Private money lenders
Did you just go to college and then decide afterwards?
Rich:Actually, interesting, in my case, I had a full scholarship. This is what makes sad that I had 32,000 in debt because I had a full scholarship, and I was even an RA in the dorm, so I lived for free, but I just kept borrowing money whenever I could.
Honestly, it was just to keep up with my friends who were going out and traveling and having fun all the time. He was my neighbor when I lived in Alexandria, Virginia, so that townhouse that I bought in 2003. We come all the time to headquarters to do business trips. I knew that he pay advance loans online had worked for Habitat for Humanity in New York City before, and he built a bunch of houses. I mean, we flipped eight houses, and I think the first five made between 15,000 and 25,000 each. Then I think I lost 15,000 and then I think I maybe made five, and then private money lenders I lost 10 again. I believe he easily could have in a number of ways. I would have loved for you to be very confident personal loans for bad credit with low interest rates and make confident decisions, but it can be really scary to do this. Did you do one how do personal loans work flip with him first or did you do more than one flip personal loan credit score at the same time?
The cool thing was he owned houses in this neighborhood. They were like the worst houses in the neighborhood. So, we kept taking houses in our own neighborhood and making them from the worst property to the best, raising the value, raising all the values in our neighborhood by fixing up these houses. I just liked that, and I liked that that was his attitude toward it as well. Rich:I think that these are ways to expand your portfolio. Once you have experience, then you can manage this risk. Scott:I do want to know going back to the position that you built up over those first 13 years. I know that you paid, you basically had a philosophy of avoiding debt and paying off your house, for example.
I think she worked in maybe 2001 and she tried to work at the beginning, but she really never had an income. Then the second question here is what was your defense or discipline? What was your lifestyle while you were accumulating this cash? My income in the military … Now, you can be enlisted in the military or you can be an officer.
Rich:Frugal to me means we paid cash for our cars, right? We bought super cheap, used furniture all the time. By 2013, I was surprised to find the position I was in. Now, I could have leveraged these properties, and maybe controlled a lot more, but to be honest, again, I was scared to death.
So, once I left, I just bought more as fast as I could and as prices went up. The private money lenders reason I waited till 2003 to buy was because I was in Guam and we had earthquakes and typhoons all the time. All I was trying to do ever since 2003 was find more ways to invest. I tried to buy more houses and it was too expensive. Rich:When I got to Montgomery, Alabama in 2013, I ran into another military member on the first day of class.
It sounds like this was a pretty deep interest for you during that period. Can you walk us through what that was, if you have anything to say on that? Last question on this state or this moment in time where you changed into this Montgomery real estate investing path. I know that the military offers both advantages and disadvantages when it comes to time being able to allocate to side hustles. How is your situation setting you up for success payday loans mesquite tx with how you managed your time and putting that into real estate? In my mind it was like, "Well, I can test drive this property manager. So, I was like, "I want to make payday loans instant payout sure I trust these people, and I want to make sure that I also have other people like plumbers, and roofers, and electricians. I wanted to have all these important pieces in place, real estate agent that I trusted, basically boots on the ground once I was gone so that I can continue doing things. So, I had a trusted team in place, and I understood the area in Montgomery, Alabama.
The neighborhood that I was investing in very well are neighborhoods. Once I was overseas, it was just a matter of combing through properties on the MLS or however else we could find them or sending letters, and making offers on houses and buying them.
Rich:At that time, I was turning them over to my property management company to get them remodeled even if they were in really bad shape.
My property management company was managing not just the make ready, but if it needed extensive work because it was a distressed property. I think that might be a rare thing loans same day to use a property management company for something like that, but I trusted these people.
I knew that they were trying to keep my expenses low. Rich:To be quite honest, once we had all these pieces in place from overseas, this was very easy to do with emails and texts and Skype. You said you bought six and it worked out, so you bought more even as prices went up. Was it just six all at once or did you buy one and then another one, and then another one? A lot of bad things happened while I was getting this property ready. To be honest, again, I thought it was the worst mistake of my life and I thought that I was going to go bankrupt because of this thing.
I think I had two accept my contract on the same day. Then I just went one by one, then four, then five, then six.
Scott:I do want to point out that, well, those are great numbers. Scott:The capex is going to be very similar in price. The utilities are going to be very similar in price, those types of things. It also allows you to maybe be able to compare investments to each other at first.
So, you said something that I found very interesting. Actually, it was before retirement, had that long pause, pandemic hits, and then all of a sudden, personal loans utah I went out and bought a bunch of stuff, which obviously is probably a decision worth explaining to everybody. What were you backing into, basically, between 2013 and 2020 in terms of your plan about your life and your financial goals? I had that insecurity the whole time I was in the military. Rich:I wanted the 20-year retirement, but I saw people around me sometimes being pushed out the door before they hit 20 years current lending rates and not able to get that retirement. I saw it happen to people at the 15 or 16-year point, and that made me nervous. So, it looks like things are all coming together in 2020 for you. Walk us through what that was like for you and your decisions leading up to August this year. Rich:So, I did my last year in the military, right?
By the way, while we were in Korea, from our perspective, we almost went to war with Korea, so that was a very busy two years or with North Korea. Rich:Anyway, I come back in 2019 and I have a year left. So, I took over management, which actually makes me a lot more money, right? I bought a sixplex before I knew there was a loans for single mothers pandemic.
I mean, who knew what was going to happen back in March and April. Then actually, in June, again, just through networking and knowing people, somebody brought a fourplex to me. Again, I wanted a place that was comfortable and mine to hang out with my family should we all be stuck working and doing school at home. I was looking at a 16-plex, and I was getting excited about it, but there was just too much going on for me with also buying this newer home, which is large.
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So, I think it would have been a bad idea for me to purchase this house at any other point. I think you went through, you spent 20 years of a career building up a real estate portfolio, and a financial fortress, and a pension, and all these other wonderful things.
Now, your assets buy you the lifestyle that you exactly want, which includes this house. I just think that a lot of people attempt to do that in reverse. I rented cheaper and bought houses in a different area as an investment to help pay my rent. So, I just completely agree with your philosophy here.
Again, private money lenders I think I went from 20 to 30 fairly quickly. I think the answer to your question is I want to do something more with real estate because I enjoy it. The rents from that sixplex, I am assuming at least cover the expenses of the sixplex.
Rich:Then the fourplex that I bought after that, somewhat, from my perspective, is a home run because it cashflows well with the mortgage. Scott:Let me ask you a philosophical question here because you spent 20 years building a really strong position. Is that how you think about things or do you think you have a different approach to how you run your portfolio. Rich:Then to be quite honest, I just wanted the challenge of buying during the pandemic and I also want to take advantage of a really cheap money. Do you have a formal reserve fund for your 30 units? How much reserves do you have in relationship to how much mortgage payments you owe every month? I guess since then, since retiring, I also have a retirement income now. The cashflow that comes in every month is a decent cashflow, right? I have Roth IRAs, private money lenders and I have a Roth TSP, which has now been rolled over to an IRA. You can withdraw the contributions to it without penalty.
Rich:I usually keep a decent amount of money in cash in the banks. These are people that I knew where very good investors. I knew what they were doing, and they were just BRRRR-ing properties.
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