How to pay off a mortgage early

Hi everybody! Today we've got a special guest whose name is Daniel Kwak. He is based in Chicago, Illinois. Daniel is a real estate investor, real estate educator, and serial entrepreneur. He is somebody that owns multiple businesses. We're going to take a trip through his journey of how he went from 0 to 75 units in one year. We will also talk about how he helps clients pay off their mortgages more quickly. And we will touch a bit on the real estate market as well.

Who is Daniel Kwak, and how did you come across the real estate investment world?

I am an immigrant who migrated from South Korea when I was 5 years old to the United States. We moved to America because my dad was and still is a preacher. Therefore, he was asked to take over a church organization in Chicago.

When I was in Korea, I was a huge basketball fan. I had an older cousin who played for his high school team and was pretty good. So we would always watch him play. I also enjoyed watching the Korean basketball league, the KBL, thinking that these guys were the best players in the world. However, this was not the case.

When we immigrated, there was a 14-hour plane ride, and the entire time, I was only thinking of how I would miss my friends and basketball. In my opinion, I don't believe that there could be basketball in the United States.

When I got off the plane, I saw the big box TV in the corner of the O'Hare airport. There was a guy playing basketball, and I was like, "Oh, they've got basketball here too!" The guy wore a jersey that said "No. 23." and had his back to the basket. Oh, and he jumped super high and hit this fadeaway jumper. Wow, I have never seen any Korean players do that.

His skin was a little darker than the Korean player said to me; I think that's my favorite player now. Since there is basketball here, maybe this place is not so bad, and he is the first basketball player I saw. Well, you know, in the late nineties, it's obvious that this was Michael Jordan. So I was a diehard Chicago Bulls fan since I was a little kid.

When I was 17 years old, I read an article by Forbes saying that out of the top 1% of individuals, 76% of those individuals made their money by investing in real estate. And where this whole story with the Chicago Bulls comes in is I looked up who the owner was, its this guy named Jerry Reinsdorf, who bought the team in 1984 before Jordan got drafted. He bought the team. I dont know how much, but the guy invested in Chicago real estate.

Around the same age, I read an article about real estate, and I found out that the owner of my favorite team got his money by investing in real estate. And I was like; I will get to the real estate game. So that's how I got to real estate.

My brother started a DJ company at that time, and that's how I got started with entrepreneurship.

Daniel's first deal

When I first started real estate, I was 18 years old. By that time, I had $187.65 in my bank account. By the way, in my family, we grew up poor. And when I say poor, I mean poor. When we first came to America, we lived in a studio apartment. We lived next to what's a gentlemen's entertainment center. My mom and dad shared a twin-sized bed in a room that doubled as their bedroom and doubled as our dining, living room, and kitchen.

We had to sleep in our car many nights because we couldn't afford to pay our heating bills. I liked going to school; it meant I was going to eat. So when you grow up poor, a lot of times you learn poorly.

So I am 18, and my bank account is reading negative. I had a couple of maxed-out credit cards and just felt like a loser. However, I knew that I wanted to get into investing and learn. This was not for my own sake but for the sake of helping other people out. I aim to create a ripple effect and inspire other individuals. I saw myself as a failure at that age since I wanted to accomplish all these things, but I couldn't even take care of myself.

My inspiration leads to my pursuit of information. And I think that this is what a lot of people need to have. The inspiration should be the pursuit of their information. I would wake at 6 or 7 am and sleep at midnight. The entire time I would just study real estate. I would not do that in terms of getting a loan of like 20%. Who would give a 21, 19, 18 kid with no real income and a negative bank account balance in their right minds?

I, therefore, learned about this thing called "seller finance." For those who don't know this, it's when a seller carries the notes instead of the bank. I learned how to do this and perfected it by being very creative. Thus I got people who wanted it instead of pushing for it. I then raised capital, recruited some investors, and got 87 doors in one year.

Seller financing

You have other options if you're having problems qualifying for a standard mortgage loan. One option that worked best for me is to finance a loan through the home's seller, in which case you can work out a deal to pay the money that would otherwise go to the bank.

Purchase-money mortgages and owner-financing are two terms used to describe the process of seller financing. However, it refers to a real estate lending transaction in its most basic form. A property owner also acts as a mortgage lender, obviating the need for a financial institution to manage financing arrangements.

What is seller financing?

Seller finance can be defined as a loan given by a seller to a buyer. Seller financing is sometimes known as "owner financing" or "bond-for-title" in real estate. In such circumstances, the buyer and seller sign a mortgage agreement, and the seller oversees the process. This method eliminates the requirement for a financial institution to facilitate the transaction.

How does seller financing work?

A seller financing agreement usually entails the potential buyer of a property or business paying the seller a down payment. Like other types of financing, Seller financing entails the buyer making monthly payments or installments to the seller at an agreed-upon interest rate (the time duration may vary depending on the agreements). The buyer will continue to make payments to the seller until the loan is fully paid off.

In seller financing arrangements, the seller essentially provides the buyer with a non-bank financing option. The seller benefits from such an agreement because it can be considered an investment with assured returns. However, this depends on the buyer's creditworthiness and motivations to guarantee that they make the payments.

The buyer benefits because they may not have secured a loan but can now acquire their desired home through a contract with the seller. Additionally, if the buyer defaults on payments, the seller has the right to foreclosure or reclaim the asset. Typically, the assets being purchased serve as collateral for the loan.

Benefits of seller financing to seller

Seller financing may be a viable choice for those looking to lend money. The following are some of the benefits of supplying it:

• Having the ability to save money on closing costs
• A faster time when it comes to sales and the option to sell your property as-is without the requirement for modifications. Therefore resulting in considerable capital gains tax and savings over time.
• Property taxes, homeowners insurance, and other maintenance costs are no longer an issue.
• Selling the promissory note to an investor is one option.

Benefits of seller financing to the buyer

If buyers choose to engage in seller financing programs, they may be able to take advantage of many advantages, including:

• Access to more financing options, particularly for low-income purchasers
• Closing costs are reduced, resulting in lower expenditure costs.
• Potential for no PMI premiums due to more flexible agreement parameters
• Accessible to people with bad credit.

How do you find seller-financed homes?

Finding seller-financed properties might be difficult. Few property sellers are willing to finance their own homes. As a result, investors must be resourceful in searching for these properties to improve their prospects. The following are some helpful hints for locating owner-financed properties for sale.

Real estate website listings

Some real estate listing websites have owner-financed homes listed in their database. Checking Mashvisor's postings is a great place to start. The investment property sale description will be noted if the seller offers seller financing.

It's not a decent real estate bargain just because a seller offers owner financing. You'll also need to do some math and realize properties are sometimes overpriced and do not provide a satisfactory return on investment. Mashvisor is a tool for analyzing real estate transactions. With our real estate investing tools, you can uncover investment properties for sale with a high return on investment potential in a couple of minutes.

Hire a real estate agent

You could engage a real estate agent or broker if you're looking for owner-financed homes in your neighborhood. Unpublicized owner-financed deals in your area may be known to an experienced real estate agent with comprehensive knowledge of the local housing market. They might know someone who wants to sell and is ready to offer seller financing. Apart from finding seller-financed properties, they can also assist you in closing the sale by negotiating better interest rates and terms with the seller.

Public MLS websites

Real estate agents typically have access to the majority of MLS websites. However, some counties provide public access to the MLS. Check the comments thread of the property for sale to see if it is seller-financed.

Drive around

Another good way to find seller-financed homes is to drive around your preferred neighborhood and look for "For Sale By Owner" signs. If you're interested in the property, reach out to the owner to see if seller financing is available. If you ask enough homeowners, you'll discover a few who are willing to help finance the transaction. In a buyer's market, if the seller is having trouble selling their house and has been on the market for some time, this can be more effective.

Find "For Rent Signs"

Finding "For Rent" ads and signs, as well as unoccupied houses, is another great strategy to find owner-financed homes. You can then locate the owner and contact them to see if they are willing to sell the property and finance the transaction. When a landlord's property is unoccupied, it's a good idea to contact them. You'd be shocked how many landlords are burned up and want to leave the business. They may be fed up with lousy renters or other parts of landlording, but they still desire a steady stream of passive income. As a result, owner financing could be a win-win situation for both of you.

Eviction records

Reaching out to people who have been annoyed by renters and therefore have to go through the costly eviction process is another fantastic method to locate potentially burnt-out landlords who may be open to seller financing. Public eviction records can be found at your local court clerk's office. The owners can then be contacted to see whether they are interested in selling.

Networking

Finding seller-financed homes for sale can also be accomplished through networking. Attend investor forums and other industry events in your area. It's possible that you'll encounter local investors who are eager to sell their homes. Inquire with them about the possibility of obtaining owner financing.

In my case, I built relationships with property managers that were 50 and above. There is a terminology that is known as good old boys network. A Lot of people use it as an excuse as a barrier to why they are not successful. However, there was no difference in what you were doing. It's human nature to start networking with people you know first. Thus, they will also do business with people that they have known for 20 to 30 years.

Additionally, inform your relatives, friends, and coworkers that you are looking for residences that are seller-financed. Word-of-mouth marketing is always practical and never goes out of style.

I used many of these approaches, and it corked out. I started calling signs at the multifamily units, and my focus was on the older generations since they were the ones who were advertising more. Therefore, I spent 3 or 4 hours driving around and calling those signs every Saturday. Another way was newspaper ads. I spent another couple of hours calling newspaper ads.

How to Reverse Engineer your real estate success

Whether you're new to the field or looking to advance your sales career, getting from where you currently are now to where you'd like to be might take some planning.

This method is especially crucial for newcomers to the field, but it may also be beneficial for agents who might be on the right path and have demonstrated successes but are struggling to move up a gear.

So, what kind of strategy are we discussing? It's a technique I like to refer to as reverse engineering, and it works like this:

Know your ideal destination and work on it backwards

Reverse engineering is all about establishing an end goal and then simplifying it back to a single KPI – appraisals per month – whether your objective is to write a $500,000 GCI in your first year or break through a current plateau to become that much-talked-about million-dollar agent.

To put it another way, figure out how many appraisals you'll need to meet your sales goal.

For example, if you want to write a $500,000 GCI, you'll need to sell 33 houses at an average sales commission of $15,000 each sale. Because life occurs and sales fall through, you may need to market 35 homes to sell 33.

It's possible that you'll need five appraisals to list a home. As a result, if you want to sell 33 houses every year, you'll need to undertake 175 assessments per year or around 15 per month. So now we know what the essential statistic is: 175 appraisals for $500,000 GCI. However, we'll have to perform some more reverse engineering to ensure that we're called in and get feet on the ground to analyze a property.

Reverse engineering your target actions

After determining how many actions we must do each year, the next important measure to consider is how many people we must speak with to get called in.

We must also investigate the most successful prospecting methods and ensure that we know the most reliable lead sources in our respective markets.

Examine what you already know is working for you. To put it another way, existing agents should be aware of their numbers to determine which behaviors are most likely to result in you being called in to evaluate a property.

Where do you get property owners? Could it be on social media, buyer follow-up, withdrawn listings, cold calling, referral partners, letterbox drops, emails, or texts to property owners on a street where you recently completed a successful sale?

It's likely a combination of a couple of those as mentioned above, or you've just discovered some additional lead sources to pursue. In any case, this is the area where you should put in particular effort to boost your appraisal output.

Look at the lead sources that other agents in your team or office use if you're new to the industry. Find out which action activities are the most profitable and double down on them to meet your minimum monthly appraisal requirement.

Is this really a number game

Although analytics might assist you comprehend the figures you have to attain to accomplish your objective, don't let volume overshadow the fundamentals of your organization.

Make sure you have a world-class follow-up procedure in place for every appraisal you conduct. Ensuring you have a client-care program in place for every successful sale you are a part of, and for every buyer or potential seller who contacts you, ensure you have the personnel or processes in place to call them back (promptly).

I've said it before, and I'll repeat it: the real estate sector, nine times out of ten, especially in this market, does not face a lead-generating difficulty. It has a follow-up challenge instead. And this is an arena where merely checking the boxes of the service essentials can yield significant results.

Can you get it and forget about it?

Well, now you know what you want to achieve and what your key assessment number is. Superb. Don't overlook the one-to-one selling principle.

Essentially, this means that you must have another property in the pipeline immediately behind it every time you list a property.

Your recent sales are the key to this.

According to research, 60% of sellers are affected in their agent decision by the most recent success of a transaction in their neighborhood.

What's the takeaway? Based on your recent sales, develop an efficient marketing and prospecting strategy.

Incredible opportunity

The real estate sector provides amazing chances for you to practically write your own paycheque with no limit to your earnings. That makes the sector appealing; however, as any top agent would teach you, success requires effort, and effort requires strategy.

Then why not use reverse engineering to help you achieve your goals? My reverse engineering led to the action steps that I took, which were made possible with the help of my Key Performance Indicators (KPIs). In my case, I programmed my task to A Must Do per day, per week, and monthly to make sure that the ball was moving forward.

How many units do I need to stay in the real estate business

The answer is that it is debatable.

This is because rental units shouldn't be the only factor to consider. You must also consider what we refer to as "management intensity."

In other circumstances, the level of management might be so high that 500 hours can be achieved with only a few rental units.

How to find a real estate investment mentor

All real estate investors do the same things at the start of their careers.

They study the market, learn how to use various financial criteria to identify rental properties with high potential, and devise a system to maintain the deal pipeline stocked. Ultimately, only a few investors soar above the rest over a short period, leaving the remainder behind.

Some rental property investors are more successful than others for a variety of reasons. But they all have one thing in common: a real estate mentor.

A real estate advisor can assist you in resolving the pitfalls of real estate investing while also helping you achieve long-term prosperity and a significant investment empire.

What is a real estate mentor?

A mentor in real estate is an instructor, advisor, and friend. They are someone who can help you grow by pushing your boundaries. Mentorship, on the other hand, is not just a one-way street. A mentor in real estate investing is someone who will learn from you. It's a win-win situation when you have a fantastic mentor-mentee relationship.

When choosing a real estate mentor, look for someone with years of field experience. You wouldn't want to be mentored by someone going through the same process as you!

A real estate investing mentor should be willing to explain and competent at straightforwardly explaining complex concepts. They should like sharing what they know and impart practical knowledge that you may use on your tasks.

Since so much property investment relies on networking, your real estate mentor should be a well-connected individual. They should guide you and connect you with their network, including everything from other investors to the top general contractors.

Finally, your real estate mentor should be concerned about your success. They always desire to see you succeed and improve. Even though they may allow you to make mistakes to learn, they will ultimately assist you in rapidly expanding your real estate investment knowledge.

Why would you need a real estate mentor?

To answer this question, I would always ask myself this questions:

There is no correct or incorrect response to this question. However, make sure you know why you're investing the way you do so that you can find a mentor who can help you. Maybe you want to invest in flipping or long-distance rental property or any other property investment of your choice.

What level of success do you expect your mentor to have

Success is a concept that has diverse meanings for different individuals.

That said, you must be content with your mentor's level of success because they'll be a person you'll look up to and who will set the tone for your growth in the future.

If you're not completely persuaded that your mentor would help you achieve what you want, you'd be better off seeking someone else rather than spending your and their time.

What kind of risk would you handle in your business

Almost all investment entails some level of risk, and investing in rental property is no exception. Finding techniques to limit risk while maximizing gain is the key to effective investing.

Many buy-and-hold investors, for example, concentrate on income-producing properties that generate regular, predictable cash flow over time. Of course, there's always the possibility that a tenant would leave abruptly or that rent growth will be flat in the short term, but the longer holding time mitigates these risks.

A mentor will have the same personality risk profile as you.

Should your mentor be addicted to the high of renovating and flipping houses while you prefer to establish a portfolio of rental properties that provide passive income, you'll most likely lose respect for each other because you don't share the same investment plan.

How can you find a mentor?

Finding a local real estate mentor can be difficult, but it's also a good way to expand your property investment network. Attend local property investment networking organizations and make as many connections as possible.

You might ask other real estate investors how to locate a mentor and if they have any recommendations at real estate investor meetups and when interacting with other property investors. You'll begin to tap into new resources and make new relationships, which could lead to future property investment mentors.

You may also use social media to find local real estate investors and join group meetings. Make an effort to communicate with them. You don't have to wait for someone you think would be a good mentor to offer guidance; simply ask them for it and prepare your questions. This is how many mentor-mentee relationships develop naturally.

Although it may be tempting to assume that formal mentorship is required, you do not need to formally ask a mentor to advise you. Continue to ask questions and be open to learning — mentors enjoy working with people who are eager to learn. You can take someone's counsel and let the mentorship expand once you find someone who is open, experienced, and willing to help.

How to pay off a mortgage early

Some homeowners are interested in paying off their mortgage early for several reasons, including reducing interest payments and removing the psychological burden of debt. Paying off a home loan early can help retirees enhance their cash flow. This is particularly useful when switching to a fixed income.

Paying off your mortgage early minimizes the amount of interest you'll pay on a loan, regardless of your purpose. This can save you a lot of money.

My brother and I had a strategy back in 2014, about 7 years ago. This strategy was passed down to us by a friend from Australia. The strategy was prevalent in Australia, where many people don't know how much money they lose just by having a traditional 30-year mortgage.

Suppose you do the math by breaking down my mortgage calculator to give you an idea. Suppose you have a median sales price of $375,000 around that ballpark. Thus the property value will be $375,000. Let's put a down payment of 20% with an interest rate of 3.5%. This is a very great interest rate for a 30-year mortgage.

Your payment is $1,347.13 a month. Meaning for the entire year, if the start date of your loan is 1st January 2022, in the first year, you pay $5,757.38 in principle. In interest, you pay $10,408. This means that you are paying twice the amount of interest almost as you are in principle the first year. This is what is known as an amortization schedule.

Keep in mind that if you don't refinance or move at the end of those 30 years, you will end up paying $185,000 just on interest. Statistics show that if you move or refinance, that number skyrockets from $185,000 to something much bigger.

Think about how many Americans refinance or move. A statistic states that an average American will move somewhere along with like 7 or 8 times in their lives. Therefore the banks are making much more on interest. The reason why middle-class Americans have a hard time growing today is that banking products are disadvantaged.

For this reason, we created a software product and a strategy that helps people combat all this. Thus we have clients who are saving tens of thousands of dollars in their interests and taking back their dreams of channeling that money to something else. We also have team members to help clients walk through the strategy. And most importantly, we help people to get educated.

If you want to learn about this, we have a YouTube video out there for it. However, if you can't work on these strategies, you can use these early payoff tactics to assist you in achieving your goal.

Refinance your mortgage

If interest rates drop, you could be able to lower your interest payments by refinancing your mortgage. You might also choose to shorten the period of your loan dramatically.

Make extra mortgage payments

Making extra mortgage payments is another option to save money on interest while shortening the length of your loan. Consider the following early mortgage payoff alternatives if your lender does not impose a penalty for paying off your mortgage early.

Just make sure to tell your lender that your excess payments should go toward the principal rather than the interest. Otherwise, your lender may add the funds to future planned monthly payments, resulting in no savings.

Additionally, strive to pay off the debt early on when the greatest interest rate is. You may not know it, but for the first few years, the majority of your monthly payment goes toward interest rather than principal. And interest is compounded, which means that the total amount outstanding determines the amount of interest charged each month (principal plus interest).

Round up your mortgage payment

Rounding up is another strategy to shorten the term of your mortgage dramatically. Round up to the next largest $100 figure when budgeting for your mortgage payment. Instead of $743, pay $800. Alternatively, instead of $860, you might pay $900.

Make lump-sum payments to your principal

Making lump-sum payments to your principal if you obtain a financial windfall or unexpected influx of cash is an alternative to recasting. A reward at work, a tax return, an inheritance, or money acquired from selling items could all be examples.

VA and FHA loans, on the other hand, cannot be recast. As a result, lump-sum payments could become the next smartest idea for customers with any of these types of loans, and you'll avoid the recasting cost charged by the lender.

Recast your mortgage

Recasting a mortgage differs from refinancing. You keep your current loan, pay a lump sum toward the principal, and your lender alters your amortization plan to reflect the new balance. Your monthly payment will be cheaper as a result, but your loan term and interest rate will remain the same.

The fees associated with recasting are much lower than those associated with refinancing. The cost of recasting a mortgage is usually between $200 and $300. (contact your lender to request the service and confirm the costs). Plus, if your interest rate is low, you get to keep it. On the other hand, refinancing may be a better option if you have a high-interest rate.

The benefits of paying off your mortgage early

Most people are struggling with whether to pay off their mortgage or save, but the benefits of being debt-free in the long term outweigh the disadvantages. For starters, paying off one loan implies you'll be capable of handling any short-term debts. You will also save money if you pay off the mortgage sooner rather than later, as you will avoid paying additional interest. Cutting out these future payments improves your financial stability, as does your ability to better withstand volatile property market situations.

Real Estate Virtual Wholesaling: A Modern Way to Expand your Portfolio

Welcome, everybody, this is episode 93, and today, I am speaking with Justin Yurong. He is based in Las Vegas. He flips and sells homes in Fresno. He bought his first rental at 21 years old. Today he is going to share with us his real estate journey.

Who is Justin Yurong, and how did he get into the real estate investment world?

I am 24 years old, and I live in Las Vegas. I got into real estate 3 years ago when I was just 21. I was just learning as much as I could.

It was my senior year in college, and I learned as much as possible. I could podcast every day during classes or work time learning about. I got motivated and believed that all this was doable by seeing others do it.

I was saving alot since I was working on many minimum wages jobs. I saved every penny and got to a point where all my money was in the stock market. And I was like; I think I can buy a house with this. Therefore, that's when I made my first leap.

You can imagine being 20, 21 years old and having your first rental. From the first purchase, I got hooked. I was like, this is a family paying me money to have rentals. It showed me how powerful it was. And that was the start of my journey.

I make alot of content about what I do on social media and youtube.

How to find your first real estate deals

My first deal was through a realtor. I was searching on a website called BiggerPockets. I got connected and started asking questions like I need help buying a home, and I don't know how to do it.

A Fresno realtor reached out to me and asked for a coffee meeting. I then connected with him, looking for deals with him all the time.

There are other techniques that you can also use if you are thinking of making your first real estate deals, and they include:

Online real estate marketplace

There are several online marketplaces like BiggerPockets (the one that I used), LoopNet, CREXi, and niche-specific sites like MobileHomeParkStore.com. Therefore, get out there and do some research. Find some local marketplaces where you may seek bargains.

The dollar drive

Get in your car and drive around looking for empty houses. Make a note of the address when you find something. When you're out driving for a few hours, see if you can compile a list of 10, 20, 30, or 40 homes. Then go home and look up the address to see who owns the property and write a letter to them.

Find deals from MLS

The Multiple Listing Service (MLS) is how all real estate agents record their transactions. Yes, the market is fierce right now, but you may still discover good offers on the MLS with the appropriate setup.

Set up some automatic email notifications with your real estate agent that match your parameters, for example. As a result, you'll be the first to hear about such bargains.

Real estate clubs

Are you aware that every week, people gather in practically every city around the country? Find a real estate club in your neighborhood. The Real Estate Events & Happenings tab on BiggerPockets is a wonderful place to look for these people.

Find a club and start mingling with the members. Make connections, get to know people, and tell them what you're looking for. Real estate clubs can be an excellent source of bargains.

How to fund your first real estate deals

However, getting started in real estate investing does not require a large sum of money. Smart investors frequently purchase properties with no money down and finance the purchase (sometimes more) while still making a fair profit. (In fact, the more you leverage — borrow — the higher your return on equity, trying to make another no plan attractive to wise buyers.)

In fact, with only a few simple spending adjustments, you can construct a million-dollar investment on your own in less than a year, with no cash or credit.

Above are options for financing your first purchase.

Purchase a home with an FHA loan

When considering your first real estate investment, getting a mortgage guaranteed by the Federal Housing Administration is a good idea. With just a 3.5 percent down payment, you may purchase a duplex property, live in one apartment, and rent out the others.

Traditional mortgages take roughly 60 days to close, even with record-low interest rates, which is a good amount of time when you're negotiating a transaction. Despite the relatively higher interest, hard money loans allow you to act promptly if you have a terrific bargain on your hands.

Mortgage Lending by Non-Bank Financial Institutions

With traditional banks struggling to qualify for mortgages, many nonbank lenders steal market share. Their market share might increase by 33% annually to $150 billion by 2025.

Unlike conventional banks, which take a long time to review income, online lenders process applications in as little as 20 minutes. They close the acquisition in two weeks, compared to 45-60 days with banks, and can occasionally fund up to 100% of the purchase price.

The Asset-Based Mortgage: "Buy 2 Rent"

Asset-based mortgages are another option when hard money and nonbank lenders aren't your cups of tea. "Buy 2 Rent," a financing program from Blackstone-owned B2R Finance, focuses primarily on the property's rental income.

"Buy 2 Rent," a financing program from Blackstone-owned B2R Finance, focuses primarily on the property's rental income.

Family and friends funds

Unlike traditional banks, it does not consider personal income. This is a major benefit if you don't have a steady source of income (although a 660 FICO score and other underwriting criteria are required).

What do Warren Buffett and Larry Silverstein, the creator of the World Trade Center, have in common? After using family and friends to fund their initial deals, they became billionaires.

The benefit of this method is that it does not necessitate any initial investment. By taking the FHA approach (Step 1), a group of ten family members can buy a multifamily home for less than $1,000.

Trust deed investing

You're obtaining a mortgage from private lenders who would operate as a bank and handing them a deed of trust as security on the property. This may be a continuation of the friends-and-family strategy.

Trust deed investing worked out for me when I started my real estate journey. I put 15% down, and at that time, because I was in college, I still didn't have a full-time job, so my sister cosigned for me. She didn't put any money, but she put her name. She trusted me enough, and even if I didn't have enough credit, I made my journey by building partnerships with other people who trust you."

Transitioning to flipping and wholesaling

Technology has drastically altered the real estate sector during the last decade. According to the National Association of REALTORS®, 52 percent of house purchasers found their dream home on the internet in 2019. This is exactly where I started as a real estate investor. However, I transitioned to flipping and virtual wholesaling. It's, therefore, no surprise that more people than ever before are working from home.

How about if we told you about a growing group of real estate investors who are making huge sums of money by completing deals remotely all over the country in locations they've never been before, buying homes they've never seen, and making $10,000-$50,0000, and even $200,000 per deal?

Virtual wholesaling is a lucrative real estate investing sector that has recently received much attention. So, if you're hunkering down due to the latest global epidemic or want to collect huge checks from the comfort of your own home, virtual wholesaling could be the perfect business model for you.

My transition to Los Vegas was the genesis of my flipping and virtual wholesaling business. I went on my own to invest in my own business. I learned much by myself, but my breakthrough came when I met this mentor who trusted me and made me who I am today. I learned how to find deals, negotiate, close, and manage escrows through him.

In 6 months, I managed to do 5 deals. This was the biggest learning experience I have ever done in 6 months. After six months of getting the experience, I was confident enough to start working independently. I first tried this in Fresno for about a year before moving to Los Vegas.

I didn't know what I was doing, and I didn't get any deal for a year. Vegas was when my first deal was locked up for a flip, and it was virtual. So I was like, there is another thing, I don't know how to do this virtually. But that was the transition. There was alot of learning on my own, and I didn't really know what to focus on at the beginning until I surrounded myself with other people who knew what they were doing. So I learned the following when it comes to virtual wholesaling:

What is virtual wholesaling?

Virtual wholesaling is the same notion as traditional wholesale in real estate transactions. However, the wholesaler's participation is not based on their actual presence. Digital technology such as the web, email, digital signatures, smartphones, and fax are the tools you need to make it possible.

Due to the obvious location flexibility virtual wholesaling provides, entrepreneurs can operate in multiple markets regardless of their proximity. Basically, I am stating that virtual wholesalers may flip houses in any real estate market. I learned that this is irrespective of your location on the planet, without ever seeing the properties.

To grasp the concept of virtual wholesaling, I had first to grasp the concept of real estate wholesaling.

What is wholesaling real estate?

The term "wholesale fee" refers to a form of the buying process in which the seller sells an equitable stake in a property to another investor for a profit.

A buy and sale agreement between the wholesaler and a motivated seller is frequently used to establish this equitable interest. It's allotted to the eventual buyer before the wholesaler ever buys the property! This is known as wholesaling via contract assignment.

Similarly, the wholesaler could buy the property with short-term operational financing or private funds. They instantly end up selling it to another client for a profit after closure and wholesaling through double closing, often known as simultaneous closing.

At first, I asked myself why I would pay a wholesaler to locate properties for me without making any improvements?

To answer this, I realized that active real estate entrepreneurs are continually on the lookout for prospective fix-and-flips, rental properties, and development prospects. Therefore, real estate wholesalers can provide a plethora of such possibilities.

As the industry's "deal suppliers," wholesalers play a significant role in the real estate investment value chain. Real estate wholesaling pays a fee to the deal finder for connecting a willing and able real estate investor with a lucrative opportunity.

What Is Virtual Wholesaling and How Does It Work?

Virtual wholesaling is quite similar to traditional real estate wholesaling. I deal with some of the most efficient and successful wholesale firms in the country, yet they're almost entirely virtual!

It's not like all real estate wholesalers are set up to work in a virtual environment. The systems, processes, and methods used in one's real estate firm determine how virtual wholesaling operates.

Consider a typical real estate transaction to understand better how virtual wholesaling works. Is any of the parties' actual attendance necessary at any point during the home-buying process? Typically, at the following locations: Real Estate Agents to Meet, Negotiating With Motivated Sellers, Initial Property Inspections, Inspections of the Physical Property, Document Signatures, Repair Cost Estimation, Walkthroughs at the End and Getting Access to the Keys.

Despite popular assumptions, all tasks mentioned above can be done without the buyer's actual presence.

Most traditional buyers and sellers, on the other hand, would not consummate a real estate transaction without first seeing the property. The virtual wholesaling procedure is designated for investors who want to take the emotion out of buying houses, so it's mostly a mindset shift.

The biggest lesson that I learned from my mentor was that it gave me a proof of concept. Because I was able to run both flip and wholesale deals, I like to learn everything from start to finish. I find it, negotiate, manage the escrow and find the end of every deal. The big thing I learned is that it is possible. I realized that you could make real estate a full-time thing if you set your mind to do it.

The Dos and the don'ts of real estate flipping

There isn't a full handbook for house flipping training dos and don'ts, but there are a few excellent behaviors and rules of thumb that you should get used to.

What are the Dos

To be a successful house flipper, you'll need to be able to:

• Concentrate your efforts on the most profitable markets.
• Have a variety of good lead sources.
• Understand housing valuation and put it to good use. When you spot a good deal, act swiftly.
• Calculate your profit margins for each home based on your costs and finance.
• Ensure that your contractors and support employees are well-coordinated.
• Know how to invest in real estate in a variety of ways.

In my opinion, finding leads, understanding valuation, and financial preparation are the three most important aspects of the list above. One of the most effective houses flipping training do's, in my opinion, is to get good at finding leads. You can always invest more into expanding the top of your funnel until you have more high-quality leads than you can properly evaluate and turn into a contract.

What are the Don'ts

A list of do's and don'ts for house flipping training would be incomplete without a list of don'ts.

There are a few habits that, in my opinion, will hurt you when you're flipping houses, including:

• Before moving forward with a deal, not calculating the figures
• Putting all of your (capital) eggs in a single basket (house to renovate and flip)
• Making significant business decisions based purely on your gut instincts or completely disregarding your gut instincts
• Taking too long to act on a once-in-a-lifetime opportunity
• Using external finance that is readily available but has terrible terms
• When your profit margin is lower than planned, you should give up.

From my experience, I learned that while employing others may result in a lower profit margin, it will save you time and money in the long term. You can finish the rehab, put the house on the market, and sell it far faster if you engage entire teams of subcontractors and contractors to work on it. You could wish to hire an interior designer in addition to subcontractors (especially for higher-end properties). Finally, as previously indicated, you'll want to select a reputable real estate agent. The real estate agent may assist you in finding and selling your home and can be a valuable resource throughout the process.

Flipping houses strategies that will help you find your deals

Networking

The most cost-effective strategy to sell your real estate investing services is through networking. Attend local networking events such as Chamber of Commerce and Realtor activities to meet people who can provide you with leads on foreclosures, short sales, and other distressed properties. Attend trade exhibitions in adjacent industries to meet mortgage and real estate specialists who can help you close deals faster. Join local real estate investing groups to meet other investors with whom you can perhaps flip property too soon.

Location

Because you're not living in the house you're flipping, determining the ideal location for a property to flip is usually centered on choosing a home in an area where you can make the most money. Finding a neighborhood in a hot market — or soon-to-be hot market — is critical in this regard. To do so, look for neighborhoods with many buyer-friendly characteristics, such as parks, entertainment districts, shopping, and so on. Check out local schools to see how well they do, as high-performing schools can be a selling point for families. Some potential homebuyers are also attracted by public transit and low crime rates.

Working with real estate agents

Some first-time real estate investors want to do everything themselves when flipping houses—using a verified real estate professional who may have access to homes that first-time flippers would not otherwise locate can lead to better deals being identified. Real estate brokers have access to the Multiple Listing Service (MLS) (multiple listing service). Almost every home for sale is listed on the Multiple Listing Service (MLS), and homes sell these days quickly. A reputable real estate agent will keep an eye out for new listings and will typically notify you when one becomes available. The agent is there to assist you, and they may be able to offer advice on how to get a better bargain.

There are numerous advantages to becoming a real estate agent. Maybe you decide to set your own working hours to earn a living and at the same time assist folks in making sure that they settle in a perfect house.

So if you're planning to hold in all and make a big effort to become a real estate agent, then you can make the best. Remember, you always have the space for growth, whether you're fresh to the industry or a seasoned experienced. Keeping this in mind, you may need a real estate coach who will take you through the DOs and the DONTs in this industry.

Do I really need a real estate coach?

Most of the time, people don’t realize that it is necessary to have a coach. However, coaches are very important when it comes to entrepreneurship.

Let's face it: you can reach your goals by collaborating with anyone. Be it your broker, another agent, a roommate, your spouse, and even your children. If there are some feasible choices for you, you may not require the services of a real estate coach. Thus for you to succeed in the new year, all you need is to make sure that you strengthen your support system.

However, what takes place when your dealer is pulled in a million other things? What if some agents are also taking care of other things and at the same time, you cannot find any training course coming up that addresses your problem, and your roommate, family, and friends barely have time to listen to your day, let alone try to help you solve it?

Then you may need a coach to overcome sales obstacles. In fact, it may be the only solution to taking your organization to the next level of success. When real estate sales are not working for you, and you don't have any sufficient resources to turn to your loss to success at the moment, effective real estate trainers are worth their weight in gold.

Therefore, you may not consider real estate coaching as your first line of defense, but they are important and are part of your sales. Besides, a real estate coach is your go-to person anytime you are confused, ignorant, or disappointed.

Real state coaching programs

If you're at a place in your business where you want to devote more time to studying and don't want to waste time searching the web for coaching programs, then this list will help you save your time. Each one is a solution to a different set of requirements, so you'll be able to locate anything that meets your requirements.

Tom Ferry

Coming from a real estate dynasty, Tom Ferry has one of the most recognizable names in the industry (real estate coach Mike Ferry is his father). Tom forged his own path and now runs a thriving coaching firm. He has a YouTube channel, podcast, coaching events, and even his own software solution in addition to his coaching firm. His coaching customers are partnered with their own Tom Ferry-certified coach for one-on-one therapy. Tom Ferry has over 30,000 hours of experience.

Core+, Team+, and Elite+ are three separate real estate coaching packages to choose from. All these packages cover different topics. This includes leadership skills, sales confidence, and lead creation. His seminars focus on real estate agents on a personal level. Thus, encouraging the agents to make positive changes, create objectives, and offer resources to hold them accountable.

Mike Ferry

Mike Ferry's company is known as the "godfather" of real estate mentoring (not to be confused with his son, Tom Ferry). The best agents have used his techniques. His approach includes one-on-one coaching, events, training modules, courses, and a variety of other ways to ingest the information.

Mike Ferry organization has helped thousands of agents. These agents become more productive hence a boost in their real estate sales. The organization has been effective for over 44-year history when it comes to real estate coaching programs. Mike Ferry's coaching program will benefit agents who are ready to raise their sales and learn to work smarter, not harder.

The real estate trainer

Brian Icenhower, a real estate executive, speaker, and mentor, founded The Real Estate Trainer, powered by Icenhower Coaching & Consulting (ICC). Brian is well-known in the industry as the former CEO of Keller Williams, a real estate firm based in Kansas City. Since June 2019, ICC has provided coaching to 500 real estate brokers, assisting them in achieving their objectives. Average sale price, lead generation, and total commission income all increased for agents.

The ICC program's success is owed to the network of coaches they use. Again, their ability to meet each client's unique needs and the accountability structure that they have in place to guarantee clients stay on track to reach their objectives also contributed to their success. The agents who gain the most from this real estate coaching program are those who are looking for personalized instruction to organize their internal processes and workflows. The ICC program is designed to assist agents, and their teams become more productive, efficient, and confident.

Tim and Julie Harris

Tim and Julie Harris are top-selling real estate brokers who are also outstanding coaches. They're also best-selling writers who have teamed up with other specialists to deliver cutting-edge methods and business knowledge to assist agents to succeed. This coach gives you five different programs to choose from. Each curriculum offers substantial value as well as a full list of resources:

• Premier
• Premier accountability
• Premier VIP
• Premier plus
• Elite

The semi-private and private phone calls that members receive each month are the key difference between these programs. Agents are eligible for one to four calls each month, depending on the plan they choose.

A private Facebook group, daily group coaching calls, a resource library, events, marketing and branding, and more are available to all participating agents. Each course is tailored to make sure that it meets the needs and abilities of the agents. As a result of this training, participants have reported greater closing rates, shorter days on the market, and enhanced bargaining abilities.

Buffin & company

Another well-known brand in the real estate market is Brian Buffini's coaching program. Buffini & Company Coaching Solutions was formed by Brian Buffini, a former top-performing real estate agent and owner of Buffini & Company. This is North America's largest consulting, coaching, and growing organization. Over the last decades, Buffini & Company has been assisting agents in increasing their lead generation productivity. Over three million agents in 37 countries have completed the campaign and grown their businesses as a result. There are three types of coaching available:

• Group coaching
• Referral Maker
• One2One Coaching

These programs are designed to help agents generate more leads, close more sales, and streamline their operations. It was made to assist agents in generating more leads, closing more transactions, and streamlining processes. A Referral Maker CRM for generating leads is also included in each package and a monthly marketing kit.

Workman success system

Workman Success Systems is a specialized system when it comes to real estate coaching. From their name, you can get the explanation of their coaching focus: systems. Their coaching includes access to BAM (Buyer Agent Mastery), SLAM (Seller Listing Agent Mastery), AMP (Admin Mastery Program), and RAMP (Real Estate Mastery Program) (Rising Agent Mastery Program). One-on-one coaching, live calls, webinars, and the Leverage event are part of their coaching package.

How to choose a real estate coach

There are several excellent real estate coaching programs available, but they are all different. The program you select should be based on your budget and a broad assessment of your demands. Consider your objectives and compare each program to pick the one that best meets your needs.

Many coaching programs include participant testimonials on their websites. Read these to learn more about which program is right for you and what kind of experience you desire — for example, are there online and offline options?

Many real estate coaching programs necessitate a significant financial as well as time commitment. You need to take time to come to an effective decision and take advantage of free consultations to ask questions and ensure which curriculum is best for you.

These coaches should be on your radar no matter where you are in your real estate career. Most offer free material that you should take advantage of, and you can learn which ones best suit your needs and which ones don't.

The strategy by which entrepreneurs pool their funds and expertise to invest in real estate projects that might be capital-intensive or sophisticated for a single investor is known as real estate syndication. This method is not new; investors have been teaming together to get real estate ventures off the ground since the beginning of the property market.

One of the most pressing challenges for multifamily syndication is how to generate funds for their investments. This post will assist you whether you're just getting started and need money without a track record or if you've done a few deals but have exhausted your network.

What is multifamily syndication?

A multifamily syndicate is a group of investors who pool their funds to construct or purchase real estate together. As a result, multifamily syndication occurs when a group of investors pools their funds to purchase a property, such as an apartment complex. Hotels, prefabricated home parks, student housing, warehouses, land development, warehouses, and other real estate syndications are among the other forms of real estate syndications.

What are the best ways to get into business

1. Find an off-market deal

Identifying a multifamily syndication deal that isn't on the market and introducing it to a seasoned investor who can close it may be what you are thinking of.

However, before looking for projects to an experienced investor, determine WHO you need to show it to. Next, you need to qualify them, so you don't waste time. Remember, time is really valuable.

If you are thinking of qualifying them, they need to meet the following criteria:

They need to be ready to arrange the deal in a way that suits your goals They also need to have closed on similar homes that you'll be looking for. Your investors should be reliable and willing to provide references - don't rush into a contract. Because you're bringing in investor funds, and collaboration has a lot of ramifications.

2. Deals should be underwritten cautiously

Applying your skills to a company (or individual) with a lot of deal flow and wants assistance in underwriting deals can sometimes be overwhelming. Thus you may be thinking of hiring a handful of UCLA MBA students who will be taking the initial underwriting. You will continue from there and finish the analysis. This will give you time to concentrate on other things hence the growth of the company.

3. Negotiate terms and make other legal documents ready

Obtaining a legal education is an optional process. You may decide to forget about this if you're not an attorney or don't want to earn a legal degree.

This may not be a realistic route into the industry, but it might work if you already have a legal degree. To begin with, the person in charge of the acquisition is almost certainly the one who negotiates the conditions. Therefore, all that's left are legal documents. In most circumstances, paying legal costs on the multifamily syndication projects makes more financial sense than bringing an attorney in as a General Partner. However, you can come across a company that has expanded to where having an internal council makes financial sense.

4. Raise capital for your ongoing deal

Whether you're ready to generate funds and act as the main contact on a deal, you may break into the industry by teaming up with one who knows the multifamily syndication game inside and out. This would be someone that has a proven track record and can prove to you how much money they've made on previous deals. This will help you an estimate of how much money you can expect to make in the future.

You will align your interests by bringing in more money, even though your partner should have money in the agreement (beware if they don't, because what happens if the business fails). Maybe from your network, you can find someone willing to offer you financial backing. However, this is only true if your possible partner and investment connections believe you're a capable businessperson.

Remember that unless you have a Securities License, you must join as a general partner if you are raising funds for a business that someone else has acquired. Raising funds for deals in which you are not a General Partnership partner is illegal without this. In any case, you should consult a securities attorney before attempting any of the following.

5. Work on your project management

You can break into the property management sector in a variety of ways as an experienced property manager. Here are a few examples:

You may bring your team's track record of turning deals around by networking with local, aspiring investors who want to close deals but don't have the experience. They are the ones who bring the money for the transaction. You have the advantage here because they wouldn't be able to acquire debt financing without you or another property manager, and they'd have a hard time raising the equity any other way).

Offer to trade your multifamily syndication fees for a chance to be a part of their next venture if you work with a professional organization. This could help them pitch the merger to their investors by demonstrating that their interests are aligned. You have less power than the person in the last case, and you also provide a lot of value.

You may use a combination of these approaches to acquire funds for multifamily syndication transactions while also exchanging your property management fees in exchange for being a part of the deal. You acquire more equity in the agreement if you raise more money.

How can you raise money for the multifamily syndication investment?

Mortgage

A mortgage is the greatest option if you have an excellent credit score. It isn't always easy to obtain such large sums of money. For a very good reason, banks will approve multifamily syndication more easily than single-family properties.

The weight of the payments is shared rather than carried by one person in multifamily syndication. For the bank, the risk is spread out. Even if one of the homes is vacant, the installment can be paid by another. One of the major advantages of investing in a multifamily building is the ability to diversify your portfolio.

Remember, a down payment of at least 20% is required.

Crowdfunding

Crowdfunding has exploded in popularity in the previous years. There are at least 100 websites dedicated solely to multifamily syndication as of today.

Should you choose to crowdfund your property, be prepared to market it as you've never done before. It doesn't matter if you're online or offline. And maybe, you'll succeed. You'll be a part-owner of your multifamily syndication if you can make it work.

Loans made from hard cash

Individuals, rather than financial institutions, make these loans. Typically, these lenders are more concerned with the property than with the borrower. They are more interested in properties After Repair Value (ARV).

Credit scores are not that important when it comes to hard loans, and you might potentially borrow without putting down any money. Although this may be considered good news, keep in mind that hard money loans demand high-interest rates. The borrowing costs can be nearly 10% higher in some circumstances.

Most of the hard cash loans are short-term loans. Therefore they have a quick payback time. As a result, categorically, you should know that your home begins to generate revenue by then.

Other than the credit ratings, there are some other features to enjoy. There is a lot of flexibility because these loans aren't from financial institutions. Everything is negotiable. The time frame, installment amount, collateral, and even payment method are all factors to consider.

Home equity loans

Home equity loans are ideal for anyone who owns a property and wants to invest.

Regardless of having a mortgage on your property, you still own a portion of it. That percentage represents your home's equity. You can use your house for the loan if you own enough of it (have enough equity).

Friends and relatives

You may always go to your friends or relatives for help. It's critical to approach with prudence right now. Remember, a number of relationships may and have been ruined by money. If you're confident that you'll make enough money, contacting a friend or family member may be a good choice.

The benefit is that the creditor is familiar with and understands you. As a result, you are free to discuss how much you can refund and when you will be able to do so. Regardless of your relationship with the lender, it's always best to put everything out in black and white so no future confusion.

Tips on getting investors to fund you

These tips should be taken to consideration BEFORE you identify a deal to buy to minimize uncertainty, stress, and the possibility of not closing because the equity could not be raised. When working on these tips, you should understand that there is no time constraint; don't fear when you don't have enough time to pool investor resources.

Choose your specialization.

Many investors in the real eastate make the mistake of chasing different types of properties in different markets. They're on the lookout for rabbits which should not be the case.

Choose your specialization. Why? Because effective multifamily syndication needs you to focus on a particular property type and market area.

You'll have to pick on your area of expertise. Choose a property type and market in which you have significant knowledge and a strong interest.

So, choose a niche and don't take chances with rabbits.

Prepare a pitch book

Generate a bundle of facts on what you're doing. Establish a business plan to go along with your investing strategy. You'll write a 10-page pitch book on your investing strategy that explains how you'll make money for yourself and your investors.

When you're talking to investors about your investment strategy, the pitch book becomes a useful tool. Your pitch book should explain exactly how you are planning to create money for them.

This pitch book will become the most important part of your company. It's the foundation of your multifamily syndication company. This should be a reflection of who you are and what you know. The pitch book will define who you are and what the investors and other people should know about you.

Make a list of your potential investors

Once you have gathered your facts right and put your strategy in place, you can compile a list of potential investors. All those people in your network who could be interested in investing. You'll compile a list of folks with whom you'll eventually speak about your multifamily syndication game plan.

This should be a list of individuals you think could be interested in real estate investing. Friends and family are the finest and simplest places to begin. Other locations to look for investors for your list include:

• Associates
• Accountants and financial planners
• Attorneys
• Owners of properties

This is just a beginning point for you. Remember to ask everyone on your list if they can recommend anyone else who could be interested in multifamily syndication investment.

Invite investors to a meeting

You will meet with potential investors on your list. You'll share with them about your pitch book and your strategy.

Throughout these sessions, your purpose should not be to sell them anything but ignite their interest in your strategy. You're attempting to spark their interest in the possibility of generating a lot of money while also making a big impact on the planet by engaging in your game plan.

In these investor meetings, you'll be discussing your multifamily syndication business strategy or your money-making strategy. You're not discussing a specific contract. At the end of the day, all you're attempting to do is check if your prospective investors are interested in your plan.

Develop an investor database

Every one of the investors that are interested in your business proposal is included in a database…

This is a YES database. It should be a unique database that necessitates some control and administration. This is your database of possible investors in the fantastic bargains you locate, so keep it updated.

The purpose of this is to maintain communication with your YES Database. Maintain their interest in what you're doing. Keep them occupied while you wait to provide them a bargain.

Staying connected and keeping your brand in front of your database can be accomplished in various ways. However, by submitting your database information, you will eventually establish a drip campaign.

Boxabl Home California: Tiny Homes Under $50k available

The tiny house lifestyle is a worldwide trend that has exploded in popularity. This is more evident in overcrowded cities. However, rural areas where a small home can help the occupant reconnect with nature are not left out. Downsizing—not just in terms of space and "things," but also in terms of living costs—is one of the apparent advantages of tiny home living.

Due to the housing crisis in California and its neighbouring towns and the high cost of living, most people are seeking new methods to supplement their income. Boxabl homes California has devised a cost-effective solution to meet these expanding demands. Therefore they are a manufacturing modular house company that is tiny and pocket friendly as well.

What are Boxabl homes?

Boxabls are made in a high-precision production setting with cutting-edge materials and the most up-to-date technologies. This implies that your home will be built faster and with durable materials. Moreover, you will be using less energy.

The Boxabl tiny homes' breakthrough technology has fundamentally redefined how a house is created. Each Boxabl is handcrafted in the Boxabl Factory, a climate-controlled facility in Nevada that employs some of the most cutting-edge technology and production techniques. As a result, they are a better-than-average home at a lower-than-average price.

What is contained in each boxabl Casita?

Basically, everyone globally has been working hard to be able to buy larger homes than we require. However, due to the increased population, we would need something different. The Boxabl Casita gives you the best by ensuring that you have a perfect home in a tiny space.

Although, in terms of the small house trend, it isn't so small! The size is comparable to a converted double garage at 375 square feet, and it's built as a studio apartment. The difference is that it has a full-size bathroom and kitchen facilities.

The Casita is composed of a full-size modern kitchen. This includes a large fridge, oven, dishwasher, microwave, and a tall window that is fitted over the sink. Besides, it has a perfect modern breakfast bar that is big enough for two. The only things you'll require are a bed and seats.

A full-sized bathroom with a shower, tub, backlit mirror, and plenty of storage is hidden behind a modern sliding glass barn door. Under the enormous 8″ windows and the 9.6-foot ceiling, heating and air conditioning will regulate the room temperature. For complete lighting, the hose comes with controllable LED lights that will make sure that your house is well lit.

This modular has an open floor layout comprising of a bedroom, kitchen, bathroom, dining and living area. A wide-plank composite flooring, a built-in ironing centre, washer and dryer, and all appliances are equipped with modern technology. This also includes integrated USB ports in the power outlets.

Why Boxabl homes California

Boxabl's first target audience was California. The state legislation in this area is more favorable than in the past to obtain an additional dwelling unit for its citizens. Thanks to Governor Gavin Newsom, who signed AB 68 into law in 2019. This law made substantial modifications to allow businesses like Boxabls homes Carlifonia easier to sell since approval and construction barriers were scraped off. The above law was to help increase the supply of affordable housing in California.

On the other hand, authorities must now approve one independent accessory housing unit of up to 1,200 square feet. Anyone interested in purchasing a Boxabl home in California will require a contractor to put it together. Remember Boxabl maintains a list of suggested contractors who can help you achieve your tiny house dream.

The cost

The completely furnished Casita Boxabl house is sold at about $50K. Since these models are furnished, you'll only need a foundation to lay it on. Once you have your foundation ready, you can connect it to local utilities.

The apartments were designed to be particularly eco friendly. They are made of high R-value insulation, a tight building envelope, and minimal thermal bridging. This results in a monthly electricity bill of roughly $28.

Boxabl homes California is a terrific alternative for buying a property. Even if you're thinking of cashing in on a new beach house or entirely downsizing, there's no reason you can't live in your dream house today with the Boxabl homes solutions.

Forums like BiggerPockets and social media sites like Instagram can be vital for finding driven individuals whose message resonates with you, before reaching out to them to see if they would be willing to give you guidance within the industry. It is important that you not think of yourself as ‘looking for a mentor’ in the most general sense, but looking for someone whose work and passion meshes with your own.

Before you contact them, however, be sure you do an inventory of what skills you have and what you can bring to or give to the mentor. The time of these big players is incredibly valuable, and so there is a need for reciprocity when they donate it to your education. If you find that you do not have the skills they need, go get those skills or otherwise plug those holes in your education before finding a mentor. In fact, it’s best to come to a mentor with an offer of how you can help them, rather than asking what they need.

Value-add plays in industrial real estate are one of the most profitable strategies in the industrial niche. Buildings that have low rents can often be bought for a low price before adding value and boosting rents by 30% or more.

Value-add plays can involve bringing dilapidated buildings back up to code, such as fixing ADA issues, sprinkler systems, and HVAC issues. However, they can also be about maximizing the available space -- limiting common areas, providing lofted structures for office spaces, or ensuring that the maximum vertical height can be used by tenants looking to engage in warehousing.

Most of the industrial square footage in the United States are owned by large corporations and huge firms working with buildings greater than 1 million square feet. However, in terms of quantity, especially at the smaller scale of 10,000 square feet or below, the vast majority of the market inventory is owned by mom and pop outfits, many of whom are beginning to age out of the business and looking for an exit sale.

Fortunately, these two distinct sub-niches of the industrial real estate market rarely interact. In general, there are large real estate firms doing cash deals for huge spaces -- and competing only with other firms of their size -- and then smaller actors operating in the 10,000 square foot or less space along more traditional real estate investing lines, which will be the kinds of properties sought out by those looking to get into industrial real estate investing.  

Though industrial real estate investing has, on average, single-digit returns on investment, its main benefit is that it has very strong fundamentals. Not only is the demand for industrial real estate rather recession-resistant (and first to recover when it is not), but the pricing by square foot rather neatly matches local supply and demand curves, unlike habitation real estate that can be pulled away from real prices by wild speculation.

Also, the current industrial real estate market -- especially for smaller properties less than 10,000 square feet -- is ripe for investment as older mom and pop owners look to sell off the properties they bought in the 1980s and 1990s, most of which have significant value-add opportunities, having seen little capital improvement since their original purchase. 

Bridge loans are geared toward buyers with great FICO scores, with lenders generally preferring to see a score of 740 or above. You also need to have significant equity in your current home, as a bridge loan can only go as high as 75% of that equity. This means that you can’t expect your current home equity of $200,000 to get you a loan higher than $150,000.

Once you qualify for a bridge loan, the whole process should be done in 30-days or less. Because it is a non-traditional loan product, lenders have an incentive to move faster because they do not see the volume of traditional FHA lenders.