the lunch that cost 175k

Just want to share a story today on how I bought my current resident and some lesson learned. It was a typical Friday and i was working from home, looking at the clock and getting ready to hit the tennis court. Out of no where a senior investor I recently met call me up for a late lunch. Without a second thought i change my lync status at work to “away” and quickly hoop on a car to see him.

As always, I learned something new from him every time we met but this time is a LITTLE bit different. he received a phone call from his friend complaining about an agent won’t agree to submit a low ball offer on a house. After learning about the house and see its value on paper. we went see it, like it, and submit an offer the next day and got accepted.

Long story short, that “lunch” ended up cost me a fortune  and I have no intention of moving.

So what was the lesson learned?

  1. Really know your market. Good deal often need quick decision. The year of “give me a couple of days to think about it” is over.  In the current market, You will have a couple of hours to make decision on a good deal before somebody snap it in front of your eye. I won’t be able to make a 175k decision in a couple hours without really knowing my stuff.
  2. always carried a loaded “financial” gun and ready to fire any time you need it. In order word, you should have multiple tool in your tool box always be in a ready position to buy at any time. You never know when a good deal will come up. I rather be ready and have no deal to buy then have a deal to buy but have no money. Get your credit line ready, cash save up, relationship built and maintain with your banks, partners, LP at ALL time.
  3. Have multiple exit strategy before entering a deal. When the properties is contracted, you could always wholesale it, owner finance it, flip it, rent it, or move and live in it. This time i select the last option just because i like my deal so much.
  4. If you work with an agent, make sure he or she is also an investor. This is a bias statement but the only reason i was able to get this house is because the all the other agent refuse to submit a low offer because low offer often or not damage that agent reputation. This house obviously has a problem, and the seller has some issue and the other agent, without an investor mindset couldn’t see pass through it. As an investor, we look for problem and we solve problem. I too, struggling whenever or not to put on my realtor hat or my investor hat. I happened to execute everything correctly in particular case.

well that’s it. Happy Monday. here is a pic of me and him and Jenny before we purchase the house

Go out there and get your money straight.

Screw Happiness – I am in pursuit of Greatness

 

Recent Wimbledon Championship slogan inspired to get back on my feet and start to get back on my dream again. Their slogan is

“In Pursuit of Greatness”

At one point in life, have you ever had a person telling you something to the extend of: ” Oh, money is not important you know”, or ” I rather be happy than be rich”, or “Money is the root of all evil”, or ” There is a lot of other stuff than money you know” Continue reading “Screw Happiness – I am in pursuit of Greatness”

I can teach American capitalism using a jar of marble

As a kid most of us know the game of marble. The name of the game is to collect as many marble as you possibly could.

What do you do when you don’t have any marble? You have to find one 1st. You could either dig up around your yard to find one. Or if you are lucky ask your mom and dad and they will provide you some marble.

Continue reading “I can teach American capitalism using a jar of marble”

Focus on your real goal

It is very easy to lose your real focus and start chasing the money in real estate.

I am pretty much speaking for myself here as i am struggling with this problem ever since. My Real Estate goal has always been created enough passive income to live off from it and never have to work again in my life and spend more quality time with family and friends. But as i notice the more houses I have, the more i got pulled into the business, and the more involved i am. The bigger real estate goal I set, the more equity it will require me to reinvest back into the market. The more time i need to spend time to acquire the necessary knowledge. I have to basically keep working and keep pushing as my goal is now a sky-high goal

This is does not mean that you should lower your bar and start padding yourself on the back and slack off. This mean that you need from time to time  swing back if you are intentionally gone off balance for a while and reflect on yourself. I am guilty of going off-balance for a very long time. When the eye start to go blind and the mind started chasing only the money itself – I realize that it’s time to swing back and reflect on yourself.

We have a saying that take one step back in order to take ten step forward. this is always right.

I suggest we all take a moment to reflect on your real goal. What’s really important for you? I hope it’s not just all about money. For me, it’s about the people around you. The people who believe in you when you have nothing to show, go with you to places, and help you along the way.  The love, the friendship, the memory, the ..pain that you made during the journey that is priceless. And the most important question: How many people you have helped along your journey?

 

 

There is a saying that If you want to become a billionaire, then help a billion people by Grant Cardone. I will live you with that thought

Simple, Boring but Sexy

I just shared this success story bellow on Bigger Pocket. If you haven’t done so. I suggested you doing so. this is the great place for new folks to get started in real estate. I have no affiliated with Bigger Pockets but through them, i was able to met wonderful people who now became friends and co-leagues. I want to give back to the community by sharing my success stories and motivated new landlords. Bellow is the post:

Hi Everyone,

I just want to share another simple, boring, but sexy deal to motivate new landlords and to show them that real estate investing does not have to be complicated. with commitment, persistent and the willingness to put in the work. Anybody can do this.

This is a turned key house ready to move in that i bought 3 years ago for 87k at 20% down. i made No immediate repair and move in immediately. PITI is around 650 a month. 3 years later, i moved out and was able to rent it out for only 3 days on market at the market rent of $1300 a month.

The point of the story is if you can, and especially when you starting up – buy your personal resident with an investor mindset. This is kinda hard but I done it, other people done it (house hacking). Even on the new house that I current live in right now. i still have to make sure that in the event that i have to rent it out, the market will still be more than enough to cover the PITI. This will add a plus to your mobility factor and the ability to snatch up good deal.

To sweeten up the deal. I was able to rent out my room on Airbnb and generate decent cash flow to help with the bill. On top of this, Remember to set up a HELOC on your house before you move out. This allow you to access the equity of the house without selling it.

An investor once told me that fix up your rental as if you don’t mind moving in. Screen your tenant super hard but then treat them with respect and dignity. You will have long-term tenant and they will stay with you long term. I’ve been following his advice all the way until now

Happy investing

Who just got screwed?

Well. I am in closing as of right now for almost two hour. and the two buyer in front of me can’t wait until they get the house funded. They said the 1st they will do is paint the house. The moment i get the check. i will hit the publish button and post this.

Instead of bragging about how much i made in this transaction. Let me ask the reader a question. The Buyer is a winner because they get the house with almost no money out of pocket since this is an FHA. The selling agent is happy to get her commission check, the listing agent is happy to get the commission check. Title company is making a fortune out of the transaction. And the Seller of course is happy because he sold the house at the price he want The seller partner on the deal is happy as well getting her money double. The loan originator and the bank is happy because all the fee they made.

Soooo the question is: Is this a win win win win win win situation

Or

Did somebody just lose their shirt and got screwed? Who take the financial risk? Not the buyer since they put almost no money down. Not the seller since he got what he wanted, not everyone who feed on fee and commission?

Who just got screwed?

Btw this is the house i’m selling and all the picture is below

 

And of course my fancy check after 2 year of hard work on this deal

FullSizeRender

 

Property 16 – 1st Owner Finance

got lot of picture to show for this one. This is my 2nd flip. Picture worth a thousand words. check it out. I partner with my brother in law on this. he provide all the fund. i provide everything else. profit is split 50/50

 

After Repair

 

I end up couldn’t sell this one traditionally for whatever reason. I ended up owner finance it and it turned out to be a decent deal so far. Since my brother in law provided all the fund, i back out of the project and just charge a project management fee. the loan later was sold to my mom. she need no tenant termite and toilet so this loan is perfect as far as passive income for her.

 

 

 

 

 

 

Share your knowledge, share your success

Yesterday I had an opportunity to share one of the book that i love: The Secrets of the Millionaire Mind . For the past few years, I thought i am the only weirdo that read this kind of book and do this awkward declaration every morning and night. But yesterday proved that i was wrong. I have a very good crowd that really get what i am trying to communicate. And the best thing ever, we did affirmation together. For me that is uber powerful.

Getting wealthy  no longer a myth. It is becoming real.

Below are the 3 points that i love the most from the book:

  • The rich choose both happy and wealthy. the poor and the middle class was sold the idea that “I rather be happy than wealthy” and pick either or. Remember the rich choose both while everybody else choose one and not the other. No body forced you to pick one. u can pick BOTH!
  • Financial Blue print. It doesn’t matter how much money u make. if your blue print is set to “poor” mode. you will never be rich. One example is lottery winner. they will eventually came back to where they started simply because they don’t have the right blue print. Change your blue print, change your life\
  • Affirmation: I know it’s not cool and probably the people in the house will be like “WTF” when you are yelling out your affirmation in the bathroom every morning. but hey, look at Novak, look at all the rich and successful people in the world. What are they doing every morning? If they do affirmation. may be you should too. Remember your subconscious mind is 10 times more power than your conscious mind and you have to learn how to direct it. Affirmation is one effective way of doing it

Be good, be great, be extraordinary and live the life that you are capable of living..

( The picture is just a random picture from my 1st track day. Remind myself need to get back to it)

 

 

 

 

Mini Syndication – The story so far

After going back from the Syndication event. I am confident enough to pull the 1st trigger on a mini syndication deal with close friend and family. After months of searching and negotiation we were able to secured 3 townhouses next to each other Continue reading “Mini Syndication – The story so far”

Should you go get your RE license?

There is plenty of discussion on this topic. Here is my take: I’m pros when it come to getting your realtor license. It has benefit me years over years. below are some of the main point. This is one of the thing where you don’t have to have it, but it is really nice to have it: Continue reading “Should you go get your RE license?”