comments] |
| Posted: 17 Mar 2021 09:11 PM PDT This is my situation currently, but I want to know what you'd do if you were in my shoes. Let's say you own a house that you bought for $158,500 in 2016. It's now worth $206,000. You have the money to pay off your entire mortgage immediately and rent it out, or you have the money to continue to pay the mortgage and rent it out. Other, similar properties in your area rent for about $1,500-$1,600 a month (before insurance/utilities/etc.). You pay $1,250 each month for the mortgage, property taxes, and homeowner's insurance combined. Do you pay off the entire mortgage immediately and rent it out or continue to pay the mortgage and rent it out? [link] [comments] |
| Posted: 18 Mar 2021 12:40 AM PDT Quick general question. Looking to get a good understanding of cost expectations working with a real estate lawyer. I've worked with one lawyer who charged me $1950 to help me close on an off market property. I asked him to put together a contract but it took too long and I ended up just using a purchase agreement I got online (I needed a contract within 24 hours). Deal started to go south as the seller tried to back out and I had the attorney write a demand letter which cost another $950. I'm fairness everything worked out, got the deal and it was a great deal even with the costs, but on the second deal the lawyer ghosted me and it may have cost me my opportunity. So in looking for another lawyer I was quoted $60 for a 30 minute consultation and then $350 an hour. I'm looking at buying property at auction so looking to get help with title research and liens, potentially putting contracts together for pre foreclosure offers, sub to deals, and lease options, etc. Are these prices being quoted pretty typical? Any suggestions on how you found a good real estate lawyer you work with? (The first lawyer was recommended by another investor). [link] [comments] |
| Posted: 17 Mar 2021 06:07 PM PDT Recently relocated to Lisbon. Looking for good neighbourhoods to buy to get my first home. Hoping for some up and coming areas. Any suggestions? Budget is around 200,000 Euro [link] [comments] |
| Seller discloses bankruptcy day before closing Posted: 17 Mar 2021 07:49 PM PDT I put in an offer on a home that we found on the MLS in Philadelphia. This offer was accepted and we proceeded down the line with financing, title, earnest money, option money,etc… The day before we were to close the seller informed me he was in bankruptcy (Ch 7) and couldn't close. Closing was pushed back because courts needed to approve the deal. I read the last court filings and it asks the seller to find a deal. The deal fell through in the courts. I was told they took a cash offer. I contacted a real estate lawyer but again it seems at this point I'd be digging a bigger hole retaining him. My question are 1. How can my signed agreement be dismissed like that? 2. Who is responsible for my expenses incurred? I know most people will say that the seller is responsible for my expenses and I agree. But it would be very difficult to collect from someone who is in bankruptcy and not worth my time. [link] [comments] |
| Mentors, Like-Minded Friends, Mastermind Groups Posted: 17 Mar 2021 01:24 PM PDT Networking is probably my biggest struggle, especially during this pandemic. I have slowly distanced myself from old friends whose habits I did not align with. I am at the point in my life where I want to meet people and make friends with those who are focused on their future and building wealth, specifically through real estate investing. Being a 24 y/o female in South LA, I would love to find make friends that don't "live for the weekend" and are more focused on building a Mastermind Group. I am new to real estate and would love to listen, learn, and absorb as much knowledge from anyone who is willing to teach me. What are some tips that have helped build your Mastermind Group? [link] [comments] |
| Has anyone used NJ Lenders or AmeriSave? Posted: 17 Mar 2021 08:37 PM PDT My realtor is recommending me to use NJ Lenders (out here in Jersey City) while Amerisave seems to be offering a slightly better rate - wondering which one I should go with? and if there is a way of knowing which one has better reputation (reviews are mixed) and will have faster close, more seamless [link] [comments] |
| Posted: 17 Mar 2021 06:54 PM PDT I have an offer for a house in SoCal at $180k, plus they are paying closing costs so $186k. 3 bedrooms 2 baths, backyard growing area. FHA loan. Problems with the house: 1) Signs of issues with the foundation/ structural issues. 2) Possible issues with the roof, no maintenance done in 18 years. 3) Electrical rewiring will be need to be done, as house isn't grounded, has no ground wires at all. 4) Has an unpermitted room 5) Condition of exterior walls unknown, due to being covered with aluminum. In some areas where aluminum is exposed, cement and moist wood can be found. Would this be a steal, or is it a money pit waiting to happen? I ask from the perspective of a first time home buyer not an investor, with no money available to start on any of those repairs within the first year or 2. Let me know your thoughts! [link] [comments] |
| Investing overseas with Trust or LLC? Posted: 17 Mar 2021 03:00 PM PDT Dual citizen living in US. Thoughts on opening an LLC (or Trust) for real estate investing overseas (i.e. investing in EU)? Thanks! [link] [comments] |
| Expediting Real Estate Purchasing Posted: 17 Mar 2021 05:31 PM PDT Hello everyone - newer investor here with 3 doors. In my current situation, I'd be able to get 2-3 units a year for the next few years through investment loans. Right now, that is fine as I have a pretty intense job. However, I would like to try to expedite the number of units I purchase a year when I eventually get a more relaxed job. (Which could be as early as next year). I have been seeking sub -120-150k apartments in the Chicagoland area. If necessary, I can get 150k cash. One thought I had would be to buy a unit with cash and then finance it. I feel like I should be able to get units every 2-3 months with this approach. What would be the shortcomings to this? What do others in the community do to expedite their purchases? Thanks! [link] [comments] |
| Mentors and those whove done it. Posted: 17 Mar 2021 05:29 PM PDT Hey guys have you guys checked out Ken McElroy either books or his new YouTube channel? I personally ha e found him to be a great online mentor so to speak, just curious on what else people have found? Happy investing! [link] [comments] |
| Looking for short term tennats Posted: 17 Mar 2021 05:26 PM PDT To those who rent to travel nurses or other short term renters, how do you advertise to your market? I heard there are some apps, and Airbnb has a long term rental option. But do you work with any travel nursing agencies? I flaired this vacation rental because I didn't see another short term rental option. [link] [comments] |
| Posted: 17 Mar 2021 05:00 PM PDT Long time lurker, first time poster. I've been working on a FCF estimate tool to see if a property I'm looking at is a positive NPV investment or if I should go elsewhere. Does anyone already have something they use and would like to share? [link] [comments] |
| Does anyone own an Airbnb with a pool? Posted: 17 Mar 2021 09:19 AM PDT Do you get a premium rent for the pool? Also, what's the additional cost for insurance including the umbrella policy? I am deathly afraid of someone doing something stupid in the pool and then turning around and blaming me for it. [link] [comments] |
| Issues with refi and equity loans -- Any other solutions to use for real estate investing? Posted: 17 Mar 2021 12:13 PM PDT I have tried looking for a similar issue here but can't seem to find the right info. As a first-time investor in a second home, I hoping to leverage some of the equity in my home to use on an investment property. My credit is great, I have ample equity, and could afford both properties even without renters. It looks like there are two options to do this: a refinance or a home equity loan. For a refinance, the standard 80% LTV applies only up until you have a jumbo loan, generally about $548k. If I refinance, I move into a jumbo loan and the lenders I have spoken to then move to a 70% LTV, meaning I come up short on funds to invest. Or if I refinance and cash out up to that amount, I come up short on funds to invest. For a home equity loan, the rates seem to be double or more than double what I could get on a refinance (quotes generally between 6% and 7%), which makes the economics of it much less desirable. I had previously used a HELOC for remodeling my existing home and the rates were great. Now, most places are not offering HELOC and very few are offering the home equity loan (differing from the HELOC in that you take the lump sum immediately but the rate is typically fixed). Are there any lenders or other mortgage solutions where this would not be a problem? Are home equity loan interest rates unusually high due to the pandemic? Or is my only option saving up for the gap in what I could otherwise get on a refinance? [link] [comments] |
| If you could buy the home adjacent to your primary residence, would you? Posted: 17 Mar 2021 03:58 PM PDT New investor here. The home next to mine is about to come up for sale. It's fully remodeled. Naturally, they want top dollar for it but are willing to negotiate slightly lower than top since I've offered to facilitate this transaction without use of agents, which will be saving them quite a bit on commission. If you had the opportunity to make a similar purchase, would you? Why or why not? TIA [link] [comments] |
| Finished basement ceiling/code question Posted: 17 Mar 2021 03:48 PM PDT |
| Urban New Jersey Property - How would you value private rooftop or private backyard? Posted: 17 Mar 2021 03:41 PM PDT Trying to do comps but very hard for me to strip out stuff like rooftop and private backyard [link] [comments] |
| Posted: 17 Mar 2021 09:39 AM PDT About 6 months ago I bought my first home and investment property all rolled into one. I like the term "backdoor triplex" to describe what it is. Basically, it's zoned single family but the place is quite large and has 3 external entrances and two kitchens, creating 3 separate spaces:
So far things are going even better than expected. We're paying very little to live in this very nice space, and building a lot of equity. No major maintenance costs yet, which makes things look deceptively good for now, but nonetheless, it looks like this is going to work out very well over the long term. We're happy living here, and we're living here almost free, excluding hard-to-anticipate maintenance costs (like replacing a furnace - ongoing costs like mowing the yard are included). We both work full time, make a really healthy combined income and have no kids. We're saving a lot. But I want to keep pushing towards more passive income. My goal is basically to work less and less without reducing my income so that as soon as possible I can drop to working something more like 3 days a week and spend more time skiing, dirt-biking, and raising the kids we'll likely have in the next couple years. So, what's my next real estate move? Start saving to buy a single-family rental property? Is it better to move out of this place and rent the space we currently use as soon as the "owner occupied" timeline runs out so we can do the owner-occupied financing again for the next one? Should I save more first and buy a multi-family? Honestly my job is pretty cushy, especially for how much I get paid, so I totally have time to manage more rentals, but right now I don't think I could get financing as I don't really have 20% to put down on another one (we stretched pretty hard for this one since it was so much more than what we needed with the rental portions). [link] [comments] |
| Need Step By Step for Mechanics of Private Mortgage Posted: 17 Mar 2021 02:54 PM PDT I have a commitment from a long-time acquaintance to lend me 75% of the purchase price of two different properties at 6% for 18 months. The other 25% and closing costs will be paid in cash by me. I am in New York state. The loan will be set as a mortgage against each respective property and I will be personally liable for the loan. A different attorney is representing me in each transaction. I would like to understand, in as much detail as possible what steps I need to take to handle this transaction in the most effective and seamless way. I'll be happy to update my question with any pertinent info. Where and how and what contracts need to be generated? When and how should they be signed and by which parties? When, where and how should money be wired? Those are the questions that come to mind. Thanks in advance for the help. [link] [comments] |
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