Jonathan's Top 20 Tweets Over the Last Year
This is a look back on Jonathan’s 20 most popular and valuable tweets in the last year. We hope you find it as valuable as some others have.
1.) Dec 22, 2020
The beauty of doing a refi of your asset instead of selling is:
Keeping an asset that you know. Avoiding the risk of selling and buying another asset that may have hidden issues that you aren't able to easily foresee.
Plus, you still get a chunk of capital you can still reinvest tax-free!
2.) Jan 6
My wife once asked one of our contractors why they like working with us.
He said because we treat them as equals and with the utmost respect.
It astounds me that's not a normal way to be.
3.) Jan 21
Is it just me or do others love due diligence?
Especially when the seller hands you everything on paper. As you input into excel you can start to see crucial patterns in the data that either gives a lot more insight and/or makes the deal sweeter.
4.) Feb 9
Working on taxes for our last deal and it never ceases to amaze me the depreciation write-offs from accelerated/bonus depreciation in year 1.
Our investors will be able to offset 67% of what they put in against other income just in year 1 alone.
Now that’s magic!
5.) Feb 18
I have a constant internal struggle of am I the build a real estate empire guy or do 3/4 solid deals a year and live a pretty dam good life and help some people along the way.
I choose the latter!
For me that’s the better choice but it’s everyone’s to make. Quality of life etc.…
6.) Mar 19
Growing up my parents used to make me de trash worksites and do small painting jobs.
I learned 2 things:
1.) I have mad respect for all the laborers doing the hard work.
2.) Gave me the drive to work smart and hard to not have to be the one doing the hard labor.
7.) Mar 23
I used to think people that were depressed were weak and complainers.
Then a turn of events in my own career pushed me into a deep depression that essentially incapacitated me for a time.
The stress and mental strain that we deal with as entrepreneurs at times are immense.
Especially when it comes to Real Estate because we are dealing with large numbers.
I just feel like people don't talk about this side of things enough
I have now built the mental fortitude and technics to never go down that road again.
Every day I wake up feeling ok is already a win in my book.
#retwit is quite a supportive place for the most part where we all try to help each other out.
I just write this so that we can all remember to be more emphatic and understanding of each other. Much Love!
Couple more things I want to add to this:
What I went through has made me much stronger
You don't know what depression really is until you have been through it yourself.
8.) Apr 9
A lot of investors don't put enough attention to buildings systems electrical, plumbing, roof, etc...
The reason being it's hard to quantify value since it doesn't always directly affect rents. It becomes substantial for ongoing maintenance cost and tenant retention.
9.) Apr 19
Real Estate Professional status in the eyes of the IRS you need to put in 750 hours a year.
That equates to about 15 hrs. a week. Which is something but also doable as a side gig.
Having that status allows you to use passive losses to offset ordinary income. That's Powerful!
10.) May 9
The reasons why I have intimate proof why long-term holds are the way to go:
If we would have held even a 1/4 of SFR flips we did in LA. I would already be at a point today where I wouldn’t need to lift a finger.
This is the power!
11.) May 22
When holding real estate for the long term I like to yearly not only look at what’s my current return on the cash invested but what’s my return on the actual equity in the property.
If that number is under 4% then it may be time to make some kind of move.
12.) Jun 15
The number one reason people do not invest.
"Analysis Paralysis"
The investor over-analyzes the opportunity so much that they can't decide for fear of making the wrong decision.
At some point, you just need to take the plunge.
13.) Jul 8
The past family flip business I was a part of recently bought a 2-million-dollar fixer home in a beach community,
Off a Facebook post!
They are now getting unsolicited offers “as is” for 3 million.
Keep an open mind you never know where a home run acquisition can come from.
14.) Jul 16
The beauty of buying in a secondary market where rents are lower is we are usually buying at 40% of replacement cost.
Meaning the area will always be supply-constrained since it won’t make sense for developers to build.
Which translates to higher rents and an increase in value.
15.) Jul 29
We have considered flying some of our guys from LA to Oklahoma to do certain jobs.
Not because they would necessarily be the cheapest option but because we have confidence, they can get it done on time and the way we like.
That's worth money.
16.) Sep 16
This is your reminder that you do not need to build an empire.
Either work somewhere or build something that allows you to live the life you want to live.
I think we need a lot less than society pressures us to think we need. I guarantee most of us will be happier that way.
17.) Sep 29
I try to tell everyone what we are looking for.
Even our banker is sending us leads and contacts to brokers.
now I got my attorneys looking for us...ha-ha!
18.) Oct 14
The old office we converted back into a 1-bed rentable unit. It was just completed, leased and the tenant moved in.
I know nothing fancy.
$650 x 12 = $7800 yearly rent
$7800/ $6500 Rehab = 120% ROI
$7800/ 6% cap rate = $130,000 in added value
Now That’s Fancy!
19.) Oct 20
Beating projections by 163% for the 3rd quarter for our first OKC apartment and by 86% overall since owning just over a year now.
Achieving an 8.2% cash-on-cash return in the first year for our investors. With plenty of cash left in reserve.
20.) Oct 23
Just did my second LP investment.
1.) It’s a good way for me to invest in other places without having to figure it all out
2.) It's a good way for me to get a more inside look at how others do things.
3.) Just been with friends I like to support.
4.) Helps me relate to our LP's
We hope you found these posts useful. Please follow Jonathan @Jb2investments to view his daily posts.