I think we can all agree that too much debt is dangerous, especially when that debt is from student loans.
That’s why today I wanted to share the email exchange between a BiggerPockets member named Ford (with his permission) and myself. Ford and his wife are struggling to get started with real estate investing and facing an uphill battle due to their student loan debt.
Below I’ve posted Ford’s question, as well as my answer.
I know that Ford is not the only one in this position, so it is my hope this post can help more than just Ford. Perhaps you don’t have $180,000 in student loan debt, but perhaps you are struggling with debt, with trying to buy a house, or trying to invest in real estate with bad credit. Whatever is stopping you from achieving the success you want, let’s see if we can help you out.
(Click to read on BiggerPockets…)
P.S. looking for hard money loans in California? Be sure to check out my friends over at northcoastfinancialinc.com. They have very competitive rates, can fund within a week and specialize in fix and flip loans and other hard money loans.
Let’s talk about my “Hell House.”
I bought it for an incredibly cheap price of just $40,000. What a steal, right? Then I put about $40,000 worth of work into fixing it up and refinanced it, a strategy I call “BRRRR” (buy-rehab-rent-refinance-repeat).
And then it was all downhill from there.
You see, although I thought I was going to make a decent monthly profit on the property, the truth is: I don’t.
I lose money every single year.
Every. Single. Year.
Why?
CapEx.
The purpose of this post is to teach you what CapEx is and what you can do about it to avoid your own Hell House.
What is CapEx? (Capital Expenditures)
Everyone knows analyzing properties is important. After all, if you don’t have the right math going into an investment, you’ll never get the right profit coming out of it.
And most of us can estimate expenses like repairs, vacancy, and property management fairly easily. But the one area nearly every new investor struggles with is CapEx.
(Click to read on BiggerPockets…)
P.S. looking for hard money loans in California? Be sure to check out my friends over at northcoastfinancialinc.com. They have very competitive rates, can fund within a week and specialize in fix and flip loans and other hard money loans.
[This post originally appeared on Entrepreneur.com.]
Why do the rich keep getting richer? Most of the time, it’s not because of luck. It’s not because of the family they were born into. It’s not because they won the lottery.
Wealthy people simply do things differently.
It may not seem fair, but the fact is the “income gap” is increasing and most financial expertsonly see this trend continuing with no end in sight.
In preparation for this column, I sat down with someone who knows far more wealthy people than I will likely ever meet: Jeff Rose. Rose is a certified financial planner, author and blogger at GoodFinancialCents.com, as well as a millionaire himself, who dedicates a good portion of his time to helping people become, and stay, wealthy.
I asked Rose why he thought the income gap was growing. He mentioned five primary things that wealthy people simply do differently than the rest of the world. Here are those five, in no particular order.
(Click to read on BiggerPockets…)
P.S. looking for hard money loans in California? Be sure to check out my friends over at northcoastfinancialinc.com. They have very competitive rates, can fund within a week and specialize in fix and flip loans and other hard money loans.
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