I just sold my 1st new construction project for $2.01M.
👇🏽‼️HERE ARE THE TOP 13 LINE ITEM EXPENSES:‼️👇🏽
But First, Some Specs:
- 4,440 square feet
- 5 beds, 4 full baths, 2 half baths
- Lot Size: 50x160
- Foundation: 25x 60
- 4 stories (incl. finished basement & attic)
I just reviewed our family's total income and expenses for 2023.
I need emotional support.
We make good money, but we spend like $ is going out of style.
If anyone with a Spouse & 2 kids (in daycare) in HCOL area wants to compare notes, DMs are open.
One of my private money lenders said something that changed the way I look at passive income forever.
He lent me $90K @ 10% Simple Interest for 12 months.
I pay him $750/mo
He said, “Right now you’re only paying for our cars, but dont worry - soon you’ll be paying our property
@barstoolsports
what an eloquent young man. being the voice of a group doing that good work is tough. he performed brilliantly. hats off to all the kids that banded together.
@SaveYourSons
Rule I live by: Never let go first. Hugs. Holding hands. Consoling. Etc.
Always wait for my kids to basically push me away lol
Ill never let go first
I just sold my 1st new construction project for $2.01M.
Thinking about doing a thread on major line item expenses.
Do the people want this?
Or is there another / better “lesson” I can share?
@fortelabs
Put your child on payroll. Pay them 12,000 per year. Shift income from your high(er) tax bracket to their 0% tax bracket. Open a custodial roth in their name. Max out contribution. Invest in Index Funds. Withdraw 100% of contributions in 18 years for Uni.
I own 7 units that have thrown off precisely $0.00 in free cashflow since I bought them back in 2020
There's also >$250K of equity there
My brain wants me to sell and repurpose, but my heart tells me to hold because the debt is irreplaceable (4% fixed for 30y)
WWYD?
My latest cosmetic flip went live today in the Queen Village neighborhood of Philadelphia.
Refinished everything: New floors, kitchen, baths, HVAC, Electricity, Plumbing.
At the risk of sounding click baity…
Do the people want the numbers?
I brought a new construction SFR deal to my mentor in 2021.
He helped me underwrite it & we came up with ~$300K in gross profit.
At the end of our session, I offered him 50% of the deal mainly because I was too afraid to go at it alone.
He looked me dead in the eye, without
Being around successful people is the greatest motivator there is.
It’s inspiring, fires you up, and forces you to dream bigger.
Don’t avoid those rooms, seek them.
We met during a summer study abroad
1st kiss in front of eiffel tower
Said goodbye and thought we would never see each other again
She called 2 weeks later. Dated long distance for ~3 years before she moved to NYC
Celebrated 10 years of marriage back in Jan ‘24
The comments on this are great 🙂
If y'all wouldn't mind dropping a comment/quote tweet of where you met your spouse & a pic - people seem interested 🤷🏻♂️
We met on hinge 🙏
Friend has a $10M debt fund
He raised all of the equity & partnered w/ 2 lawyers
They originate HML at:
- 2 points
- 12% simple
- 65% LTV
Lawyers keep the 2
Friend keeps the 12
He pays his investors an 8% coupon and pockets 4% for himself
$400K/yr in passive income
Swish
The highest income earner i know and have a good relationship with makes $100k per month.
He owns a business in food service.
I might “know” someone who makes more, but I’m unaware.
How much does the highest earner in your sphere of influence make and what do they do?
@KingJames
This tweet is getting some traction.
Want to clear the air real quick.
I am a LeBron stan x 1000
Saw him courtside last week as a bucket list item.
Got covid at the game. Totally worth the week of hell I just went thru lol.
All in all I’m really happy with the outcome of my very first new construction project.
I learned a lot and will be applying the lessons to my next one, which is under contract to close in Jan ’24.
Please consider following me to get a first row seat to all the action. 🙏
I quit my 9-5 job the day I hit $100K in savings (March 2014)
I then raised some $$$ from friends & family and opened a Franchised QSR
Over the next 3 years, I got my face ripped off by the restaurant business
Completely Zero’d out by Oct 2017
My biggest mistake ever
FINALLY awarded warrant for removal
This guest checked into our motel 5+ years ago (OG check-in date not shown)
They stopped paying the day eviction moratorium went into effect
It took 4(!) court dates and 2(!!) lawyers to evict them
Good riddance. To the guest & $38K 🫠
13/ Professional Services Fees:
- Agents: $100K on a $2M sale (5%)
- Project Manager: $75K.
- Designer: $8K
- Architect: $8K
- Surveyor / Engineer: $8K
🎉 Teamwork makes the dream work! 🎉
Pic: My Support Team - The Fam 🤌🏽
Caught a car show earlier today w the fam.
Tell me you’re a real estate investor without telling me you’re a real estate investor:
This dude wins the meme
@noahkagan
3.4% CAP... Noah. Bruh. HMU before your next placement.
Honestly kinda sucks they're waiting til Jan to hand over the keys. Tell them to speed it up so you can take the loss this year.
@ClintFiore
My kids are 4 and 2. Which lines up perfectly for when they need cars.
IF they were turning 17 and 15 today, I'd probably do a ~3-4 year lease on a Model Y and call it a day. 17yo drives it til college, 15 yo drives it til college. Return to sender.
Roast me.
@DonovanBuilds
Give a free or discounted unit to a cop and require them to bring home their patrol vehicle in the parking lot.
Did this with two units on opposite ends of a 200 unit complex and it worked wonders. Mang ppl just handed in their keys and left.
What do you all think about this facade + floorplan w/ such an emphasis on the staircase?
We're heavily leaning towards trying this in our market (which has yet to see either)
Pretty quiet street. No privacy / visibility concerns
But our house is only 40' wide
2/ Framing
Labor: $35K
Lumber: $80K
Windows & Exterior Doors: $40K
The labor # includes window & door installation
The lumber # includes interior doors, MDF trim, nails, and other misc. items
Window Package: Anderson 400 Black on Black
Pic of my daughter & me out front
@LakeShowYo
The NBA needs to treat this series as if it’s Eastern Conference.
Warriors and Lakers fans need to take half-days at work and school to make these games.
The rest of us want to watch!!!
Fk that 10P start time noise.
Cosmetic Condo-Conversion Complete
We transformed the interior of this historic (1860s) Corner-Lot Duplex in the Queen Village neighborhood of Philadelphia.
‼️Keep scrolling to see how much we spent‼️
But First, Some Specs:
- Unit 1: 4 beds, 3 ba
- Unit 2: 2 beds, 1 ba
🧵👇🏽
@BryanShankman
I cant speak for others. But its not just abt the money.
My wife and I don’t identify as SAHM or SAHD.
We prefer to be parents w meaningful careers.
Its hard to explain. Some ppl want nothing more than to SAH w their kids. Thats great.
We figured out what works for us
@ramit
This was me (not at that income level) a few years ago.
Vividly rmr scolding my wife for wanting to buy candy in the checkout line
Fucking embarrassing looking back at it
And she will never let me forget it
This shit is about to get accepted, y'all.
Send help.
Green = Convo w Agent
Blue = Convo w Partner
I'm intentionally counting my chickens before they hatch cause a big part of me is scared this is about to go my way.
@ramit
Damn these 23 yo are seeing cash flow? I gotta take a page outta their book. Im ~$50k in the hole on one of my rentals in the past 2 years alone (P&L, not BS)
I hope I don't get canceled for saying this out loud...
Whenever I build a home, I build an ultra-specific buyer avatar as early in the process as possible.
Here's what I have so far for my $3M Spec in Short Hills, NJ
- Asian Buyer (Chinese, Korean, Indian) 37.5-45yo
- 6
The guy who taught me (& continues to teach me) everything I know about developing SFR just went to market today with *another* banger.
Quick story behind my good friend, and mentor, Gabe DaSilva.
@sweatystartup
Sounds like the baker in e myth.
Biggest mistake i see ppl make: turning their enjoyable hobby into a business.
The previous owner of my crossfit gym is a games athlete since 2015
Thought ownership was natural progression. Bought in 2017.
Sold the gym at a loss last year.
One of the weirdest things in the flipping industry is the expectation that you use the agent who sold you the project as the agent to sell the finished product.
I’m sorry but if you’re selling to me at a discount, how can I also expect you to sell for me at a premium?
🤨🧐👀
True-Life: My family is part of the Patel Motel Cartel.
Over the past 2 years, we've paid >$50K in Franchise Fees.
Here's the kicker: We run at 90%+ occupancy on walk-ins alone. We're ~always closed to OTA.
Time to pull the plug & go Indy like my bros Pritesh & Michael
Just wrote a new loan to a fix-and-flip buddy
Deal Details:
- $400K Purchase
- $100K Rehab
- $650K ARV
I'm giving him $100K for down payment ($40K) and working capital ($60K).
Maturity: 6 months (min)
Rate: 20%
Return: $10K upon signing
This is as Passive as real estate gets
@realEstateTrent
In which case my answer would be:
4,499,994.99 post tax.
Place that with a few decent GP’s and live off the 8 pref (360k/yr) for the rest of my days.
Anything less is a bust for me.
1/ The Property Itself:
$525K for an existing up-down duplex.
We inherited tenants in both units.
Fortunately, they agreed to leave around the time we submitted for permits, which minimized our hold costs during the planning phase. 🙏
I just raised $75K via text
I'm working on a tool that will help me create a private money loan package in 5 minutes as opposed to 5 hours.
Link to tool in next tweet.
This podcast w
@robdyrdek
surprised the hell out of me. The “oh shit” moment happens around the 12 minute mark when he outlines his corporate structure. Really hope
@ShaanVP
and
@theSamParr
share the resources Rob sends them.
You want to finance a new construction SFR project with Hard Money?
Here’s what it costs & what it looks like:
- $995 Processing Fee
- 1 Origination Point
- 10.5% IO (as drawn)
- 24 Month Term
~35% Down + enough working capital to get to the first draw
Not for the faint
Being asset rich and cash poor is such a mind fuck.
I’m tryna enjoy today, but all my money is tied up in property and equities
Srsly considering liquidating everything & just hard money lending
2&12 on my equity >covers our current lifestyle
Somebody slap some sense into me
@moneywithkatie
My dad after the dot com bubble:
“Stock market is a scam.”
I was… 12/13 at the time
That shaped my view, until I learned about indexing and dca’ing in my late 20s
Psychology of Money talks abt this - our view on money is incredibly influenced by simply when we were born.
Project Baltimore started today. 👷♂️
This is a 4 Unit we plan to hold as a rental.
First Stop: The Basement ⛏️⛏️
We are digging down a few inches so we can (legally) add livable square footage for Unit 1
*Video and Building Plan attached
This account used to be fully funded w 12 months of burn
Then I decided to go UC on 4 new construction projects at the same time
Rice & beans for the rest of '24.
Omakase in '25.
11/ Trim
Labor: $20K
Materials: Incl. in Lumber # above
Accent walls, custom closets throughout, hanging all cabinetry
This is where I believe we really set ourselves apart from the competition.