My Real Estate Progress Thread

[RayAndré]

Ok, its a little embarrassing that I left this progress thread untouched for months, then someone else finds it

@Excalibur sounds like you've had some good success with your purchases! Very nice.

There is definitely a balance between speed and risk. I'm starting to toe the line on the risky side of things


Progress Update
Last time I posted, I was in the Short Term Rental mindset.

But this is TFF, and the goal is to ride the FASTlane. The goal isn't cashflow, but value-add. Not buy and hold, but "fix and flip" (add value and sell).

Flipping single family houses is one route I was considering for a while, but my ambition is driving me towards commercial multi family.

So I've been learning that I recently enrolled in a 2-week bootcamp about MF investing and learned a TON, and now also have a network of other students and existing investors to tap in to.

Talk on TFF about real estate / the market, people are saying they're not buying right now. It seems I decided to invest when we happen to be at the top of the market...so I'll slow my roll and not be in a rush.

The plan: move to Tampa and rent. Keep an eye on residential MF properties and if a good deal comes along, buy it with a low down payment. Keep practicing / learning commercial MF underwriting and other skills so when a good deal arises I can move on it.

 

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[WJK]

You're one of the few people I have seen that think that way. I also agree. I bought my 1st property and paid it off in 3 1/2 years. Bought a 2nd on a 30 year note to allow breathing room, with intentions to pay off under 5. Perhaps not fast lane, but I am comfortable with my pace.

Slow, careful pacing, wins the race. I have friends who have 70%-80% LTVs (loan-to-value-ratios) on their apartment buildings. That makes me cringe. I'll be debt free within the next couple of years. I'm with you. I like my breathing room. Equity, coupled with cash flow, is king.
Here's an example. My car was damaged in wind storm yesterday. It's a minor annoyance rather than a major financial disaster. The body shop is picking the car up in an hour. What does that have to do with my real estate business? Everything. I don't have worry about paying my part of the bill for the car because my RE cash flow is there to pick up the tab. IF I was strung out with high RE payments, I'd be sitting here stressing. Financial woes affect every part of your life. The possible future gains are not worth the worry of surviving the present.

 

[WJK]

Ok, its a little embarrassing that I left this progress thread untouched for months, then someone else finds it

@Excalibur sounds like you've had some good success with your purchases! Very nice.

There is definitely a balance between speed and risk. I'm starting to toe the line on the risky side of things


Progress Update
Last time I posted, I was in the Short Term Rental mindset.

But this is TFF, and the goal is to ride the FASTlane. The goal isn't cashflow, but value-add. Not buy and hold, but "fix and flip" (add value and sell).

Flipping single family houses is one route I was considering for a while, but my ambition is driving me towards commercial multi family.

So I've been learning that I recently enrolled in a 2-week bootcamp about MF investing and learned a TON, and now also have a network of other students and existing investors to tap in to.

Talk on TFF about real estate / the market, people are saying they're not buying right now. It seems I decided to invest when we happen to be at the top of the market...so I'll slow my roll and not be in a rush.

The plan: move to Tampa and rent. Keep an eye on residential MF properties and if a good deal comes along, buy it with a low down payment. Keep practicing / learning commercial MF underwriting and other skills so when a good deal arises I can move on it.

Cash is king. So is time. You must have the cash, and you must be able to move quickly. A small down payment is not equal to having the cash available -- unless it's a signature credit line that covers the whole purchase. Conventional financing takes too long, and it loses good deals. Successful investors look for "stud-card" deals that they close as fast as the title work comes in. My best ones take less than a week to close. The only thing that takes a long time is to locate the next deal.
Good luck!