Take advantage of the market for sure. I love how many different strategies there are in real estate.
What are your goals with real estate?
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Last: 5 yr ago by mwp02ag
Congrats on the ski condo! We want to move to the mountains for a couple of years so you've already achieved one of our goals!
Imagine you have a large portfolio of rental properties, diversified across different markets and asset classes. Imagine that portfolio generates more than enough money for you and your family to do what ever you want and not have to worry about a paycheck because you know that with out fail you will have income.
If you've set it up correctly, even if the market turns down you should retain enough cash flow to service your debt. There are risks of course and many people tell their story of losing it all in 2008. The ones who persisted, gained it all back and most of them have set themselves up better to weather the storms this time. Study the failures.
We're not wealthy by any means but we are blessed to have, successfully to date, invested in ourselves and we are beginning to the see the fruits of our labors. We would rather die trying to live our perfect life, than live a life beholden to a time clock and paycheck.
Imagine you have a large portfolio of rental properties, diversified across different markets and asset classes. Imagine that portfolio generates more than enough money for you and your family to do what ever you want and not have to worry about a paycheck because you know that with out fail you will have income.
If you've set it up correctly, even if the market turns down you should retain enough cash flow to service your debt. There are risks of course and many people tell their story of losing it all in 2008. The ones who persisted, gained it all back and most of them have set themselves up better to weather the storms this time. Study the failures.
We're not wealthy by any means but we are blessed to have, successfully to date, invested in ourselves and we are beginning to the see the fruits of our labors. We would rather die trying to live our perfect life, than live a life beholden to a time clock and paycheck.
Build an empire.
I started investing in 2008.. didn't know it at the time but picked up steals for few years that I still own and lease out today. Most of my money will come when I sell them as they have great equity now. I have done loan refi on many and pulled out just about all my initial cash so just playing with bank money. Cash flow seems to eventually get eaten away with taxes, make ready, repairs etc. Long term real estate is a great play. We own about 20 of them so we have 20 renters paying off our mortgages. I also flip homes, bought some that flooded in Houston to both rent and flip. As many other posters have said, the easy deals are almost impossibly to find unless you find the desperate seller directly. Looking on the open market is almost waste of time. Auction homes usually get bid up to numbers that don't make sense. You can still find "deals" but have to be extremely lucky to not leave $15-25K in each deal. As for becoming financially free, well much of that depends on your lifestyle. If you are new, my advice.. do not trust numbers from anyone. Due your on diligence. Do not believe what someone tells you the after repair value is or what the rehab cost. Also if you plan on owning 20 plus homes, remember if you also manage yourself it becomes a side job. You better have a GREAT handyman. AC units, plumbing leaks, roofs get old.. list goes on. Overall real estate has been the best investment I have ever made by far.. just know it is some work.
Well . . . it's not exactly a ski condo. It's in Fort Collins, which is quite a haul to the nearest ski resort, but the quality of life in FC is off the charts and is still one of the best kept secrets in Colorado. Attendance at CSU is growing rapidly and the city is essentially land locked by precious open space, so population growth (like Boulder), is very limited. Demand to live within FC city limits is very high. We will consider retiring there.mwp02ag said:
Congrats on the ski condo! We want to move to the mountains for a couple of years so you've already achieved one of our goals!
Imagine you have a large portfolio of rental properties, diversified across different markets and asset classes. Imagine that portfolio generates more than enough money for you and your family to do what ever you want and not have to worry about a paycheck because you know that with out fail you will have income.
If you've set it up correctly, even if the market turns down you should retain enough cash flow to service your debt. There are risks of course and many people tell their story of losing it all in 2008. The ones who persisted, gained it all back and most of them have set themselves up better to weather the storms this time. Study the failures.
We're not wealthy by any means but we are blessed to have, successfully to date, invested in ourselves and we are beginning to the see the fruits of our labors. We would rather die trying to live our perfect life, than live a life beholden to a time clock and paycheck.
There is some excellent wisdom in this thread, although some of you appear to do this for a living rather than classify it as passive income.
Some good things to chew on. The only market I have really studied is Fort Collins. When we moved to Houston, I sold our home up there and kept our condo. Bad decision. Home has now appreciated nearly $100,000 in 5 years. I'd love to get something a little closer to home, say in College Station.
Some good things to chew on. The only market I have really studied is Fort Collins. When we moved to Houston, I sold our home up there and kept our condo. Bad decision. Home has now appreciated nearly $100,000 in 5 years. I'd love to get something a little closer to home, say in College Station.
It's hard to say exactly what my goals are. The market changes and with that so does my exit strategy/goals. I've owned up to 10 rentals...currently own 5. I've fix/flipped/wholesaled/etc countless others. I've owner financed 10+. All have pros/cons. The passive income from rentals is great and all but it doesn't take much to eat that up. (Maybe once you get up to $20k/month it won't matter as much.) Personally I prefer the owner finance exit but you need to have a bank on your side for that (which as of recently I do so hoping to do more in the near future).
Woof. 19 Financed properties? Are these through credit unions or boutique lenders? I do new construction residential mortgages, and our guidelines say no more than 10.
You have to start using commercial loans after 10 iirc
Are some of yall worried about peak market for properties? Can you account for a potential downturn & loss of equity? I think Im also guilty of overthinking the numbers. Ive left a few deals on the table Im regretting now.
is that like peak oil?
I guess so lol. But Im there with you. I also let a few opportunities slip because of numbers.
Scientific said:
Are some of yall worried about peak market for properties? Can you account for a potential downturn & loss of equity? I think Im also guilty of overthinking the numbers. Ive left a few deals on the table Im regretting now.
God ain't making any more land.
Where do you guys find majority of your deals? I surf realtor and HAR and numbers just don't work
jaggiemaggie said:
Where do you guys find majority of your deals? I surf realtor and HAR and numbers just don't work
The numbers work plenty on all of the value add projects due to flooding. But you have to be interested in the remodel process. Otherwise, Houston hasn't been a good investment market for listed homes in years.
HUD
Ha I have ski condo on the brain....I hear Co and that's all I think about, but I really love the whole place. Everyone is fit, dogs everywhere...just a cool as place. I'll have to add FC to the list to check out.
If your married you can have 20....someone more experienced will have to tell us if that's in both names or 10 in each.BMach said:
You have to start using commercial loans after 10 iirc
Sure. The Coloradoan is the local newspaper up there and has had numerous articles on the housing issues and lack of affordability up there.mwp02ag said:
Ha I have ski condo on the brain....I hear Co and that's all I think about, but I really love the whole place. Everyone is fit, dogs everywhere...just a cool as place. I'll have to add FC to the list to check out.
Question for the thread...
How are you guys that buy 4 or more properties get around the 3 mortgage limit on your credit?
Thoughts?
How are you guys that buy 4 or more properties get around the 3 mortgage limit on your credit?
Thoughts?
Local banks who keep the loan in house and don't sell on the secondary market. It's a commercial loan versus consumer loan. You can get a million commercial loans if the bank will let you. Rates and such aren't as favorable as consumer/conventional/secondary market loans but no big deal in the big picture.
I had to refi my triplex into one of these products as, unbeknownst to me at the time I bought it with hard money, I would not be able to count any of my income towards a conventional loan since I didn't have two years of tax returns since I had become self employees. It's a 7 year ARM, amortized over 30 at 6.2% with Jefferson Bank in San Antonio. They are also known as Portfolio Loans.jmazz said:
Local banks who keep the loan in house and don't sell on the secondary market. It's a commercial loan versus consumer loan. You can get a million commercial loans if the bank will let you. Rates and such aren't as favorable as consumer/conventional/secondary market loans but no big deal in the big picture.
We will be able to refi into a conventional product in October from a much better position. Depending on rates at the time it should close to double the cash flow if we don't take any cash out. Makes sense to me since the refi would pay for itself in less than a year and we'd be in a 30 year fixed.
That works too...re-fi when able into something more favorable (assuming it makes sense for your personal strategy).
I believe that Fannie and Freddie have limits of 4 and 10 mortgages. I can never remember which one is which though. So you can get to 4 no problem. Then 10 as long as you find a lender that sells to the other one. Then you realize that you can get up to 20 with mortgages in individual spouses names. Then you realize "WTF am I doing with 20 rental properties?" and get some multi-family.
All good discussion on the board. Becoming a GOOD real estate investor takes a little courage, research, and commitment. After your first deal your confidence grows and your on your way.
Most people get stopped by lack of courage. Lacking courage is aided by, paralysis by analysis, resulting in no action. Define your Why, then set your goal and list out your objectives to accomplish your goal.
You can build your courage by hanging out with successful real estate investors. Get a mentor to help focus, do some research and TAKE ACTION. BiggerPockets is a great website to get information, research and even finding a mentor.
My Why: Become financially independent to provide a robust standard of living so that I can live life at a pace that allows me to focus on my family and enjoy life experiences and helping others achieve the same..
Goal: Aquire predictable and sustainable cash flow to meet a robust standard of living that will outlive me and leave a continual flow of income to my heirs.
I have many objectives to meet the goal. Real Estate is a major focus of mine to help accomplish my goal.
Wouldn't it be nice to acquire/inherit enough producing oil wells to provide all the income you would ever need. Somehow that just seems like pie in the sky. But Real Estate is available to most of us and can become our oil wells. You just need a little courage!
Most people get stopped by lack of courage. Lacking courage is aided by, paralysis by analysis, resulting in no action. Define your Why, then set your goal and list out your objectives to accomplish your goal.
You can build your courage by hanging out with successful real estate investors. Get a mentor to help focus, do some research and TAKE ACTION. BiggerPockets is a great website to get information, research and even finding a mentor.
My Why: Become financially independent to provide a robust standard of living so that I can live life at a pace that allows me to focus on my family and enjoy life experiences and helping others achieve the same..
Goal: Aquire predictable and sustainable cash flow to meet a robust standard of living that will outlive me and leave a continual flow of income to my heirs.
I have many objectives to meet the goal. Real Estate is a major focus of mine to help accomplish my goal.
Wouldn't it be nice to acquire/inherit enough producing oil wells to provide all the income you would ever need. Somehow that just seems like pie in the sky. But Real Estate is available to most of us and can become our oil wells. You just need a little courage!
Quite a few of us here have some big goals indeed. I think I mentioned I've been reading Think and Grow Rich and that was what made me want to start this thread. What you don't know is I am an incredibly shy person and I've typed a version of this thread at least 5 times in the last couple of months, only to delete it. Putting myself out there like this is very foreign to me, and definitely outside my comfort zone. Putting goals in writing has been helpful though.
That begs the next question....how do you stay accountable to your goals?
That begs the next question....how do you stay accountable to your goals?
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