2017...how well did you do?

[ndwilli6]

Net Worth End of 2016
$486K

End of 2017
$653K

Net Worth increased $167K

We continue to grow our investment portfolio from $483k to $593K.

zero credit debt -- WAY TO GO!!! I'm trying to get there!!

Mortgage Principal reduction down from $460K to 445K!

Home Equity increased $45K!

WOOHOO!! Equity is awesome.

[disneysteve]

I’m 27…

Salary: $40,130.00 (1st job), $4,835.46 (part-time)

HIGHLIGHTS: purchase 3 homes, paid off $5k credit card debt and ENTIRE CAR (close to $9k).

Are you saying that last year your purchased 3 homes? If so, how did you manage to do that and pay off 14K in debt while only earning 45K total?

[ndwilli6]

Are you saying that last year your purchased 3 homes? If so, how did you manage to do that and pay off 14K in debt while only earning 45K total?

-Refinanced homes and received cash back (instead of receiving all cash directly to me I had lender pay off creditors.)

[disneysteve]

-Refinanced homes and received cash back (instead of receiving all cash directly to me I had lender pay off creditors.)

That didn't really answer my question. So do you own 3 rental homes? If so, can you tell us how you managed to do that at 27 years old on a 45K income?

[ndwilli6]

That didn't really answer my question. So do you own 3 rental homes? If so, can you tell us how you managed to do that at 27 years old on a 45K income?

I own 4 rentals. Sure thing. I purchased my 1st primary house late 2014. Rented that one out last year and purchased another home. Then 3 investment properties. Send me a private message.

[rennigade]

I own 4 rentals. Sure thing. I purchased my 1st primary house late 2014. Rented that one out last year and purchased another home. Then 3 investment properties. Send me a private message.

Are you related to 97guns?

[bjl584]

That didn't really answer my question. So do you own 3 rental homes? If so, can you tell us how you managed to do that at 27 years old on a 45K income?

Probably buying cheap properties, rehabbing them, then doing a cash out refi in order to buy another one. Rinse and repeat. Most lenders will stop you when you get to about 10. Then, you have to find another lender or come up with creative financing.

[LivingAlmostLarge]

Probably buying cheap properties, rehabbing them, then doing a cash out refi in order to buy another one. Rinse and repeat. Most lenders will stop you when you get to about 10. Then, you have to find another lender or come up with creative financing.

how do you even get up to 10? Is it not at all risky?

[ndwilli6]

Are you related to 97guns?

I'm not. I don't even know who that is...if its' an investor please feel free to connect us. I'm looking for more aggressive investors and possible partners outside of NC.

[ndwilli6]

Probably buying cheap properties, rehabbing them, then doing a cash out refi in order to buy another one. Rinse and repeat. Most lenders will stop you when you get to about 10. Then, you have to find another lender or come up with creative financing.

Yep! The BRRRR strategy. Easier said than done. Getting more difficult to find good deals because of market demand. I focus more on properties in need of cosmetic work. Although I did purchase one with significant problems but it has PAID off BIG time. I'm so grateful for that. I'm in the process of purchasing another one. I hope this provides big returns too.


I'm assuming you are an investor too being that you know one of the methods. I haven't technically flipped one yet. I'm ready for it. kind of nervous about that tho...but can't make money if you aren't making offers and taking risk. Logical...sound risk.

**once you get to 10 you can do a portfolio or start commercial.**

[ndwilli6]

how do you even get up to 10? Is it not at all risky?

It's honestly not a 'rocket science material.' Investors are and have been doing this for decades...probably centuries.

I'll try to explain clearly. Lenders will use 75% of rental income as income. Bottom line. If you rent a property for $1000.00 and your mortgage is $700.00. The lender will say you earn $50.00 monthly as income. Why? I'm glad you asked. 25% is used for safe keeping...1) if tenant stops paying you have that portion saved already, 2) maintenance.

All of my properties I earn income according to my lender because rental amounts are at least 25% MORE than mortgage amount.

You gotta find homes that need rehab. The home will be appraised with ARV in mind (after repair value in mind). You have to build authentic relationships w/contractors. Or, do the work yourself. I do alot myself but also have contractors helping as well.

[bjl584]

how do you even get up to 10? Is it not at all risky?

Not really.
Commercial lenders or lenders geared to lend to real estate investors aren't looking at debt to income ratios or credit scores. They are looking at the property itself as an income generating entity. After you own a property and can prove to said lender that it is generating positive cash flow, the lender will actually view it as income, not debt. Commercial loans are structured differently than residential ones. That's how investors finance multi-unit complexes. The more doors the better as long as you can raise the capital. A lot of investors will buy the properties under a LLC, so their personal assets won't even come into the equation.

The best part about doing a cash out refi, is that it is not a taxable event. You can buy a cheap property, put some work into it, find a lender to reappraise it, and take the profit and do with it as you please without taxation. Usually, an investor will take it and use it as a down payment on another property. Leverage used in this manner can be a very powerful tool. This is how an investor can own so many properties in such a short time at such a young age.

[disneysteve]

Not really.
Commercial lenders or lenders geared to lend to real estate investors aren't looking at debt to income ratios or credit scores. They are looking at the property itself as an income generating entity. After you own a property and can prove to said lender that it is generating positive cash flow, the lender will actually view it as income, not debt. Commercial loans are structured differently than residential ones. That's how investors finance multi-unit complexes. The more doors the better as long as you can raise the capital. A lot of investors will buy the properties under a LLC, so their personal assets won't even come into the equation.

The best part about doing a cash out refi, is that it is not a taxable event. You can buy a cheap property, put some work into it, find a lender to reappraise it, and take the profit and do with it as you please without taxation. Usually, an investor will take it and use it as a down payment on another property. Leverage used in this manner can be a very powerful tool. This is how an investor can own so many properties in such a short time at such a young age.

Thank you. This post makes more sense than all of his posts combined. It would be helpful if you also posted this to his other thread.

[msomnipotent]

So I have already lost the paper I had with exact figures, but my 403b is up over 23% this year. My husband's is up over 13% even though I lowered the risk level down quite a bit. We were contributing 6% of pay near the end of 2016 and we are up to 11% now. Depending on what kind of bonus he gets, I may not have to raise it to max out this year. We have added about $10,000 to the college account and $30,000 to savings. We have only paid about $8,000 towards the mortgage balance this year, but our house gained over $30,000 in value. My share of the equity for the cottage is now a little over $25,000, which is a large increase from last year.

My husband got a raise and an unusually large bonus in 2017, which helped immensely. We also put a few expenses off and lived simply this year while saving for a house, but that is on the back burner now. And of course, since I said that we aren't looking for a house, our dream home will pop up with our dream price and we will move next week.

[bennkar]

The best part about doing a cash out refi, is that it is not a taxable event. You can buy a cheap property, put some work into it, find a lender to reappraise it, and take the profit and do with it as you please without taxation. Usually, an investor will take it and use it as a down payment on another property. Leverage used in this manner can be a very powerful tool. This is how an investor can own so many properties in such a short time at such a young age.

Like any leverage, it can help or hurt. If the units can't be rented, there will be serious problems with this technique. A lot of people did this a decade ago, and some got burned badly. Maybe this time will be different.